Wisconsin Third Party Administrator Bond |
AmeriPro Surety Bonds | 844-589-9732
Third Party Administrators — Wisconsin
Third party administrator businesses in Wisconsin are licensed and regulated by the state’s Commissioner of Insurance.
A condition of licensing is that the correct surety bond amount be furnished with the Department. Our agency explains and offers the Wisconsin TPA surety bond for your compliance.
Third Party Administrator Bond: Amount Required
Insurance Code 8.28 explains the amount of the Wisconsin third party administrator bond required.
The bond amount is in two categories.
The first category is the following:
If your TPA company collects money (premium) or employee contributions OR commingles money from more than one principal, then the surety bond amount required is:
- The GREATER of $25,000, OR;
- 10% of the premiums projected, and other funds your TPA company expects to handle during the fiscal year following the year in which a financial statement is submitted;
- Subject to a MAXIMUM AMOUNT of $500,000.
The second category is the following:
If your TPA company does NOT collect money on behalf of a principal AND THEREFORE maintains a separate fiduciary account for each client, then the surety bond amount required is:
- THE GREATER OF $15,000, OR;
- 5% of total amount of the claims you expect to handle during the fiscal year following the year in which a financial statement is submitted;
- Subject to a MAXIMUM AMOUNT of $250,000.
Qualifying for The WI TPA Surety Bond And the Cost
A surety bond application, and a business or personal credit score comprise the main parts for determining the premium, that is, the cost of this surety bond.
A well qualified applicant will typically pay about 1%, annually for this bond; however, amounts can vary based upon information provided in your application and the credit score. In some cases, particularly when surety bond amounts required are high ($75,000 and above) you may also be asked to provide a financial statement as a corollary to underwriting your bond.
Once issued, the bond is active for one year from the date of issuance. The Wisconsin third party administrator bond is renewed on an annual basis.
The Purpose of this Bond
The Wisconsin TPA surety bond is for the benefit of any Wisconsin consumer who is the beneficiary of an employee benefit plan.
The surety bond protects those persons from the failure of a TPA to properly administer the plan and for, if applicable, any acts of negligence or malfeasance.
AmeriPro Surety Bonds is a surety bonds-only agency. Our company provide license and permit, court, and fiduciary surety bonds throughout Wisconsin.
We also provide surety bonds nationwide.
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