What Is the Purpose of Stop-Loss Insurance That Is Used

question 15

Multiple Choice

What is the purpose of stop-loss insurance that is used with self-insured group medical expense plans?

• A)to require employees to buy insurance for losses in excess of some specified amount
• B)to have a commercial insurer pay claims that exceed a specified limit
• C)to obtain administrative services from a commercial insurer
• D)to exempt self-insured plans from state insurance laws that require mandated benefits

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Definitions:

Federal And Provincial Regulations

Laws and rules enforced at both the national (federal) and regional (provincial) levels of government.

Businesses

Organizations or enterprising entities engaged in commercial, industrial, or professional activities, aiming to generate profits.

Tax Court Of Canada

A federal court that hears and resolves disputes between taxpayers and the Canada Revenue Agency regarding tax assessments and interpretations of tax laws.

Superior Court

A high-level court in many jurisdictions that typically handles major civil and criminal cases.