Idaho Third Party Administrator Bond Guide
If you’re applying for a third party administrator license in Idaho, 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 Idaho Department of Insurance
- Required Coverage: Varies, $1,000–$200,000
- Premium Rate: Starts at $100, varies based on amount and credit score
Learn all about the bond requirements and process in this guide.
What Is an Idaho Third Party Administrator Bond?
An Idaho 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 Idaho Department of Insurance requires this bond as part of the licensing process for third party administrators in the state.
Which Bond Coverage Do I Need?
If you submit unaudited financial statements for your registration, you’ll also need a surety bond for $20,000 or 10% of total funds handled, whichever is greater.
Or, if you specifically handle self-funded health insurance plans, you’ll need a minimum $100,000 surety bond or 10% of collected contributions.
How Much Do Third Party Administrator Bonds Cost in Idaho?
Idaho third party administrator bonds for up to $50,000 in coverage cost a flat rate of $10 per $1,000, with a $100 minimum.
If you need a bond greater than $50,000, you’ll need to apply for a personalized quote. Underwriters will do a soft credit pull to determine your premium. Typically rates are 1–10% of the total bond amount.
Click below to buy your bond in minutes or apply for a free quote!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Third Party Administrator Bond?
The Idaho Department of Insurance requires this bond for most businesses that offers administration services for another company’s insurance plan such as:
- Processing claims
- Collecting premiums
- Managing benefits plans
Some parties are exempt under state statutes. Verify if you need a bond with the Department.
How Do I Get My Bond?
With SuretyBonds.com, you can buy your Idaho third party administrator bond for up to $50,000 coverage instantly online. Just enter your information and checkout in minutes.
If you need a larger bond, follow these quick steps instead:
- 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 with the Idaho Department of Insurance as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does an Idaho 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 Idaho Department of Insurance requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding Title 41, Section 911 of the Idaho Insurance Code.
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.
