Nevada Third-Party Administrator Bond

Nevada Third-Party Administrator Bond

The Nevada Division of Insurance (DOI) requires individuals who wish to perform duties on behalf of an insurer to be registered as a Third-Party Administrator (TPA). The filing of a Third-Party Administrator Bond is required to obtain and maintain certification with the Department of Business and Industry.

APPLY FOR YOUR BOND

Jet Insurance Company provides the Third-Party Administrator Bond as a guarantee to the DOI that the administrator will perform all underwriting, premium collections, and insurance claim duties up to regulation. If the TPA commits a violation that results in financial damages to a client, the surety bond offers restitution to cover losses incurred.

What Is the Bond Limit and Cost of the Nevada Third-Party Administrator Bond?

The Third-Party Administrator Bond limit is determined by the Nevada Division of Insurance and is based on the estimated amount of money handled by the administrator in an average month. A $100,000 bond limit is needed for certified administrators that strictly handle claims for their employers only.

Jet’s prices for the Third-Party Administrator Bond are only a small percentage of the bond limit. An evaluation of the administrator’s personal credit is needed to get an approved rate. Business financials may also be evaluated. Applicants that need a $100,000 bond can pay as low as $750 annually or $75 a month. Take a look at the chart below for additional custom bond amounts and our preferred tier rates. 

Money Handled MonthlyBond LimitMonthly CostAnnual Cost
$1,000,000 or less$100,000$75$750
$1,000,000 - $1,999,999$200,000$150$1,500
$2,000,000 - $2,999,999$300,000$225$2,250
$3,000,000 - $3,999,999$400,000$300$3,000
$4,000,000 - $4,999,999$500,000$375$3,375
$5,000,000 and greater$500,000 - $1,000,000$375 - $750$3,750 - $7,500
Nevada Third Party Administrator Bond Limits and Pricing

Our monthly payment plan is a great option for TPA’s who are looking to maintain their bond and certification with the Nevada Division of Insurance for the long haul. Just set up your preferred account for ongoing payments and your bond will remain active until cancellation is officially sought. 

It is important to note that registered administrators for health maintenance organizations and nonprofit corporations for hospitals or medical services are exempt from the surety bond requirement. Further details can be found in Chapters 683A.0851 and 683A.0852 of the Nevada Revised Statutes.

The Nevada Third Party Administrator Bond Process With Jet

The Jet team has created a quick and efficient application process for the Third-Party Administrator Bond that can be completed fully online. Your contact details, bond limit, business financials, and social security number are needed. A soft credit check is completed to get you an approved rate (this won’t affect your credit score). 

Once all your info has been submitted, a Jet underwriter will review your application. Otherwise, you will be emailed approved rates at monthly, annual, and multi-year options that are ready for immediate purchase. You’ll receive a copy of your bond form and receipt as soon as you choose your preferred bond term and fulfill the payment. 

If you are a first-time apIf you are applying for the first time, the required forms for administrator certification can be found on the “Application Instructions” webpage. You will need to complete this step first before obtaining a surety bond as the Division will instruct you on what your custom bond limit must be.

Jet can file your bond for you at no extra cost! However, if you would prefer to file the bond yourself, you can choose this option at checkout. The original signed and sealed Third-Party Administrator Bond must be filed with the Nevada Division of Insurance, specifically the Department of Business and Industry. All documents must be sent to the mailing address below:

Nevada Division of Insurance
Department of Business & Industry
1818 E. College Pkwy., Suite 103
Carson City, NV 89706

Those who enroll in our monthly plan don’t have to worry about renewing their Third-Party Administrator Bond! As long as payments are made, the bond will remain in effect with the Nevada Division of Insurance. If you purchase your bond with Jet in full and upfront, we will send you a renewal invoice prior to your bond term’s expiration date. Jet just requires standard payment, and once this has been completed, you’ll be set for another term. 

If you need to cancel your bond, you can send a written request to Jet at bonddept@jetsurety.com at any time! Once received, we will notify the Nevada Division of Insurance of your Third-Party Administrator Bond’s termination. The DOI will release the liability of your bond within 90 days of receiving our cancellation notice.

Your bond remains active during the liability period, so those enrolled in monthly payments will be charged for this time. All payments will cease once the bond is officially released by the Division of Insurance. If you purchased an annual or multi-year bond term and are cancelling early, Jet will review the bond’s remaining time for any unused premium after the 90 days and you will receive a refund if applicable. 

How a Nevada Third-Party Administrator Can Avoid Bond Claims

Third-party administrators are expected to uphold all insurance regulations pursuant to Chapter 683A of the Nevada Revised Statutes and Chapter 683A of the Nevada Administrative Code as it pertains to the obligations of their certification. Failure to comply may result in the Nevada Commissioner of Insurance ordering the TPA to attend a hearing to determine possible penalties, including the suspension or permanent revocation of their certification and/or large fines. In addition, anyone financially damaged by the administrator, such as a past client, may pursue civil action against which may lead to a bond claim. 

A claim on the Third Party Administrator Bond may occur if the administrator commits a certification violation such as negligence, unethical conduct, criminal malfeasance, or fraud. For example, refusing to settle a claim after an official order to do so or causing a client to accept less money than what is owed to them without just cause are considered violations. The damaged client may file an official complaint with the Nevada Division of Insurance. However, the Commissioner can only inflict certification penalties onto the administrator; the damaged party will likely be recommended to take civil action. If such a course of action is taken and a State court rules in favor of the claimant, the TPA’s bond will be used to cover all financial losses incurred as well as the cost of the damaged party’s attorney fees. 

Immediately contact Jet if you receive a court-ordered claim notice. We will begin the claim process by asking that you provide us with all available info and documentation regarding your claim. The Jet team will need these details for our own review and investigation of the accused violation.

Per the Third-Party Administrator Bond form, Jet is obligated to payout justified claims, not to exceed the bond amount. You, the administrator, are responsible for your actions and must reimburse Jet for the payment made on your behalf for violations committed. Failure to fulfill this obligation will likely lead to future difficulties obtaining surety bonds in the State of Nevada, specifically bonds that are needed to achieve licensure status in the insurance industry. 

Nevada Third-Party Administrator Bond Form

Notary Bond Application:

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: