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2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 128 - Property and Casualty Insurance Rate Regulation › § 4711. Cancellation of commercial risk insurance

§ 4711. Cancellation of commercial risk insurance
(a) A notice of cancellation of a policy of commercial risk insurance as defined in this chapter but excluding farm risks, issued under this chapter shall be effective only if it is based on:
(1) nonpayment of premium;
(2) fraud or material misrepresentation affecting the policy or in the presentation of a claim under the policy, or violation of any of the terms or conditions of the policy; or
(3) substantial increase in hazard, provided that cancellation for this reason shall be effective only after prior approval of the Commissioner.
(b) This section shall not apply to any policy or coverage that has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy.
(c) This section shall not apply to nonrenewal. (Added 1985, No. 265 (Adj. Sess.), § 3; amended 2021, No. 105 (Adj. Sess.), § 224, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 128 - Property and Casualty Insurance Rate Regulation › § 4712. Notice of cancellation

§ 4712. Notice of cancellation
(a) No notice of cancellation of a policy to which section 4711 of this title applies shall be effective unless mailed or delivered by the insurer to the named insured at least 45 days prior to the effective date of cancellation, provided, that where cancellation is for nonpayment of premium, at least 15 days’ notice of cancellation shall be given.
(b) In all instances, the reason or reasons for cancellation shall accompany or be included in the notice of cancellation. An insurer shall not be held liable in any claim or suit for damages arising solely from the insurer’s compliance with the requirement that the reason for cancellation be specified.
(c) The Commissioner shall have the authority to waive any provision of subsection (a) or (b) of this section upon the written request of an insurer specifying the reasons therefor.
(d) This section shall not apply to nonrenewal. (Added 1985, No. 265 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 128 - Property and Casualty Insurance Rate Regulation › § 4713. Notice of nonrenewal

§ 4713. Notice of nonrenewal
No insurer shall refuse to renew a policy of insurance to which section 4711 of this title applies at its expiration or anniversary if written for a term of more than one year, unless such insurer or its agent shall mail or deliver to the named insured, at the address shown in the policy, at least 45 days’ advance notice of its intention not to renew. This section shall not apply if the insurer has manifested its willingness to renew, or in case of nonpayment of premium, or if the insured fails to pay any advance premium required by the insurer for renewal. However, notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other policy with respect to property designated in both policies. Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation that existed before the effective date of such renewal. (Added 1985, No. 265 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 128 - Property and Casualty Insurance Rate Regulation › § 4714. Notice requirements

§ 4714. Notice requirements
When notice required under section 4712 or section 4713 of this title is provided by mail, such notice shall be by certified mail, except that in the case of cancellation for nonpayment of premium, notice shall be by certified mail or certificate of mailing. (Added 1985, No. 265 (Adj. Sess.), § 3; amended 1989, No. 171 (Adj. Sess.), § 8, eff. Sept. 1, 1990.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 128 - Property and Casualty Insurance Rate Regulation › § 4715. Renewal policies

§ 4715. Renewal policies
(a) If the insurer has the necessary information to issue the renewal policy of insurance to which section 4711 of this title applies, the insurer shall confirm in writing at least 45 days prior to expiration its intention to renew the policy and the premium at which the policy is to be renewed. The insured shall have the right to renew the policy at this premium.
(b) An insurer not complying with subsection (a) of this section shall grant its insured renewal coverage at the rate or premium in effect under the expiring or expired policy or at rates lawfully in effect on the expiration date. This shall be done on a pro rata basis and shall continue for 45 days after the insurer confirms renewal coverage and premium. This subsection shall not apply if the insured accepts the renewal policy.
(c) An insurer may transfer a policy to an affiliate, as defined by subdivision 3681(1) of this title, upon expiration of the policy without providing notice of nonrenewal, provided that:
(1) the rating by A. M. Best or a similarly qualified rating service of the affiliate is equal to or better than the transferring insurer;
(2) there is no diminution in the terms and conditions of coverage; and
(3) notice of the transfer is provided to the insured at least 45 days prior to the transfer by first-class mail, and in connection with such notice the insurer:
(A) complies with any requirements of federal law relating to notice of adverse credit determination;
(B) includes in the notice of transfer a telephone number of the insurer, or the producer, if any, and a toll-free telephone number of the insurer in the case of personal lines policies, where the insured can learn additional information concerning the transfer and the reasons for the transfer;
(C) complies with the other provisions of this section relating to renewal policies. (Added 1985, No. 265 (Adj. Sess.), § 3; amended 2007, No. 135 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 128 - Property and Casualty Insurance Rate Regulation › § 4716. Penalties

