Oklahoma Third Party Administrator Bond Overview
- Purpose: To protect organizations from financial harm if a third-party administrator breaks the law
- Who Needs It: Providers that offer third-party administration services for another company’s benefits plan
- Regulating Body: The Oklahoma Insurance Department
- Bond Amount: $10,000–$40,000 based on claims collected or paid in the previous year
- Minimum Price: 1.5% of the bond amount; credit-based
What Is an Oklahoma Third Party Administrator Bond?
An Oklahoma third party administrator bond protects organizations from financial harm if a third-party administrator (TPA) commits theft or fraud or acts unethically. This includes the following:
- Paying all insurers correct dues
- Having written agreements between all insurers and administrators
- Keeping all records for at least five years
- Approving all advertising with the insurer
Who Needs a Third Party Administrator Bond?
An Oklahoma TPA includes any third party person who:
- Collects premiums for an insurer or trust, or
- Adjusts or settles claims for an insurer or trust, related to insurance coverage, annuities or employee benefits
All Oklahoma third-party insurance and benefits plan administrators need to be bonded to ensure compliance with laws and regulations.
How Much Bond Coverage Do I Need?
As an Oklahoma third-party administrator, your required surety bond coverage will be based on the value of claims paid or premiums collected in the past year. If you’re a new licensee, you can get the minimum $10,000 bond.
| Premiums Collected or Paid* | Bond Amount |
|---|---|
| $49,999 or less | $10,000 bond |
| $50,000–$74,999 | $15,000 bond |
| $75,000–$99,999 | $20,000 bond |
| $100,000–$249,999 | $25,000 bond |
| $250,000–$499,999 | $30,000 bond |
| $500,000–$999,999 | 35,000 bond |
| $1,000,000 | $40,000 bond |
*Use whichever value is higher — claims paid or premiums collected — to determine the bond coverage you need. | |
How Much Do Third Party Administrator Bonds Cost in Oklahoma?
The base $10,000 third party administrator bond costs a $100 flat rate. You can buy this bond amount instantly online with no credit check.
If you need a larger TPA bond, submit a quick quote request form. Prices start at 1.5% of the bond amount, but vary based on personal credit score. For example, the $20,000 bond starts at $300. Get your free quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Bond Work?
A third party administrator bond creates a legal contract between three parties.
- Principal: The bonded third party administrator
- Obligee: The Oklahoma Insurance Department
- Surety: The issuing surety provider
The bond holds you responsible for upholding all regulations under the Oklahoma Third-Party Administrator Act. If you break the law, harmed parties can file a bond claim to recover damages.
How Do I Get My Bond?
Enter your information and checkout online in minutes to get a $10,000 TPA bond. For larger bond amounts, request a personalized quote.
We’ll provide a quote in one business day or less. You can buy the bond online 24/7, or give us a call if you need any help.
How Fast Can I Get My Bond?
The Oklahoma Insurance Department requires the original, physical bond form. So, once you checkout, we’ll mail the bond form and you can select from 1–3 day shipping options.
How Do I Renew My TPA Bond?
You can renew this surety bond year over year as long as there are now bond claims. We’ll send out reminder emails and texts when the bond is close to expiring.
After paying the renewal premium, file the continuation certificate form with the Insurance Department.
If your TPA bond amount needs to be updated, contact your surety provider. You can email us at [email protected].
How to Become a Third Party Administrator in Oklahoma
Follow the Insurance Department’s application instructions and checklist to ensure you have all the required materials. You’ll need to have a $10,000 surety bond on file and pay the $100 initial application fee.
Once licensed, you’ll need to file an annual report by June 1 of each year. Be sure to renew your bond each year as well.
