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Introduction
From our perspective, professionals applying to become licensed third party administrators (TPAs) in North Dakota often begin with a commitment to compliance, transparency, and trust. Whether managing claims, handling benefit plans, or facilitating insurance contracts, TPAs carry tremendous responsibility. In Jamestown, ND—and throughout the state—this responsibility is backed by one key requirement: the North Dakota – Third Party Administrator Bond.
This surety bond is required by the North Dakota Insurance Department and applies to all TPAs conducting business within the state. The bond serves as a financial guarantee that TPAs will comply with North Dakota Century Code § 26.1-27, protecting consumers and plan sponsors from fraudulent or unethical behavior. It mirrors the function of the North Dakota – Trailer Dealer ($10,000) Bond, which safeguards the public in trailer sales by holding dealers accountable to licensing rules.
The TPA bond isn’t just a formality—it’s a shield for the public and a signal that your business takes fiduciary duty seriously. As the industry grows more regulated, having this bond in place is a sign of professionalism and legal readiness in Jamestown and beyond.
Why Bonding Requirements Can Be Confusing for TPAs in Jamestown
We’ve noticed that confusion often surrounds the North Dakota – Third Party Administrator Bond. A frequent misunderstanding is the belief that this bond is insurance for the TPA’s own business. In fact, it’s a surety bond—meaning it protects third parties (e.g., clients and the state) rather than the administrator.
Another point of confusion is the bond amount and purpose. Many TPAs are unsure how the bond amount is calculated or when it must be submitted. According to North Dakota law, the amount varies depending on the volume of funds managed and is determined by the Insurance Commissioner during the licensing process. It must be filed before a license is granted.
We’ve even seen administrators mix up this bond with others like the City of Jamestown, ND – Excavation Permit ($25,000) Bond, which applies to physical infrastructure and site work—not benefit plan services. Both are required in their respective fields but serve very different functions.
Without a clear understanding of what the TPA bond does—and doesn’t do—applicants can delay licensure, incur penalties, or lose client trust.
How Swiftbonds Simplifies the Process for North Dakota TPAs
Based on our experience, Swiftbonds understands the complexity of surety requirements for professional administrators. We’ve worked with applicants in Jamestown and throughout North Dakota who need fast, accurate service—especially when dealing with insurance department deadlines.
Here’s what sets Swiftbonds apart:
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Rapid quotes with approval in hours, not days.
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Customized bond amounts to match North Dakota Insurance Department requirements.
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Guided documentation for first-time applicants or those renewing licenses.
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Flexible underwriting, including support for applicants with lower credit scores.
Whether you’re getting started as a TPA or renewing an expiring license, Swiftbonds will get your North Dakota – Third Party Administrator Bond issued promptly so you can stay focused on running your business.
Steps to Obtain the Third Party Administrator Bond in North Dakota
What we’ve discovered is that having a clear path simplifies the licensing process. Here’s how to secure your bond in just a few easy steps:
- Apply for Your TPA License
Visit the North Dakota Insurance Department to start your license application. Include details about your business structure, fiduciary responsibilities, and services provided. - Receive Bond Amount Notification
The Commissioner will notify you of the required bond amount based on your business type and projected handling of funds. - Request a Quote from Swiftbonds
Submit your bond request to Swiftbonds. Provide business information, financials, and licensing data to generate a quote. - Sign and Return the Bond
After approval, you’ll receive the bond form for signature. Swiftbonds will send it to the Insurance Department or provide filing instructions. - Keep It Active Year After Year
The bond must remain active for your license to stay in good standing. Swiftbonds offers renewal reminders and streamlined reissuance each year.
This process is similar in structure to obtaining the North Dakota – Trailer Dealer ($10,000) Bond, making Swiftbonds an ideal long-term bonding partner for businesses across industries.
Consequences of Operating Without the Required TPA Bond
In our observation, one of the biggest risks TPAs face is neglecting bond compliance. Operating without the required Third Party Administrator Bond exposes your business to immediate consequences:
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Denial of your license application by the North Dakota Insurance Department.
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Suspension or revocation of your existing license.
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Civil penalties and enforcement actions, including administrative fines.
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Legal action from harmed clients or employers.
These risks echo those tied to the City of Jamestown, ND – Excavation Permit ($25,000) Bond, where bond lapses can halt construction work and invite legal complications. In both cases, the bond acts as a safeguard for the public, and lapses can cost more than just money—they can cost your credibility.
The Advantage of Staying Compliant With Swiftbonds
We’ve learned that bonding isn’t just about checking off a box—it’s about trust. By having your North Dakota – Third Party Administrator Bond in place, you demonstrate your business’s commitment to integrity, professionalism, and financial responsibility.
That trust extends to clients, insurance companies, and regulators alike. When your bond is active and your license is compliant, your clients know their funds and sensitive data are in capable hands.
TPAs who prioritize bonding—like trailer dealers securing their North Dakota – Trailer Dealer ($10,000) Bond—are better positioned for long-term contracts, fewer regulatory issues, and smoother renewals. Swiftbonds helps you reach that level with precision and service that puts your business first.
North Dakota Bonding Laws and Regulatory Compliance
TPAs in North Dakota must comply with North Dakota Century Code § 26.1-27, which governs third party administrator licensing and financial responsibility. The Insurance Commissioner has the authority to:
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Determine bond amounts based on the administrator’s financial activity.
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Deny or suspend licenses for failure to obtain or maintain a bond.
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Require immediate bond adjustments based on business performance.
Only surety providers licensed in North Dakota may issue these bonds. Applicants should review all licensing instructions on the North Dakota Insurance Department’s official site.
Comparable statutory frameworks exist under the North Dakota Little Miller Act (NDCC § 48-01.2), which governs construction-related performance bonds for public projects.
Conclusion
We’ve come to appreciate that the North Dakota – Third Party Administrator Bond is more than a statutory formality—it’s a declaration of professionalism. From Jamestown to Grand Forks, every licensed TPA in the state benefits from the protection and credibility this bond provides.
Swiftbonds makes it easy to fulfill this obligation without the stress. By helping TPAs obtain the correct bond amount, file on time, and stay compliant year-round, we support your long-term growth and peace of mind. Let Swiftbonds be your trusted bonding partner today.
Frequently Asked Questions
Who needs the North Dakota – Third Party Administrator Bond?
We’ve often noticed that any business administering insurance benefits or self-funded health plans in North Dakota must obtain this bond before receiving or renewing their license.
How much does the bond cost?
We’ve often noticed that the cost depends on the bond amount set by the Insurance Commissioner and the applicant’s financial background. Premiums typically range from 1% to 5% of the bond amount.
Is the bond amount fixed for all TPAs?
We’ve often noticed that no, the bond amount varies based on business size and fund management. The Commissioner makes the final determination.
How long does it take to get the bond?
We’ve often noticed that most bonds can be issued the same day when working with Swiftbonds, provided all documentation is submitted.
Can this bond be used for other licenses like the City of Jamestown, ND – Excavation Permit ($25,000) Bond?
We’ve often noticed that each bond type is specific to its license. TPAs must secure a separate bond from contractors or excavation professionals.