Oklahoma Precious Metal Dealer Bond: A Comprehensive Guide
March 8, 2023
At a Glance:
- Average Cost: Between $100 to $700 per year
- Bond Amount: $10,000
- Who Needs it: All precious metal dealers operating in Oklahoma
- Purpose: To protect the public from financial harm if the precious metal dealer violates the terms of their license
- Who Regulates Precious Metal Dealers in Oklahoma: The Oklahoma Department of Consumer Credit
Oklahoma Statute 59-1523 requires all precious metal dealers operating in the state to obtain a license from the Department of Consumer Credit. The Oklahoma legislature enacted the licensing requirement to ensure that precious metal dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, precious metal dealers must purchase and maintain a $10,000 surety bond to be eligible for a license.
What is the Purpose of the Oklahoma Precious Metal Dealer Bond?
Oklahoma requires precious metal dealers to purchase a surety bond as part of the application process to obtain a license. The bond protects the public from financial harm if the precious metal dealer fails to comply with the regulations set forth in Oklahoma Statute 59-1524. Specifically, the bond protects the public if the precious metal dealer engages in 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 violates the terms of their license.
How Can an Insurance Agent Obtain an Oklahoma Precious Metal Dealer Surety Bond?
BondExchange makes obtaining an Oklahoma Precious Metal Dealer bond easy. Simply log in to your account and use our keyword search to find the “Precious Metal Dealer” 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 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 ensure 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 Oklahoma Precious Metal Dealer Bond?
Surety companies will run a credit check on the applicant to determine eligibility and pricing for the Oklahoma Precious Metal Dealer 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 Oklahoma Precious Metal Dealer Bond Cost?
The Oklahoma Precious Metal Dealer bond can cost anywhere between $100 to $700 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 the $10,000 bond requirement.
$10,000 Precious Metal Dealer Bond Cost
|Credit Score||Bond Cost (1 year)|
|600 – 624||$250|
|575 – 599||$300|
|550 – 574||$500|
|500 – 549||$700|
*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?
Oklahoma requires precious metal dealers to purchase a surety bond as a prerequisite to obtaining a precious metal dealer license. To paraphrase Oklahoma Statute 59-1502, a precious metal dealer is a person who purchases or sells used precious metals or gems such as gold, silver, platinum, or palladium from the general public.
Exemptions to this definition include:
- Licensed pawnbrokers
- Licensed financial institutions and banks
- Retail jewelers that purchase precious metals directly from manufacturers
How Do Precious Metal Dealers Apply for a License in Oklahoma?
Precious metal dealers in Oklahoma must navigate several steps to obtain a license and must obtain a separate license for each location they operate. Below are the general guidelines, but applicants should refer to the application instructions for details on the process.
License Period – All Oklahoma Precious Metal Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Precious metal dealers must purchase and maintain a $10,000 surety bond.
Step 2 – Complete the Application
Precious metal dealers should submit a completed application to the Department of Consumer Credit at the following address:
629 NE 28th St
Oklahoma City, OK 73105
Dealers must complete the application in its entirety, get it notarized, and ensure they submit the following items:
- $425 investigation fee
- $300 license fee
- $400 examination fee
- Surety bond
- Full set of the dealer’s fingerprints
- Photo identification of the dealer
- Citizenship affidavit
- Verification of military service, if applicable
All applicants will be subject to a national criminal background check and applications typically take up to 60 days to process. Contact the Department of Consumer Credit for additional assistance in the application process.
How do Oklahoma Precious Metal Dealers Renew Their License?
The Department of Consumer Credit will send the precious metal dealer all required renewal forms before their license expires. Precious metal dealers must pay a $700 renewal fee, and ensure that they renew their surety bond to avoid termination of their license.
Renewal applications must be submitted by December 1st, and all renewals submitted after December 1st will be subject to a $10 per day late fee. All Oklahoma Precious Metal Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Oklahoma Precious Metal Dealers?
Oklahoma does not require precious metal dealers to purchase any additional insurance. Precious metal dealers must purchase and maintain a $10,000 surety bond.
How Do Oklahoma Precious Metal Dealers File Their Bonds?
Precious metal dealers should submit their completed bond forms, including the power of attorney, to the Department of Consumer Credit at the following address:
629 NE 28th St
Oklahoma City, OK 73105
The bond requires signatures, including witness 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, address, and county of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date the bond is signed
What Can Oklahoma Precious Metal Dealers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, precious metal dealers in Oklahoma must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Do not purchase or sell any stolen goods
- Maintain all required records
What Other Insurance Products Can Agents Offer Precious Metal Dealers in Oklahoma?
Oklahoma does not require precious metal dealers to purchase any liability insurance. However, most reputable businesses will purchase 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 Oklahoma Precious Metal Dealer Customers?
Oklahoma unfortunately does not provide a public database of active precious metal dealers in the state. We suggest contacting the Department of Consumer Credit to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.