Third party administrators (TPA) handle various administrative responsibilities for entities such as insurance companies where they may handle the claims process. Or for a company’s employee benefits plan handling claims such as those to retirement plans. Third party administrators can be either an individual or a business and operate on a fee-for-services basis.
Many states require the companies or individuals who administer these services for another entity to post a Third Party Administrator Bond as part of the state licensing process. This license bond is in place to guarantee their compliance with state statutes and regulations. In addition to guaranteeing compliance with the statutes and regulations, the bond also extends compensation to vulnerable parties if a third party administrator’s violation of these statutes and regulations causes damages or losses to their clients.
Goldleaf Surety has markets for the Third Party Administrator Bond. We are able to assist you with this bond in any state where it is required.