Anchorage Pawnbroker Bond

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Anchorage Pawnbroker Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain an Anchorage Pawnbroker bond.

At a Glance:

  • Lowest Cost: $125 per year or $13 per month, based on the applicant’s credit
  • Bond Amount: $25,000
  • Who Needs it: All pawnbrokers operating in Anchorage, Alaska
  • Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
  • Who Regulates Pawnbrokers in Anchorage: The Anchorage Municipal Clerk
Anchorage Pawnbroker Bond Form
Anchorage Pawnbroker Bond Form


Anchorage Code of Ordinances 10.25.025 requires all pawnbrokers operating in the municipality to obtain a license with the Municipal Clerk’s Office before conducting business. The Anchorage Assembly enacted the licensing requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, pawnbrokers must purchase and maintain a $25,000 surety bond to be eligible for licensure.

What is the Purpose of the Anchorage Pawnbroker Bond?

Anchorage requires pawnbrokers to purchase a surety bond as part of the application process to obtain a pawnbroker license. The bond ensures that the public will be protected from financial harm if the broker fails to comply with the regulations set forth in Anchorage Code of Ordinances 10.25.025. Specifically, the bond protects the public in the event the broker engages in any acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the pawnbroker violates the terms of their license.

How Can an Insurance Agent Obtain an Anchorage Pawnbroker Surety Bond?

BondExchange makes obtaining an Anchorage Pawnbroker surety bond easy. Simply login to your account and use our keyword search to find the “Pawnbroker” 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 (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 Anchorage Pawnbroker Bond?

Surety companies will run a credit check on the applicant to determine eligibility and pricing for the Anchorage Pawnbroker bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.

How Much Does the Anchorage Pawnbroker Bond Cost?

The Anchorage Pawnbroker bond can cost anywhere between $125 to $1,250 per year or $13 to $125 per month. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $25,000 bond requirement.

$25,000 Pawnbroker Bond Cost

Credit Score Bond Cost (1 year) Bond Cost (1 month)
625+ $125 $13
600 – 624 $313 $32
550 – 599 $625 $63
525 – 549 $750 $75
500 – 524 $1,250 $125

*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.

Who is Required to Purchase the Bond?

Anchorage requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase Anchorage Code of Ordinances 10.25.025, a pawnbroker is a person who issues loans at interest to individuals that leave their property, as collateral, for the broker to sell or purchases goods for resale from a dealer/trader.

Anchorage Pawnbroker Bond

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 Pawnbrokers Apply for a License in Anchorage?

Pawnbrokers in Anchorage must navigate several steps to secure a pawnbroker license. Below are the general guidelines, but applicants should refer to the Municipal Clerk’s website for details on the process.

License Period – All Anchorage Pawnbroker Licenses are valid for two years from the date of issuance and must be renewed before the expiration date.

Step 1 – Meet the Requirements

To qualify for a pawnbroker license, applicants must ensure that they satisfy all of the following criteria:

    • Be at least 18 years old
    • Possess a current State of Alaska Business License
    • Have not been convicted of a crime within the last 5 years involving larceny, theft, stolen property, illegally obtained property or involving misrepresentation or fraud

Step 2 – Purchase a Surety Bond

Pawnbrokers in Anchorage must purchase and maintain a $25,000 surety bond.

Step 3 – Complete an Application

All Anchorage Pawnbroker License applications should be submitted to the Municipal Clerk’s Office at the following address:

P.O. Box 196650
Anchorage, Alaska 99519-6650

Applicants must complete the form in its entirety and submit the following items:

    • $25,000 Original surety bond
    • State of Alaska Business License number
    • $100 application fee

How do Anchorage Pawnbrokers Renew Their Licenses?

To renew their license, pawnbrokers should submit a renewal application to the Municipal Clerk’s Office at the following address:

P.O. Box 196650
Anchorage, Alaska 99519-6650

Pawnbrokers will receive a renewal reminder via email one month before their licenses expire.  All Anchorage Pawnbroker Licenses are valid for two years from the date of issuance and must be renewed before the expiration date.

What are the Insurance Requirements for Anchorage Pawnbrokers?

Anchorage does not require pawnbrokers to purchase any form of liability insurance before obtaining a license. However, brokers may need to obtain insurance as a prerequisite to obtaining a state business license. Pawnbrokers must purchase and maintain a $25,000 surety bond.

How Do Anchorage Pawnbrokers File Their Bonds?

Pawnbrokers should submit their completed bond forms, including the power of attorney, to the Municipal Clerk’s Office at the following address:

P.O. Box 196650
Anchorage, Alaska 99519-6650

The surety bond requires signatures from both the surety company that issues the bond and from the broker. The surety company should include the following information on the bond form:

  • Legal name, address, and telephone number of the entity/individual(s) buying the bond
  • Surety company’s name, address, telephone number, and state of incorporation
  • Pawnbroker’s business address
  • Amount of premium collected
  • Date the bond is signed
  • Notary acknowledgments

What Can Anchorage Pawnbrokers do to Avoid Claims Made Against Their Bonds?

To avoid claims against their bonds, pawnbrokers in Anchorage must ensure that they:

  • Do not engage in any acts of fraud
  • Do not breach the agreed upon terms of any sale
  • Do not pawn any stolen or illegally obtained items

What Other Insurance Products Can Agents Offer Pawnbrokers in Anchorage?

Most reputable pawnbrokers will purchase liability insurance before conducting business. 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 Anchorage Pawnbroker Customers?

Anchorage unfortunately does not provide a public database of active pawnbrokers in the municipality. However, we suggest contacting the municipal clerk for a list of licensed pawnbrokers. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

Anchorage Pawnbroker Bond