Reinsurance Intermediary License Info

Information about licensing requirements, how to apply for a license and FAQs. Vermont Law defines a Reinsurance Intermediary Broker to mean any person, other than an officer or employee of the ceding insurer, who solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer. A Reinsurance intermediary-manager to mean any person who has authority to bind or manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department or underwriting office, and acts as an agent for such reinsurer whether known as a reinsurance intermediary-manager, manager or other similar term.

License Requirements

In order to obtain a Reinsurance Intermediary license an applicant must be at least 18 years of age; must be deemed to be competent, trustworthy and financially responsible; be currently licensed as a Vermont Insurance Producer; submit a license application and fees.


How to Apply for A License

Resident:

An applicant must submit to the Department the following:

  1. NAIC Uniform Individual Application (This application is used for ALL license types, though they are not all specified on the form);
  2. A license application fee of $30.00 and a license fee of $200.00; Checks may be made payable to VT Dept. of Financial Regulation:  and,
  3. Be currently licensed as a Vermont Insurance Producer.

Attachment #1 Social Security Disclosure is for your information.

Nonresident:

An applicant must submit to the Department the following:

  1. NAIC Uniform Individual Application (This application is used for ALL license types, though they are not all specified on the form);
  2. A home state certification (certifications should be dated no more than 90 days prior to receipt by the department of a completed application);
  3. Be currently licensed as a Vermont Insurance Producer; and,
  4. A license application fee of $30.00 and a biennial license fee. Find your state of residence to determine the license fee. (See Fee Chart) Please note, Vermont is a retaliatory fee state. Checks should be made payable to VT Dept. of Financial Regulation.

Attachment #1 Social Security Disclosure is for your information.

For further information about Reinsurance Intermediaries, applicants should refer to Subchapter 2 of Chapter 131 of Title 8, §4817 for licensing requirements.


FAQs

What is a Reinsurance Intermediary Broker?

A Reinsurance intermediary-broker is any person, other than an officer or employee of the ceding insurer, who solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer. See Title 8, §4815.

What is the license term?

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

Are there specific duties and requirements of Reinsurance Intermediary Brokers and Insurers using Reinsurance Intermediary Brokers?

Yes.  Applicants should review Subchapter 2 of Chapter 131 of Title 8 for the requirements of Reinsurance Intermediary Brokers. In particular, applicants should review §4818, addressing contract requirements; Section §4819, addressing duties of insurers utilizing Reinsurance Intermediary Brokers; Section §4821 regarding maintenance of books and records; and Section §4823, setting out other requirements.

What is a Reinsurance Intermediary Manager?

A Reinsurance Intermediary Manager is any person who has authority to bind or manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department or underwriting office, and acts as an agent for such reinsurer whether known as a Reinsurance Intermediary Manager, manager or other similar term.

The following persons shall not be considered a Reinsurance Intermediary Manager, with respect to such reinsurer, for the purposes of this subchapter:

(i) An employee of the reinsurer;

(ii) A United States manager of the United States branch of an alien reinsurer;

(iii) An underwriting manager who, pursuant to contract, manages all the reinsurance operations of the reinsurer, is under common control with the reinsurer, and whose compensation is not based on the volume of premiums written; and

(iv) The manager of a group, association, pool or organization of insurers which engage in joint underwriting or joint reinsurance and who are subject to examination by the insurance commissioner of the state in which the manager's principal business office is located. See Title 8, §4815.

What is the license term?

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

Are there specific duties and requirements of Reinsurance Intermediary Managers and Insurers using Reinsurance Intermediary Managers?

Yes.  Applicants should review the requirement of Subchapter 2 of Chapter 131 of Title 8 for the requirements of Reinsurance Intermediary Managers.  In particular, applicants should review Section §4818, addressing contract requirements; Section §4819, addressing duties of insurers utilizing Reinsurance Intermediary Managers, Section §4821 regarding maintenance of books and records; and Section §4823, setting out “other” requirements.


For answers to additional questions that have not been addressed in the FAQs above, send an email to sandra.fraser@state.vt.us 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

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Form_Attachment_1.pdf115.92 KB
Fee_Chart_REI_INITIAL_2014.pdf27.78 KB