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
Action by insurance companies and agents to voluntarily refrain from business conduct that is misleading, fraudulent, and in general would have adverse consequences for the purchaser of the ...
Experience as it relates to the annual costs associated with a pension plan. In calculating premiums due under a pension plan, basic assumptions must be made concerning future loss ...
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 ...
Authority that administers state laws regulating insurance and licenses insurance companies and their agents. ...
Determination that group plans offering legal services are limited to an annual tax-free benefit of $70 per employee; group plans may offer employer-provided educational assistance plans on ...
Provision of a property insurance policy which covers conditions usually present in a particular location. For example, there is an inherent risk of explosion in a flour mill. ...
Home office underwriter who evaluates risk based on probability, statistics, and medical knowledge. ...
Employee benefit plan that does not have the federal tax advantages of a qualified pension plan, in which employers receive a federal tax deduction for contributions paid into the plan on ...
Life insurance policy death benefit or cash value paid out in a series of installments, rather than in a lump sum. ...
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