An individual or business entity that chooses to operate in Utah must provide the Insurance Commissioner a Utah third party administrator bond. A third party administrator, or “TPA” defined by Utah stature is a person who collects charges or premiums from or for consideration, adjusts or settles claims of residents of the state in connection with insurance coverage, annuities, or service insurance coverage. Code Section 31A-25-203 requires licensing and a TPA bond. The third party administrator bond must be in an amount no less than ten percent of the total funds handled by the administrator, with a maximum of $500,000. The surety bond obligation guarantees that the TPA will honestly and faithfully fulfill all legal duties and properly account for all funds under its control as a Third Party Administrator, pay any judgment obtained by or in favor of participants in or beneficiaries of plans administered by the TPA which arise from the negligence or culpable acts of principal or any employee or agent of principal in connection with its activities as a licensee. Surety One, Inc., will issue these for experienced applicants regardless of the principal’s credit condition. We also offer superlative fidelity bond coverages to protect against losses due to employee dishonesty. Visit the nation’s surety leader at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a Utah third party administrator bond application or information about any TPA bond need in any state.
