Free Vermont Insurance FAQs | Free Vermont Insurance Legal Documents

Are All Applicants Required To Take A Prelicensing Examination?

Tue, 29 May 2007 21:19:00 GMT

Each applicant for licensing as an agent, adjuster, appraiser, public adjuster or consultant must pass an examination before becoming licensed by the Department.

LICENSES REQUIRING AN EXAMINATION:

LICENSES NOT REQUIRING AN EXAMINATION:

WAIVER OF EXAMINATION REQUIREMENTS:

Are There Any Additional Licensing Requirements?

Tue, 29 May 2007 21:19:00 GMT

The Licensing and Exam Procedures bulletin outlines some additional licensing requirements including the following:

Variable Annuity Agents must pass the Life Insurance examination and must submit evidence of passing the National Association of Security Dealers examination: Series 6, 63 or 7.

Adjusters and Appraisers must have at least two years of experience in or special training handling loss claims, or, in the case of appraisers, in insurance loss appraising. In lieu of such experience or training, applicants must be employed by or under the personal supervision of a licensed adjuster, public adjuster or appraiser in Vermont. The supervising adjuster must have at least three years' experience. A statement from the supervising adjuster must be submitted with the Department Uniform Application.

Consultants may not continue to hold a broker or agent license once licensed as a consultant. Prior to licensure, a consultant must provide the Commissioner with a $5,000 bond with an authorized corporate surety approved by the Commissioner. Prior to rendering any service, a consultant must submit for the Commissioner's approval the written agreement intended for use.

Resident Broker requirements: Each applicant for an insurance broker license must have two or more years experience as an insurance agent or comparable employment with an insurance company, agency or brokerage firm during the three years immediately preceding the date of application or such experience as the Commissioner may deem comparable. (Qualification by comparable experience must include successfully completing an examination for the applicable lines to be licensed.) The affidavit of employment experience must be completed by the employer or insurer of the applicant prior to submitting it to the Department. The applicant must also file with the Department, and keep in effect, a bond in the penal sum of not less than $5,000, before a license is issued.

Surplus Lines Broker requirements: The applicant must be licensed in Vermont as insurance broker qualified for the line or lines to be written. Each applicant for a Surplus Lines broker license must have two or more years of experience as an insurance agent or comparable employment with an insurance company, agency or brokerage firm during the three years immediately preceding the date of application or such experience as the Commissioner may deem comparable. (Qualification by comparable experience must include successfully completing an examination for the applicable lines to be licensed.) The affidavit of employment experience must be completed by the employer or insurer of the applicant prior to submitting it to the Department. The applicant must also file with the Department, and keep in effect, a bond in the penal sum of not less than $20,000, before a license is issued.

Do The Licenses Ever Need To Be Renewed?

Tue, 29 May 2007 21:19:00 GMT

Agent licenses are effective from April 1 (or date of issuance) to March 31 of each oddnumbered year. All licenses then expire. Agent licenses are renewed by each insurer. All other licenses must be renewed by the individual, and it is the licensee's responsibility to see that the renewal license is in effect, even if a notice is not received. Licenses other than agent licenses that are issued prior to April 1, 2002, are annual licenses; after April 1, 2002, such license will be biennial, and will renew on evennumbered years.

How Can I Request A License Certification Or Clearance Letter?

Mon, 04 Jun 2007 21:51:22 GMT

If you took the Vermont examination and need to order a certification letter, please send your request in writing, along with a $2.00 fee and a selfaddressed stamped envelope. If you want to request a clearance letter, please contact your companies and ask them to terminate your resident licenses. Once that has been done, send your request in writing along with a $2.00 fee and a selfaddressed, stamped envelope. Please send checks only (not cash), payable to: The Vermont Insurance Commissioner. The mailing address is:
Vermont Department of Banking, Insurance, Securities & Health Care Administration
89 Main. Drawer 20
Montpelier, VT 056203101

How Do I Register For And Schedule The Examination?

Tue, 29 May 2007 21:19:00 GMT

The Vermont Insurance Division has contracted with Experior Assessments LLC to conduct its examination program. Experior provides computerized examinations through a multistate network of testing centers. All questions and requests for information about examinations should be directed to:

Exam Content Outlines are available from Experior's Web site. Study materials can be obtained from these companies:

For complete instructions on the licensing and examination process, please refer to the Licensing and Exam Procedures bulletin.

