South Carolina Third Party Administrator Bond Guide
If you’re applying for a third party administrator license in South Carolina, 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 South Carolina Department of Insurance
- Required Coverage: $75,000
- Premium Rate: 1–10% based on credit score
Learn all about the bond requirements and process in this guide.
What Is a South Carolina Third Party Administrator Bond?
A South Carolina 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 South Carolina Department of Insurance 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 South Carolina?
South Carolina third party insurance administrator bonds cost a small percentage of the bond amount, typically 1–10% based on credit score.
For example, you could pay just $750 for the required $75,000 bond with excellent credit. Apply for your free, personalized quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a TPA Bond?
The South Carolina 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
Alternatively, TPAs can file a letter of credit or certificate of deposit, but a surety bond is typically the most affordable form of financial security.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a South Carolina 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 email you the bond shortly after purchase. Be sure to file the bond with the South Carolina Department of Insurance as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a South Carolina 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 South Carolina Department of Insurance requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the South Carolina Code of Laws Section 38-51-30.
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.
