Business Entity Limited Lines Credit

IMPORTANT NOTICE: Limited Lines Business Entity Producers who missed the March 31, 2017 License Renewal Deadline. The license of a Limited Lines Business Entity Producer who did not renew as of March 31, 2017 has now lapsed. Vermont does not have a “grace period” for a license renewal, and a license cannot be “reactivated”. Individuals, whose license has lapsed, must apply for a new license. In order to apply for a license, follow the instructions listed under How to Apply for a License.

Information about licensing requirements, how to apply for a license and FAQs.

“Credit Insurance” to mean credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage disability, and guaranteed automobile protection (gap) insurance, which are hereby designated as forms of limited line Credit Insurance for purposes of this Regulation, and any other form of insurance offered to a consumer in connection with an extension of credit to such consumer that is limited to partially or wholly extinguishing such credit obligation and which the Commissioner designates as a form of limited line Credit Insurance for purposes of this Regulation. For purposes of this Regulation, "Credit Insurance" shall not include Private Mortgage Insurance ("PMI"). 

License Requirements

In order to obtain a Limited Lines Business Entity license, the entity must be deemed by the Commissioner to be competent, trustworthy and financially responsible and must satisfy the requirements of Regulation I-2007-01, Business Entity Limited Lines Producer License for Credit Insurance. This regulation sets out the requirements for licensure, the duties and responsibilities of a license holder, and the rules governing the use of employees and representatives. 

How to Apply for A License

Resident and Nonresident - Electonic Applications

Nonresident Business Entity Limited Lines Producers  MUST apply electronically using one of the third party vendors listed below by clicking on the logo. (The site should open in a new window. To return to this page, close the new window.)


  • Complete the on-line application process and pay the relevant fees.
  • If your application is routine, and does not require any additional information, the license is generally issued within 48 hours.
  • If your application is not routine, you will be notified on-line that additional information must be submitted directly by you to the Department.  All additional information that must be submitted is outlined on the application, and can be faxed to (802) 828-1633. Your license application will be reviewed after all required information has been received.

Resident - Paper Application Only

An applicant must submit the following:

  1. NAIC Uniform Business Entity Application;
  2. Resident Fees: Application fee of $30.00 and a biennial license fee of $30.00. Checks should be made payable to VT Dept. of Financial Regulation; and
  3. Have a Designated Responsible Licensed Producer (DRLP) on the Application (see FAQs below).

Application Submission Note: Although an appointment by an insurer is not required to obtain a license, a business entity cannot act as the agent of an insurer or use unlicensed employees to sell credit insurance unless it is appointed by the insurer and all training and supervision requirements set forth in Regulation I-2007-01 have been satisfied.

Attachment #1 Social Security Disclosure is for your information.

Designated Responsible Licensed Producer for a Business Entity Selling Credit Insurance

In order to be a DRLP for a Business Entity, someone:

Appointing Insurer Responsibilities

Each insurer must appoint a business entity that is acting as its agent or intends to use unlicensed employees to sell, solicit or negotiate credit insurance on its behalf. In order for the Business Entity to sell insurance and to use unlicensed employees, the insurer MUST submit the following:

  1. The Insurance Company Certificate; and
  2. The NAIC Uniform Appointment/Termination Form (Appointment fees are billed to the Insurer on a monthly basis).  

NOTE: To obtain the Limited Lines Producer appointment for Credit Insurance for an individual, the Insurer for whom the individual is selling MUST submit the following:

  1. The NAIC Uniform Appointment/Termination Form (Appointment fees are billed to the Insurer on a monthly basis). See Limited Lines Credit 

Special Note:  In some instances, an individual may already hold a full Insurance Producer License. In that case, the Insurer need only submit the NAIC Uniform Appointment/Termination Form.


Does the Business Entity need to obtain a license?

Businesses that want to use unlicensed employees or representatives to sell credit insurance must obtain the Business Entity license and satisfy the requirements of Regulation I-2007-01. NOTE: A Business Entity does not have to be licensed if its employees or representatives who sell credit insurance are individually licensed.  

Someone who sells Credit Insurance must:

  1. Hold a full Insurance Producer license; or
  2. Hold a Limited Lines Producer License for Credit Insurance; or
  3. Be employed by or represent a business that has obtained a Business Entity Limited Lines Producer License for Credit Insurance.

