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Westminster Pawnbroker Bond: A Comprehensive Guide
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This guide provides information for insurance agents to help their customers obtain a Westminster Pawnbroker bond.
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All pawnbrokers operating in Westminster, Colorado
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in Westminster: The Westminster City Clerk’s Office
Background
Westminster Code of Ordinances 5-8-3 requires all pawnbrokers operating in the city to obtain a license with the City Clerk’s office before conducting business. The Westminster City Council 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 $10,000 surety bond to be eligible for licensure.
What is the Purpose of the Westminster Pawnbroker Bond?
Westminster 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 the Westminster Code of Ordinances 5-8-7. 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 Westminster Pawnbroker Surety Bond?
BondExchange makes obtaining a Westminster 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.
Not an agent? Then let us pair you with one!
Click the above image to find a BX Agent near you
Is a Credit Check Required for the Westminster Pawnbroker Bond?
No, a credit check is not required for the Westminster Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers in the city regardless of their credit history.
How Much Does the Westminster Pawnbroker Bond Cost?
The Westminster Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Westminster Pawnbroker Bond?
Westminster requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase the Westminster Code of Ordinances 5-8-2, a pawnbroker is a person who advances money to a customer on the delivery of tangible personal property with the condition that the customer may repay the fixed price within a fixed period of time.
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 Westminster?
Pawnbrokers in Westminster must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the City Clerk’s website for details on the process.
First-time applicants will need to create an account with Gentax, the city’s online business licensing portal.
License Period – All Westminster Pawnbroker Licenses expire on December 31st of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers in Westminster must purchase and maintain a $10,000 surety bond.
Step 2 – Complete an Application
All Westminster Pawnbroker License applications should be submitted to the City Clerk’s Office online through the Gentax portal. Pawnbrokers must complete the application in its entirety and submit a $1,000 licensing fee with it. Contact the City Clerk’s Office for additional information on the application process.
How do Westminster Pawnbrokers Renew Their License?
Pawnbrokers must submit a renewal application online through the Gentax portal. All Westminster Pawnbroker Licenses expire on December 31st of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Westminster Pawnbrokers?
Westminster does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Pawnbrokers must also purchase and maintain a $10,000 surety bond.
How Do Westminster Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
4800 W. 92nd Ave
Westminster, CO 80031
The surety bond requires 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 being applied for
- Date the bond is signed and goes into effect
- Bond amount
What Can Westminster Pawnbrokers Do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Westminster must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
What Other Insurance Products Can Agents Offer Pawnbrokers in Westminster?
Westminster does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a business license. However, most reputable businesses will purchase this insurance anyway. 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 Westminster Pawnbroker Customers?
Westminster unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the City Clerk for a list of licensed pawnbrokers. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
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