Business Entity Limited Lines Portable Electronics
Information about licensing requirements, how to apply for a license and FAQs.
“Portable Electronics” means electronic devices that are portable in nature, their accessories, and services related to the use of such devices.
“Portable Electronics Insurance” means insurance which may be offered on a month-to-month or other periodic basis as a group or master commercial inland marine policy that provides coverage for the repair or replacement of portable electronics against any one or more of the following causes of loss: loss, theft, inoperability due to mechanical failure, malfunction, damage, or other similar causes of loss. The term does not include a service contract governed by subchapter 4 of chapter 113 of this title, a policy of insurance covering a seller’s or manufacturer’s obligations under a warranty, or a homeowner’s, renter’s, private passenger automobile, commercial multi-peril, or similar policy.
“Portable Electronics Vendor” means a person in the business of selling or leasing portable electronics directly or indirectly.
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-2012-01, Business Entity Limited Lines Producer License for Portable Electronics 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 - Paper Application Only
An applicant must submit the following:
Designated Responsible Licensed Producer for a Business Entity Selling Portable Electronics 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 portable electronics insurance on its behalf. In order for the Business Entity to sell insurance and to use unlicensed employees, the insurer MUST submit the following:
Businesses that want to use unlicensed employees or representatives to sell portable electronics insurance must obtain the Business Entity license and satisfy the requirements of Regulation I-2012-01. NOTE: A Business Entity does not have to be licensed if its employees or representatives who sell insurance are individually licensed.
Someone who sells Portable Electronics Insurance must:
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 Portable Electronics Equipment 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 Company 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-2012-01, 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.
The 2013 renewal period has ended. We have removed the renewal fee chart, and will replace it with the 2015 renewal fee chart by December 2014.
A Business Entity has important responsibilities under the license. The DRLP for the Business Entity must read and understand Regulation I-2012-01, Business Entity Limited Lines Producer License for Portable Electronic Equipment 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