Utica Auctioneer Bond: A Comprehensive Guide

September 19, 2022

Utica Auctioneer Bond

This guide provides information for insurance agents to help their customers obtain a Utica Auctioneer bond.

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $5,000
  • Who Needs it: All auctioneers operating in Utica, New York
  • Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
  • Who Regulates Auctioneers in Utica: The Utica City Clerk’s Office

Background

Utica Code of Ordinances 2-14-61 requires all auctioneers operating in the city to obtain a license from the City Clerk’s Office. The Utica Common 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 Utica Auctioneer Bond?

Utica requires auctioneers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the auctioneer fails to comply with the regulations set forth in Utica Code of Ordinances 2-14-65. Specifically, the bond protects the public if the auctioneer commits fraud or fails to submit accurate records of all goods sold to the city clerk. In short, the bond is a type of insurance that protects the public if the auctioneer violates the terms of their license.

Utica Auctioneer Bond Form

How Can an Insurance Agent Obtain a Utica Auctioneer Surety Bond?

BondExchange makes obtaining a Utica 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.

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 Utica Auctioneer Bond?

No, a credit check is not required for the Utica 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 Utica Auctioneer Bond Cost?

The Utica Auctioneer bond costs just $100 per year.

Who is Required to Purchase the Bond?

Utica requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Utica Code of Ordinance 2-14-61, an auctioneer is any person who sells personal property to the highest bidder at auction.

Exemptions to this requirement include:

  • Sales on behalf of the court or government
  • Executors or administrators
  • Sales under conditional contracts
  • Sales by trustees in bankruptcy
  • Sales conducted to satisfy warehouse liens
  • Sales on behalf of licensed pawnbrokers of unredeemed pledges

How Do Auctioneers Apply for a License in Utica?

Auctioneers in Utica 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 Utica Auctioneer Licenses can be issued for anywhere between a 1-day to 30-day period based on the applicant’s preferences.

Step 1 – Purchase a Surety Bond

Auctioneers are required to purchase and maintain a $5,000 surety bond.

Step 2 – Contact the City Clerk’s Office

Auctioneers should contact the City Clerk’s Office before applying for a license. The clerk will walk the auctioneer through the application process and provide them with all required application forms which the applicants must complete and return to the following address:

1 Kennedy Plaza
Utica, New York 13502

Auctioneers must submit an application fee of $100 per day the license is active for.

How Do Utica Auctioneers Renew Their Licenses?

To renew their license, auctioneers should contact the City Clerk’s Office. All Utica Auctioneer Licenses can be issued for anywhere between 1-day to 30-day periods based on the applicant’s preferences.

What are the Insurance Requirements for Auctioneers in Utica?

Utica 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 Utica Auctioneers File Their Bonds?

Auctioneers should submit their completed bond forms, including the power of attorney, to the Office of the City Clerk at the following address:

1 Kennedy Plaza
Utica, New York 13502

The bond requires 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 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 Utica Auctioneers do to Avoid Claims Made Against Their Bonds?

To avoid claims on their bonds, auctioneers in Utica must follow all license regulations in the city, including some of the most important issues below that tend to cause claims:

  • Do not engage in any acts of fraud
  • Submit accurate records of all goods sold to the city clerk

What Other Insurance Products Can Agents Offer Auctioneers in Utica?

Utica does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable 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 Utica Auctioneer Customers?

Utica 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.

2022-09-19T12:12:40-04:00