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Texas Legislature· SB 1151Effective on 9/1/25

Relating to an insurer's responsibility to review and audit a third-party administrator, the official text

Shown verbatim: the complete text as captured from the official page posted by the Texas Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
S.B. No. 1151

AN ACT

relating to an insurer's responsibility to review and audit a

third-party administrator.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 4151.1042, Insurance

Code, is amended to read as follows:

Sec. 4151.1042. RESPONSIBILITIES OF INSURER; [SEMIANNUAL]

AUDIT AND REVIEW REQUIREMENTS.

SECTION 2. Section 4151.1042(c), Insurance Code, is amended

to read as follows:

(c) If an administrator administers benefits for more than

100 certificate holders, injured employees, plan participants, or

policyholders on behalf of an insurer, the insurer shall, at least

semiannually, conduct a review of the operations of the

administrator. At least biennially, the insurer shall conduct an

[on-site] audit of the operations of the administrator.

SECTION 3. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 1151 passed the Senate on

April 16, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1151 passed the House on

May 2, 2025, by the following vote: Yeas 123, Nays 0, one present

not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor
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