Maine Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Maine Auctioneer bond.
At a Glance:
- Lowest Cost: Between $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All auctioneers operating in Maine
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Maine: The Maine Department of Professional and Financial Regulation
Background
Maine Statute 32-285 requires all auctioneers operating in the state to obtain a license from the Department of Professional and Financial Regulation. The Maine legislature 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 $10,000 surety bond to be eligible for licensure.
What is the Purpose of the Maine Auctioneer Bond?
Maine 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 Maine Statute 32-284 et seq. Specifically, the bond protects the public from financial harm if the auctioneer commits fraud or fails to abide by the agreed upon terms of a sale. 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 Maine Auctioneer Surety Bond?
BondExchange makes obtaining a Maine 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.
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 Maine Auctioneer Bond?
Surety companies will run a credit check on the applicant to determine eligibility and pricing for the Maine Auctioneer 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 Maine Auctioneer Bond Cost?
The Maine Auctioneer bond can cost anywhere between $100 to $500 per year or $10 to $50 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 $10,000 bond requirement.
$10,000 Auctioneer Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 625+ | $100 | $10 |
| 600 – 624 | $250 | $25 |
| 575 – 599 | $300 | $30 |
| 500 – 574 | $500 | $50 |
*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?
Maine requires auctioneers to purchase a surety bond as a prerequisite to obtaining a state license. To paraphrase Maine Statute 32-284, an auctioneer is a person that sells or offers property to the highest bidder at an auction.
Exemptions to this definition include:
- Charitable or nonprofit organizations
- Sheriffs, tax collectors, or court-appointed representatives acting within the scope of their authority
- Sales conducted exclusively over the Internet
- The sale of property acquired by nonpayment of taxes
- Sales of purebred animals
- Persons assisting auctioneers
- A foreclosure sale of personal property conducted by a mortgagee
- Individuals selling their own property
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 Maine?
Auctioneers in Maine must navigate several steps to secure their licenses. Below are the general guidelines, but applicants should refer to the application page for details on the process.
License Period – All Maine Auctioneer Licenses expire on March 31 of each year and must be renewed before the expiration date.
Step 1 – Pass the Exam
Applicants are required to pass an exam administered by the Board of Licensing of Auctioneers before being issued their license. To register for the exam, applicants must submit a completed exam application form, including a $150 fee, online here at least two weeks before the date of the test. All exam results will be valid for 90 days. Applicants that do not secure their licenses within this period must retake the exam.
Step 2 – Purchase a Surety Bond
Auctioneers are required to purchase and maintain a $10,000 surety bond.
Step 3 – Complete the Application
Auctioneers are eligible to apply for licensure after passing the exam and purchasing a surety bond. All Maine Auctioneer License applications should be submitted online here. Auctioneers must complete the application in its entirety and pay a $271 fee.
How do Maine Auctioneers Renew Their Licenses?
Auctioneers should submit their completed renewal applications, including the $200 renewal fee, online here. All Maine Auctioneer Licenses expire on March 31 of each year and must be renewed before the expiration date. Applicants that submit a renewal after March 31 will be assessed a late fee of $50.
What are the Insurance Requirements for Auctioneers in Maine?
Maine does not require auctioneers to obtain any form of liability insurance as a prerequisite to obtaining a state license. Auctioneers must purchase and maintain a $10,000 surety bond.
How Do Maine Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to the Board of Licensing of Auctioneers at the following address:
35 State House Station
Augusta, Maine 04333
The surety bond requires signatures, including witness signatures, from the surety company that issues the bond and the applicant. The surety company should include the following information on the bond form:
- Legal name and address of the entity/individual(s) buying the bond
- Surety Company’s name
- Bond amount
- Date the bond is signed
- Dates the bond goes into effect and expires
What Can Maine Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bond, auctioneers in Maine must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Do not breach the agreed upon terms of any sale
What Other Insurance Products Can Agents Offer Auctioneers in Maine?
Most reputable auctioneers will purchase liability insurance. 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 Maine Auctioneer Customers?
Maine conveniently provides a public database to search for active auctioneers in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.