Auction Bond

In many states of the US and auctioneer must lodge a bond policy with the state before being allowed to become a practising auctioneer.

With an auction bond, consumers are protected from the misrepresentation of items that are up for auction, as well as the substitution of goods between the auction and collection. The bond also protects consumers against any other acts of fraud that may be committed by the auctioneer.

Bond prices and policy amounts differ greatly between states, you should check with your local government agency to see what kind of cover you require before setting up your policy.

The bond comes into effect when a consumer alleges that an auctioneer has not upheld the terms of the bond or has committed an illegal act. The claims department of the bond issuer will investigate the claim before making a decision about the validity of the claim. If the claim is found to be valid, your bond issuer will ensure that the auctioneer meets any terms or regulations that have been missed before reimbursing the consumer of any financial loss that may have been suffered due to the negligence or purposely fraudulent acts of the auctioneer.

If you have not had to apply for a bond before, the process can seem invasive and time consuming. This is true, but it is necessary. The broker that you are applying to for a bond needs to make sure that you are the right kind of person that they want to associate their company with. High risk applicants, those who have bad credit rating or a history of fraud may not qualify to become auctioneers.

 


Application for


Current or expiring quote we are looking to beat:


Name of previous surety company writing to the bond:


Section I: Bond Applied for

Type of Bond

Effective Date

Expiration Date


Type of Company

CORP

LLC

DBA

Partnership

Bond Amount


(Obligee)


Obligee Address


Section II: General Information

Applicant's Name

Spouse Name


SS#

Spouse SS#

Home Phone


Residence Address

City

State

Zip


Status of Residency

Own

Rent

At Current Address Since


Date of Birth

Spouse Date of Birth

Business License Number


Business Name


Business Phone

Business Fax

Business Email


Business Address

City

State

Zip


Date Business BEGAN Under Present Individual or Firm Name

Business Tax ID


Has any company refused to issue bonds for any purpose?

Yes

No

Do you have any liens, claims or judgements against you?

Yes

No


Has applicant ever failed in business?

Yes

No

Has applicant filed bankruptcy in the last 10 years?

Yes

No


If yes, Chapter 7?

Yes

No

Chapter 11?

Yes

No

Chapter 13?

Yes

No


Date Filed for Bankruptcy?


Date of Discharge?


If yes to any, please explain:


Section III: Additional Parties

Name

Spouse Name


SS#

Spouse SS#

Home Phone


Home Address

City

State

Zip


Personal Financials

(if more than one owner, each has to fill out this app)

Statement of assets and liabilities as of


Assets Liabilities
Cash in Bank Notes Payable to Banks
Cash on Hand Notes to Others(excl. of equipment)
Stocks and Bonds Accounts Payable
Accounts Receivable Federal and State Income Tax Due
Notes Receivable All Other Taxes
Inventory Accruals, Payrolls, Etc.
Cash Value Life Insurance    
Equipment Due on Equipment
Real Estate Due on Real Estate
Other Assets Other Liabilities
    Surplus and Undivided Profits
    Capital Stock(if a corporation)
       
Total Assets Total Liabilities

Net Worth


Name of Owners

Name and Title of Officers

% of Ownership


Are you an insurance agent?

Yes

No

Agent License #

Agent State

Completion of this form constitutes permission for Cal Society Insurance Services to obtain customer information which will be used to determine bonding eligibility. This information will be held in the strictest confidence.