1. (a) Any person who collects premiums or contributions from, or who adjusts or settles claims in connection with life, health, and accident benefits or annuities for residents of this state, excluding those persons identified in the Insurance Code, Article 21.07-6, §(1)(A)-(R), or in §7.1606 of this title (relating to Exemption from Department Licensing and Regulation for Certain Administrators) of this subchapter, must apply for a license to operate as a third party administrator.
2. (b) Applications for a certificate of authority shall be made in the name of the corporation, partnership, or sole proprietor on TPA Form 2. The certificate of authority, when issued, shall extend to the officers and managers of the corporation, so long as they remain in that capacity and are qualified to act as an officer or manager of that corporate TPA; to each of the partners of the partnership so long as they remain in that capacity and are qualified to act as a partner of that partnership TPA; and to the sole proprietor of such sole proprietor TPA. The certificate of authority when issued shall not extend to any employees, agents, or subcontractors of the applicant.
3. (c) A certificate of authority issued to an administrator under the Insurance Code, Article 21.07-5 (repealed 71st Legislature, 1989) has the same effect as a certificate of authority issued under the Insurance Code, Article 21.07-6. The administrator is still subject to the provisions of the Insurance Code, Article 21.07-6. An administrator that has submitted all or part of the documents required for the application of a certificate of authority under the Insurance Code, Article 21.07-5, can be required to submit only those documents needed to make the application administratively complete.
4. (d) If items required under this subchapter for application for a certificate of authority are absent, or deemed insufficient by the commissioner, the commissioner shall notify the applicant and the applicant shall be given a reasonable time to correct said deficiencies. If, after the reasonable time has expired the deficiencies have not been corrected, the commissioner will notify the applicant by letter that, if the applicant does not request an opportunity for a hearing, the commissioner will withdraw the application without prejudice.
5. (e) Applicants may request in writing to the commissioner that their application be withdrawn from the consideration process. This request must be made prior to the issuance or denial of a certificate of authority. However, when requesting withdrawal of an application, an applicant must not have operated or be operating as an administrator under the Insurance Code, Article 21.07-6, in this state. In the event an application is withdrawn or denied, any fees submitted with the application will not be refunded. After a withdrawal and prior to commencing any administrator activities in this state, applicants must submit a new application with appropriate fees.

Source Note:The provisions of this §7.1603 adopted to be effective September 14, 1994, 19 TexReg 6855.