Which statement best describes Insured METs?

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

Answer: (A)

In an insured MET, the risk and the benefits are backed by an insurance company, and that same insurer handles both underwriting and plan administration. That means premiums go to the insurer, the insurer guarantees and pays benefits, and handles claims processing, eligibility, and other administrative tasks. Because the plan is insured, the financial protection rests with the insurer, not with the employer, a bank, or a government agency.

The other administration options describe different arrangements: a bank would imply a trust-like setup rather than insurance, a government agency would point to a public program, and an employer administering the plan suggests a self-funded approach where the employer bears the risk and contracts out claims processing.