Chapter 1 Module 4: Types of Insurers

Types of Insurers
Insurers can be grouped into two main types: private and government. Private insurers offer insurance to people through the individual market, while government insurance redistributes incomes to help people afford costs associated with fundamental risks.

Blanket Insurance Plans

Blanket insurance plans insure a group of individuals while they are participating in the same activity. For example, a blanket plan could insure a group of college seniors going on a class trip, or a soccer team. Blanket plans are characterized by their changing number of participants in the plan.

Administrative Services Only (ASO)

An employer may self-fund a group plan through an administrative services only (ASO) contract, where the employer provides the funding and the insurer handles all claims processing. An employer can also contract out the claims processing to a third party administrator (TPA).