Overview of Louisiana Third Party Administrator Bond Requirements

To get licensed as a TPA in Louisiana, you will need to submit a $100,000 third party administrator bond when applying for your license.

Why do I need to get bonded?

The purpose of this bond is to serve as a guarantee that you will act in accordance with all regulations and rules that govern the business of third party administrators in Louisiana.

If you violate your obligations under the law and cause losses to anyone who is a policyholder or participant in a benefit plan, these parties may file a claim against your bond to seek compensation.

The surety must then extend compensation to these claimants in a sufficient amount to cover their losses, even up to an amount that is equal to the full penal sum of the bond.

See our ‘What is a surety bond' guide if you'd like to learn more about bonds, their purpose and function!

Start your surety bond application today! Why us?
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For more information about the cost of getting this bond, claims against you bond, and how to apply, see the sections below!

If you have any questions about this bond, you can always call us at (866)-450-3412 to speak to one of our experts!

What's The Cost of The Louisiana Third Party Administrator Bond?

Your bond's cost is equal to a percentage of its total amount. This percentage, or rate, is determined by the surety that issues the bond, based on its estimation of how reliable and financially stable an applicant is.

To determine the cost, sureties assess at the following financial indicators.

Factors that determine your bond premium

Applicants' personal credit score is the primary determining factor of their bond premium.

If you have a high credit score of, say, 700 FICO or more, then you are likely to be bonded at a rate somewhere between 0.75% and 1.5% of the total amount of your bond. If your credit score is lower than 700 but within the so-called “average" range, then you can expect to get a rate between 1.5% to 5%.

If you currently have a “bad" credit score, you will probably be offered a rate between 5% and 15% of the bond amount.

Other factors that your surety is likely to consider when determining the right bond rate for you include your:

  • Personal and business financial statements
  • Fixed and liquid assets
  • Work experience and record

Want to get an estimate of the cost of your bond? See the table below!

Louisiana Third Party Administrator Bond Cost Based on Credit Score

License type

Bond Amount

Credit Score
Above 700 650-699 600-649 Below 599
Louisiana third party administrator $100,000 $750-$1,500 $1,000-$2,500 $2,500-$5,000 $5,000-$7,500

* The table provides a bond cost ballpark estimate based on the applicant's credit score. Actual bond prices can differ due to a number of factors. For an exact quote, please complete our online application. It's fast and 100% free!.

What Causes Bond Claims?

22:1651 of the Louisiana Revised Statutes (LRS) specifies that applicants for a third party administrator license in Louisiana need to get a $100,000 bond in order to get licensed.

The purpose of this bond as being “for the benefit and protection of and as security for all policyholders of the insurer and participants of the plan with whom the administrator contracts".

If a third party administrator violates their obligations under the LRS and causes losses to either of the mentioned parties, they are liable to extend compensation to claimants.

Initially, it may be the surety that covers a claim against the bond. If this happens, the bonded administrator must compensate the surety for its coverage. Under a bond agreement, it is always the bonded party that is ultimately liable for any claims that are brought against a bond.

To avoid running into difficulties and having to cover a bond claim, the safest course of action is to always comply with one's bond agreement and its conditions.

How Can I Get a Bond?

Click on the banner below to complete our simple bond application form and get a free quote.

When issuing your quote, we will also provide you with full information about how to complete the bonding process.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

For any questions about the Louisiana third party administrator bond or how to get bonded, call us at (866)-450-3412!

Further Reading


About us:
Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.