Minnesota Third Party Administrator Bond |
AmeriPro Surety Bonds | 844-589-9732
Third Party Administrators – Minnesota
Third party administrators in Minnesota (TPA’s) are licensed by the state’s Department of Commerce. The licensing provided by the state is for a period of 3 years, with a $1500 fee. The $1500 fee amount renews each new licensing period.
New/first time applicants have the option to apply online for licensing; renewal applicants do not.
The surety bond required of third party administrators is a formula based on how your business handles funds received; and AmeriPro Surety Bonds offers you the bond amount required for filing and compliance.
Minnesota Third Party Administrator Bond: Two Categories
Whether your Minnesota third party administrator business commingles or does not commingle funds will determine the category and amount of surety required.
If you do commingle funds, then:
- The amount of the surety bond required will be the average of all of your company trust accounts, or $250,000, whichever amount is greater. Therefore, $250,000 is the minimum amount required. The maximum amount required is $2,000,000.
If you do not commingle funds, then:
- The amount of the surety bond required will be the average daily balance of all of your fiduciary accounts or your claims-paying accounts, or $100,000, whichever amount is greater. Therefore, $100,000 is the minimum amount required. The maximum amount required is $1,000,000.
Qualifying for the Third Party Administrator Bond and the Premium
Qualifying for the Minnesota third party administrator bond is done by means of an application and a standard business or personal credit check.
For TPA businesses which are “established” (in business for at least 3 years) and who meet other requirements — up to $250,000 surety bond — our agency offers the potential to have streamlined processing which allows for quicker processing of your application and bond.
Otherwise, there is the standard underwriting required for your bond. You may also be asked to produce a financial statement, especially for TPA surety bonds with higher dollar amounts.
The premium required will typically be between 1% – 1.5% of the bond amount.
The Purpose of this Surety Bond
The Minnesota third party administrator bond is a financial guarantee which ensures your compliance with all statutes regarding TPA business conduct, but particularly Minnesota Statutes § 60A.23, Subdivision 8, and any amendments or additions to this law.
AmeriPro Surety Bonds provides TPA surety bonds in Minnesota. We also provide license and permit, some court, and fiduciary bonds nationwide.
Please call our agency today at: 844-589-9732
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