§ 58‑47‑180.  Premium collection and payment of claims.

(a) The TPA or service company, at a minimum, shall:

(1) Periodically render an accounting to the self‑insurer detailing all transactions performed by the TPA or service company pertaining to the business underwritten, premium or other charges collected, and claims paid by the self‑insurer, when applicable.

(2) Deposit all receipts directly into an account maintained in the name of the self‑insurer.

(3) Pay claims on drafts or checks of and authorized by the self‑insurer.

(4) Not withdraw from the self‑insurer's account except for authority limited to pay claims and refund premiums.

(5) Remit return premium, directly from the self‑insurer's account, to the person entitled to the return premium.

(b) Any check disbursement authority granted to the TPA or service company may be terminated upon the self‑insurer's written notice to the TPA or service company or upon termination of the agreement. The self‑insurer may suspend the check disbursement authority during the pendency of any dispute regarding the cause for termination. (1997‑362, s. 3.)