Write a Note on Stop-Loss Insurance and Its Types

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The Answer is For a self-insured group insurance, the employer may purchase stop-loss insurance from the same or another insurer through the third-party administrators for protection against unexpectedly high claims. Stop-loss coverage is a form of reinsurance or excess insurance for self-insured plans.
The two basic forms of coverage are specific stop loss, in which a limit is set per claim, and aggregate stop loss, in which a limit is set for the total claims in a year. The insurer reimburses the employer for claim amounts above the limit, also called the attachment point.
Purchase of an administrative services only contract and stop-loss insurance gives the employer the potential cash flow and expense advantage of self-funding, while reducing the employer's administrative burden and potential for catastrophic risk.

Write a Note on Stop-Loss Insurance and Its Types

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