The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 131 : Licensing Requirements

Subchapter 001 : PRODUCERS

• § 4800. License requirements

  The Commissioner shall not issue, continue, or permit to continue any license of an insurance producer, surplus lines insurance broker, managing general agent, reinsurance intermediary, insurance consultant, limited lines producer, business entity limited lines producer, insurance adjuster, public adjuster, and appraiser except in compliance with the following:

  (1) Application shall be made to the Commissioner by the applicant on a form prescribed by the Commissioner.

  (2)(A) All license applications shall be accompanied by a $30.00 fee plus the applicable fees as follows:

  (i) Initial licensing and biennial renewal licensing fee for insurance producers and limited lines producers, $30.00.

  (ii) Initial licensing and biennial renewal licensing fee for a business entity limited lines producer, $150.00.

  [Subdivision (2)(A)(iii) effective until January 1, 2025; see also Subdivision (2)(A)(iii) effective January 1, 2025 set out below.]

  (iii) Except as provided in subdivisions (I) and (II) of this subdivision, initial and annual producer appointment fees for each qualification set forth in section 4813g of subchapter 1A of this chapter for resident and nonresident producers acting as agents of foreign insurers, $60.00:

  (I) the Commissioner may charge one fee for a qualification in “property and casualty” insurance; and

  (II) the Commissioner may charge one fee for a qualification in “life and accident and health or sickness” insurance.

  [Subdivision (2)(A)(iii) effective January 1, 2025; see also Subdivision (2)(A)(iii) effective until January 1, 2025 set out above.]

  (iii) Except as provided in subdivisions (I) and (II) of this subdivision, initial and annual producer appointment fees for each qualification set forth in section 4813g of subchapter 1A of this chapter for resident and nonresident producers acting as agents of foreign insurers, $80.00:

  (I) the Commissioner may charge one fee for a qualification in “property and casualty” insurance; and

  (II) the Commissioner may charge one fee for a qualification in “life and accident and health or sickness” insurance.

  (iv) Initial 24-month appointment and biennial renewal appointment fee for limited lines producers, $90.00.

  (v) Initial 24-month license and biennial renewal fee for resident and nonresident adjusters, and appraisers licenses, $120.00, and public adjusters, $200.00.

  (vi) The initial 24-month license fee and biennial renewal fee for surplus lines brokers, $400.00.

  (vii) The initial 24-month license fee and biennial renewal fee for consultants, $200.00.

  (viii) The initial 24-month license fee and biennial renewal fee for reinsurance intermediaries, $200.00.

  (ix) The initial 24-month license fee and biennial renewal fee for managing general agents, $300.00.

  (B) An appointment or license shall terminate upon failure to pay the prescribed fees.

  (3) The Commissioner shall issue an insurance producer’s license, an insurance consultant’s license, a limited lines producer’s license, adjuster’s license, public adjuster’s license, and appraiser’s license to any duly qualified resident or nonresident of the State as follows:

  (A) An applicant may qualify as a resident if the applicant resides in this State or maintains the applicant’s principal place of business in this State. Any license issued pursuant to any application claiming residency for licensing purposes, as defined in this section, in this State shall constitute an election of residency in this State and shall be void if the licensee, while holding a resident license in this State, also holds or makes application for a license in, or thereafter claims to be a resident of any other state or other jurisdiction, or ceased to be a resident of this State.

  (B)(i) An applicant may qualify for a license under this chapter as a nonresident only if the applicant holds a like license in the United States or a province of Canada. A license issued to a nonresident of this State shall grant the same rights and privileges afforded a resident licensee, except as provided in subdivision (3)(B)(v) of this section.

