Kansas Third Party Administrator Bond Guide
If you’re applying for a third party administrator license in Kansas, 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 Kansas Department of Insurance
- Required Coverage: $20,000 or $100,000
- Premium Rate: $200 for $20k coverage, credit-based for $100,000 coverage
Learn all about the bond requirements and process in this guide.
What Is a Kansas Third Party Administrator Bond?
A Kansas 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 Kansas Department of Insurance requires this bond as part of the licensing process for third party administrators in the state.
Which Bond Amount Do I Need?
If you submit unaudited financial statements and request a hardship exemption, you can file a surety bond in lieu of audited financial statements. The bond amount must be the greater of $20,000 or 10% of funds handled for Kansas residents.
If you administer government or church insurance plans in Kansas, you need a surety bond for the greater of $100,000 or 10% of the aggregate self-funded coverage handled in all states.
How Much Do Third Party Administrator Bonds Cost in Kansas?
A $20,000 Kansas third party administrator bond costs a flat rate of $200 for $20k coverage. Or, you can save 25% by selecting a multi-year term.
The $100,000 bond costs 1–10% based on personal credit score. For example, highly qualified applicants could pay a $1,000–$1,500 premium.
Click below to buy your bond in minutes or request 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 Kansas Department of Insurance requires this bond for any business that offers administration and operational services for another company’s insurance plan such as:
- Processing claims
- Collecting premiums
- Managing benefits plans
How Do I Get My Bond?
With SuretyBonds.com, you can buy your $20,000 Kansas third party administrator bond instantly online. Just enter your information and checkout in minutes.
To get a $100,000 TPA 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. File the bond form 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 Kansas 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 Kansas Department of Insurance requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of K.S.A 40-3813.
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.
