Georgia Laws Life Agent Practice Test

The role of the administrator is crucial when it comes to self-insured plans, annuities, and life and health insurance policies. An administrator is typically tasked with overseeing the administration of these plans, which includes collecting fees from participants and managing claims. They serve as the operational backbone for these types of insurance programs, ensuring that all financial transactions and claims processes are properly executed.

This involves maintaining effective communication with policyholders, evaluating claims to ensure they are valid, and settling those claims in a timely manner. In contrast, brokers, agents, and underwriters have different functions. Brokers primarily sell and negotiate insurance policies on behalf of clients, agents represent insurance companies to sell their products, and underwriters assess risk and determine the terms of coverage, but do not handle the financial transactions or claims processing directly.

Hence, the administrator's role is essential for managing the operational aspects of self-insured plans and various insurance policies, which is why they are the responsible party for these activities.