The Maryland Third Party Administrator Surety Bond is required by the State of Maryland. It is a type of surety bond that states that the bondholder shall make a full accounting and payment to all persons or companies entitled to funds coming into his possession as an incident to Third Party Administrator transaction. In addition, they shall comply with all the provisions of the Insurance Laws of Maryland as amended.
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How is the bond amount determined?
The amount of the bond is determined at the time of application. The average amount of money the administrator handled in the prior year and expects to handle in the current calendar year will be used in determining the bond amount. It must be equal to at least 10% of the average amount of money handled at any one time. The minimum bond amount is $5,000 and the maximum amount is $500,000.
Who needs a Maryland Third Party Administrator Bond?
A third party administrator, as defined in the Maryland Code Insurance 8-301, is a person acting for an insurer or plan sponsor who has control over or custody of premiums, contributions or any other money with respect to an ERISA plan. Those who qualify as an administrator must be registered with the Maryland Insurance Administration.
What are the other registration requirements for a Maryland Third Party Administrator?
First, applicants must complete and submit the NAIC Uniform Application. In addition, they must complete and submit the Maryland Insurance Administration Limited Lines Supplement. Lastly, they must pay the registration fee of $250.
Where can I get a Maryland Third Party Administrator Surety Bond?
Surety1 has access to the best surety markets available. We will get you bonded quickly at the best possible price. Start the process by completing our easy to navigate, free online application form. Next, one of our surety agents will contact you with a no-obligation quote on the bond premium. After that, you just need to pay the premium and sign the agreement. Your Maryland Third Party Administrator Bond will be mailed to you by USPS Priority Mail. Overnight delivery is available for an additional fee.
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