In order to buy, sell, or trade precious metals and jewels in Ohio, one must be licensed as a precious metals dealer through the Ohio Division of Financial Institutions. To obtain and maintain the license, a $10,000 surety bond must be held for the duration of the precious metals dealer’s operations. The bond shows your compliance with the Division of Financial Institutions’ regulations.
By providing this bond, Jet Insurance Company guarantees recompense to anyone who has filed a claim after being financially harmed by a precious metal dealer’s violation of the Division’s regulations and the Ohio Revised Code.
At Jet, the $10,000 Precious Metals Dealer Bond costs as low as $100 for one year, and most applicants will qualify for this rate. To be approved, a soft credit check must be run. Check the chart below for various rate options at the preferred credit tier.
Jet’s monthly subscription is exclusive to the market. Lock in a rate for the long haul and don’t worry about renewals!
The Ohio Division of Financial Institutions’ goal is to protect the State’s citizens from illegal or unethical actions of financial-related businesses, including precious metals dealers. The Precious Metals Dealer Bond is just one course of action for anyone who experiences financial loss due to a licensee’s violations of the Ohio Revised Code Chapter 4728. A precious metals dealer who knowingly purchases an item obtained out of theft may see a claim on the bond.
Surety companies, like Jet, are brought in as a guarantor of payment when a member of the public or the Ohio Division of Financial Institutions incurs financial damage.
The surety bond is only required of precious metal dealer licensees unable to show a net worth of $10,000 or more by submitted audited financial statements.
Chapter 4728 does not apply to those in Section 4728.11 of the Ohio Revised Code.
Good news—our application process can be completed from the comfort of your home in just a matter of minutes! We know your license application is lengthy enough, so we don’t want to put you through that twice. Simply answer a few questions and submit the application.
A soft credit check is completed to get you an approved rate. Some applicants will immediately receive a quote, while other times a Jet underwriter needs to conduct a quick review of the application.
Once a rate has been approved, you will receive an email with a link and you will be able to purchase the bond online. You will get an email from Jet after purchase that has a copy of the bond and your receipt attached.
Yes, but you must first grant us the authority to do so within the Nationwide Multistate Licensing System (NMLS). Even though the Division of Financial Institutions oversees licensing and regulation of precious metals dealers, most of the “paperwork” is completed electronically through the NMLS. Check out the NMLS electronic surety bond filing information and the image below to understand the bond filing process.
One of the perks of choosing Jet as your surety company is that you can cancel the bond at any time! Jet just requires your cancellation request to be in writing, which you can email to firstname.lastname@example.org. Jet will then send the notice of intent to cancel the bond to the Superintendent of Financial Institutions where you and Jet’s liability under the bond is kept active for 30 days.
If you pay monthly, the bond payments will discontinue after the 30-day period. If you paid for the bond in full, Jet will calculate any unused premium and return it to you after those 30 days.
When cancelling a license bond, a new one must be filed with the Division unless you are able to prove a minimum net worth of $10,000 or are ceasing your operations. Even after termination of the license, the bond must be active for two years and you are liable for claims during that time.
Leave renewal up to Jet! If you pay monthly there is no renewal process as long as Jet continues to receive payments from your preferred account. If you paid in full at the time of purchase, you will receive a renewal notice via mail and email with plenty of time for you to remit payment for the upcoming term.
Claims can be easily avoided by following Sections 4728.01 to 4728.14 of the Ohio Revised Code. In short, don’t commit fraud or negligence and you should be good as gold.
Claims come from either the public or the Ohio Division of Financial Institutions for actions such as:
The Division may conduct investigations and hold a hearing if you are found in violation of the Revised Code. At that time, the Division may give you the opportunity to address and fix the situation that landed you in court. A criminal conviction will result in the suspension or revocation of your license.
Unlike other surety companies, Jet provides direct claims defense. If you receive a claim on your bond, notify Jet immediately. Jet will collect all the details and conduct an investigation.
If a claim is justified, it will be paid out by Jet to the claimant in the claim amount, not to exceed the bond limit. License bonds are essentially an extension of credit that guarantee your compliance with the regulations. When regulations are not abided by, the bond pays out and you are responsible for restoring the bond to its full amount. Not restoring the bond will jeopardize your license and the likelihood of obtaining a new bond in the future.