Third Party: Administration
Definition of "Third party: administration"
Performance of managerial and clerical functions related to an employee benefit insurance plan by an individual or committee that is not an original party to the benefit plan. In selecting a Third Party Administration (TPA), the following factors should be taken into consideration: Has the TPA been operating on a profitable basis? Does the TPA have a long operating record? What percentage of the TPA's total business will your companies business comprise? Does the TPA have the technical capacity (for example, sophisticated computer operations) to adequately service its acquired business? Are current and former clients of the TPA positive about that TPA? Are the employees of the TPA technically competent and committed to providing effective and efficient services?
Popular Insurance Terms
Subtraction of a number of years from a standard table of life insurance rates under the assumption that a particular group-women-outlive men and presumably will be paying premiums for a ...
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Insurance company that does not utilize the rates and policies of a rating bureau. ...
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Summary certificate of benefits issued to an employee in lieu of a policy. The master contract remains with the employer. For example, in group life insurance, an employee receives only a ...
Presence of other contract (s) covering the same conditions. When more than one policy covers the exposure, each policy will pay an equal share of the loss. ...
Recording and presentation of financial statements, such as the annual statement, by the insurance company. Financial reporting statements are used by the State Insurance Commissioner in ...
Payment of that portion of the annual premium by the employee necessary to cover the PS-58 cost for that given year. Any unpaid premium balance for that particular year is paid by the ...
Specific powers that a prospective insured believes the insurance company has granted to its agent. For example, if the insurance company has furnished the agent a rate book, application ...
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