Maryland Insurance License

Medical or Workers' Compensation Utilization Review

The amount of the bond is determined at the time of application for registration or renewal, and is based on the average amount of money that the administrator or its predecessor handled in the prior year, and expects to handle in the current calendar year. The amount of the bond must be equal to at least 10% of the average amount of money that the administrator expects to handle at any one time for all plans administered during the year. The minimum bond amount is $5,000 and the maximum amount is $500,000.

The surety bond or continuation certificate must clearly state:
  - bond company and bond amount
  - bond coverage period
  - show the State of Maryland as the obligee
  - duly executed by the principal/producer and bond company/attorney-in-fact

Form

◘ Applicants for an initial TPA Registration or a renewal must submit a current, original surety bond unless: (1) the Commissioner has granted a waiver; (2) the applicant only administers plans under which benefits are paid only from the general assets of an employee organization or of an employer; or (3) the applicant is a corporation organized and authorized under the laws of the United States or a state to do business as an insurer or to exercise trust powers, is subject to supervision or examination by a federal or State authority, and continuously maintains combined capital and surplus in excess of $1,000,000.