What is a Louisiana Third Party Administrator Bond?
Get to know what this surety bond is for and how to apply for one easily!
Third-party administrators who are applying for a license are required to procure a surety bond with a sufficient amount.
The surety bond, by Section 22:3041 of the Louisiana Revised Statutes, will be the third-party administrator’s financial guarantee to the Commissioner of Insurance of the State of Louisiana. It will be conditioned that the licensee will perform the obligations in compliance with the relevant laws of the state.
If the licensed third-party administrator reneges on its contractual duties, the person who has been harmed by the act will be financially compensated through the surety bond.
What is the Third Party Administrator Bond amount?
The bond amount is $100,000.
If you have an excellent credit score, you will be eligible to pay for a very low bond premium or just 1% of the bond amount!
GET A FREE SURETY BOND QUOTE from us today to know what you need to pay!
How can I get a Third Party Administrator Bond?
To secure this type of bond, the third-party administrator license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the pre-qualification process is fulfilled, we will execute the bond and send it to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond company or agent that is authorized to conduct business in the State of Louisiana
- The surety bond should be made payable to the Commissioner of Insurance of the State of Louisiana on behalf of any person who will file a claim against the surety bond
Principal – Licensed third-party administrator
Obligee – Commissioner of Insurance of the State of Louisiana
Surety – Surety Bond Authority
- The licensed Third Party Administrator is obligated to comply with the provisions of Title 22 of the Louisiana Revised Statutes, the rules and regulations of the Louisiana Department of Insurance, and all the other relevant rules
- If the licensed Third Party Administrator violates any of the provisions resulting in damages to any policyholder of an insurer with whom the TPA contracts, the said person will be able to file a financial claim through the surety bond
Get your surety bond immediately! APPLY NOW!