The Oklahoma Department of Insurance (OID) is the regulatory body which licenses and regulated third party administrator business in the state.
A condition of licensing is that according to Chapter 36 O.S. §1448, found around approximately page 14, you obtain a surety bond that will be based upon premium collected or claims paid, whichever amount is greater, in the previous calendar year. The minimum amount is $10,000.
Meeting the surety bond requirement with our agency will be the quickest part of your licensing process. We anticipate that from start to finish the process will typically take about 8-10 minutes.
All applicants are automatically and immediately approved for the Oklahoma third party administrator bond. This is because after an application and payment of the premium, the bond is issued to you immediately.
What this means in the practical order for you is that our agency offers this bond without the delay which comes with a credit inquiry and an underwriter review found in many surety bond. The amount of surety required is 1% of the bond’s amount. The third party administrator bond is an “instant issue” bond.
The amount of surety you are required to purchase is currently as follows, based on the greater amount of premiums or claims:
The TPA surety bond therefore is a minimum of $10,000 and a maximum $40,000 surety bond.
Once issue the bond a copy of your TPA administrator bond can be sent by email. The original surety bond, which you will also sign as Principal, will be mailed to you by the following business day.
It is the original surety bond that you will want to file with the OID.
Our agency also offers you the ability to prepay the premium for up to 2 or 3 years. Typically, we would recommend a premium prepayment for the larger amounts. Prepayment of the premium does two things: One, it increases the length between bond renewals (your bond is issued with a standard one year term); two, it offers you a savings over year to year renewal of the premium.
We will be happy to discuss this in further detail when you call.
The purpose of the OK TPA administrator bond is a financial guarantee that you will act in a proper professional and fiduciary capacity as a third party administrator. While required of you, the bond is for the benefit of any client or customer who suffers harm as the result of negligence, fraud, or malfeasance in the administration of funds received.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit bonds throughout Oklahoma.
Our agency also provides surety bonds nationwide.
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