In group insurance, this contract is an arrangement under which an insurer or third-party administrator handles record keeping and claim payment functions for employers sponsoring self-insured group insurance plans, who pay 5 to 10 percent of the normal premium for these services.Identify this contract.
A)Administrative services only contract
B)Stop-loss contract
C)Third-party administrators contract
D)Negotiated administrative contract
E)Third-party contract of insurance

Question

Quizplus · Accepted Answer

An Administrative Services Only (ASO) contract is where an insurer or third-party administrator provides administrative services for a self-insured group plan, including record keeping and claims processing, for a fee that is a fraction of the normal premium cost.

In Group Insurance, This Contract Is an Arrangement Under Which