Coverage written on an applicant who has been examined, and who has signed the application but has paid no premium.
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Third Party Administrator (TPA)
A firm which provides administrative services for employers and other associations having group insurance policies. The TPA, in addition to being the liaison between the employer and the insurer, is also involved with certifying eligibility, preparing reports required by the government and processing claims. TPA’s are being used more and more with the increase in employer self-funded plans.