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").
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.
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.)
Resident - Paper Application Only
An applicant must submit the following:
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.
In order to be a DRLP for a Business Entity, someone:
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:
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:
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.
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:
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.
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.
The license will be inactivated. In order to maintain a license the Business Entity must have an active appointment by an Insurer.
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:
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.
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.
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.
2011 renewal fee chart.
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:
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.
For answers to additional questions that have not been addressed in the FAQs above, send an email to email@example.com 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