Arkansas Third Party Administrator Bond Guide
Most third party administrators (TPAs) need a surety bond to register with the Arkansas Insurance Department.
Bond Overview
- Purpose: To protect clients from harm caused by negligent or fraudulent TPAs
- Who Needs It: Most third party administrators in Arkansas
- Regulating Body: The Arkansas Insurance Department
- Required Coverage: $25,000
- Premium Rate: $250
Keep scrolling to learn more about the bonding process.
What Is an Arkansas Third Party Administrator Bond?
This bond ensures third party administrators in Arkansas uphold state laws and client contracts.
Most TPAs need this type of license and permit bond to register with the Arkansas Insurance Department (AID).
How Much Do TPA Bonds Cost in Arkansas?
Arkansas third party administrator bonds cost a flat rate of $250 for the required $25,000 coverage. Or, you can select a multi-year term to save 25%, making your premium as low as $208 per year.
Purchase your bond instantly below — no credit check required!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Arkansas Third Party Administrator Bond Work?
An Arkansas third party administrator bond is a legal contract between three parties:
- Principal: The third party administrator purchasing the bond
- Obligee: The Arkansas Insurance Department requiring the bond
- Surety: The provider issuing the bond
As the principal, you promise to uphold the provisions of Arkansas Code § 23-92-201 et seq.
If you break the bond terms, harmed parties can file claims. 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 TPA Bond?
Anyone who manages and administers self-insured plans, employer trusts or employee welfare arrangements for a fee must register with the Arkansas Insurance Department.
However, you are exempt from the bond requirement if you meet either of the following conditions:
- You don’t handle any plan funds
- You only work with single employer self-funded plans or collectively bargained plans
How Do I Get a Third Party Administrator Bond in Arkansas?
SuretyBonds.com provides the fastest and easiest way to get a third party administrator bond. Follow these simple steps:
- Enter Information: Fill out the quick request form on this page
- Pay Premium: Complete your purchase instantly online or over the phone
- Receive Bond: Receive your official bond form via email in minutes
Upon receipt, sign and file the bond documentation with the AID.
How Fast Can I Get My Bond?
SuretyBonds.com offers instant Arkansas third party administrator bond delivery 24/7. Purchase now to receive your official bond in minutes.
Can I Get Bonded With Bad Credit?
Yes, this bond does not require a credit check! All applicants are automatically approved at the same price, regardless of credit score.
How Do I Renew My TPA Bond?
Arkansas TPA bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders before your bond expires.
All you need to do is pay your renewal invoice to maintain coverage.
How to Become a Third Party Administrator in Arkansas
All TPAs need a Certificate of Registration from the Arkansas Insurance Department to operate.
Complete the application form (Form AID-LI-TPA), and attach the following supporting materials:
- Bond form
- Check for the $100 fee
- Copies of all service agreements between you and your listed plans and trusts
You must renew your Certificate of Registration annually on or before January 1.
