1 xyz incorporation has a group insurance plan for its employees with life company. when setting up the…

1 xyz incorporation has a group insurance plan for its employees with life company. when setting up the plan, xyz incorporation determined that an administrative services only (aso) plan was the best solution for its group insurance plan. which statement best describes an aso plan? a. o life company funds benefit payments. b. o xyz incorporations plan is covered by provincial insurance statutes. c. o life company is the conduit for funds provided by xyz incorporation. d. o life company assumes the risks.

1 xyz incorporation has a group insurance plan for its employees with life company. when setting up the plan, xyz incorporation determined that an administrative services only (aso) plan was the best solution for its group insurance plan. which statement best describes an aso plan? a. o life company funds benefit payments. b. o xyz incorporations plan is covered by provincial insurance statutes. c. o life company is the conduit for funds provided by xyz incorporation. d. o life company assumes the risks.

Answer

Brief Explanations:

An administrative - services - only (ASO) plan is one where the employer (XYZ Incorporation in this case) funds the benefit payments and the insurance company (Life Company) only provides administrative services like claims processing. So, the insurance company is a conduit for funds provided by the employer.

Answer:

c. Life Company is the conduit for funds provided by XYZ Incorporation.