Hawaii Third Party Administrator Bond Requirement
In Hawaii, a new bill is expected to be enacted that will require third-party administrators (TPAs) to become licensed. The new bill, titled SB 1212, is expected to take effect January 1, 2020, and requires TPA’s to be licensed per the requirements below:
- In order to obtain a license, TPA applicants must obtain a minimum $100,000 surety bond.
- Applicants for TPA licenses will be required to provide annual financial statements for the two most recent years demonstrating a positive net worth.
- If an administrator employs or has contracted individuals to sell/solicit insurance business, the employees/contracted individuals must be licensed as producers. An administrator who intends to directly solicit insurance contracts or act as a producer must also be licensed as an insurance producer.
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If you’re ready to get a free surety bond quote to meet this new surety bond requirement, you can simply apply online. We are the nation’s largest volume bond producer, and provide the lowest rates in the industry.