Utah Third Party Administrator Bond Guide
In Utah, all third party administrators (TPAs) must file a surety bond to register with the state.
Bond Overview
- Purpose: To protect clients from harm caused by negligent or fraudulent TPAs
- Who Needs It: All third party administrators operating in Utah
- Regulating Body: The Utah Insurance Department
- Required Amount: $5,000–$500,000, based on total funds handled
- Premium Rate: $10/$1,000 up to $25k, credit-based for $25k+ coverage
Keep scrolling to learn more about the bonding process.
What Is a Utah Third Party Administrator Bond?
This type of license and permit surety bond holds Utah third party administrators responsible for upholding state laws and handling client funds properly.
How Much Bond Coverage Do I Need?
The Utah Insurance Department will calculate your bond amount as 10% of your total funds handled, with a $5,000 minimum and a $500,000 maximum.
Your total funds will be the greater of:
- The premiums received; or
- Claims paid in the previous calendar year.
For new licensees, your bond amount will be based on the total funds anticipated during the current year.
How Much Do Third Party Administrator Bonds Cost in Utah?
Utah third party administrator bonds cost a flat rate of $10 per $1,000, with a $100 minimum, for coverage up to $25,000. Select a multi-year term at checkout to save 25%.
If you need more than $25,000 in coverage, you’ll pay 1-10% of the total bond amount based on personal credit score. Apply below to get your free personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Utah Third Party Administrator Bond Work?
A Utah TPA bond is a legal contract between three parties:
- Principal: The third party administrator purchasing the bond
- Obligee: The Utah Insurance Department requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold Utah Code Title 31A Chapter 25.
If you break the bond terms, harmed parties can file claims on the bond. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Third Party Administrator Bond?
In Utah, a third party administrator (TPA) refers to anyone who collects premiums or handles insurance claims for state residents or businesses. All TPAs must file a surety bond for licensure.
However, some types of administrators are exempt from licensing under Utah Code 31A-1-301(182).
How Do I Get a Third Party Administrator Bond in Utah?
SuretyBonds.com provides the fastest and easiest way to get a third party administrator bond. Just follow these simple steps:
- Apply Online: Select your bond amount and enter your information for a personalized quote.
- Pay Invoice: Complete your purchase online or over the phone.
- Receive Bond: Receive your official bond form via email.
Upon receipt, sign and file the bond documentation with the Department.
How Fast Can I Get My Bond?
SuretyBonds.com issues TPA bonds faster than any other provider. For coverage less than $25,000, you’ll receive your official bond form in minutes by email.
We process most bond applications for higher amounts same-day. Apply now to receive your free quote.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit.
Bond amounts under $25,000 are automatically approved at the same price for all applicants — no credit check required!
For higher coverage, poor credit will typically increase your premium rate. Apply for a free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My Third Party Administrator Bond?
Utah TPA bonds expire annually unless you purchase a multi-year term. We’ll send you reminders and a renewal invoice before your bond expires.
To renew your bond, just pay the premium — we’ll do the rest!
How to Become a Third Party Administrator in Utah
The Utah Insurance Department regulates all third party administrators in the state. To apply for a license, create an account on either SIRCON or NIPR.
Complete the application and pay the $85 fee. Then, fax a copy of your surety bond to the Department at 385-465-6055, or email it to [email protected].
The Department reviews most applications within 5–10 business days. Once approved, you can print your license directly from the online portal.
When Do Third Party Administrator Licenses Expire?
Individual licenses expire every two years on the last day of your birth month.
Organization licenses expire two years after the issue date on the last day of the month.
Renew your license via the online portal used to apply. Pay the $85 renewal fee.
