Montana Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Montana Auctioneer bond.
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All auctioneers operating in Montana
- Purpose: To ensure the public receives compensation for financial harm if the auctioneer breaches any consumer contracts
- Who Regulates Auctioneers in Montana: The clerk of the county where the auctioneer lives
Background
Montana Code 30-11-510 requires all auctioneers operating in the state to file a surety bond with the clerk of the county where the auctioneer lives before conducting business. The Montana legislature enacted the bonding requirement to ensure that auctioneers engage in ethical business practices. There is no statewide licensing requirement for auctioneers in Montana. However, the auctioneer’s local municipal authority may require the auctioneer to purchase a local business or tax license.
What is the Purpose of the Montana Auctioneer Bond?
Montana requires auctioneers to purchase a surety bond as a prerequisite to conducting business. The bond ensures that the public will receive compensation for financial harm if the auctioneer fails to comply with the regulations set forth in Montana Code 30-11-508. Specifically, the bond protects the public in the event the auctioneer breaches any consumer contracts or fails to provide all goods that have been paid for. In short, the bond is a type of insurance that protects the public if the auctioneer acts unethically.
How Can an Insurance Agent Obtain a Montana Auctioneer Surety Bond?
BondExchange makes obtaining a Montana 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? 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 Montana Auctioneer Bond?
No, a credit check is not required for the Montana Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers operating in the state, regardless of their credit history.
How Much Does the Montana Auctioneer Bond Cost?
The Montana Auctioneer bond costs just $100 per year.
Who is Required to Purchase the Bond?
Montana requires auctioneers to purchase a surety bond to be eligible to conduct business. To paraphrase Montana Code 30-11-508, an auctioneer is a person that publicly sells property to the highest bidder.
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.
What are the Licensing Requirements for Auctioneers in Montana?
Montana does not require auctioneers to obtain a state license. However, auctioneers may be required to obtain a local business and tax license before conducting business and should check with their local municipal authority before doing so.
What are the Insurance Requirements for Auctioneers in Montana?
Montana does not require auctioneers to purchase any form of liability insurance, at least at the state level. However, the auctioneer’s local municipal authority may require them to do so. Auctioneers must purchase and maintain a $5,000 surety bond.
How Do Montana Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to the clerk of the county where the auctioneer lives. To find the address of the county clerk’s office, the auctioneer should contact their local municipal authority or check online here for a list of county websites.
The surety bond requires signatures from the surety company that issues the bond and the auctioneer. The surety company should include the following information on the bond form:
- Legal name and address of the entity/individual(s) buying the bond
- Surety company’s name
- County clerk’s address
- Date the bond is signed
What Can Montana Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, auctioneers in Montana must ensure that they comply with the provisions set forth in Montana Code 30-11-508. Best practices for avoiding claims include:
- Faithfully honoring all consumer contracts
- Providing all goods that have been paid for
What Other Insurance Products Can Agents Offer Auctioneers in Montana?
Most reputable auctioneers will 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 Montana Auctioneer Customers?
Montana unfortunately does not provide a public database of active auctioneers in the state. We suggest contacting local county clerks to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