  (ii) An application for a license by a nonresident applicant shall constitute designation by the applicant of the Commissioner and the Commissioner’s successors in office, to be the applicant’s true and lawful attorney, upon whom may be served all lawful process in any action, suit, or proceeding instituted by or on behalf of any interested person arising out of the applicant’s insurance business in this State. The designation shall constitute an agreement that the service of process is of the same legal force and validity as personal service of process in this State upon that person. The service of process upon any licensee in any action or proceeding in any court of competent jurisdiction of this State may be made by serving the Commissioner with appropriate copies thereof and the payment to the Commissioner of a fee of $25.00. The Commissioner shall forward a copy of the process by registered or certified mail to the licensee at the licensee’s last known address of record or principal place of business, and shall keep a record of all process so served upon the licensee.

  (iii) Service of process upon any licensee in any action or proceeding instituted by the Commissioner under this subdivision shall be made by the Commissioner by mailing the process by registered or certified mail to the licensee at the licensee’s last known address of record or principal place of business. If the Commissioner revokes or suspends any nonresident’s license through a formal proceeding under this chapter, the Commissioner shall promptly notify the appropriate commissioner of the licensee’s residence of the action and of the particulars thereof.

  (iv) A nonresident of this State may be licensed at the discretion of the Commissioner without taking an otherwise required written examination if the applicant has passed a comparable written examination, or has been a continuous holder prior to the time the written examination was required, of a license like the license being applied for in this State. This subdivision does not apply to insurance producers and limited lines producers exempt from examination pursuant to section 4813i of this chapter.

  (v) Whenever, by the laws or regulations of any other state or jurisdiction, fees are imposed upon residents of this State who are nonresident applicants or licensees of another state or jurisdiction in addition to, or in excess of, those imposed on nonresidents under this subchapter, the same fees shall be imposed upon the residents of the other state or jurisdiction.

  (C) An applicant for any license under this chapter must be deemed by the Commissioner to be competent, trustworthy, financially responsible, and of good personal and business reputation.

  (D)(i) Except as provided in section 4813i of this title or subdivision (3)(B)(iv) of this section, the Commissioner shall subject each applicant for license as an insurance producer, surplus lines insurance broker, consultant, limited lines producer, adjuster, public adjuster, or appraiser to a written examination or series of written examinations as to the applicant’s competence to act as a licensee, which the applicant must personally take and pass to the satisfaction of the Commissioner. An applicant must submit an application to the Commissioner within 24 months after the date of examination.

  (ii) The Commissioner may issue interim licenses not to be valid for more than 24 months or such lesser time as the Commissioner may deem appropriate for such lines of insurance as the Commissioner may deem appropriate. The qualifications, requirements, and fees for an interim license will be the same as for a regular license in the same line except that the written examination testing professional competence shall be of a lesser degree of difficulty than the written examination for a regular license. An interim license will not be renewable once it has expired.

  (iii) At the discretion of the Commissioner, an applicant for a license may be a business entity; however, this subdivision shall not affect the requirement of any natural person to be licensed as required under this chapter.

  (iv) Each examination or series of examinations for a license shall be approved for use by the Commissioner and shall reasonably test the applicant’s knowledge as to the lines of insurance, policies, and transactions to be handled under the license applied for, of the duties and responsibilities of a licensee, and of the pertinent insurance laws of this State.

  (v) Examination for licensing shall be at such reasonable times and places as are designated by the Commissioner.

  (vi) The Commissioner or the Commissioner’s designee shall give, conduct, and grade all examinations in a fair and impartial manner and without discrimination as between individuals examined.

  (vii) The applicant must pass the examination or series of examinations with a grade determined by the Commissioner to indicate satisfactory knowledge and understanding of the line or lines of insurance for which the applicant seeks qualification. A fee shall be charged for each examination or series of examinations for which the applicant sits. If examinations are administered by the Commissioner’s designee pursuant to subdivision (3)(D)(vi) of this section, the fee charged may be payable to the designee, notwithstanding 32 V.S.A. § 502(a). Formal evidence of the licensing shall be issued by the Commissioner to the licensee within a reasonable time.

