Business Entity Producer License Info

A business entity must designate a licensed producer who is a natural person to be responsible for the business entity’s compliance with Vermont laws and regulations.  If the Designated Responsible Producer License (DRLP) is terminated for any reason, the business entity’s license will simultaneously terminate. In order to avoid the cost and inconvenience of reapplying for a business entity license, anytime a DRLP license terminates for any reason, the designated producer should be replaced by notifying the department prior to the termination of the existing designee.

 

There are no lines of authority associated with a Business Entity Producer License. Business entity producers cannot be appointed by insurers.

Resident and Nonresident - Electronic Applications

Nonresident Business Entities MUST apply electronically using one of the third party vendors listed below. (The site should open in a new window. To return to this page, close the new window.)

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• 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

An applicant must submit to the Department the following:

1. NAIC Uniform Business Entity Application;
2. Resident Fees: Application fee of $30.00, and license fee of $30.00 made payable to VT Dept. of Financial Regulation or
3. The business entity must have designated a licensed producer who is a natural person to be responsible for the business entity’s compliance with the insurance laws and regulations.  The DRLP must be identified on the application.

Attachment #1 Social Security Disclosure is for your information.

• What is a Business Entity Producer?
• What is the license term?
• What is the renewal fee?
• Is a Business Entity Producer license required?
• What happens if the Designated Responsible Licensed Producer (DRLP) is terminated?
• Does possession of a Business Entity Producer license by an agency or an intermediary relieve an individual Producer from the requirement to be licensed?
• Does a Business Entity Producer need to be appointed?

What is a Business Entity Producer?

Vermont law defines a Business Entity to mean a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.  A Producer is defined to mean a person required to be licensed under the laws of this state to sell, solicit or negotiate insurance.

What is the license term?

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: license fees are not prorated and the license term is fixed, regardless of time of application.

What is the renewal fee?

2013 renewal fee chart?

Is a Business Entity Producer license required?

In general, an insurance agency is not required to obtain a Business Entity Producer license in order for a licensed Producer to sell in connection with that agency.  A natural person, however, must always be licensed as a Producer if they are selling, soliciting or negotiating insurance, even if the sales activity is in connection with a licensed Business Entity Producer. 

What happens if the Designated Responsible Licensed Producer (DRLP) is terminated?

A requirement for a Business Entity Producer license is the designation of a licensed Producer who is a natural person to be responsible for the business entity’s compliance with Vermont laws and regulations.  Failure to maintain a designation with an active Producer will result in the termination of the Business Entity Producer license.  A business entity should designate a new  DRLP prior to the termination of an existing DRLP.

Does possession of a Business Entity Producer license by an agency or an intermediary relieve an individual Producer from the requirement to be licensed?

No. Licensure of a Business Entity does not relieve any natural person who sells, solicits or negotiates insurance of the requirement to be licensed.

Does a Business Entity Producer need to be appointed?

No, an appointment is not required or available, with the exception of limited lines business entity licenses for credit or rental insurance.