Rhode Island Pawnbroker Bond

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Rhode Island Pawnbroker Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Rhode Island Pawnbroker bond.

At a Glance:

  • Average Cost: $100 per year or $10 per month
  • Bond Amount: $2,000
  • Who Needs it: All pawnbrokers operating in Rhode Island
  • Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
  • Who Regulates Pawnbrokers in Rhode Island: The city/town where the pawnbroker is conducting business
Rhode Island Pawnbroker Bond Form
Rhode Island Pawnbroker Bond Form


Rhode Island General Law 19-26-2 requires all pawnbrokers operating within the state to obtain a license from their local city or town’s licensing authority. The Rhode Island legislature enacted the licensing requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, pawnbrokers must purchase and maintain a $2,000 surety bond to be eligible for a license.

What is the Purpose of the Rhode Island Pawnbroker Bond?

Rhode Island requires pawnbrokers to purchase a surety bond as part of the application process to obtain a pawnbroker license. The bond ensures that the public will be protected from financial harm if the broker fails to comply with the regulations set forth in Rhode Island General Law 19-26-3. Specifically, the bond protects the public in the event the broker 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 pawnbroker violates the terms of their license.

How Can an Insurance Agent Obtain a Rhode Island Pawnbroker Surety Bond?

BondExchange makes obtaining a Rhode Island Pawnbroker bond easy. Simply log in to your account and use our keyword search to find the “Pawnbroker” 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 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 Rhode Island Pawnbroker Bond?

No, a credit check is not required for the Rhode Island Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers operating in the state, regardless of their credit history.

How Much Does the Rhode Island Pawnbroker Bond Cost?

The Rhode Island Pawnbroker bond costs just $100 per year or $10 per month.

Who is Required to Purchase the Rhode Island Pawnbroker Bond?

Rhode Island requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase Rhode Island General Law 19-26-1, a pawnbroker is a person who issues loans to individuals that leave their property, as collateral, for the broker to sell on condition that the customer may repurchase the property within a fixed period of time.

Exemptions to this definition include:

  • National banks
  • Banks and trust companies incorporated in Rhode Island

Rhode Island Pawnbroker Bond

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How Do Pawnbrokers Apply for a License in Rhode Island?

Pawnbrokers in Rhode Island must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.

License Period – All Rhode Island Pawnbroker Licenses expire one year from the date of issuance and must be renewed before the expiration date.

Step 1 – Contact Your Local Municipal Authority

To obtain a license, pawnbrokers must contact their city or town’s local licensing authority. The city or town government will walk them through the application process, provide them with all required forms, and answer any questions they may have.

Step 2 – Purchase a Surety Bond

Pawnbrokers operating in Rhode Island are required to purchase and maintain a $1,000 surety bond.

How do Rhode Island Pawnbrokers Renew Their License?

Pawnbrokers should contact their local municipal authority to obtain a renewal application before their license expires. Brokers must also ensure they renew their surety bond to avoid the termination of their license. All Rhode Island Pawnbroker Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.

What are the Insurance Requirements for Rhode Island Pawnbrokers?

Rhode Island does not require pawnbrokers to purchase any form of liability insurance. Pawnbrokers must purchase and maintain a $1,000 surety bond.

How Do Rhode Island Pawnbrokers File Their Bonds?

Pawnbrokers should submit their completed bond forms, including the power of attorney, to their local municipal authority.

The surety bond requires signatures, including witness signatures, from both the surety company that issues the bond and from the broker. 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 goes into effect
  • Date the bond is signed

What Can Rhode Island Pawnbrokers do to Avoid Claims Made Against Their Bonds?

To avoid claims on their bonds, pawnbrokers in Rhode Island must ensure that they:

  • Do not engage in any acts of fraud or misrepresentation
  • Do not breach contracts made with consumers
  • Maintain all required transaction records
  • Return all pledged goods that have been paid for
  • Obtain proof of identification during each transaction

What Other Insurance Products Can Agents Offer Pawnbrokers in Rhode Island?

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 Rhode Island Pawnbroker Customers?

Rhode Island unfortunately does not provide a public database of active pawnbrokers in the state. However, we suggest contacting local municipal authorities for a list of licensed pawnbrokers within that city/town. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

Rhode Island Pawnbroker Bond