  (E)(i) If the Commissioner finds that the applicant has not fully met the requirements for licensing, the Commissioner shall refuse to issue the license and promptly notify the applicant and the appointing insurer, in writing, of the denial, stating the grounds therefor.

  (ii) If a license is refused, the Commissioner shall refund the license fee tendered with the license application. All other fees accompanying the application for license as insurance producer, surplus lines insurance broker, consultant, and limited lines producer, adjuster, public adjuster, and appraiser shall not be refundable.

  (F) Every licensee shall notify the Commissioner of any change in the licensee’s residential or business address within 30 days after the change.

  (4) In order to assist in the performance of the Commissioner’s duties under this chapter, the Commissioner may:

  (A) contract with nongovernmental entities, including the National Association of Insurance Commissioners (NAIC) or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of fees, and the collection of system charges related to producer licensing or to any other activities that require a license under this chapter that the Commissioner and the nongovernmental entity may deem appropriate;

  (B) participate, in whole or in part, with the NAIC, or any affiliates or subsidiaries the NAIC oversees, in a centralized producer license registry to effect the licensure and appointment of producers and other persons required to be licensed under this chapter;

  (C) adopt by rule any uniform standards and procedures as are necessary to participate in a centralized registry. Such rules may include the central collection of all fees and system charges for license or appointments that are processed through the registry, and the establishment of uniform license and appointment renewal dates;

  (D) require persons engaged in activities that require a license under this chapter to make any filings with the Department in a digital, electronic manner approved by the Commissioner for applications, renewal, amendments, notifications, reporting, appointments, terminations, the payment of fees and system charges, and such other activities relating to licensure under this chapter as the Commissioner may require, subject to such hardship circumstances demonstrated by the applicant or licensee that the Commissioner deems appropriate for the utilization of the central registry in a nondigital and nonelectronic manner; and

  (E)(i) authorize the centralized producer license registry, or other third party approved by the Commissioner, to collect fingerprints on behalf of the Commissioner in order to receive or conduct criminal history background checks;

  (ii) use the centralized producer license registry, or other third party approved by the Commissioner, as a channeling agent for requesting information from and distributing information to the U.S. Department of Justice or any governmental agency, in order to reduce the points of contact that the Federal Bureau of Investigation (FBI) or the Commissioner may have to maintain for purposes of this subdivision; and

  (iii) require persons engaged in activities that require a license under this chapter to submit fingerprints, and the Commissioner may utilize the services of the centralized producer license registry, or other third party approved by the Commissioner, to process the fingerprints and to submit the fingerprints to the FBI, the Vermont State Police, or any equivalent State or federal law enforcement agency for the purpose of conducting a criminal history background check. The licensee or applicant shall pay the cost of such criminal history background check, including any charges imposed by the centralized producer licensing system, or other third party approved by the Commissioner, as applicable. (Amended 1973, No. 217 (Adj. Sess.), § 10; 1979, No. 44, §§ 1-5; 1979, No. 197 (Adj. Sess.), § 14; 1981, No. 42, § 2; 1981, No. 210 (Adj. Sess.), § 3; 1983, No. 66, §§ 1, 2; 1985, No. 236 (Adj. Sess.), § 3, eff. June 3, 1986; 1991, No. 166 (Adj. Sess.), § 13; 1991, No. 249 (Adj. Sess.), §§ 20-22; 1997, No. 59, § 68, eff. June 30, 1997; 1999, No. 87 (Adj. Sess.), § 2; 2001, No. 97 (Adj. Sess.), § 8; 2009, No. 137 (Adj. Sess.), § 8; 2011, No. 21, § 13; 2015, No. 149 (Adj. Sess.), § 31; 2019, No. 70, § 3; 2019, No. 70, § 3a, eff. June 1, 2021; 2021, No. 105 (Adj. Sess.), § 227, eff. July 1, 2022; 2023, No. 113 (Adj. Sess.), § F.100, eff. January 1, 2025.)