The administration and delivery of legal services under a Group Legal Plan involves certain basic methods:

A. Administrative Methods

1. Self-Administered. The sponsor of the plan may administer the plan directly or may hire a third party administrator. In either case, the following must be accomplished...

2. Legal Services Company. The sponsor would contract with a private company for consulting and administrative services to provide for legal services to members.

3. Insurance Company. The Group contracts with an insurance company to operate the program. The employer's contributions and any employee contributions pay for the insurance premiums. The insurance company receives and pays the claims. (This arrangement is not available in many states.)

4. State and Local Bar Associations. The sponsor would contract with either a State or Local Bar Association for administrative services and for delivery of the legal services.

B. Delivery of Legal Services

There are basically four methods which an organization can utilize to insure the delivery of the group legal services.

1. Staff. Attorneys may be full-time employees of the organization.

2. Open Panel. Members may select any attorney in any area.

3. Closed Panel. Selected attorneys may be chosen by the trustees or the plan adminstrator to deliver the legal services.

4. Modified-Closed. Law firms are selected throughout the geographic area covered by the company. Members may use any of the designated law firms.