Muskogee Auctioneer Bond: A Comprehensive Guide
August 22, 2022
This guide provides information for insurance agents to help their customers obtain a Muskogee Auctioneer bond.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All auctioneers operating in Muskogee, Oklahoma
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Muskogee: The Muskogee City Clerk’s Office
Muskogee Code of Ordinances 22-42 requires all auctioneers operating in the city to obtain a license from the City Clerk’s Office. The Muskogee City 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 $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Muskogee Auctioneer Bond?
Muskogee requires auctioneers 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 auctioneer fails to comply with the regulations set forth in Muskogee Municipal Code 22-43. Specifically, the bond protects the public from damages if the auctioneer engages in acts of fraud such as fictitious bidding or misrepresenting goods. 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 Muskogee Auctioneer Surety Bond?
BondExchange makes obtaining a Muskogee 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? Enroll 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 Muskogee Auctioneer Bond?
No, a credit check is not required for the Muskogee Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers operating in the city, regardless of their credit history.
How Much Does the Muskogee Auctioneer Bond Cost?
The Muskogee Auctioneer bond costs just $100 per year.
Who is Required to Purchase the Bond?
Muskogee requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Muskogee Municipal Code 22-42, an auctioneer is any person that publicly sells property to the highest bidder.
Exemptions to this definition include:
- Charitable or nonprofit organizations
- Farm products, livestock, or household goods from private homes
- Court-appointed representatives acting within the scope of their authority
How Do Auctioneers Apply for a License in Muskogee?
Auctioneers in Muskogee 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: Based on the license type
- General Auction: Valid for either a one-day or a one-year term
- Jewelry Auction: Valid for either a 15-day or a 30-day term
Step 1 – Determine their License Classification
Muskogee requires auctioneers to obtain specific types of licenses corresponding to the types of goods being sold. Auctioneers must identify what kind of merchandise they are selling and the length of time they intend to auction, and apply for the appropriate license type.
- General Auctioneer: Any person selling goods, wares, or merchandise at public auction
- Jewelry Auctioneer: Any person selling precious stones, jewelry, watches, clocks, gold, silverware, or plated ware
Step 2 – Purchase a Surety Bond
Auctioneers must purchase and maintain a $5,000 surety bond.
Step 3 – Complete the Application
Auctioneers should submit their completed application to the following address:
P.O. Box 1927
Muskogee, OK 74402
Auctioneers must complete the application in its entirety, and submit the following items:
- Application fee based on the type of license being applied for (see fee schedule here)
- Surety Bond
- Certificate of Occupancy
- Oklahoma Tax Permit
- Three reference letters
- Health Department Inspection
How do Muskogee Auctioneers Renew Their Licenses?
To renew their license, auctioneers should contact the City Clerk’s Office. The department will walk the auctioneer through the renewal process, provide them with all required forms, and answer any questions they may have.
What are the Insurance Requirements for Auctioneers in Muskogee?
Muskogee 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 $5,000 surety bond.
How Do Muskogee Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
P.O. Box 1927
Muskogee, OK 74402
The surety bond requires 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 of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Name of the obligee and the license type applied for
- Bond amount
- Date the bond is signed
What Can Muskogee Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, auctioneers in Muskogee must ensure that they comply with all provisions set forth in Chapter 22, Article 2 of the Muskogee Municipal Code. Best practices for avoiding claims include:
- Do not engage in any acts of fraud
- Accurately represent the goods up for sale
What Other Insurance Products Can Agents Offer Auctioneers in Muskogee?
Muskogee does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most 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 Muskogee Auctioneer Customers?
Muskogee unfortunately does not provide a public database of active auctioneers 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.