(a) An administrator may not enter into an agreement or understanding with an insurer in which the effect is to make the amount of the administrator's commissions, fees or charges contingent upon savings effected in the adjustment, settlement and payment of losses covered by the insurer's obligations. This provision shall not prohibit an administrator from receiving performance-based compensation for providing hospital or other auditing services.
(b) This section shall not prevent the compensation of an administrator from being based on premiums or charges collected or the number of claims paid or processed.
Structure West Virginia Code
Article 46. Third-Party Administrator Act
§33-46-3. Written Agreement Necessary
§33-46-4. Payment to Administrator
§33-46-5. Maintenance of Information
§33-46-6. Approval of Advertising
§33-46-7. Responsibilities of the Insurer
§33-46-8. Premium Collection and Payment of Claims
§33-46-9. Compensation to the Administrator
§33-46-10. Notice to Covered Individuals; Disclosure of Charges and Fees
§33-46-11. Delivery of Materials to Covered Individuals
§33-46-12. Home State Certificate of Authority or License
§33-46-13. Registration Requirement
§33-46-14. Nonresident Administrator
§33-46-16. Annual Report and Filing Fee
§33-46-17. Grounds for Denial, Suspension or Revocation of License
§33-46-18. Exemption for Administrators of Public Health Programs