§ 4716. Penalties
A person who violates a provision of this subchapter may be subject to an administrative penalty of $2,000.00 for each violation. (Added 1995, No. 167 (Adj. Sess.), § 18a.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 129 - Insurance Trade Practices › § 4721. Purpose

§ 4721. Purpose
The purpose of sections 4721-4733 of this title is to regulate trade practices in the business of insurance in accordance with the intent of Congress as expressed in The McCarran-Ferguson Act, 15 U.S.C. §§ 1011-1015, by defining, or providing for the determination of, practices in this State that constitute unfair methods of competition or unfair or deceptive acts or practices and by prohibiting the trade practices so defined or determined. (Amended 1973, No. 216 (Adj. Sess.), § 1, eff. May 1, 1974.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 129 - Insurance Trade Practices › § 4722. Definitions

§ 4722. Definitions
As used in this chapter:
(1) “Person” means any individual, corporation, association, partnership, reciprocal exchange, interinsurer, Lloyds insurer, fraternal benefit society, and any other legal entity engaged in the business of insurance, including agents, brokers, appraisers, and adjusters. Person also means medical, dental, optometric, and hospital service plans as defined in this title. For the purposes of this title, medical, dental, optometric, and hospital service plans shall be deemed to be engaged in the business of insurance.
(2) “Commissioner” means the Commissioner of Financial Regulation.
(3) “Insurance policy” or “insurance contract” means any contract of insurance, indemnity, medical, dental, optometric, or hospital service, suretyship, or annuity issued, proposed for issuance, or intended for issuance by any person.
(4)(A) “Abusive litigation” means litigation or other legal action to deter, prevent, sanction, or punish any person engaging in legally protected health care activity by:
(i) filing or prosecuting any action in any other state where liability, in whole or part, directly or indirectly, is based on legally protected health care activity that occurred in this State, including any action in which liability is based on any theory of vicarious, joint, or several liability derived therefrom; or
(ii) attempting to enforce any order or judgment issued in connection with any such action by any party to the action or any person acting on behalf of a party to the action.
(B) A lawsuit shall be considered to be based on conduct that occurred in this State if any part of any act or omission involved in the course of conduct that forms the basis for liability in the lawsuit occurs or is initiated in this State, whether or not such act or omission is alleged or included in any pleading or other filing in the lawsuit.
(5) “Legally protected health care activity” has the same meaning as in 1 V.S.A. § 150. (Amended 1973, No. 216 (Adj. Sess.), § 2, eff. May 1, 1974; 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2023, No. 15, § 2, eff. May 10, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 129 - Insurance Trade Practices › § 4723. Unfair methods of competition or unfair or deceptive acts or practices prohibited

§ 4723. Unfair methods of competition or unfair or deceptive acts or practices prohibited
No person shall engage in any trade practice that is determined under this chapter to be an unfair method of competition or an unfair or deceptive act or practice in the business of insurance. (Amended 1973, No. 216 (Adj. Sess.), § 3, eff. May 1, 1974.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 129 - Insurance Trade Practices › § 4725. Favored agent or insurer; coercion of debtors

