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Louisiana Auctioneer Bond: A Comprehensive Guide
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This guide provides information for insurance agents to help their customers obtain a Louisiana Auctioneer Bond.
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All auctioneers and auction businesses operating in Louisiana
- Purpose: To ensure the public is compensated for damages should the auctioneer fail to comply with licensing law
- Who Regulates Auctioneers in Louisiana: The Louisiana Auctioneers Licensing Board
Background
Louisiana Statute 37:3105 requires all auctioneers and auction businesses operating in the state to obtain a license with the Auctioneers Licensing Board. The Louisiana legislature 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 and auction businesses must purchase and maintain a $10,000 surety bond to be eligible for licensure.
What is the Purpose of the Louisiana Auctioneer Bond?
Louisiana 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/business fails to comply with the regulations set forth in Louisiana Statute 37:3118. Specifically, the bond protects the public from financial damages in the event the auctioneer commits fraud or violates any written auctioneer’s contracts. In short, the bond is a type of insurance that protects the public if the auctioneer or auction business violates the terms of their license.
How Can an Insurance Agent Obtain a Louisiana Auctioneer Surety Bond?
BondExchange makes obtaining a Louisiana Auctioneer 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? Gain access 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.
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Is a Credit Check Required for the Louisiana Auctioneer Bond?
No, a credit check is not required for the Louisiana Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers and auction houses operating in the state, regardless of their credit history.
How Much Does the Louisiana Auctioneer Bond Cost?
The Louisiana Auctioneer bond typically costs either $100 per year or $10 per month.
Who is Required to Purchase the Louisiana Auctioneer Bond?
Louisiana requires auctioneers and auction businesses to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Louisiana Statute 37:3103, an auctioneer is a person that sells property to the highest bidder at an auction. Likewise, an auction business is an organization that holds at least two auctions within a year. Exemptions to these definitions include:
- Sales conducted by a charitable or nonprofit organization
- Sales conducted by a federal or state government employee in relation to their job duties
- Sales conducted by a sealed bid
- A foreclosure sale of realty conducted personally by a trustee
- A foreclosure sale of personal property conducted by a mortgagee
- An auction business which exclusively auctions livestock
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 Auctioneers Apply for a License in Louisiana?
Auctioneers in Louisiana must navigate several steps to secure their licenses. Below are the general guidelines, but applicants should refer to the Auctioneer Licensing Board’s application page for details on the process.
License Period – All Louisiana Auctioneer Licenses expire on December 31 of each year and must be renewed before the expiration date.
Auctioneers
Step 1 – Meet the Experience Requirements
To become a licensed auctioneer in Louisiana, applicants must ensure that they satisfy all of the following criteria:
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- Be at least 18 years old
- Complete a one year apprenticeship program under a licensed auctioneer or graduate from an approved auctioneer school
Step 2 – Purchase a Surety Bond
Auctioneers are required to purchase and maintain a $10,000 surety bond.
Step 3 – Complete the Application
All Louisiana Auctioneer License applications should be submitted online here. Auctioneers must complete the application in its entirety, and submit the following items:
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- Proof of Citizenship
- Surety Bond
- $300 license fee
- Department of Revenue sales tax registration
- Signed and notarized Irrevocable Consent Form (out of state applicants only)
- A passport size headshot taken with the past 6 months
- One of the following:
- Auctioneer school certificate
- Apprenticeship completion form
Step 4 – Pass the Exam
Applicants are required to pass an exam administered or approved by the Auctioneer Licensing Board before being issued their license. After reviewing their application, the board will contact the applicant and provide them with instructions on how to schedule an exam. There is a $75 examination fee that must be paid each time the exam is taken.
Auction Businesses
Step 1 – Meet the Experience Requirements
To become a licensed auction business in Louisiana, applicants must ensure that they satisfy all of the following criteria:
-
- Be at least 18 years old
- Be a citizen of the United States
Step 2 – Purchase a Surety Bond
Auction businesses are required to purchase and maintain a $10,000 surety bond.
Step 3 – Complete the Application
All Louisiana Auctioneer License applications should be submitted online here. Auctioneers must complete the application in its entirety, and submit the following items:
-
- Surety Bond
- $300 license fee
- Department of Revenue sales tax registration
- Certificate of Authority (out of state businesses only)
- Company formation documents
How Do Louisiana Auctioneers Renew Their Licenses?
Auctioneers should submit their completed renewal applications, including the $150 renewal fee, online here. All Louisiana Auctioneer Licenses expire on December 31 of each year and must be renewed before the expiration date. Renewal licenses will be issued by January 10th of each year. Applicants that submit a renewal after January 1st will be fined a late penalty of $75.
What are the Insurance Requirements for Auctioneers in Louisiana?
Louisiana does not require auctioneers/businesses to obtain any form of liability insurance as a prerequisite to obtaining a state license. Auctioneers/businesses must purchase and maintain a $10,000 surety bond.
How Do Louisiana Auctioneers File Their Bonds?
Auctioneers should mail their completed bond forms, including the power of attorney, to the following address:
State of Louisiana Auctioneers Licensing Board
11736 Newcastle Avenue
Baton Rouge LA 70816
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 and address of the entity/individual(s) buying the bond
- Name of the surety company
- Name of the Parish the auctioneer/business is located in
- Date the bond is signed
- Dates the bond goes into effect and expires
What Can Louisiana Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bond, auctioneers/businesses in Louisiana must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Do not breach any written auctioneer’s contracts
What Other Insurance Products Can Agents Offer Auctioneers in Louisiana?
Louisiana does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a state 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 Louisiana Auctioneer Customers?
Louisiana conveniently provides a public database to search for active auctioneers 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.
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