You may file your Exam Registration Form by mail or fax and subsequently schedule the exam by telephone, or you may register for and schedule your examination concurrently by telephone. There is an additional $5 fee for express telephone or fax registration. Online Registration and Scheduling is also now available for no additional fee.

How Does A Company Appoint An Agent?

Tue, 29 May 2007 21:19:00 GMT

Appointment Form #20 (company request to appoint an agent) and the Termination Form #11 (company request to terminate an agent) must be requested in writing by the sponsoring company. (See address top of screen.) The request must be signed by the authorized signatory for the company.

Is There A Continuing Education Requirement To Renew My License?

Tue, 29 May 2007 21:19:00 GMT

The Vermont Department of Banking, Insurance, Securities and Health Care Administration (Department) has contracted with Experior to provide administrative services for the Vermont Insurance CE Program.

The Producer Information Handbook has complete details about compliance requirements and deadlines.

Using Online CE Services, producers can check their compliance status, request a transcript and create customized lists of approved courses. Providers can submit rosters as well as enter and edit course offering schedules.

Resident producers licensed as of October 1, 2000, must earn a minimum of 24 CE credit hours each review period. Of this total, a maximum of six credit hours can relate to insurance agency management in one review period. The 24credit hour requirement applies to all producers regardless of the number of lines of insurance. Limited line representatives/agents, including title insurance, travel accident and travel baggage insurance, are not subject to the CE requirement.

The course provider is responsible for reporting your CE course credits to Experior. Experior will, in turn, report your CE compliance to the Department.

You may verify your credits anytime through Experior's interactive voice response (IVR) system by calling (800) 5322199 or you can access your records through Experior's Web site at www.experioronline.com.

A nonresident producer who resides in a state or district that has a CE requirement and who has satisfied such requirement can satisfy Vermont's CE requirement by demonstrating compliance in the home state and submitting a filing fee. If a producer has not complied with CE requirements in the producer's home state, the producer must meet the Vermont CE requirements.

What Are The Licensing Application Procedures In Vermont?

Tue, 29 May 2007 21:19:00 GMT

Prepare for your examination using outlines and study materials
Register for your examination with Experior Assessments by mail, fax, telephone, or online
Schedule your examination by calling Experior at (800) 8686113
Take your examination
After passing your examination, your sponsoring company must submit to the Vermont Department your completed Uniform Application; Appointment Form #20; the original score report; and appropriate fees within two years of the exam date.
Once the Department has verified that you have passed the required exam and that you have nothing in your background that should prohibit you from being licensed, the Department will issue the appropriate license.

What Are The Licensing Fees?

Tue, 29 May 2007 21:19:00 GMT

Please see Vermont Agent License Section Fee Chart. Note: In addition to the license fee, there is a standard application fee of $30.00. Please be sure to remit both.

What Are The Licensing Requirements For New Vermont Residents?

Tue, 29 May 2007 21:19:00 GMT

New residents who have held a like license in their former home state within 24 months prior to application will need to take only the Laws and Regulations examinations for the major line licenses, if the former home state has a reciprocal agreement with the Vermont Department. The candidate's company must submit to the Vermont Department a Uniform Application; Appointment Form #20; the original score report; appropriate fees; and a Letter of Clearance. The letter from the former home state insurance department must include: certification that the candidate was previously licensed in that state, confirmation that he or she was licensed in that state for the same lines for which he or she is making application in Vermont, the date the license was canceled or expired, and affirmation that the license was in good standing.

What Are The Licensing Requirements For Nonresidents?

Tue, 29 May 2007 21:19:00 GMT

Nonresidents who wish to be licensed as agents, consultants, brokers, adjusters or appraisers in Vermont must apply to the Department of Banking, Insurance, Securities and Health Care Administration. Agents, consultants, brokers, adjusters and appraisers must hold a similar license for a similar line in another state or province of Canada. They must submit the Uniform Application and a certification of current licensing from the Insurance Department of their home state, dated no more than 90 days previous to application.

Individuals seeking a nonresident Workers' Compensation adjuster license must take and pass the Vermont Workers' Compensation adjuster exam. They must also meet the educational or training program required by the Commissioner.

