is a big difference between being self-funded and self-insured. Benicomp,
Inc. does not recommend becoming self-insured. Under a self-insured
plan, the employer is responsible for all claims filed under the
plan. Under a self-funded plan, the employer pays employee benefit
claims only up to a predetermined level. Stop loss insurance is obtained
to cover claims that exceed the actuarially anticipated claim levels.
Specific stop loss insurance protects the plan against an individual
catastrophic claim. Aggregate stop loss insurance protects the plan
against total claims exceeding a given amount on the entire covered
group, thus limiting overall claim cost exposure to a predetermined
level. Benicomp, Inc. only represents stop-loss carriers that have
met high quality standards for financial ratings, stability, claim
payment and renewal practices.