Massachusetts Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Massachusetts Auctioneer Bond.
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All auctioneers operating in Massachusetts
- Purpose: To ensure the public is compensated for damages should the auctioneer fail to comply with licensing law
- Who Regulates Auctioneers in Massachusetts: The Massachusetts Deputy Director of Standards
Massachusetts General Laws Ch 100 § 2 requires all auctioneers operating in the state to obtain a license from the Deputy Director of Standards. The Massachusetts 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 Massachusetts Auctioneer Bond?
Massachusetts 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 Massachusetts General Laws Ch 100 § 3. Specifically, the bond protects the public from financial harm in the event the auctioneer fails to provide consumers with all goods that have been paid for or does not pay any fines levied against him/her. 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 Massachusetts Auctioneer Surety Bond?
BondExchange makes obtaining a Massachusetts Auctioneer 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 Massachusetts Auctioneer Bond?
No, a credit check is not required for the Massachusetts Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers operating in the state, regardless of their credit history.
How Much Does the Massachusetts Auctioneer Bond Cost?
The Massachusetts Auctioneer bond costs either $100 per year or $10 per month.
Who is Required to Purchase the Massachusetts Auctioneer Bond?
Massachusetts requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Massachusetts General Laws Ch 100 § 1, an auctioneer is a person that sells property to the highest bidder at an auction.
Exemptions to these definitions include:
- Sales conducted by a charitable or nonprofit organization
- Sales conducted by a federal or state government employee or court appointed representative acting within the scope of their authority
- 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 Massachusetts?
Auctioneers in Massachusetts must navigate several steps to secure their licenses. Below are the general guidelines, but applicants should refer to the Division of Standard’s application page for details on the process.
License Period – All Massachusetts Auctioneer Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Meet the Experience Requirements
To become a licensed auctioneer in Massachusetts, applicants must ensure that they satisfy all of the following criteria:
- Be at least 18 years old
- Graduated from a certified auctioneer school
Step 2 – Pass the Exam
Applicants are required to pass a written exam before being issued their license, and will be able to do so at the end of their auctioneer school program.
Step 3 – Purchase a Surety Bond
Auctioneers are required to purchase and maintain a $10,000 surety bond.
Step 4 – Complete the Application
- Surety Bond
- $100 license fee
- Diploma or certificate from a certified auctioneer school
- Two signed letters of recommendation from licensed auctioneers, elected officials or members of the Massachusetts bar
How Do Massachusetts Auctioneers Renew Their Licenses?
Auctioneers should submit their completed renewal applications, including the $100 renewal fee, online here. All Massachusetts Auctioneer Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Auctioneers in Massachusetts?
Massachusetts 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 Massachusetts Auctioneers File Their Bonds?
Auctioneers should mail their completed bond forms, including the power of attorney, to the following address:
Division of Standards
One Ashburton Place
Boston, MA 02108
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 and city of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date the bond is signed
What Can Massachusetts Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Massachusetts 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
- Pay all fines on time and in full
- Provide consumers with all goods that have been paid for
What Other Insurance Products Can Agents Offer Auctioneers in Massachusetts?
Massachusetts does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a state 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 Massachusetts Auctioneer Customers?
Massachusetts unfortunately does not provide a public database of active auctioneers in the state. We suggest contacting the Division of Standards to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.