What Changed for Kansas Third Party Administrators?
A new bill was enacted in April of 2017 that requires a surety bond for certain third party administrators.
More specifically, the bill labeled SB 22 requires third party administrators for a life, annuity, or health insurance plan to be licensed and provide audited financial statements. If the administrator applies for a hardship exception, it may submit unaudited financial statements in which case the administrator also must post a surety bond equal to 10% of funds handled for the benefit of Kansas residents or $20,000, whichever is greater. All third party administrators for a self-insured plan for life, annuity, or health insurance for a government entity or a church must post a surety bond equal to $100,000 or 10% of the aggregate total amount of self-funded coverage under church plans or governmental plans handled in the State and all additional states in which the administrator is authorized to do business, whichever is greater.
Why Choose JW Surety Bonds?
We are the nation’s largest volume bond producer, and provide the lowest rates in the industry. It’s also crucial that you understand that you’re responsible to pay any claims filed on your bond. When you partner with our company, you will have a dedicated claim specialist assigned to your account to ensure claim payouts are either reduced or avoided all together.
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If you’re ready to get a surety bond for this newly increased bond requirement, you can simply apply online.