Arizona Life/Health Administrator Bond Guide
If you’re applying for a third-party administrator (TPA) registration certificate in Arizona, you’ll need a bond of life and health administrator.
Bond Overview
- Purpose: To protect organizations from financial harm if a TPA breaks the law
- Who Needs It: Third-party life or health insurance policy administrators in Arizona
- Regulating Body: The Department of Insurance, TPA Registration Team
- Required Coverage: Varies based on value of plans being managed
- Premium Rate: Typically 1–5% of the bond amount, credit-based
Learn all about the bond requirements and process in this guide.
What Is an Arizona Life/Health Administrator Bond?
An Arizona life and health administrator bond, also known as a third-party administrator (TPA) bond, ensures that insurance administrators comply with laws and industry regulations.
The Arizona Department of Insurance, TPA Registration Team requires this bond to protect individuals from financial harm if a TPA is fraudulent or negligent.
How Much Do Life/Health Administrator Bonds Cost in Arizona?
An Arizona bond of life and health administrator premium costs a flat rate of $10 per $1,000 for up to $50,000 coverage. For example, a $25,000 bond would cost $250.
If you need a bond over $50,000, your premium will be calculated as a small percentage of the bond coverage based on your credit score.
Click below to buy your bond or request a free quote!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Life/Health Administrator Bond?
A life and health or third-party administrator includes anyone that collects money or processes claims related to life or health insurance coverage for Arizona residents.
The Department of Insurance requires this bond for anyone applying for a Life and Health Insurance Administrator's Certificate of Registration.
How Do I Get My Bond?
With SuretyBonds.com, you can buy your Arizona life and health administrator bond instantly online for up to $50,000 coverage. Just enter your information and checkout in minutes.
If you need bond coverage above $50,000, you’ll need to submit an application. Underwriters will review your financials to determine your personalized premium rate.
We’ll mail you the bond via your preferred shipping method. Be sure to file the bond with the Department of Insurance, TPA Registration Team as instructed.
How Does an Arizona Life/Health Administrator Bond Work?
As with all surety bonds, a life and health administrator bond creates a legal contract between three parties:
- Principal: You, the third-party administrator filing the bond
- Obligee: The Department of Insurance, TPA Registration Team requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding Arizona Revised Statutes 20-485.
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?
To renew your life and health administrator bond, simply pay your renewal invoice when prompted. We’ll begin contacting you by phone and email 90 days before the expiration date.
