Hawaii County Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Hawaii County Auctioneer bond.
At a Glance:
- Lowest Cost: $125 per year or $13 per month
- Bond Amount: $500
- Who Needs it: All auctioneers operating in Hawaii County, Hawaii
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Hawaii: The Hawaii Vehicle Registration and Licensing Division
Hawaii County Code 6-34 requires all auctioneers operating in the county to obtain a license from the Vehicle Registration and Licensing Division. The County Council enacted the licensing laws and regulations to ensure that auctioneers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, auctioneers must purchase and maintain a $500 surety bond to be eligible for licensure.
What is the Purpose of the Hawaii County Auctioneer Bond?
Hawaii County requires auctioneers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the auctioneer fails to comply with the regulations set forth in Hawaii Revised Statute 445-31. Specifically, the bond protects the public if the auctioneer commits fraud, does not maintain an accurate record of all transactions, or sells goods in any venue other than a public auction. In short, the bond is a type of insurance that protects the public if the auctioneer violates the terms of their license.
How Can an Insurance Agent Obtain a Hawaii County Auctioneer Surety Bond?
BondExchange makes obtaining a Hawaii County Auctioneer surety bond easy. Simply login to your account and use our keyword search to find the “Auctioneer” 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.
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Is a Credit Check Required for the Hawaii County Auctioneer Bond?
No, a credit check is not required for the Hawaii County Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers operating in the county, regardless of their credit history.
How Much Does the Hawaii County Auctioneer Bond Cost?
The Hawaii County Auctioneer bond costs either $125 per year or $13 per month.
Who is Required to Purchase the Hawaii County Auctioneer Bond?
Hawaii County requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Hawaii County Code 6-32, an auctioneer is any person who sells personal property to the highest bidder at auction.
Exemptions to this requirement include:
- Charitable or nonprofit organizations
- Bulky articles usually sold in warehouses such as household furniture or machinery
- Persons selling farm or ranch produce
- Sales by hawkers on the street or peddlers from vehicles
- Sales made under a court order
- Sales of personal property belonging to the state or county
- Sales of merchandise in a legitimate closing out of stock
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 Auctioneers Apply for a License in Hawaii County?
Auctioneers in Hawaii County must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the county’s licensing page for details on the process.
License Period – All Hawaii County Auctioneer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Auctioneers must purchase and maintain a $500 surety bond.
Step 2 – Complete the Application
Auctioneers should submit their completed applications, including a $100 licensing fee, to the Vehicle Registration and Licensing Division at the following address:
101 Pauahi Street, Suite #5
Hilo, Hawaii 96720-4224
All applications must be notarized before submission.
How Do Hawaii County Auctioneers Renew Their Licenses?
Prior to the expiration date, the Vehicle Registration and Licensing Division will send the auctioneer a renewal notice containing instructions on how to renew their license. All Hawaii County Auctioneer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Auctioneers in Hawaii County?
Hawaii County does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Auctioneers must purchase and maintain a $500 surety bond.
How Do Hawaii County Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to the Vehicle Registration and Licensing Division at the following address:
101 Pauahi Street, Suite #5
Hilo, Hawaii 96720-4224
The bond requires signatures, including witness 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, address, and district of the entity/individual(s) buying the bond
- Surety company’s name and address
- Bond amount
- Date the bond is signed
What Can Hawaii County Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Hawaii County must follow all license regulations in the county, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Maintain an accurate record of all transactions
- Do not sell goods at any venue other than a public auction
What Other Insurance Products Can Agents Offer Auctioneers in Hawaii County?
Hawaii County does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable auctioneers will obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability 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 Hawaii County Auctioneer Customers?
Hawaii County unfortunately does not provide a public database of active auctioneers in the county. We suggest contacting the Business and Occupational Licensing Department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.