Georgia Third Party Administrator Bond Guide
In Georgia, most third party administrators (TPAs) must file a surety bond for state licensure.
Bond Overview
- Purpose: To protect clients from harm caused by negligent or fraudulent TPAs
- Who Needs It: Most third party administrators operating in Georgia
- Regulating Body: The Georgia Office of Commissioner of Insurance (OCI)
- Required Coverage: The greater of $100k or 10% of annual funds handled
- Premium Rate: Credit-based, starting at 1%
Keep scrolling to learn more about the bonding process.
What Is a Georgia Third Party Administrator Bond?
This type of license and permit surety bond ensures third party administrators uphold state laws and handle client funds properly.
The Georgia OCI requires at least $100,000 bond coverage to apply for a TPA license.
How Much Bond Coverage Do I Need?
The Georgia OCI will calculate your bond amount as 10% of the funds you handle annually, with a minimum of $100,000.
For new licensees, your bond amount will be based on the total funds anticipated for the current year.
How Much Do Third Party Administrator Bonds Cost in Georgia?
Georgia third party administrator bond premiums are credit-based and start at 1% of the total bond amount. Qualified applicants typically pay just $1,000 for $100,000 coverage.
Your exact rate will vary depending on the bond amount and your financial qualifications. Apply below to get a free personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Georgia Third Party Administrator Bond Work?
A Georgia TPA bond is a legal contract between three parties:
- Principal: The third party administrator purchasing the bond
- Obligee: The Georgia Office of Commissioner of Insurance
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold Georgia Administrator Regulation 120-2-49.
If you break the bond terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Third Party Administrator Bond?
In Georgia, a third party administrator (TPA) refers to anyone who handles payments, claims or medical approvals on behalf of insurers or self-funded health plans for state residents.
Typically, all TPAs need a surety bond for licensing. However, some types of administrators are exempt from the licensing and bond requirements under GA Code § 33-23-100.
How Do I Get a Third Party Administrator Bond in Georgia?
SuretyBonds.com provides the fastest and easiest way to get a third party administrator bond. Just follow these simple steps:
- Apply Online: Select your bond amount and complete the quote request form
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via email
Upon receipt, sign and file the bond documentation with the OCI.
How Fast Can I Get My Bond?
SuretyBonds.com issues third party administrator bonds faster than any other provider. We process most bond applications same-day. Apply now to receive your free quote.
How Do I Renew My Third Party Administrator Bond?
Georgia third party administrator bonds expire annually. To renew your bond, pay your renewal invoice and submit the updated bond form to the OCI.
How to Become a Third Party Administrator in Georgia
The Georgia Office of Commissioner of Insurance regulates all third party administrators in the state. To apply for a license, submit the following documents via the online portal:
- Articles of Incorporation (if applicable)
- GA Secretary of State Certificate of Good Standing
- Any trust or shareholder agreements and all amendments
- Bylaws containing either the corporate seal or a signed certification from company officers
- A Biographical Statement and Affidavit (Form GID-052-NT), an Authorization for Release of Information (Form GID-053-NT) and a background check for all 10% or more company owners
- Funds Handling Checklist (GID-051-NT)
- A list of all accounts managed in Georgia, including NAIC company numbers, total funds handled yearly, and a breakdown of premiums and claims paid (if applicable)
- Proof of surety bond (Form GID-057-NT)
- Proof of errors and omissions insurance policy covering at least $100,000
- A list of any ownership or connections to insurance companies that offer benefits for plans you administer
- Resolution Form (Form GID-055-NT)
- Citizenship Affidavit GID-276
- A statement of establishment funds and any initial investments*
- $505 filing fee
*If you are already operating as a TPA, you must submit audited financial statements for the past two years (Form GID-056-NT)
The OCI will review and send you a decision email within 10 business days. You must submit any missing documents within 60 days of notice.
How to Renew Your License
Georgia third party administrator licenses expire annually on March 1. Complete the renewal application via the online portal and pay the $405 filing fee. You must also submit an advertising compliance certification.
