Louisiana Third Party Administrator Bond |
AmeriPro Surety Bonds | 844-589-9732
TPA Licensing – Louisiana
The Louisiana Department of Insurance is the regulatory and licensing entity for TPA’s operating in the state.
The standard bond amount required of third part administrators is a $100,000 surety bond; however, if your business is only an administrator of workers’ compensation of self insured funds, according to Louisiana Revised Statutes 23:1196 C (1), then you are allowed to purchase a bond of “not less than” $50,000.
We also offer the $150,000 surety bond and $250,000 surety bond amounts as well.
Both surety bond amounts are available from our agency.
Qualifying and the Premium for Both Surety Bond Amounts
Beginning with the $50,000 Louisiana third party administrator bond, qualifying is by completion of an application and payment of the annual premium of $500.
For the smaller surety bond amount, there is neither an underwriter review nor a credit inquiry involved. This means that once the surety application is completed and the premium paid, the bond is issued immediately.
For the $100,000 surety bond, in addition to a standard surety bond application, there is also a credit review. However, businesses which have been in existence for 3 years or longer, and who meet other guidelines, will qualify for processing without a credit inquiry. Please call us for more details.
The annual premium for the $100,000 surety bond is $1000.
For both surety bond amounts, a copy of the bond can be emailed to you, but it is only the original surety bond which may be filed with the Department of Insurance. Our agency will have this bond sent to you by the following business day after purchase. You will also need to sign the bond as Principal.
Premium Prepayment Options
Regardless of the amount, the Louisiana third party administrator bond is issued with a standard one year term. Thereafter, the bond must be renewed.
You also have the option to prepay the surety bond. Prepayment of the bond allows for greater intervals between renewals. Prepayment also provides you with a nice savings over year to year renewal of the bond premium.
The breakdowns are as follows:
– $50,000 Surety Bond Amount –
- Prepayment for 2 years, $900, a $100 savings;
- Prepayment for 3 years, $1300, a $200 savings.
– $100,000 Surety Bond Amount –
- Prepayment for 2 years, $1800, a $200 savings;
- Prepayment for 3 years, $2600, a $400 savings.
Purpose of Your Surety Bond Requirement
The third party administrator bond is a financial guarantee that you will handle all funds received accordingly to established laws and regulations. The bond protects your clients from acts of malfeasance or fraud.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout Louisiana. Our agency also provides surety bonds nationwide.
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