Duluth Precious Metal Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $2,000
- Who Needs it: All precious metal dealers operating in Duluth, Minnesota
- Purpose: To protect the public from financial harm if the precious metal dealer violates the terms of their license
- Who Regulates Precious Metal Dealer in Duluth: The Duluth City Clerk’s Office
Background
Duluth Legislative Code 36-17 requires all precious metal dealers operating in the city to obtain a license from the Duluth City Clerk’s Office. The Duluth 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 $2,000 surety bond to be eligible for licensure.
What is the Purpose of the Duluth Precious Metal Dealer Bond?
Duluth requires precious metal dealers to purchase a surety bond as part of the application process to obtain a business license. The bond protects the public from financial harm if the dealer fails to comply with the regulations set forth in Duluth Legislative Code 36-18. Specifically, the bond protects the public if the dealer 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 precious metal dealer violates the terms of their license.
How Can an Insurance Agent Obtain a Duluth Precious Metal Dealer Surety Bond?
BondExchange makes obtaining a Duluth 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 Duluth Precious Metal Dealer Bond?
No, a credit check is not required for the Duluth Precious Metal Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers operating in the city, regardless of their credit history.
How Much Does the Duluth Precious Metal Dealer Bond Cost?
The Duluth Precious Metal Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Duluth requires precious metal dealers to purchase a surety bond as a prerequisite to obtaining a business license. Precious metal dealers must obtain a separate license for each location they plan to operate. To paraphrase Duluth Legislative Code 36-16, a precious metal dealer is a person who purchases secondhand items containing precious metals such as jewelry, coins, watches, and other items containing precious metals or gems.
Antique dealers, consignment house dealers, secondhand dealers, and auction house dealers that purchase or sell precious metals will also be subject to the bonding requirement. Banks, financial corporations, and licensed pawnbrokers that deal with precious metals are not required to purchase this 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 Precious Metal Dealers Apply for a License in Duluth?
Precious metal dealers in Duluth must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact the City Clerk’s Office for details on the process.
License Period – All Duluth Precious Metal Dealer Licenses expire on April 30th of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Precious metal dealers must purchase and maintain a $2,000 surety bond.
Step 2 – Complete the Application
Precious metal dealers can request a license application via email from the City Clerk’s Office, which they must complete and submit by mail to the following address:
City Hall, Room 318
411 West First Street
Duluth, MN 55802
Applicants must complete the form in its entirety and submit the following items:
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- $440 license fee
- $36 one-time investigation fee
- Workers’ compensation policy
- Tax identification form
- Surety bond
Applicants that apply for a license after May 1st will be charged a prorated license fee for the remainder of the year, with a minimum fee amount of $32.
How do Duluth Precious Metal Dealers Renew Their License?
Precious metal dealers should contact the City Clerk’s Office to obtain a renewal application before their license expires. All Duluth Precious Metal Dealer Licenses expire on April 30 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Duluth Precious Metal Dealers?
Minnesota Statute 176.182 requires all businesses with employees to obtain workers’ compensation insurance coverage as a prerequisite to obtaining a business license (limits not specified). Precious metal dealers must also purchase and maintain a $2,000 surety bond.
How Do Duluth Precious Metal Dealers File Their Bonds?
Precious metal dealers should mail or deliver their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
City Hall, Room 318
411 West First Street
Duluth, MN 55802
The bond requires signatures from both the surety company that issues the bond and the applicant. 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
- Date the bond is signed
- License term period
- Notary acknowledgments
What Can Duluth Precious Metal Dealers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, precious metal dealers in Duluth must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Maintain all required transaction records
What Other Insurance Products Can Agents Offer Precious Metal Dealers in Duluth?
Duluth requires all precious metal dealers with employees to obtain workers’ compensation insurance coverage as a prerequisite to obtaining a business license. 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 Duluth Precious Metal Dealer Customers?
Duluth unfortunately does not provide a public database of active precious metal dealers in the city. We suggest contacting the City Clerk’s Office to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.