Sullivan County Precious Metal Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $2,000
- Who Needs it: All precious metal dealers operating in Sullivan County, New York
- Purpose: To protect the public from financial harm if the precious metal dealer violates the terms of their license
- Who Regulates Precious Metal Dealers in Sullivan County: The Sullivan County Clerk
Background
Sullivan County Code 167-3 requires all precious metal dealers operating in the county to obtain a precious metal and gems dealer license from the County Clerk. The Sullivan County Legislature enacted the licensing requirement to ensure that precious metal dealers engage in ethical business practices and restrict sales of stolen goods. To provide financial security for the enforcement of the licensing law, precious metal dealers must purchase and maintain a $2,000 surety bond to be eligible for licensure.
What is the Purpose of the Sullivan County Precious Metal Dealer Bond?
Sullivan County requires precious metal dealers to purchase a surety bond as part of the application process to obtain a precious metal and gems dealer license. The bond protects the public from financial harm if the dealer fails to comply with the regulations set forth in Sullivan County Code 167-4. Specifically, the bond protects the public if the dealer engages in any acts of fraud, breaches any consumer contracts, or deals in stolen goods. In short, the bond is a type of insurance that protects the public if the precious metal dealer violates the terms of their license.
How Can an Insurance Agent Obtain a Sullivan County Precious Metal Dealer Surety Bond?
BondExchange makes obtaining a Sullivan County Precious Metal Dealer bond easy. Simply log in to your account and use our keyword search to find the “Precious Metal Dealer” 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 ensure 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 Sullivan County Precious Metal Dealer Bond?
No, a credit check is not required for the Sullivan County Precious Metal Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all precious metal dealers operating in the county, regardless of their credit history.
How Much Does the Sullivan County Precious Metal Dealer Bond Cost?
The Sullivan County Precious Metal Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Sullivan County requires precious metal dealers to purchase a surety bond as a prerequisite to obtaining a precious metal and gems dealer license. To paraphrase Sullivan County Code 167-2, a precious metal dealer is a person who purchases, sells, or exchanges precious metals or gems such as gold, jewelry, or other items containing precious metals or gems, from the general public.
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 Precious Metal Dealers Apply for a License in Sullivan County?
Precious metal dealers in Sullivan County must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the application instructions for details on the process.
License Period – All Sullivan County Precious Metal and Gems Dealer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Schedule an Appointment for Fingerprinting
Prior to submitting an application, precious metal dealers are required to schedule an appointment for fingerprinting with IdentoGo. Dealers must pay a $102.25 fee online for the fingerprinting service, and all fingerprints must be taken no more than two weeks prior to submitting an application.
Step 2 – Purchase a Surety Bond
Precious metal dealers must purchase and maintain a $2,000 surety bond.
Step 3 – Complete the Application
Precious metal dealers should submit their completed applications to the Sullivan County Clerk at the following address:
100 North Street
Monticello, N.Y. 12701
Applicants must complete the form in its entirety, get it notarized, and submit the following items:
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- $200 licensing fee
- Surety bond
- Criminal conviction history
- Copy of the applicant’s fingerprints
- Two passport-type photographs per applicant
- Proof of workers’ compensation insurance, if applicable
Applicants must be at least 18 years or older to obtain a license. Contact the Sullivan County Clerk for assistance in the application process.
How Do Sullivan County Precious Metal Dealers Renew Their Licenses?
Precious metal dealers should contact the Sullivan County Clerk to renew their license. Dealers must pay a $100 renewal fee and ensure that they renew their surety bond to avoid termination of their license. Renewals may be submitted no earlier than 30 days and no later than 15 days before expiration. All Sullivan County Precious Metal and Gem Dealer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Precious Metal Dealers in Sullivan County?
New York requires nearly all employers in the state to provide workers’ compensation coverage for their employees. Dealers that wish to file an exemption must submit Form CE-200. Precious metal dealers must also purchase and maintain a $2,000 surety bond.
How Do Sullivan County Precious Metal Dealers File Their Bonds?
Precious metal dealers should submit their completed bond forms, including the power of attorney, to the Sullivan County Clerk at the following address:
100 North Street
Monticello, N.Y. 12701
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 being applied for
- Date the bond is signed and goes into effect
- Bond amount
What Can Sullivan County Precious Metal Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, precious metal dealers in Sullivan County must adhere to all license regulations and also ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Do not purchase or sell any stolen goods
- Maintain all required records
What Other Insurance Products Can Agents Offer Precious Metal Dealers in Sullivan County?
Most reputable precious metal dealers will purchase liability insurance. 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 Sullivan County Precious Metal Dealer Customers?
Sullivan County unfortunately does not provide a public database of active precious metal dealers in the county. We suggest contacting the Sullivan County Clerk to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
