Consultant License Info

In order to obtain a Consultants license an applicant must be at least 18 years of age; must be deemed to be competent, trustworthy and financially responsible; have passed a Producer examination; file with the Commissioner and keep in force a $5,000 bond with an authorized surety approved by the Commissioner; submit the written agreement intended for use with clients, outlining the nature of the work to be performed by the applicant and a description of the fee structure and submit a license application and fees.

 

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 $5, 000 bond with an authorized surety approved by the Commissioner;
3. Submit the written agreement you intend to use with clients, outlining the nature of the work to be performed and a description of your fee structure; and,
4. A license application fee of $30.00 and license fee of $200.00. Checks should be made payable to VT Dept. of Financial Regulation.

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. A $5, 000 bond with an authorized surety approved by the Commissioner;
4. Submit the written agreement you intend to use with clients, outlining the nature of the work to be performed and a description of your fee structure; and,
5. 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 insurance consultants interested parties should refer to Title 8, §4791(2) and §4802.

• What is a Consultant?
• What is the license term?
• Is CE required for Insurance Consultants?
• Can I hold an Insurance Producer license and a Consultant’s license at the same time?
• Can I do business with producers or brokers?
• Who should I contact with questions?

What is a Consultant?

A Consultant is an individual, resident or nonresident who, for a fee, holds himself or herself out to the public as engaged in the business of offering any advice, counsel, opinion or service with respect to the benefits, advantages or disadvantages promised under any policy of insurance that could be issued in this state.  See Title 8, §4791.  Further, the law goes on to state, “A consultant is obligated under his or her license, to serve with objectivity and complete loyalty the interests or his or her client alone; and to render his or her client such information, counsel, and service as within the knowledge, understanding, and opinion, in good faith of the licensee, best serves the client’s insurance needs and interests.”  See Title 8, §4802.

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.

Is CE required for Insurance Consultants?

No.

Can I hold an Insurance Producer license and a Consultant’s license at the same time?

No.  No person may concurrently hold a Consultant’s license and an insurance producer’s license, surplus lines broker’s license, or limited lines producer license in any line.  See Title 8, §4802(d).

Can I do business with producers or brokers?

No licensed Consultant may employ, be employed by, or be in partnership with nor receive any remuneration whatsoever, from any licensed insurance producer, surplus lines insurance broker, limited lines producer or insurer arising out of his or her activities as a consultant.  See Title 8, §4802(e).

Who should I contact with questions?