Connecticut Third Party Administrator Bond Guide
If you’re applying for a third party administrator license in Connecticut, you’ll likely need this surety bond.
Bond Overview
- Purpose: To protect insurance plan beneficiaries from potential fraud or theft
- Who Needs It: Outsourced administrative service providers for company insurance plans
- Regulating Body: The Connecticut Insurance Department
- Required Coverage: $500,000
- Premium Rate: 1–10% based on credit score
Learn all about the bond requirements and process in this guide.
What Is a Connecticut Third Party Administrator Bond?
A Connecticut third party administrator (TPA) bond ensures insurance administrators comply with laws and industry regulations. It protects organizations from financial harm if a TPA commits theft, fraud or acts unethically.
The Connecticut Insurance Department requires this bond as part of the licensing process for third party administrators in the state.
How Much Do Third Party Administrator Bonds Cost in Connecticut?
Connecticut third party administrator bonds cost a small percentage of the bond amount, typically 1–10% based on credit score.
Exact rates vary based on personal credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Third Party Administrator Bond?
The Connecticut Insurance Department requires either two years of audited financial statements or a $500,000 surety bond for any business that offers administration and operational services for employee insurance and benefits plans.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a Connecticut third party administrator bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll email you the bond shortly after purchase. Be sure to file the bond online through NIPR along with your license application.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Connecticut Third Party Administrator Bond Work?
As with all surety bonds, a third party administrator bond creates a legal contract between three parties:
- Principal: You, the third party administrator filing the bond
- Obligee: The Connecticut Insurance Department requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of Connecticut Public Act 11-58 § 30.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your third party administrator bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
