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Pharmacy Benefit Manager Bond

Arizona Pharmacy Benefit Manager Bond

PBM certificate of authority — bond only if intermediary contract requires it

Arizona PBMs need a DIFI certificate of authority under A.R.S. § 20-3333. A separate payment bond applies when a PBM acts as a third-party intermediary under A.R.S. § 20-120.

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Overview

What Is a Arizona Pharmacy Benefit Manager Bond?

Arizona does not set a single flat PBM license bond; payment bonds may be required when a PBM is a third-party intermediary entity under contract with a health care insurer.

Key Provisions
  • Guarantees compliance with A.R.S. § 20-3333 - A.R.S. § 20-120 (intermediary payment bond when applicable)
  • Protects the obligee named on the Arizona bond form
  • Remains subject to the penal sum and bond conditions
Surety Obligation Overview

What Does This Bond Guarantee?

The surety bond guarantees that the principal will perform the duties required under A.R.S. § 20-3333 - A.R.S. § 20-120 (intermediary payment bond when applicable) up to the penal sum.

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
As required by DIFI certificate process or insurer contract under A.R.S. § 20-120
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.

When a claim may arise

A claim may arise if the principal fails to comply with the bonded Arizona obligation or causes covered loss to the obligee or protected parties.

If a claim is valid

If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.

Scope of the Obligation
  • Comply with A.R.S. § 20-3333 - A.R.S. § 20-120 (intermediary payment bond when applicable)
  • Satisfy As required by DIFI certificate process or insurer contract under A.R.S. § 20-120 filing conditions
  • Maintain the bond for the required term
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

PBMs operating for Arizona-regulated health plans need DIFI authority; intermediary-contract PBMs may also need a payment bond equal to average monthly payments.

Who Is Required to File
  • Applicants required by Arizona Department of Insurance and Financial Institutions (DIFI)
  • Arizona businesses renewing or expanding licensed activity
  • Out-of-state firms filing into Arizona markets
Requirements

What You Need to Apply

Obtain the PBM certificate of authority first. If A.R.S. § 20-120 applies to your contracts, size the payment bond to at least the average monthly payment amount.

Required Documentation
  1. Legal entity name matching the license or filing
  2. Bond amount: No fixed statewide PBM license bond — intermediary payment bonds equal at least average monthly contract payments when A.R.S. § 20-120 applies
  3. Arizona obligee form or statute citation
  4. Owner or officer identification for underwriting
Filing

How this filing works

  1. 01

    Confirm the Arizona requirement

    Share your license type, court order, or obligee form and the exact penal sum required by Arizona Department of Insurance and Financial Institutions (DIFI).

  2. 02

    Underwrite and price

    We review credit and filing details, then quote premium options through licensed surety markets.

  3. 03

    Issue and file

    Once approved, we issue the bond for delivery to As required by DIFI certificate process or insurer contract under A.R.S. § 20-120 or for your Arizona filing package.

FAQ

Frequently Asked Questions

What is the required amount for an Arizona pharmacy benefit manager bond?

The amount is No fixed statewide PBM license bond — intermediary payment bonds equal at least average monthly contract payments when A.R.S. § 20-120 applies, as set under A.R.S. § 20-3333 - A.R.S. § 20-120 (intermediary payment bond when applicable) and confirmed with Arizona Department of Insurance and Financial Institutions (DIFI).

Who is the obligee on an Arizona pharmacy benefit manager bond?

The obligee is typically As required by DIFI certificate process or insurer contract under A.R.S. § 20-120. Always match the exact name on the Arizona form.

How long does it take to get the bond?

Many Arizona filings can be underwritten the same day when documents and credit are complete; complex amounts may take longer.

Does bad credit prevent approval?

Not always. Premium and collateral options vary by credit and bond size — ask for markets that still write the risk.

How do I renew the bond?

Most bonds renew on the term shown (1 Year). Keep continuity so your Arizona license or filing does not lapse.

Authority Resources

Arizona Department of Insurance and Financial Institutions (DIFI)

difi.az.gov

Next step

Ready to file this bond?

We’ll match the requirement and route the application.

Apply for this bond

Or call (877) 477-7578