Minnesota third party administrator bonds.
From $100.
A Minnesota third party administrator can file a surety bond with the Department of Commerce in lieu of an unlimited guarantee from a parent company, under Minn. Stat. 60A.23, subd. 8. The commissioner sets the amount — generally 120% of the claims you handled last year — and the premium is 1% of the bond amount, $100 minimum.
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How much does a Minnesota third party administrator bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard TPA bond — enter your amount, pay, and file with Commerce. Here is the whole thing:
Apply online
Your business details, the bond amount the commissioner set, and the effective date — that is the application.
Issued on the spot
No waiting — the executed bond is generated as soon as you pay. Most applications approve instantly. Above $50,000, a soft pull may add a short review.
File with the Department of Commerce
Submit the executed bond with your TPA license application or renewal. Wet-ink originals mailed whenever the Department insists.
What it is and who needs it.
What the TPA bond actually covers
Minnesota licenses third party administrators — companies that collect premiums or adjust or settle claims on behalf of insurers — through the Department of Commerce under Minn. Stat. 60A.23, subd. 8. To be licensed, an administrator must show financial responsibility, usually through an unlimited guarantee from a parent corporation.
Where there is no such parent guarantee, the statute lets the commissioner accept a surety bond instead, in an amount equal to 120% of the total claims the applicant handled in the prior year. The bond protects the insurers and the public the administrator serves against losses from theft, dishonesty, or failure to remit.
Because the amount is set case by case from your prior-year volume, there is no single statutory figure — you enter what the commissioner required. The premium is 1% of the bond amount, $100 minimum; your exact price appears at the application, and no credit check up to $50,000.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A court bond answers to the court and the party its order protects: if the judgment or order the bond secures is not satisfied, that party can claim against it, up to the penal sum the court set.
The surety pays a valid claim after the court rules, and you repay the surety. A court bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Department of Commerce. Submit the executed bond with your TPA license application or renewal. Wet-ink originals mailed whenever the Department insists.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $50,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the bond amount the commissioner set — the executed bond is generated instantly, ready to file with Commerce.
Start the application →Common questions.
Other Minnesota bonds.
The same bond in nearby states.
Price and requirements checked on the carrier’s application, . Page updated .
TPA bond, issued today.
1% of the bond amount with a $100 minimum. Enter the amount the commissioner set and file with Commerce the same day.