Minnesota Third Party Administrator Bond Guide
In Minnesota, third party insurance plan administrators need a surety bond to be licensed. Scroll to learn more about the bonding process.
Bond Overview
- Purpose: To ensure third party administrators operate legally
- Who Needs It: Third party administrators (TPAs) in Minnesota
- Regulating Body: The Minnesota Department of Commerce
- Required Coverage: $1,000–$100,000
- Premium Rate: Credit-based, 0.5-10% of the bond amount
What Is a Minnesota Third Party Administrator Bond?
The Minnesota Department of Commerce requires a TPA bond for licensing. This bond is a financial guarantee that protects clients from losses, theft, dishonesty, forgery and alterations.
What Bond Amount Do I Need?
Your Minnesota TPA bond coverage requirement will vary based on if you commingle funds in your fiduciary account or claims-paying account.
| Administrator Not Commingling Funds | Administrator Commingling Funds |
|---|---|
| Average daily balance of all trust accounts, or $100,000, whichever is greater | Average daily balance of all trust accounts, or $250,000, whichever is greater |
How Much Do TPA Bonds Cost in Minnesota?
Minnesota TPA bonds typically cost 0.5–10% of the required bond amount based on credit score. For example, qualified applicants often pay just $500–$1,000 for $100,000 bond coverage.
If you need a bond amount greater than $100,000, call 1 (800) 308-4358 for assistance with your quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Minnesota Third Party Administrator Bond Work?
A third party administrator bond creates a legal agreement between three parties:
- Principal: You, the third party administrator
- Obligee: The Minnesota Department of Commerce
- Surety: The surety company underwriting the bond
As the principal, you promise to uphold Minnesota Statutes §60A.23, Subd. 8 and Minnesota Rules Chapter 2767.
If you break any of the bond agreements, harmed parties can file a claim up to the full bond amount.
Who Needs a Third Party Administrator Bond?
Anyone applying for a TPA license in Minnesota must file a surety bond. This includes any business that offers administration services for another company’s insurance plan such as:
- Processing claims
- Collecting premiums
- Managing benefits plans
How Do I Get a TPA Bond in Minnesota?
SuretyBonds.com provides the fastest and easiest way to get a third party administrator bond. Follow these quick steps to get your bond:
- Apply for a free quote
- Pay your invoice
- Select a shipping option
Once you have received your bond, file it with your license application.
How Fast Can I Get My Bond?
We process most applications same-day. Physical bond arrival will depend on the shipping option you select. If you’re in a rush, we offer overnight shipping.
Can I Get Bonded With Bad Credit?
Yes, you can likely still get bonded as a Minnesota third party administrator — even with bad credit. However, your personal credit score may impact your quote.
How Do I Renew My Third Party Administrator Bond?
This bond has a one-year term, but it remains continuous until cancelled as long as you renew.
When you work with SuretyBonds.com, we’ll send you renewal reminders in advance — just pay the invoice.
Note: The surety can cancel the bond by providing 30-day’s written notice to you and the Minnesota Department of Commerce.
How to Get a Third Party Administrator License in Minnesota
To get a TPA license, just follow these easy steps:
- Apply in person or online
- Pay the $1500 license fee
- Submit financial statements
- Attach workers compensation insurance
Once you have filled out your application, mail it to the address below:
Tuan Tran
85 7th Place East
Suite 280
St. Paul, MN, 55101-2198
