Monroe Precious Metal Dealer Bond: A Comprehensive Guide
May 23, 2022
This guide provides information for insurance agents to help their customers obtain a Monroe Precious Metal Dealer Bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $10,000
- Who Needs it: All precious metal dealers operating in Monroe, North Carolina
- Purpose: To ensure the public will receive compensation for any damages should the dealer violates the terms of their permit
- Who Regulates Precious Metal Dealers in Monroe: The Monroe Chief of Police
Monroe Code of Ordinances 114.06 requires all precious metal dealers operating in the city to obtain a permit from the Chief of Police. The Monroe City Council enacted the permit requirement to ensure that precious metal dealers engage in ethical business practices. To provide financial security for the enforcement of the permitting law, precious metal dealers must purchase and maintain a $10,000 surety bond to be eligible for a permit. Additionally, North Carolina Statute 66-409 mandates that all precious metal dealers operating in the state file a bond with their local municipal authority before conducting business.
What is the Purpose of the Monroe Precious Metal Dealer Bond?
Monroe requires precious metal dealers to purchase a surety bond as part of the application process to obtain a permit. The bond ensures that the public will receive compensation for financial harm if the dealer fails to comply with the regulations set forth in Monroe Code of Ordinances 114.06 and North Carolina Statute 66-409. Specifically, the bond protects the public in the event the dealer commits 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 breaks permitting law.
How Can an Insurance Agent Obtain a Monroe Precious Metal Dealer Surety Bond?
BondExchange makes obtaining a Monroe Precious Metal Dealer bond easy. Simply log in to your account and use our keyword search to find the “Monroe” bond in our database. Don’t have a login? Enroll 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 Monroe Precious Metal Dealer Bond?
No, a credit check is not required for the Monroe Precious Metal Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all dealers operating in the city, regardless of their credit history.
How Much Does the Monroe Precious Metal Dealer Bond Cost?
The Monroe Precious Metal Dealer bond costs just $100 per year.
Who is Required to Purchase the Bond?
Monroe requires precious metal dealers to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase North Carolina Statute 66-406, a precious metal dealer is a person who purchases precious metals such as gold, silver, platinum, or palladium from the general public.
Exemptions to this definition include:
- Retail merchants purchasing precious metals from manufacturers or wholesalers
- Licensed pawnbrokers
- Retail merchants with a permanent place of business that acquire precious metals by trading their regularly sold merchandise as long as they do not provide the seller with money
How do Precious Metal Dealers Apply for a Permit in Monroe?
Precious metal dealers in Monroe must navigate several steps to secure a permit. Below are the general guidelines, but applicants should refer to the permitting statutes for details on the process.
Permit Period – All Monroe Precious Metal Dealer Permits expire annually and must be renewed before the expiration date
Step 1 – Contact the Police Department
To obtain a Special Metal Dealer Permit, applicants should contact the Monroe Police Department at (704) 282-4728. The department will walk your customer through the application process, and provide them with an application form that must be signed and notarized by the applicant. Dealers must submit the following items with their application:
- Recent photograph
- Full set of fingerprints
- Application fee (the department will inform your customer of the required bond amount)
Step 2 – Purchase a Surety Bond
Precious metal dealers must purchase and maintain a $10,000 surety bond
How do Monroe Special Metal Dealers Renew Their Permits?
Special metal dealers in Monroe must renew their permits annually and can do so by contacting the police department at (704) 282-4728.
What are the Insurance Requirements for the Monroe Special Metal Dealers?
Monroe does not require special metal dealers to purchase any form of liability insurance as a prerequisite to obtaining a permit. Dealers must purchase and maintain a $10,000 surety bond.
How Do Monroe Special Metal Dealers File Their Bonds?
Special metal dealers should submit their completed bond forms, including the power of attorney, to the Monroe Police Department at:
Monroe Police Department
P.O. Box 69
Monroe, NC 28111
The surety bond requires signatures from both the surety company that issues the bond and from the dealer. The surety company should include the following information on the bond form:
- Legal name and permit classification of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Entity requiring the bond
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Monroe Special Metal Dealers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, special metal dealers in Monroe must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
What Other Insurance Products Can Agents Offer Special Metal Dealers in Monroe?
Monroe does not require special metal dealers to purchase liability insurance. However, most reputable businesses will purchase this insurance anyway. 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 Monroe Special Metal Dealer Customers?
Monroe unfortunately does not provide a public database of active special metal dealers in the city. We suggest contacting the police department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.