Utah Third Party Administrators are required under the Utah Code section 31A-25-101 et. seq. to file a Utah Third Party Administrator Bond as a condition of licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Utah Third Party Administrator Bond holds you accountable for your business decisions.
By possessing a Utah Third Party Administrator Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.