Administrative Services   >   Financial Administration

Guaranteed Group Advantage

This standard financial arrangement provides the maximum financial advantages to your group and the maximum security for your group's employees. The ISTA FSP Insurance Trust keeps your group informed by providing the following reports:

1. Claims experience and expenses versus the premium collected (monthly), and
2. Any surplus credited to the school corporation's reserve account (annually) applying an annual guaranteed rate of return, and
3. Immediate credit for claims paid on a participant within the group that are reimbursed by the reinsurance carrier.

Any surplus that the group has accrued at the end of the plan year is audited. An estimated amount required to cover outstanding claims that were incurred during the plan year is subtracted from the surplus. The remaining surplus can be used to benefit your group's employees by funding additional benefits or by reducing the group's premium.

Alternate Funding Advantage

A more flexible approach, this plan enables larger groups to improve cash flow and never exceed year-to-date claim factors. Schools that select this funding option receive two monthly invoices: one for fixed costs and a second for actual paid claims. The financial stability of this arrangement works because individual claims are pooled and a cap is maintained for all non-pooled claims. A merger of claims administration and risk management makes this product the best of both worlds and may assist some larger corporations in meeting budgetary challenges.