Who Needs This Bond?

From my experience, the Kansas American Family Third Party Bond is typically required for:

• Third-Party Administrators (TPAs) – Businesses or individuals managing insurance policies or handling claims on behalf of American Family Insurance.

• Insurance Agents – Agents working with American Family who handle customer accounts or funds.

• Other Third-Party Professionals – Those who manage responsibilities, funds, or claims for American Family Insurance in Kansas.

If you’re entering into an agreement with American Family Insurance and have fiduciary or administrative responsibilities, this bond may be a requirement.

How Much Does a Kansas American Family Third Party Bond Cost?

The bond amount is set at $25,000, but you only pay a small percentage of this amount as a premium.

Typical Cost Range:

• The annual premium for a $25,000 bond typically ranges between $250 and $750, depending on:

  • Credit Score – Higher scores result in lower premiums.

  • Business Experience – Established businesses with a strong reputation often qualify for better rates.

  • Financial Stability – A strong financial background reduces the perceived risk, lowering costs.

Even if your credit is less than ideal, bonding options are still available, though the cost may be slightly higher.

How to Get a Kansas American Family Third Party Bond

I’ve worked with many professionals needing this bond, and securing it is straightforward when you follow these steps:

1. Verify Your Requirements
   Confirm with American Family Insurance or Kansas state authorities that a $25,000 bond is required for your role.

2. Apply for the Bond
   Submit a short application with your business and financial details, including your credit information.

3. Get a Quote
   Your bond premium is calculated based on credit, experience, and financial stability.

4. Purchase the Bond
   Once approved, pay the premium, and receive your official bond certificate.

5. File the Bond
   Submit the bond to American Family Insurance or the appropriate Kansas agency to complete your compliance requirements.

From my experience, starting this process early ensures there are no delays in your ability to work with American Family Insurance.