For information about licensing requirements, how to apply for a license and FAQs. Vermont Law defines a Producer to mean a person who sells, solicits or negotiates insurance. See Title 8, §4791.
In order to obtain a Producer license an individual must be at least 18 years of age; must be deemed by the Commissioner to be competent, trustworthy and financially responsible; have passed a written examination and submit a license application and fees.
Resident and Nonresident - Electronic Application
Residents must wait 48 hours after passing their producer examination before submitting an electronic application.
Resident - Paper Application
An applicant must submit to the Department the following:
Attachment #1 Social Security Disclosure is for your information.
A Producer license replaces the former agent and broker license types. A Producer is a person licensed to sell, solicit or negotiate insurance. “Negotiate” means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, provided the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers. “Sell” means to exchange a contact of insurance by any means, for money or its equivalent, on behalf of an insurer. “Solicit” means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular insurer.
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?
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.
Anyone who intends to sell, solicit or negotiate insurance must be licensed as a Producer. Specific exemptions to the license requirement are set forth in Title 8, §4813d.
Yes, a Producer must possess active qualifications by line of authority before he or she can act as a Producer in that line of insurance. The recognized qualifications include: Life, Accident and Health or Sickness, Property, Casualty, Variable Life and Variable Annuity and Personal lines.
Yes, Vermont is an appointment state. If an insurer does business with a Producer as its agent, the insurer must appoint the Producer as its agent for each qualification for which the Producer will be acting as the agent of the insurer.
A Producer must be appointed within 15 days from the date an agency contract is executed or the first insurance application is submitted, whichever is sooner.
Yes. For more information about CE, see Continuing Education Requirements page.
Yes. An individual may not sell, solicit or negotiate (sell) long-term care insurance (LTC) unless the individual is licensed as an insurance producer for accident and health and has completed the LTC training requirements set forth below.
For resident licensees, this training can count towards the twenty-four (24) hours continuing education requirement if the training satisfies all requirements for continuing education, including course approval and provider registration.
An agent or producer selling LTC insurance must complete one, eight (8) hour course specific to long-term care, not less than two hours of which shall contain Vermont-specific information, including Vermont Medicaid information. The Vermont-specific information can be part of an eight-hour course or may be provided as a separate course. Run an Inquiry of Approved Courses available to satisfy the LTC Training requirement.
The initial training requirement shall apply as follows:
A producer selling LTC must also complete no less than four (4) hours of ongoing training every 24 months ending March 31st of odd-numbered calendar years.
Yes, in most instances a Producer will need a trust account. For more information about trust account requirements you should read Regulation 95-1.
A Producer acting as the agent of an insurer should not be charging a fee in conjunction with negotiating, selling or soliciting a policy of insurance. The agent’s costs and fees in that instance are already paid for by the receipt of commission from the insurer by the Producer as part of the sale. In instances where additional services are provided to the insured, a Producer can charge a fee that is reasonable in relationship to the service provided. In addition, where a Producer is acting as a broker, representing the purchaser, additional fees to any commission received by the issuing insurer can be charged, so long as the fees are reasonable in connection to the service or expense and all commission received by the Producer is clearly disclosed prior to entering into the agreement. Note, Vermont law requires a Producer to obtain a prior written agreement with a client, policyholder, or other member of the public concerning the fees or charges made by that Producer for procuring, servicing, or providing advice on insurance contracts.
A Producer can pay referral fee to a third party so long as the third party is not negotiating, selling or soliciting insurance and is not a licensed Producer. Referral fees should be incidental to an existing relationship between the third party and the sales prospect and should not be so large as to create an incentive for a third party to actively find sales opportunities to refer. In the latter instance the third party will likely start selling on behalf of the Producer. The sharing of commission or payment of a referral fee to an unlicensed person who urged or advised a consumer to buy insurance is a violation of Vermont law.
For answers to additional questions that have not been addressed in the FAQs above, send an email to firstname.lastname@example.org 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