Insured Multiple Employer Trusts (MET) are described how?

• A. Benefits are uninsured and MET is administered by a bank
• B. Benefits are insured and the MET is administered by an insurance company
• C. MET is administered by a nonprofit organization
• D. MET is administered by a government agency

Answer: (B)

In an insured MET, the risk and benefits are handled through an insurance company. The multiple employer trust pools the employers together to obtain group coverage, but the actual benefits are provided under a master policy issued by an insurer. The insurance company administers the MET, handling underwriting, premium collection, and claims processing, and it bears the policy risk. This is why the statement that benefits are insured and the MET is administered by an insurance company is the correct description.

Uninsured METs don’t have a master policy issued by an insurer, and administration isn’t handled by an insurance company; it’s often managed by other entities. Government agencies aren’t typically involved in administering METs.