§ 4725. Favored agent or insurer; coercion of debtors
(a) No person may:
(1) require, as a condition precedent to the lending of money or extension of credit, or any renewal thereof, that the person to whom such money or credit is extended or whose obligation the creditor is to acquire or finance, negotiate any policy or contract of insurance through a particular insurer or group of insurers or agent or broker or group of agents or brokers;
(2) unreasonably disapprove the insurance policy provided by a borrower for the protection of property securing the credit or lien; for the purpose of this subdivision, this disapproval shall be deemed unreasonable if it is not based solely on reasonable standards uniformly applied, relating to the extent of coverage required and the financial soundness and service of an insurer; these standards shall not discriminate against a particular type of insurer, nor shall these standards call for the disapproval of an insurance policy because the policy contains coverage in addition to that required;
(3) require directly or indirectly that any borrower, mortgagor, purchaser, insurer, broker, or agent pay a separate charge to substitute the insurance policy of one insurer for that of another. This subdivision does not include the interest that may be charged on premium loans or premium advancements in accordance with the security instrument;
(4) use or disclose information resulting from a requirement that a borrower, mortgagor, or purchaser furnish insurance of any kind on real property being conveyed or used as collateral security to a loan, when this information is to the advantage of the mortgagee, vendor, or lender, or is to the detriment of the borrower, mortgagor, purchaser, insurer, or the agent of broker complying with this request.
(b) The Commissioner may investigate any person to whom this section applies to determine whether such person has violated this section. (Amended 1973, No. 216 (Adj. Sess.), § 5, eff. May 1, 1974.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 129 - Insurance Trade Practices › § 4726. Power of Commissioner; enforcement

§ 4726. Power of Commissioner; enforcement
(a) The Commissioner shall have the power to examine and investigate any person engaged in the business of insurance in this State in order to determine whether that person has been or is engaged in any unfair method of competition or in any unfair or deceptive act or practice.
(b) Any person violating any of the provisions of this chapter may be subject to an administrative penalty of not more than $1,000.00 for each violation. The Commissioner may impose an administrative penalty of not more than $10,000.00 each for those violations the Commissioner finds were willful. The Commissioner may suspend or revoke the license of any insurer or organization for any violation of this chapter or the failure to comply with an order of the Commissioner issued under this chapter.
(c) The powers vested in the Commissioner by this chapter shall be in addition to any other powers to enforce any penalties, fines, or forfeitures authorized by law with respect to the methods, acts, and practices hereby declared to be unfair or deceptive. (Amended 1973, No. 216 (Adj. Sess.), § 6, eff. May 1, 1974; 1979, No. 28 § 6; 1995, No. 167 (Adj. Sess.), § 19, eff. May 15, 1996; 2021, No. 105 (Adj. Sess.), § 225, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4793. General license requirements

§ 4793. General license requirements
(a) No person, partnership, association, or corporation shall act as or hold himself or herself out to be an insurance producer, surplus lines insurance broker, managing general agent, reinsurance intermediary, limited lines producer, consultant, insurance adjuster, or insurance appraiser unless duly licensed.
(b) No insurance producer, surplus lines insurance broker, or limited lines producer shall make application for, procure, negotiate for, or place for others, any lines of insurance as to which he or she is not then qualified and duly licensed.
(c) No person shall investigate or negotiate settlement of any claim arising under 21 V.S.A. chapters 9 and 11 unless the person is licensed as a workers’ compensation adjuster under this subchapter. (Amended 1969, No. 175 (Adj. Sess.), § 5, eff. March 5, 1970; 1973, No. 217 (Adj. Sess.), § 3; 1991, No. 249 (Adj. Sess.), § 19; 1993, No. 225 (Adj. Sess.), § 24; 2001, No. 97 (Adj. Sess.), § 4.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4795. Controlled business

§ 4795. Controlled business
(a) The Commissioner shall not grant, renew, continue, or permit to continue any license except for life insurance if he or she finds that the license is being or will be used by the applicant or licensee for the purpose of writing controlled business. Controlled business means:
(1) insurance written on the interests of the licensee or those of his or her immediate family or of his or her employer; or
(2) insurance covering himself or herself or members of his or her immediate family or a corporation, association, or partnership, or the officers, directors, substantial stockholders, partners, employees of the corporation, association, or partnership, of which he or she or a member of his or her immediate family is an officer, director, substantial stockholder, partner, associate, or employee; provided, however, that nothing in this subdivision shall apply to insurance written in connection with credit transactions.
(b) The license shall be deemed to have been, or intended to be, used for the purpose of writing controlled business, if the Commissioner finds that during any 12-month period the aggregate commissions earned from the controlled business has exceeded 25 percent of the aggregate commission earned on all business written by the applicant or licensee during the same period. (Amended 1969, No. 175 (Adj. Sess.), § 6, eff. March 5, 1970; 1973, No. 217 (Adj. Sess.), § 5.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4796. Commissions; payment; acceptance

