A recent Indiana Department of Insurance Bulletin announces a change regarding how the Department will issue initial third party administrator licenses and renew existing licenses for nonresident third party administrators in Indiana. The change came on March 2 when Indiana Insurance Commissioner Stephen Robertson issued Bulletin 236.

Under IC 27-1-25-12.2, a nonresident administrator is not eligible for a nonresident administrator license unless the nonresident administrator is licensed as a resident administrator in a home state that has TPA laws or regulations that are substantially similar to Indiana's TPA law.

The Department conducted a review of all TPA laws in the U.S. to determine which states' TPA laws are substantially similar to Indiana's TPA laws pursuant to IC 27-1-25. As a result of its review, the Department has concluded that only the following eight states have TPA laws that are substantially similar to Indiana's:

• Alaska

• Delaware

• Florida

• Idaho

• Missouri

• New Hampshire

• New Jersey

• West Virginia

Bulletin 236 indicates that a TPA applying for a nonresident TPA license in Indiana must provide a certificate of good standing from one of these eight states verifying that the TPA holds a resident TPA license in one of these eight states.

Bulletin 236 goes on to provide that if a TPA is not incorporated or does not maintain its principal place of business in one of these eight states, the TPA may either: (1) Declare Indiana as its "home state" and apply for a resident Indiana administrator license, or (2) Declare one of the eight states as its "home state," obtain a resident TPA license in that state, and apply for an Indiana nonresident administrator license.

Finally, Bulletin 236 indicates that as of July 1, 2017, the Department will not renew administrator licenses for nonresident administrators holding resident "home state" licenses in states other than the above-listed eight states. The Department will consider exceptions to this requirement for no more than one renewal and upon request from a nonresident administrator with good cause shown to the Department.