ASO-based self-financing plans are common among large firms because they can spread the risk of costly claims over a large number of employees and dependents.
Because ASO employers are solely responsible for plan requirements, many also set up stop-loss mechanisms.
ASOs were designed for larger companies that prefer to outsource payroll, workers’ compensation, medical benefits, and human resources functions, but also want to fund their own health care plan.
ASO insurance usually includes short-term disability, medical and dental benefits.
Traditional administrative plans are schemes in which the insurance company provides administrative services and also assumes the risk of claims.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Comprehensive loss insurance is designed to protect an employer that is self-funding its employee health plan from higher-than-expected claims payments.
A collision clause between ships is a clause in an insurance policy that states that both ship owners must share liability for a collision between ships if the wreck was due to negligence.
Share capital is the number of ordinary and preferred shares that the company has the right to issue and which are accounted for on the balance sheet as part of share capital.
Carriage and insurance paid until when the seller pays the freight and insurance to deliver the goods to the party appointed by the seller at the agreed place.
The cost of capital represents the return that a company must earn to justify the cost of a capital project such as buying new equipment or constructing a new building.
A decision support system (DSS) is a computerized system that collects and analyzes data, synthesizing them to create comprehensive information reports.