Self-insurer's Claims Transfer Agreement - Michigan

Self-insurer's Claims Transfer Agreement is a legal document that was released by the Michigan Department of Labor and Economic Opportunity - a government authority operating within Michigan.

FAQ

Q: What is a self-insurer's claims transfer agreement?A: A self-insurer's claims transfer agreement is a legally binding contract between a self-insured entity and a third-party administrator, under which the self-insured entity transfers the responsibility for handling its insurance claims to the third-party administrator.

Q: What is a self-insured entity?A: A self-insured entity is an organization or employer that chooses to assume the financial risk of providing insurance coverage for its employees or members.

Q: What is a third-party administrator?A: A third-party administrator is a company or entity that is contracted by a self-insured entity to handle the administration and processing of insurance claims.

Q: Why would a self-insured entity use a claims transfer agreement?A: A self-insured entity may use a claims transfer agreement to outsource the administrative tasks associated with handling insurance claims, such as claims processing, payment, and documentation.

Q: What are the benefits of a self-insurer's claims transfer agreement?A: The benefits of a self-insurer's claims transfer agreement include cost savings, expertise in claims handling, reduced administrative burden, and improved efficiency.

Q: Are self-insured entities required to have a claims transfer agreement?A: In Michigan, self-insured entities are not required by law to have a claims transfer agreement, but it is a common practice for them to enter into such agreements.

Q: What happens if a self-insured entity does not have a claims transfer agreement?A: If a self-insured entity does not have a claims transfer agreement, it would be responsible for handling all aspects of insurance claims administration on its own.

Q: Can a self-insured entity terminate a claims transfer agreement?A: Yes, a self-insured entity has the right to terminate a claims transfer agreement with a third-party administrator, as long as the terms and conditions of the agreement allow for termination.

Q: Are there any regulations or requirements for self-insurer's claims transfer agreements in Michigan?A: There are no specific regulations or requirements governing self-insurer's claims transfer agreements in Michigan, but the agreements must comply with general contract law principles.