For nonresident brokers, the required bond is $5000 or the amount required by the insurance department of the applicant's home state, whichever is greater.

What Is The Procedure For Applying For My License After Passing The Examination?

Tue, 29 May 2007 21:19:00 GMT

All agent applicants are required to be sponsored by an insurer. You must complete the Department Uniform Application and submit it to your sponsoring company. The original Score Report must also be submitted with your application. Your test scores are valid for two years following your examination.

Persons, firms or corporations licensed as agents must be appointed by each insurer represented. Form #20 must be completed by the appointing insurance company, and submitted to the Vermont Insurance Division along with your license application, an original Score Report and the appropriate fees.

What Types Of Licenses Are Issued By The State Of Vermont?

Tue, 29 May 2007 21:19:00 GMT

The Department grants the following types of licenses. Each license granted by the Department is valid only for the line/lines of authority named on the license.

An insurance agent is any individual appointed by an insurer to solicit applications for a policy of insurance or to negotiate a policy of insurance on its behalf and, if authorized to do so by an insurer, to effectuate, issue and countersign such a policy.

An insurance broker is any individual who, for compensation, not being a licensed agent for the company in which a policy of insurance is placed, acts or aids in any manner in negotiating contracts for insurance or placing risks or effecting insurance for a party other than herself or himself.

A surplus lines insurance broker is any individual who solicits, negotiates or procures a policy of insurance in an insurance company not licensed to transact business in this state, which cannot be procured from insurers licensed to do business in this state.

A limited insurance representative is any individual or partnership who is authorized by the Commissioner to solicit or negotiate contracts for a particular line of insurance or for certain restricted activities that the Commissioner may by regulation deem essential for the transaction of business in this state and that does not require the professional competency demanded for an insurance agent's or broker's license.

A consultant is any individual resident or nonresident who, for a fee, holds himself or herself out to the public as engaged in the business of offering any advice, counsel, opinion or service with respect to the benefits, advantages or disadvantages promised under any policy of insurance that could be issued in this state.

An adjuster is any individual who investigates claims and negotiates settlement of claims arising under policies of insurance on the behalf of insurers under such policies, or who advertises or solicits business from insurers as an adjuster. (This does not include lawyers settling claims, employees of a domestic fire or casualty insurance company, or licensed representatives of a foreign company.)

A public adjuster is any individual who investigates claims and negotiates settlement of claims arising under policies of insurance on the behalf of the insured under such policies, or who advertises or solicits business as such adjuster. (This does not include lawyers settling claims.)

An appraiser is any individual who, for compensation, appraises the loss or damage under policies of automobile insurance on the behalf of the insurers under such policies. (A license as an appraiser will not be required of an official or employee of a domestic fire or casualty insurance company, licensed representative of a foreign company or auto repair facility.)

A managing general agent is any individual who manages all or part of the insurance business of an insurer and acts as an agent for such insurer, and who, either separately or together with affiliates, produces directly or indirectly and underwrites an amount of gross written premium greater than or equal to five percent of the policyholder surplus of the insurer in any one quarter or year; and adjusts or pays claims in excess of $10,000; or negotiates reinsurance on behalf of such insurer.

A reinsurance intermediary broker is any individual, other than an officer or employee of the ceding insurer, who solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer.

A reinsurance intermediarymanager is any individual who has authority to bind or manage all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department or underwriting office, and acts as an agent for such reinsurer whether known as a reinsurance intermediarymanager, manager or other similar term.

A viatical settlement broker is any individual or his or her agent who, for a fee, commission or other valuable consideration, offers or advertises the availability of viatical settlements, introduces viators to viatical settlement providers, or offers or attempts to negotiate viatical settlements between a viator and one or more viatical settlement providers. (Viatical settlement broker does not include an attorney, accountant or financial planner retained to represent the viator whose compensation is not paid by the viatical settlement provider.)

Where Can I Obtain Insurance Licensing Information?

Tue, 29 May 2007 21:19:00 GMT

You may obtain licensing information from the Insurance Division of the Vermont Department of Banking, Insurance, Securities & Health Care Administration.

Address:

Telephone: (802) 8283301

Email: swheeler@bishca.state.vt.us

Web site: http://www.bishca.state.vt.us

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