Iowa third party administrator companies are regulated by the state’s Insurance Division. A requirement of Iowa TPA’s is that a surety bond is obtained based on the following:
For applicants who require a $50,000 Iowa third party administrator bond, the bond is issued immediately after completion of an application and payment of the $500 premium. For this $50,000 surety bond amount alone, there is neither a credit inquiry nor review by an underwriter; the bond is issued to you immediately.
All other surety bond amounts will require the same surety bond application, along with a credit review. If you require a particularly high surety bond amount, in addition to the application, you may be asked to provide a financial statement.
Approval for any amount above $50,000 to $1,000,000 is based upon good credit; the premium is 1% of the bond amount required.
The Iowa third party administrator bond is issued for a standard term of one year.
The option exists to prepay your bond for up to 3 years; however, before exploring that option, you may wish to consider that you will likely require a new bond amount upon the expiration of your current surety bond.
The purpose of your Iowa TPA surety bond is to serve as a financial guarantee that your business will be in compliance with all rules and statutes governing TPA in Iowa as provided by the state’s Insurance Code.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit bonds throughout Iowa. Our agency also provides surety bonds nationwide.
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