Third-Party Administrator (TPA)
Definition:
A company that manages claims on behalf of an insurance carrier.
Explanation:
TPAs are often used by insurers to handle claim administration, especially for large or complex policies. They coordinate adjusters, contractors, and payments.
Example:
If you file a claim and your paperwork is processed by an outside company rather than your insurer directly, that company is the TPA.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.