Credit Insurance is defined in part to mean:  

Credit Life, Credit Disability, Credit Property, Credit Unemployment, Involuntary Unemployment, Mortgage Life, Mortgage Disability, and Guaranteed Automobile Protection (gap) insurance.  It does not include Private Mortgage Insurance (PMI).    

Credit Insurance is the only type of insurance that is authorized to be sold under this license type.

What is an appointment?

An Insurer is required to submit an appointment to the Department for any Producer acting as its agent.  In order to obtain and maintain a Business Entity Limited Lines Producer License for Credit Insurance, the Business Entity must be appointed by an Insurer and the Designated Responsible Producer must also be appointed with the Insurer.  Every Insurer for whom the Business Entity is acting as its agent must appoint both the Business Entity and the DRLP.  It is the Insurer’s responsibility to make the appointment and only the Insurer is authorized to make an appointment.

What happens if all of the Business Entity’s appointments are terminated?

The license will be inactivated.  In order to maintain a license the Business Entity must have an active appointment by an Insurer. 

What is a Designated Responsible Licensed Producer (DRLP)?

As part of the NAIC Uniform Business Entity Application, a Designated Responsible Licensed Producer (DRLP) must be associated with the business.  A DRLP is someone:

  1. Who is a full-time supervisor or owner of the Business Entity;
  2. Who is appointed by each Insurer for whom the Business Entity is selling insurance;
  3. Who is responsible for the Business Entity’s compliance with the insurance laws and Regulation I-2007-01;
  4. Who is licensed as a Limited Lines Credit Insurance Producer; or is an Insurance Producer.

What happens if the DRLP ceases his or her association with the Business Entity or does not maintain a license or appointments?

If the DRLP terminates his or her association with the Business Entity or does not maintain her or her license or appointments, the Business Entity’s license will be inactivated.  A DRLP association is a condition of licensure for the Business Entity.  Business Entities MUST notify the Department of a replacement DRLP prior to the termination of the existing DRLP in order to avoid the license inactivation of the Business Entity’s license.

What is a Licensing Certificate?

A Licensing Certificate is a certificate submitted by each Appointing Insurer stating that the Business Entity is trustworthy and competent, that the Insurer has provided the training and education required by Regulation I-2007-01, and that the Insurer will appoint the Business Entity as its agent. 

What is the license term and how do I maintain the license?

The license term is April 1st to March 31st of odd years. The Department will send out renewal notices for existing licensees at the beginning of the odd year. Note, the license fees are not prorated and the license term is fixed, regardless of time of application.

What is the renewal fee?

2017 renewal fee chart.

What are the responsibilities under the license?

A Business Entity has important responsibilities under the license.  The DRLP for the Business Entity must read and understand Regulation I-2007-01, Business Entity Limited Lines Producer License for Credit Insurance and must ensure the Business Entity is in compliance with Vermont law.  This regulation describes the duties and limitations placed on the license. 

The Business Entity must:

  1. Be appointed by the Insurer for whom it is acting as an agent;
  2. Have a DRLP associated with it;
  3. Discharge the duties set out in Regulation I-2007-01, which include:
  • Ensuring employees are qualified to sell insurance under the regulation;
  • Providing employees with a training and education program;
  • Providing consumers with the required consumer disclosures;
  • Providing required brochures to all consumers;  
  • Complying with consumer protection requirements;
  • Comply with the Trust Account requirements of Regulation 95-1, Trust Accounts; and,  
  • Comply with the Record Retention requirements of Regulation 99-1, Record Retention.

Who should submit my application and/or DRLP Certification?

The Insurer who is appointing the DRLP should submit the DRLP Application (if not already licensed) with the Business Entity Application including the Insurer’s Appointments for both and the Insurer Certification.

Who should I contact if I have questions about applying for the license or my responsibilities under the license?

For answers to additional questions that have not been addressed in the FAQs above, send an email to please be sure to provide a telephone number where we can contact you.

Vermont Department of Financial Regulation
Insurance Division – Producer Licensing
89 Main Street
Montpelier, VT 05620-3101
(802) 828-3303 Telephone
(802) 828-1633 Fax