§ 4796. Commissions; payment; acceptance
(a) An insurance company, insurance producer, limited lines, or surplus lines broker shall not pay a commission, service fee, brokerage, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in this State if that person is required to be licensed under this chapter and is not so licensed.
(b) A person shall not accept a commission, service fee, brokerage, or other valuable consideration for selling, soliciting, or negotiating insurance in this State if that person is required to be licensed under this chapter and is not so licensed.
(c) Renewal or other deferred commissions may be paid to a person for selling, soliciting, or negotiating insurance in this State if that person was required to be licensed under this chapter at the time of the sale, solicitation, or negotiation and was so licensed at the time.
(d) An insurer, insurance producer, or limited lines producer may pay or assign commissions, service fees, brokerages, or other valuable consideration to an insurance agency or to persons who do not sell, solicit, or negotiate insurance in this State, unless the payment would violate subdivision 4724(8) of this title.
(e) A person licensed under this chapter shall not accept a commission, service fee, brokerage, or other valuable consideration for selling, soliciting, negotiating, or otherwise orchestrating the sale, enrollment, membership, or other connection between a Vermont resident and any arrangement involving the sharing of health-related expenses that is not insurance as defined in section 3301a of this title. (Amended 1973, No. 217 (Adj. Sess.), § 6; 2001, No. 97 (Adj. Sess.), § 5; 2019, No. 63, § 8, eff. June 17, 2019.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4797. License contents

§ 4797. License contents
The license shall state the name, address, date of issue, the renewal or expiration date, the line or lines of insurance covered by the license, and such other information as the Commissioner deems proper for inclusion. (Amended 1967, No. 39, § 1; 1971, No. 14, § 1, eff. March 11, 1971; 1973, No. 217 (Adj. Sess.), § 7; 1975, No. 78, § 3; 2001, No. 97 (Adj. Sess.), § 6.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4798. Term of license

§ 4798. Term of license
(a) Except as provided by subsections (b) and (d) of this section, all licenses issued pursuant to this subchapter shall continue in force not longer than 24 months.
(b)(1) All licenses of insurance producers and limited lines producers issued pursuant to this subchapter shall expire as of 12:01 a.m. o’clock on the first day of April of the odd-numbered year next following date of issuance; and
(2) all other license types issued pursuant to this subchapter shall expire as of 12:01 a.m. o’clock on the first day of April of the even-numbered year following the date of issuance; unless
(3) the licensee prior to the expiration of the license has filed with the Commissioner, on forms prescribed and furnished by the Commissioner, a request for renewal of such license for an ensuing 24-month period. Such request must be accompanied by payment of the renewal fee as provided in subdivision 4800(2) of this title.
(c) In order to spread continuation of insurance producer and limited lines producer appointment renewals with reasonable uniformity throughout the calendar year, the Commissioner may fix a date, “insurer’s anniversary,” upon which all such renewals of persons licensed under this chapter who have been appointed by that insurer shall be subject to renewal as to that particular insurer.
(d) Producer appointments shall expire as of 12:01 a.m. on the first day of June following the date of issuance. Annually, before the expiration of producer appointments, the Commissioner shall provide each insurer with an alphabetical appointment renewal list of the names for all of its producers in the State. Each insurer shall return the list and identify the producer appointments to be renewed in a manner and time specified by the Commissioner. Payment of the annual producer appointment renewal fee, as specified in section 4800 of this title, shall be made in a manner and time specified by the Commissioner. (Added 1969, No. 175 (Adj Sess.), § 8, eff. March 5, 1970; amended 1973, No. 217 (Adj. Sess.), § 8; 1985, No. 236 (Adj. Sess.), § 2, eff. June 3, 1986; 1999, No. 87 (Adj. Sess.), § 1; 2001, No. 97 (Adj. Sess.), § 7; 2019, No. 70, § 2, eff. June 1, 2021; 2019, No. 131 (Adj. Sess.), § 6; 2021, No. 105 (Adj. Sess.), § 226, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4800a. Continuing education

