Alaska Hearing Aid Dealer Bond: A Comprehensive Guide
February 8, 2021
This guide provides information for insurance agents to help all hearing aid dealers on Alaska Hearing Aid Dealer bonds
At a Glance:
- Average Cost: Between $125 – $500 per year, based on the dealer’s credit score
- Bond Amount:
- $5,000 for sole proprietors with no employees
- $10,000 for partnerships, corporations, or sole proprietors with employees
- Who Needs It: All individuals and business entities seeking to obtain a Hearing Aid Dealer License in the State of Alaska
- Purpose: To ensure that hearing aid dealers pay all taxes and contributions while following state regulations and laws
- Who Regulates Hearing Aid Dealers in Alaska: The Alaska Department of Commerce, Community, and Economic Development (DCCED)
Background
Alaska Statute 08.55.010 requires all hearing aid dealers to obtain a license with their local municipality prior to dealing hearing aids. The Alaska legislature enacted the licensing laws and regulations to ensure that hearing aid dealers engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, hearing aid dealers in Alaska must purchase and maintain either a $5,000 or $10,000 Hearing Aid Dealer surety bond to be eligible for licensure.
What is the Purpose of the Alaska Hearing Aid Dealer Bond?
Alaska requires all hearing aid dealers to purchase the Hearing Aid Dealer Bond as part of the application process to obtain a Hearing Aid Dealer License. The bond ensures that the public will receive compensation for financial harm if the hearing aid dealer fails to comply with licensing regulations. In short, the bond is a type of insurance that protects the public if the dealer breaks licensing laws.
How Can an Insurance Agent Obtain an Alaska Hearing Aid Dealer Surety Bond?
BondExchange makes obtaining an Alaska Hearing Aid Dealer Bond easy. Simply login to your account and use our keyword search to find the “dealer” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (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.
Is a Credit Check Required for the Alaska Hearing Aid Dealer Surety Bond?
Surety companies will run a credit check on the dealer determine eligibility and pricing for the Alaska Hearing Aid Dealer bond. Dealers with excellent credit and work experience can expect to receive the best rates. Dealers with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the dealer’s credit.
How Much Does the Alaska Hearing Aid Surety Bond Cost?
The Alaska Hearing Aid surety bond can cost anywhere between $125 to $500 per year. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost. The amount of the bond is $5,000 for all sole proprietors with no employees or $10,000 for all partnerships, corporations, or sole proprietors with employees.
$5,000 Bond
| Credit Score | Annual Premium Rate |
|---|---|
| 600+ | $125 |
| 575 – 599 | $150 |
| 500 – 574 | $250 |
$10,000 Bond
| Credit Score | Annual Premium Rate |
|---|---|
| 650+ | $125 |
| 625 – 649 | $200 |
| 600 – 624 | $250 |
| 575 – 599 | $300 |
| 500 -574 | $500 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
How Does Alaska Define “Hearing Aid Dealer”?
Alaska Statue 08.55.200.defines a hearing aid dealer as any individual or business entity who sells or attempts to sell hearing aids along with providing recommendation, selection, fitting, and alteration services.
How do Hearing Aid Dealers Apply for a License in Alaska?
Hearing Aid Dealers in Alaska must navigate several steps to obtain their license. Below are the general guidelines, but dealers should refer to the application form for details on the process
License Period – The Alaska Hearing Aid Dealer License expires on September 30 of even numbered years (2022, 2024 etc) and must be renewed before the expiration date
Step 1 – Obtain a Business License
Dealers can obtain a business license with the Alaska Department of Commerce, Community and Economic Development; Division of Corporations, Business and Professional Licensing here.
Step 2 – Purchase a Surety Bond
Dealers must purchase and maintain either a $5,000 or $10,000 Hearing Aid Dealer surety bond
Step 3 – Complete the License Application
All hearing aid dealer regulatory license applications should be mailed to:
State of Alaska
Alaska Department of Commerce, Community, and Economic Development
Division of Corporations, Business and Professional Licensing
PO Box 110420
Juneau AK, 99811-0420
All license applications must be signed and notarized
How Does an Alaska Hearing Aid Dealer Renew Their License?
Dealers can renew their license online here. The Alaska Hearing Aid Dealer License expires on September 30 of even numbered years (2022, 2024 etc) and must be renewed before the expiration date.
What Are the Insurance Requirements for the Alaska Hearing Aid Dealer License?
Alaska does not require hearing aid dealers to obtain any form of liability insurance. Dealers will need to purchase and maintain either a $5,000 or $10,000 surety bond.
How Do Alaska Hearing Aid Dealers File Their Bond?
Dealers should mail the completed bond form, including the power of attorney, to the following address:
State of Alaska
Alaska Department of Commerce, Community, and Economic Development
Division of Corporations, Business and Professional Licensing
PO Box 110420
Juneau AK, 99811-0420
The hearing aid dealer surety bond requires signatures from both the surety company that issues the bond and the dealer. The surety company should include the following information on the bond form:
- Legal name of entity/individual(s) buying the bond
- Bond amount
- Date the bond goes into effect
- Surety company’s name, address, email address and signature
- Notary signatures for both the surety company and principal
What Can Dealers Do to Avoid Claims Against the Alaska Hearing Aid Dealer Bond?
To avoid claims on the Hearing Aid Dealer Bond, dealers must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not commit fraud or intentional misrepresentation
- Do not falsely advertise professional services
- Do not employ someone who doesn’t have a valid and current license for hearing aids
- Honor all agreements made while dealing hearing aids
- Do not permit other individuals to use your license
What Other Insurance Products Can Agents Offer Hearing Aid Dealers in Alaska?
Alaska does not require hearing aid dealers to obtain any form of liability insurance. However, most reputable dealers will seek to purchase this insurance anyway. 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 Alaska Hearing Aid Dealer Bond Customers?
Alaska conveniently provides a public database to search for active hearing aid dealers in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
