Utah Third Party Administrator Surety Bond (UT TPA Bond)

Communicate With UsIM or Email

Bond Penalty: Ten percent (10%) of funds administrated, max. $500,000

Pursuant to Utah Code Section 31a-25-205, every licensee must file and maintain a Utah third party administrator bond to meet the financial responsibility requirements of the same. Because a TPA acts as a fiduciary, insurance or a surety bond that guarantees the administrator's faithful management of funds coming under its control is emperative.

The Utah TPA surety bond must be issued by a surety company licensed to conduct surety business in the state. The surety bond penalty is fixed by a statutory formula, i.e.,

(2)(a), . . . surety bonds satisfying the requirement of Subsection (1) shall be in a face amount equal to: (i) at least the greater of: (A) 10% of the total funds handled by the administrator; or (B) $5,000; and (ii) may not exceed $500,000. (b) In fixing the policy or bond face amount under Subsection (2)(a), the total funds handled is: (i) the greater of: (A) the premiums received during the previous calendar year; or (B) claims paid through the administrator during the previous calendar year;

The Utah third party administrator bond guarantees that the licensee will comply with all requirements as set forth in the Utah Insurance Code, any regulations issued by the Insurance Commissioner of the State of Utah, honestly and faithfully fulfill all contractual obligations and properly account for all funds under its control as a Third Party Administrator. The TPA bond also obligates the TPA to satisfy any judgment obtained by or in favor of participants in or beneficiaries of plans administered by the TPA due to the negligence or culpable acts of the same. Application materials and the surety bond, as well any inquiries should be submitted to:

Utah Department of Insurance
Attn.: TPA Licensing
4315 S. 2700 West, Suite 2300
Taylorsville, UT 84129

Utah surety leader, Surety One, Inc. is a specialist in the bonding needs third party administrators, managing general agents and all insurance professionals. We offer both surety and fidelity bonds needed by these business classes in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at SuretyOne.com, call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here to discuss your Utah third party administrator surety bond application or any other surety bonding need.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

What We Need From You

Additional Attachments

  • Current Business Financial Statement