§ 4800a. Continuing education
(a) An applicant for an insurance producer license renewal shall demonstrate satisfactory completion of 24 hours of continuing education during the preceding two years.
(b) The Commissioner shall adopt such rules as are needed to carry out the purposes of this section. Such rules shall include:
(1) a process for the formation and operation of an advisory council of insurance professionals and consumers to advise the Commissioner on matters relating to continuing education;
(2) a process for the approval of courses;
(3) a process for the approval of course providers;
(4) standards for courses; and
(5) procedures for documenting satisfactory completion of courses.
(c) For good cause shown, the Commissioner may extend for no longer than six months the period of time for completion of the educational requirements of this section.
(d) This section shall not apply to a nonresident insurance producer who resides in a state or district that has a continuing education requirement and who has satisfied such requirement and submits adequate documentation of continuing education completion to the Commissioner.
(e) The license of an applicant who has failed to satisfy the continuing education requirements of this section, and who has not been granted an extension of time as set forth in subsection (c) of this section, shall not be renewed.
(f) The Commissioner shall suspend the license of any applicant who, after receiving an extension of time as set forth in subsection (c) of this section, has not satisfactorily completed the continuing education requirement.
(g) The Commissioner may contract with an outside vendor to administer continuing education requirements, including approval of courses and course providers; collection and maintenance of insurance producer record-keeping; and compliance monitoring. The costs of an outside vendor shall be borne by applicants for insurance producer license renewal and by course providers through fees imposed by the outside vendor. All fees charged by the outside vendor will be subject to the prior approval of the Commissioner and may be payable to the outside vendor, notwithstanding 32 V.S.A. § 502(a).
(h) [Repealed.] (Added 1999, No. 87 (Adj. Sess.), § 3; amended 2001, No. 97 (Adj. Sess.), §§ 9, 20.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4806. Suspension, revocation, or termination of license

§ 4806. Suspension, revocation, or termination of license
(a) The Commissioner shall promptly notify all appointing insurers, where applicable, and the licensee regarding any suspension, revocation, or termination of license by the Commissioner.
(b) Upon suspension, revocation, or termination of the license of a resident of this State, the Commissioner shall notify the central office of the National Association of Insurance Commissioners and the commissioner of each state for whom the licensee has executed a certificate as provided for in accordance with subdivision 4800(3) of this title.
(c)-(e) [Repealed.] (Added 1963, No. 178, § 1, eff. June 27, 1963; amended 1973, No. 217 (Adj. Sess.), § 16; 2001, No. 97 (Adj. Sess.), § 13; 2021, No. 25, § 9, eff. May 12, 2021.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4807. Surplus lines insurance broker

§ 4807. Surplus lines insurance broker
(a) Every surplus lines insurance broker who solicits an application for insurance of any kind, in any controversy between the insured or his or her beneficiary and the insurer issuing any policy upon such application, shall be regarded as representing the insured and his or her beneficiary and not the insurer; except any insurer that directly or through its agents delivers in this State to any surplus lines insurance broker a policy or contract for insurance pursuant to the application or request of the surplus lines insurance broker, acting for an insured other than himself or herself, shall be deemed to have authorized the surplus lines insurance broker to receive on its behalf payment of any premium that is due on the policy or contract for insurance at the time of its issuance or delivery.
(b) [Repealed.]
(c) Notwithstanding any other provision of this title, a person licensed as a surplus lines insurance broker in his or her home state shall receive a nonresident surplus lines insurance broker license pursuant to section 4800 of this chapter.
(d) Not later than July 1, 2012, the Commissioner shall participate in the national insurance producer database of the NAIC, or any other equivalent uniform national database, for the licensure of surplus lines brokers and the renewal of such licenses. (Added 1973, No. 217 (Adj. Sess.), § 17; amended 1981, No. 210 (Adj. Sess.), § 2; 2001, No. 97 (Adj. Sess.), § 14; 2009, No. 137 (Adj. Sess.), § 9a; 2011, No. 49, § 12, eff. May 26, 2011.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4808. Representative of fraternal benefit societies

