A third party administrator is an independent party that adjusts or settles insurance claims on behalf of companies or organizations. The services would include life, dental, health, and disability insurance plans for example. As part of the settlement process they are paying the claims on behalf of the organization. Many states require a bond for this profession which guarantees compliance with the code that governs the profession. Note that there is an element of financial guarantee as the third party administrator is handling the organization’s money. These bonds vary in amount and require a signed application and excellent personal credit. Financial statements may be required depending on the size of the bond.