Maryland Third Party Administrator Bond Guide
If you’re applying for a third party administrator registration certificate in Maryland, 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 Maryland Insurance Administration
- Required Coverage: $5,000 or 10% of funds handled annually
- Premium Rate: $100 for up to $10,000 coverage
Learn all about the bond requirements and process in this guide.
What Is a Maryland Third Party Administrator Bond?
A Maryland 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 Maryland Insurance Administration 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 Maryland?
Maryland TPAs need bond coverage of the greater of $5,000 or 10% of funds handled annually. For bonds up to $25,000, the premium costs $10 per $1,000 of coverage with a $100 minimum.
If you need greater than $25,000 coverage, your bond will cost 1–10% of the total amount based on personal credit score.
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 Maryland Insurance Administration requires this bond for any individual or company with discretionary authority or custody of life insurance plans.
This includes activities such as:
- Processing claims
- Collecting premiums
- Managing benefits plans
Some administrators may be exempt. Verify if you need a license and bond with the Maryland Insurance Administration.
How Do I Get My Bond?
With SuretyBonds.com, you can buy your Maryland third party administrator bond instantly online for up to $25,000 coverage. Just enter your information and checkout in minutes.
Or, if your bond requires underwriting, 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 as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Maryland 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 Maryland Insurance Administration requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the bond contract and all provisions of Maryland Statutes Insurance 8-301.
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.