§ 4808. Representative of fraternal benefit societies
Representatives of fraternal benefit societies who sell, solicit, and negotiate insurance contracts shall be deemed insurance producers and subject to the same licensing requirements as insurance producers. (Added 1973, No. 217 (Adj. Sess.), § 18; amended 2001, No. 97 (Adj. Sess.), § 15.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4809. Countersignature

§ 4809. Countersignature
Notwithstanding any other provisions of the statutes of this State, there shall be no requirement that an insurance producer who is a resident of this State must countersign a policy of insurance written by a foreign insurance company. (Added 1973, No. 217 (Adj. Sess.), § 19; amended 2001, No. 97 (Adj. Sess.), § 16.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4812. Rules and regulations

§ 4812. Rules and regulations
The Commissioner may adopt reasonable rules and regulations for the implementation and administration of the provisions of this chapter. (Added 1973, No. 217 (Adj. Sess.), § 22; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2001, No. 97 (Adj. Sess.), § 17; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2021, No. 105 (Adj. Sess.), § 229, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813. Purpose and scope

§ 4813. Purpose and scope
This subchapter governs the qualifications and procedures for the licensing of insurance producers. It simplifies and organizes some statutory language to improve efficiency, permits the use of new technology, and reduces costs associated with issuing and renewing insurance licenses. (Added 2001, No. 97 (Adj. Sess.), § 18.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813b. License required

§ 4813b. License required
A person shall not sell, solicit, or negotiate insurance in this State for any class or classes of insurance unless the person is licensed for that line of authority in accordance with this subchapter. (Added 2001, No. 97 (Adj. Sess.), § 18.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813c. Duties

§ 4813c. Duties
(a) A person not duly licensed as an insurance producer or limited lines producer who sells, solicits, or negotiates insurance policies on behalf of an insurer shall be deemed a producer acting as the agent of such insurer within the intent of this subchapter, and shall be liable for all the duties, requirements, liabilities, and penalties to which an insurance producer or limited lines producer is subject, and the insurer, by compensating the person through any of its officers, agents, or employees for soliciting policies of insurance, shall accept and acknowledge that person as its agent in such a transaction.
(b) A person not licensed as an insurance producer or limited lines producer who sells, solicits, or negotiates insurance on behalf of others or transmits for others an application for a policy of insurance to or from an insurer, or offers or assumes to act in the negotiations of insurance, shall be a producer within the intent of this subchapter, and shall be liable for all the duties, requirements, liabilities, and penalties to which licensed insurance producers or limited lines producers are subject.
(c) Every insurance producer or limited lines producer acting as an agent of an insurer who sells, solicits, or negotiates insurance of any kind shall, in any controversy between the insured or his or her beneficiary and the insurer, be regarded as representing the insurer and not the insured or his or her beneficiary for whose acts the insurer will be responsible.
(d) Every insurance producer or limited lines producer, not acting as the agent of an insurer, who sells, solicits, or negotiates insurance of any kind shall, in any controversy between the insured and his or her beneficiary and the insurer issuing any policy of insurance, be regarded as representing the insured or his or her beneficiary and not the insurer, except any insurer that directly or through its agents delivers in this State to any producer a policy or contract for insurance pursuant to the application or request of the producer, acting for an insured other than himself or herself, shall be deemed to have authorized the producer to receive on its behalf payment of any premium that is due on the policy, or contract for insurance at the time of its issuance or delivery. (Added 2001, No. 97 (Adj. Sess.), § 18.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813e. Application for examination

§ 4813e. Application for examination
A resident individual applying for an insurance producer license shall pass a written examination as set forth in subdivision 4800(3)(E) of this title unless exempt pursuant to section 4813i of this subchapter. (Added 2001, No. 97 (Adj. Sess.), § 18.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813f. Application for license

