Third Party Administrator (Life/Health)

WHAT IS A THIRD-PARTY (LIFE & HEALTH) ADMINISTRATOR?

A third-party administrator ("TPA") collects money or processes claims for residents of Arizona in connection with life or health insurance coverage.  Arizona Revised Statutes ("ARS") § 20-485 provides a full definition, including the types of entities that are not considered TPAs.

WHO MUST BE LICENSED?

Arizona law does not distinguished between TPAs that are organized within Arizona from TPAs organized in other states.  The entity must be formed or registered with the Arizona Corporation Commission (www.cc.state.az.us) and registered by the Arizona Department of Insurance (unless exempt from registration requirements).

If you believe you meet the definition of a TPA (see "WHAT IS A THIRD-PARTY (LIFE/HEALTH) ADMINISTRATOR," above), review the entities listed in ARS § 20-485(A)(1) to determine whether you might be excluded from TPA registration requirements. 

  • If you are adjusting property and casualty claims, you need to be licensed as an adjuster (click here for requirements).
  • If you are administering workers compensation claims, contact the Industrial Commission of Arizona.
  • If you are a motor vehicle service contract administrator, Arizona does not have a licensing/registration requirement, but you or the insurer must file motor vehicle service contracts with the Department, and you or the insurer must post a surety bond with the Department's Property and Casualty Division. ARS § 20-1095.06
  • Arizona does not have jurisdiction (and no license is required) if you are only administering ERISA plans (a self-insured program operated by a single employer for the benefit of its employees or the employees of a wholly-owned subsidiary).
Related Terms: 
TPA Renewal Application Checklist

Due Date:  March 1. 

You may submit your renewal application after January 1, but the renewal application must be received by the Department of Insurance by March 1. 

TPA Application Instructions
TPA Application Requirements/Process

Arizona law requires Life and Health Administrators operating in this state to be registered with the Arizona Department of Insurance, unless they are exempt by statute (A.R.S. §20-485.12 et seq.).  Life and Health Administrators are more commonly referred to as third party administrators (TPA).

There is not a separate application procedure for resident versus non-resident TPA applicants in Arizona.  One application process applies to both.

Form 100: TPA Application

Must be completed, verified and notarized by an officer of the applicant.

Form 100.A: TPA Application Addendum

Identifies the type(s) of services the administrator will provide.

Form E110(L-H): Biographical Affidavit

Must be completed by each partner, officer, and director, and each other individual owning 10% or more of the applicant.  ARS § 20-485.12(B)(5)

Form 111: TPA Financial Statement

Must be certified by two officers of the applicant.  Must be current within 90 days of application filing date.  ARS § 20-485.12(B)(1)(a) and (b)

Form L157: TPA Bond of Administrator

Face amount must equal the greater of either (A) 10% of total funds handled for life and health coverage of Arizona residents, or (B) $5,000. Funds handled includes premiums collected for and/or claims paid on behalf of an insurer.  Submit with power of attorney. ARS § 20-485.10

Life and Health Administrator (TPA) Arizona Requirements