Guest deacon Posted February 5, 2002 Share Posted February 5, 2002 We are a small TPA. Some plans we administer make deposits for claims and expenses directly to a common account that we disburse claims reimbursements from and others have their own account which claims are paid out of. We have a fidelity bond in our name. Does each plan need to be purchasing a bond in the name of their plan? These plans involve only medical and FSA's, no retirement plans. Link to comment Share on other sites More sharing options...
Guest LLandau Posted February 19, 2002 Share Posted February 19, 2002 It is my understanding that, if a plan fiduciary (even a fiduciary for a welfare plan) handles contributions/premiums paid by participants, the plan is required to obtain a fidelity bond to protect the participants. Therefore, if the clients handle participant contributions in any way, or if there is a trust in which participant contributions have been placed, the clients are to obtain fidelity bonds. Besides, better safe than sorry.... fidelity bonds are rather inexpensive and easy to obtain. Why would clients hesitate when during an audit, they could be found remiss in their fiduciary obligations. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now