$100,000 Minnesota Bullion Coin Dealer (Partnership) Bond

Businesses are required to file a $100,000.00 bond with the State of Minnesota Department of Commerce (the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from a licensed business breaking licensing laws.

Bullion Coin Dealer (Partnership) Bond

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How much does the Minnesota Bullion Coin Dealer (Partnership) bond cost?

Minnesota Bullion Coin Dealer (Partnership) bonds typically cost between $750 and $5,000 depending on the personal credit, license history, and experience of the business owners and the surety carrier issuing the bond.

Credit Premium Rate Bond Cost
0.75% $750
1.00% $1000
1.25% $1250
2.00% $2000
2.50% $2500
3.00% $3000
4.00% $4000
5.00% $5000

Is a Credit Check Required for Minnesota Bullion Coin Dealer (Partnership) Bonds?

Surety carriers will run a credit report as part of underwriting the bond because the business ultimately must reimburse the surety bond company for any claims made on the bond.

Why is the Minnesota Bullion Coin Dealer (Partnership) bond required?

Businesses are required to purchase and file a $100,000 bond with the State of Minnesota Department of Commerce to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from the failure of a licensed business complying with the provisions of licensing laws.

How does the Minnesota Bullion Coin Dealer (Partnership) bond work?

Minnesota Bullion Coin Dealer (Partnership) bonds must be issued by an insurance carrier admitted by the Minnesota Department of Insurance. The insurance company issuing any surety bond, such as the Minnesota Bullion Coin Dealer (Partnership) bond, will also be referred to as the "surety company" or the "bond company". The business is referred to as the Principal, the surety bond company as the Obligor and the State of Minnesota Department of Commerce as the Obligee.

The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form ("penal sum"). The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.