Adel Precious Metal Dealer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain an Adel Precious Metal Dealer bond.
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All precious metal dealers operating in Adel, Georgia
- Purpose: To protect the public from financial harm if the dealer violates the terms of their license
- Who Regulates Precious Metal Dealers in Adel: The Adel City Clerk’s Office
Adel Code of Ordinances 22-105 requires all precious metal dealers operating in the city to obtain a license, also known as registration, with the City Clerk’s Office before conducting business. The Adel City Council enacted the licensing requirement to ensure that precious metal dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, precious metal dealers must purchase and maintain a $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Adel Precious Metal Dealer Bond?
Adel requires precious metal dealers to purchase a surety bond as part of the application process to obtain a precious metal dealer license. The bond ensures that the public will be protected from financial harm if the dealer fails to comply with the regulations set forth in the Adel Code of Ordinances 22-106. Specifically, the bond protects the public in the event the dealer engages in any acts of fraud or fails to report any stolen property. In short, the bond is a type of insurance that protects the public if the precious metal dealer violates the terms of their license.
How Can an Insurance Agent Obtain an Adel Precious Metal Dealer Surety Bond?
BondExchange makes obtaining an Adel Precious Metal Dealer bond easy. Simply log in to your account and use our keyword search to find the “Precious Metal Dealer” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Adel Precious Metal Dealer Bond?
No, a credit check is not required for the Adel Precious Metal Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all dealers operating in the city, regardless of their credit history.
How Much Does the Adel Precious Metal Dealer Bond Cost?
The Adel Precious Metal Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Adel requires precious metal dealers to purchase a surety bond as a prerequisite to obtaining a precious metal dealer license. To paraphrase the Adel Code of Ordinances 22-101, a precious metal dealer is a person who purchases precious metals or gems such as gold, silver, platinum, or palladium from the general public. Coin dealers are exempt from the bond requirement.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How do Precious Metal Dealers Apply for a License in Adel?
Precious metal dealers in Adel must navigate several steps to secure a precious metal dealer license. Below are the general guidelines, but applicants should refer to the application form for details on the process.
License Period – All Adel Precious Metal Dealer Licenses expire on March 31st of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Precious metal dealers in Adel must purchase and maintain a $5,000 surety bond.
Step 2 – Complete an Application
Precious metal dealers must submit a completed application to the City Clerk’s Office at the following address:
Adel City Hall
112 N. Parrish Avenue
Adel, Georgia 31620
Dealers must ensure that they complete the application in its entirety and submit a surety bond along with an application fee in an amount determined by the City Clerk. Contact the Adel City Clerk for additional details on the application process.
How do Adel Precious Metal Dealers Renew Their Licenses?
Precious metal dealers should contact the City Clerk’s Office to obtain a renewal application before their license expires. All Adel Precious Metal Dealer Licenses expire on March 31st of each year and must be renewed before the expiration date. Renewal applications submitted after March 31st will be subject to a late penalty fee.
What are the Insurance Requirements for the Adel Precious Metal Dealers?
Adel does not require precious metal dealers to purchase any form of liability insurance as a prerequisite to obtaining a precious metal dealer license. Precious metal dealers must purchase and maintain a $5,000 surety bond.
How Do Adel Precious Metal Dealers File Their Bonds?
Precious metal dealers should submit their completed bond forms, including the power of attorney, to the following address:
Adel City Hall
112 N. Parrish Avenue
Adel, Georgia 31620
The surety bond requires signatures from both the surety company that issues the bond and from the dealer. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Name of the obligee and the license type applied for
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Adel Precious Metal Dealers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, precious metal dealers in Adel must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
What Other Insurance Products Can Agents Offer Precious Metal Dealers in Adel?
Adel does not require precious metal dealers to purchase liability insurance. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Adel Precious Metal Dealer Customers?
Adel unfortunately does not provide a public database of active precious metal dealers in the city. We suggest contacting the City Clerk’s Office for a list of licensed precious metal dealers. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.