Iowa Third Party Administrator Bond Guide
If you’re applying for a TPA certificate of registration in Iowa, 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 self-insured plans
- Regulating Body: The Insurance Division of Iowa
- Required Coverage: $50,000–$1,000,000
- Premium Rate: 1–5% based on credit score
Learn all about the bond requirements and process in this guide.
What Is an Iowa Third Party Administrator Bond?
A Iowa third party administrator bond ensures insurance administrators comply with laws and industry regulations. It protects organizations from financial harm if a third-party administrator (TPA) commits theft, fraud or acts unethically.
The Insurance Division of Iowa 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 Iowa?
Iowa third party administrator bonds cost a small percentage of the bond amount, typically 1–5% 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 Insurance Division of Iowa requires this bond for any business that collects insurance premiums for life and health coverage and/or annuities. TPAs can also adjust or settle insurance claims.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get an Iowa 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 mail you the bond via your preferred shipping method. Be sure to file the bond online through the National Insurance Producer Registry (NIPR).
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does an Iowa TPA 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 Insurance Division of Iowa requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of Iowa Administrative Code 191—58.3.
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.
