Self Insurance - Revision history

Quidam65 at 23:53, March 24, 2019

2019-03-24T23:53:01Z

DavidB4-bot: /* top */Spelling/Grammar Check, typos fixed: self insurance → self-insurance (2)

2016-08-22T12:53:08Z

top: Spelling/Grammar Check, typos fixed: self insurance → self-insurance (2)

Masterbratac: bolding title, sp, undeadend

2007-10-15T13:25:44Z

bolding title, sp, undeadend

TraJSmith: New page: Self Insurance describes a decision, normally by a corporation, not to insure a particular risk. Put another way, self insurance means no insurance. For example, a company may make a dec...

2007-09-07T03:03:37Z

New page: Self Insurance describes a decision, normally by a corporation, not to insure a particular risk. Put another way, self insurance means no insurance. For example, a company may make a dec...

New page

Self Insurance describes a decision, normally by a corporation, not to insure a particular risk. Put another way, self insurance means no insurance.

For example, a company may make a decision not to insure for collision damage for company owned vehicles. In such a situation an analysis was probably done that paying for individual collision damage as it occurs is less expensive than buying an insurance policy to cover it.

For example, a company may determine that its annual collision damage on company owned vehicles is $120,000 but the insurance to cover this risk costs $130,000. The decision is then made to self insure. Normally, a company would accrue $10,000 per month for self insurance for collision damage. In the US, such an accrual would not be deductible for tax purposes, although the actual damages paid for would be.

Companies may also self-insure their health insurance plans for employees. Uusually, they will use a Third Party Administrator or TPA to administer the claim administration for such a plan. The company will also purchase a "stop loss" whereby an insurance policy will cover claims above a certain amount for either an individual's claims or total claims for the company.

[[Category:Business]]
[[Category:Finance]]

@@ Line 1: / Line 1: @@
 '''Self Insurance''' describes a decision, normally by a [[corporation]], not to insure a particular [[risk]].  Put another way, self-insurance means no insurance.
-For example, a company may make a decision not to insure for collision damage for company owned vehicles.  In such a situation an analysis was probably done that paying for individual collision damage as it occurs is less expensive than buying an insurance policy to cover it.
+For example, a company may make a decision not to insure for collision damage for company owned vehicles.  It may determine that its annual collision damage on company owned vehicles is $120,000, but the insurance to cover this risk costs $130,000.  The decision is then made to self insure.  Normally, a company would accrue $10,000 per month for self-insurance for collision damage.  In the US, such an accrual would not be deductible for tax purposes, although the actual damages paid for would be.
-For example, a company may determine that its annual collision damage on company owned vehicles is $120,000 but the insurance to cover this risk costs $130,000.  The decision is then made to self insure.  Normally, a company would accrue $10,000 per month for self-insurance for collision damage.  In the US, such an accrual would not be deductible for tax purposes, although the actual damages paid for would be.
+Companies may also self-insure their health insurance plans for employees.  Usually, they will use a "third party administrator" to administer the claim administration for such a plan, paying only for claims approved plus a fee to the administrator.  To cover major medical expenses (such as an organ transplant) the company would also purchase a "stop loss" policy, whereby the policy will cover claims above a certain amount (for either an individual's claims or total claims for the company).
 [[Category:Business]]
 [[Category:Finance]]

@@ Line 1: / Line 1: @@
-'''Self Insurance''' describes a decision, normally by a [[corporation]], not to insure a particular [[risk]].  Put another way, self insurance means no insurance.
+'''Self Insurance''' describes a decision, normally by a [[corporation]], not to insure a particular [[risk]].  Put another way, self-insurance means no insurance.
 For example, a company may make a decision not to insure for collision damage for company owned vehicles.  In such a situation an analysis was probably done that paying for individual collision damage as it occurs is less expensive than buying an insurance policy to cover it.
-For example, a company may determine that its annual collision damage on company owned vehicles is $120,000 but the insurance to cover this risk costs $130,000.  The decision is then made to self insure.  Normally, a company would accrue $10,000 per month for self insurance for collision damage.  In the US, such an accrual would not be deductible for tax purposes, although the actual damages paid for would be.
+For example, a company may determine that its annual collision damage on company owned vehicles is $120,000 but the insurance to cover this risk costs $130,000.  The decision is then made to self insure.  Normally, a company would accrue $10,000 per month for self-insurance for collision damage.  In the US, such an accrual would not be deductible for tax purposes, although the actual damages paid for would be.
 Companies may also self-insure their health insurance plans for employees.  Usually, they will use a Third Party Administrator or TPA to administer the claim administration for such a plan.  The company will also purchase a "stop loss" whereby an insurance policy will cover claims above a certain amount for either an individual's claims or total claims for the company.