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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Rating system under which a specific premium rate, rather than a manual or class rate, is assigned to each unit of exposure. ...
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Soliciting of customers for the purchasing of an insurance product. ...
Death from other than accidental means. ...
Federal legislation that established the old age survivors, disability, and health insurance (OASDHI). ...
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Insurance sold by a stock insurance company that is usually in the form of nonparticipating insurance. ...
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