Rancho Mirage Consignment Store Bond: A Comprehensive Guide

January 25, 2023

Rancho Mirage Consignment Store Bond

This guide provides information for insurance agents to help their customers obtain a Rancho Mirage Consignment Store bond.

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: Must be equal to 120% of the value of the consignment store’s inventory
  • Who Needs it: All consignment stores operating in Rancho Mirage, California
  • Purpose: To protect the public from financial harm if the consignment store violates the terms of their permit
  • Who Regulates Consignment Stores in Rancho Mirage: The City of Rancho Mirage

Background

Rancho Mirage Municipal Code 5.26.040 requires all consignment stores operating in the city to obtain a permit with the City of Rancho Mirage before conducting business. The Rancho Mirage City Council enacted the permitting requirement to ensure that consignment stores engage in ethical business practices. To provide financial security for the enforcement of the permitting law, consignment stores must purchase and maintain a surety bond to be eligible for a permit.

What is the Purpose of the Rancho Mirage Consignment Store Bond?

Rancho Mirage requires consignment stores to purchase a surety bond as part of the application process to obtaining a consignment store permit. The bond ensures that the public will be protected from financial harm if the store fails to comply with the regulations set forth in Rancho Mirage Municipal Code 5.26.130. Specifically, the bond protects the public in the event the store engages in any acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the consignment store violates the terms of their permit.

Rancho Mirage Consignment Store Bond Form
Rancho Mirage Consignment Store Bond Form

How Can an Insurance Agent Obtain a Rancho Mirage Consignment Store Surety Bond?

BondExchange makes obtaining a Rancho Mirage Consignment Store bond easy. Simply log in to your account and use our keyword search to find the “Consignment Store” 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.

Not an agent? Then let us pair you with one!

BX Agent Finder Link

Click the above image to find a BX Agent near you

Is a Credit Check Required for the Rancho Mirage Consignment Store Bond?

No, a credit check is not required for the Rancho Mirage Consignment Store bond. Because the bond is considered relatively low risk, the same low rate is offered to all consignment stores in the city regardless of their credit history.

How Much Does the Rancho Mirage Consignment Store Bond Cost?

The Rancho Mirage Consignment Store bond costs just $100 per year.

Who is Required to Purchase the Rancho Mirage Consignment Store Bond?

Rancho Mirage requires consignment stores to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase Rancho Mirage Municipal Code 5.26.020, a consignment store is a retailer that sells items on behalf of the owner and pays a percentage of revenue to the owner once the item is sold.

How Do Consignment Stores Apply for a Permit in Rancho Mirage?

Consignment stores in Rancho Mirage must navigate several steps to secure a permit. Below are the general guidelines, but applicants should refer to the application form for details on the process.

License Period: All Rancho Mirage Consignment Store Permits expire annually and must be renewed before the expiration date.

Step 1 – Purchase a Surety Bond

Consignment store owners are required to purchase and maintain a surety bond.

Step 2 – Complete an Application

All Rancho Mirage Consignment Store Permit applications should be submitted to the City of Rancho Mirage by mail at the following address:

Administrative Services Department
Finance Division
69-825 Highway 111
Rancho Mirage, CA 92270

Applicants must complete the form in its entirety and submit the following items:

    • Applicant’s drivers license, recent photograph, and fingerprint
    • On-site manager’s drivers license, recent photograph, and fingerprint
    • State of California Secondhand Dealer license
    • Surety bond
    • $250 application fee

Applicants will be subject to a background check, and applications take up to 60 days to process. Contact the City of Rancho Mirage for additional information.

How do Rancho Mirage Consignment Stores Renew Their Permits?

Consignment stores can renew their permits by submitting an application to the City of Rancho Mirage at the following address:

Administrative Services Department
Finance Division
69-825 Highway 111
Rancho Mirage, CA 92270

All Rancho Mirage Consignment Store Permits expire annually and must be renewed before the expiration date.

What are the Insurance Requirements for Rancho Mirage Consignment Stores?

Rancho Mirage requires consignment stores owners to purchase liability insurance to protect any consigned items from loss, theft, or property damage (limits not specified). Consignment stores must also purchase and maintain a surety bond.

How Do Rancho Mirage Consignment Stores File Their Bonds?

Consignment stores should submit their completed bond forms, including the power of attorney, to the City of Rancho Mirage at the following address:

Administrative Services Department
Finance Division
69-825 Highway 111
Rancho Mirage, CA 92270

The surety bond requires signatures from both the surety company that issues the bond and from the store owner. 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
  • Date the bond goes into effect
  • Date the bond is signed

What Can Rancho Mirage Consignment Stores Do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, consignment stores in Rancho Mirage must ensure that they:

  • Do not engage in any acts of fraud
  • Do not breach contracts made with consumers
  • Maintain an accurate record of all transactions

What Other Insurance Products Can Agents Offer Consignment Stores in Rancho Mirage?

Rancho Mirage require consignment stores to purchase liability insurance. 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 Rancho Mirage Consignment Store Customers?

Rancho Mirage unfortunately does not provide a public database of permitted consignment stores in the city. We suggest contacting the City of Rancho Mirage for a list of permitted consignment stores. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.