Multiple choice

TPAs are not authorised for which of the following?

  1. To sell insurance

  2. To provide administrative services

  3. To process insurance claims

  4. To process aspects of employee benefit plans
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A third-party administrator (TPA) is an organization that processes insurance claims or certain aspects of employee benefit plans for a separate entity. The TPAs are not authorized to sell insurance but they provide administrative services to insurance companies.

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