New Hampshire Lottery Sales Agent Bond: A Comprehensive Guide
December 7, 2021
This guide provides information for insurance agents to help their customers obtain a New Hampshire Lottery Sales Agent Bond
At a Glance:
- Average Cost: Between 1.5% to 5% of the bond amount per year based on the applicant’s credit
- Bond Amount: Determined on a case by case basis (more on this later)
- Who Needs it: New Hampshire lottery retailers who do not meet the lottery commission’s creditworthiness requirements
- Purpose: To ensure the public will receive compensation if the retailer fails to remit all funds owed to the lottery commission
- Who Regulates Lottery Retailers in New Hampshire: The New Hampshire Lottery Commission
New Hampshire statute 301.01 requires all lottery retailers operating in the state to obtain a license with the lottery commission prior to selling tickets. The New Hampshire legislature enacted the licensing laws and regulations to ensure that retailers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, retailers who do not meet the lottery commission’s creditworthiness requirements must purchase and maintain a surety bond in an amount set forth by the lottery commission.
What is the Purpose of the New Hampshire Lottery Sales Agent Bond?
New Hampshire requires retailers who do not meet the lottery commission’s creditworthiness requirements to purchase a surety bond as part of the application process to obtain a retailer license. The bond ensures that the public will receive compensation for financial harm if the retailer fails to comply with the regulations set forth in New Hampshire SW 300. Specifically, the bond protects the public in the event the retailer fails to remit all funds owed to the lottery commission. In short, the bond is a type of insurance that protects the public if the retailer violates licensing law.
How Can an Insurance Agent Obtain a New Hampshire Lottery Sales Agent Bond?
BondExchange makes obtaining a New Hampshire Lottery Sales Agent surety bond easy. Simply log in to your account and use our keyword search to find the “lottery” 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.
How is the Bond Amount Determined?
When determining the bond amount, the lottery commission will examine the retailer’s creditworthiness and estimated sales volume and will seek to set the bond to an amount that ensures the lottery commission will not suffer financial harm if the retailer fails to remit all funds owed. The lottery commission will determine the required bond amount on a case-by-case basis specific to each individual retailer.
Is a Credit Check Required for the New Hampshire Lottery Sales Agent Bond?
Surety companies will run a credit check on the owners of the retail company to determine eligibility and pricing for the New Hampshire Lottery Sales Agent bond. Owners with excellent credit and work experience can expect to receive the best rates. Owners with poor credit will likely 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 owner’s credit.
How Much Does the New Hampshire Lottery Sales Agent Bond Cost?
The New Hampshire Lottery Sales Agent surety bond can cost anywhere between 1.5% to 5% of the bond amount per year. 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 a $10,000 bond requirement.
$10,000 Lottery Bond Cost
|Credit Score||Bond Cost (1 year)|
|650 – 799||$200|
|600 – 649||$500|
*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 a Bond?
The lottery commission requires all retailers who do not satisfy the department’s creditworthiness requirements to purchase a surety bond prior to selling lottery tickets. After the retailer submits their application, the lottery commission will conduct a credit check to determine whether or not the retailer must purchase a bond.
How do Retailers Apply for a Lottery License in New Hampshire?
Lottery retailers in New Hampshire must navigate several steps when applying for a retail license. Below are the general guidelines, but applicants should refer to the application packet for details on the process.
License Period – Retailers who sell KENO 603 tickets must renew their licenses annually. Licenses for retailers who do not sell KENO 603 tickets do not expire unless suspended, canceled, or revoked
Step 1 – Complete the Application
All New Hampshire Lottery Retailer License applications should be mailed to the following address:
NH Lottery Commission
14 Integra Drive
Concord, NH 03301
Retailers must complete the application in its entirety and submit the following items:
- Proof of registration with the New Hampshire Secretary of State (if applicable)
- Authorization agreement for withdrawals
- Copy of a voided check (bank verification if a savings account)
- Photocopy of a government-issued ID
- Signed criminal records release authorization form
Retailers who sell KENO 603 tickets must pay a $500 application fee
Step 2 – Pass Inspection
A representative from the lottery commission will conduct an on-site inspection of the retailer’s place of business to ensure that it is in compliance with the Americans with Disabilities Act (ADA)
Step 3 – Purchase a Surety Bond
Retailers who do not meet the lottery commission’s creditworthiness requirements may need to purchase a surety bond in an amount determined by the lottery commission
How Do New Hampshire Lottery Retailers Renew Their License?
Retailers who sell KENO 603 tickets must renew their licenses annually. Licenses for retailers who do not sell KENO 603 tickets do not expire unless suspended, canceled, or revoked. If your customer’s license must be renewed, then the lottery commission will send them a renewal packet prior to their license expiration date containing instructions on how to complete the renewal process.
What Are the Insurance Requirements for New Hampshire Lottery Retailers?
New Hampshire does not require retailers to obtain any form of liability insurance as a prerequisite to obtaining a lottery license. Retailers who do not meet the lottery commission’s creditworthiness requirements may need to purchase a surety bond in an amount determined by the lottery commission.
How Do New Hampshire Lottery Retailers File Their Bond?
Retailers should mail their completed bond form, including the power of attorney, to the following address:
NH Lottery Commission
14 Integra Drive
Concord, NH 03301
The New Hampshire Lottery Sales Agent surety bond requires signatures from both the surety company that issues the bond and a representative from the retail organization. The surety company should include the following information on the bond form:
- Legal name entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Bond term
- Date the bond is signed
What Can New Hampshire Lottery Retailers Do to Avoid Claims Against Their Bond?
To avoid claims against their bond, lottery retailers in New Hampshire must ensure that they remit all funds owed to the lottery commission.
What Other Insurance Products Can Agents Offer Lottery Retailers in New Hampshire?
New Hampshire does not require lottery retailers to obtain any form of liability insurance as a prerequisite to obtaining a retailer license. However, most reputable businesses will seek to 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 New Hampshire Lottery Retailer Customers?
New Hampshire conveniently provides a public database to search for active lottery retailers 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.