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
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Insurance contract that cannot be cancelled by the insurance company. Since the insurance policy is a UNILATERAL CONTRACT instead of a BILATERAL CONTRACT, the INSURED may cancel at will. ...
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Clause in an insurance policy that describes the administration and submission of claims procedure. ...
Funds set aside by an insurance company to pay incurred losses which have not yet been paid. ...
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