Turner Company self-insures its group life and group health insurance plans.Turner entered into an agreement with ABC Insurance through which ABC handles the plan design,claims processing,and record keeping for Turner.The agreement between Turner and ABC is called a(n)

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The agreement described is an administrative services only (ASO) contract, as it outlines that Turner self-insures its group life and group health insurance plans and has outsourced the administration of these plans to ABC Insurance. ABC is responsible for tasks such as plan design, claims processing, and record keeping, but Turner is ultimately responsible for funding the plans and assuming the risk. ASO contracts are common in self-insured arrangements, as they allow the company to benefit from the expertise and resources of an insurance company without transferring the risk completely.

Turner Company Self-Insures Its Group Life and Group Health Insurance