What is administrative agency?

• A. The entity that performs day-to-day claims administration; it can be an independent contractor, corporation, joint powers, or the claims department of an insurance company.
• B. An agency that handles tax collection.
• C. An agency that issues licenses.
• D. An agency that reviews medical records.

Answer: (A)

An administrative agency in this context is the entity that performs day‑to‑day claims administration for the self‑insurance plan. It can be an independent contractor, a corporation, a joint powers entity, or the claims department of an insurance company. This agency handles the routine tasks of processing claims, determining benefits, paying claims, and maintaining records on behalf of the plan. It’s not about collecting taxes, issuing licenses, or reviewing medical records—those are separate functions.