§ 4813f. Application for license
(a) An individual applying for a resident insurance producer license shall make application to the Commissioner on the Uniform Application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual’s knowledge and belief. Before approving the application, the Commissioner shall find that the individual:
(1) is at least 18 years of age;
(2) has not committed any act that is a ground for denial, suspension, or revocation set forth in section 4804 of this title;
(3) is competent, trustworthy, financially responsible, and of good personal and business reputation;
(4) has paid the fees set forth in section 4800 of this title; and
(5) has successfully passed the examinations for the lines of authority for which the person has applied.
(b) As soon as practicable, but no later than April 1, 2003, the Commissioner shall permit a business entity to be licensed as an insurance producer. Application shall be made using the Uniform Business Entity Application. Except as permitted by regulation, licensure of a business entity shall not relieve any natural person who sells, solicits, or negotiates insurance of the requirement to be licensed under this chapter. Before approving the application, the Commissioner shall find that:
(1) The business entity has paid the fees set forth in section 4800 of this title.
(2) The business entity has designated a licensed producer who is a natural person responsible for the business entity’s compliance with the insurance laws, rules, and regulations of this State.
(c) The Commissioner may require any documents reasonably necessary to verify the information contained in an application. (Added 2001, No. 97 (Adj. Sess.), § 18.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813g. License

§ 4813g. License
(a) An insurance producer may receive qualification for a license and an appointment in one or more of the following lines of authority:
(1) Life: insurance coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income.
(2) Accident and health or sickness: insurance coverage for sickness, bodily injury, or accidental death, and may include benefits for disability income.
(3) Property: insurance coverage for the direct or consequential loss or damage to property of every kind.
(4) Casualty: insurance coverage against legal liability, including that for death, injury, or disability or damage to real or personal property.
(5) Variable life and variable annuity products: insurance coverage provided under variable life insurance contracts and variable annuities.
(6) Personal lines: property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes.
(7) Any other line of insurance permitted under State laws or regulations.
(b) An insurance producer license shall remain in effect unless revoked or suspended as long as the fee set forth in section 4800 of this title is paid and education requirements for resident individual producers are met by the due date.
(c) A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance (for example, including a long-term medical disability) may request a waiver of those procedures. The producer may also request a waiver of any examination requirement or any other fine or sanction imposed for failure to comply with renewal procedures.
(d) [Repealed.] (Added 2001, No. 97 (Adj. Sess.), § 18; amended 2009, No. 137 (Adj. Sess.), § 9.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813h. Nonresident licensing

§ 4813h. Nonresident licensing
(a) Unless denied licensure pursuant to section 4804 of this title, a nonresident person shall receive a nonresident producer license if:
(1) the person is currently licensed as a resident and in good standing in his or her home state;
(2) the person has submitted the proper request for licensure and has paid the fees required by section 4800 of this title;
(3) the person has submitted or transmitted to the Commissioner the application for licensure that the person submitted to his or her home state, or in lieu of the same, a completed Uniform Application; and
(4) the person’s home state awards nonresident producer licenses to residents of this State on the same basis.
(b) The Commissioner may verify the producer’s licensing status through the producer database maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries.
(c) A nonresident producer who moves from one state to another state or a resident producer who moves from this State to another state shall file a change of address and provide certification from the new resident state within 30 days of the change of legal residence. No fee or license application is required.
(d) Notwithstanding any other provision of this chapter, the Commissioner may allow a person licensed as a limited lines producer in his or her home state to receive a nonresident limited lines producer license, pursuant to subsection (a) of this section, granting the same scope of authority as granted under the license issued by the producer’s home state. For the purposes of this section, limited lines insurance is any authority granted by the home state that restricts the authority of the license to less than the total authority prescribed in the associated major lines pursuant to subdivisions 4813g(a)(1) through (6) of this subchapter. (Added 2001, No. 97 (Adj. Sess.), § 18.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813i. Exemption from examination

§ 4813i. Exemption from examination
(a) An individual who applies for an insurance producer license in this State who was previously licensed for the same lines of authority in another state shall not be required to complete any prelicensing education or examination. This exemption is only available if the person is currently licensed in that state or if the application is received within 90 days of the cancellation of the applicant’s previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state’s producer database records, maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries, indicate that the producer is or was licensed in good standing for the line of authority requested.
(b) A person licensed as an insurance producer in another state who moves to this State shall make application within 90 days of establishing legal residence to become a resident licensee pursuant to section 4813f of this subchapter. No prelicensing education or examination shall be required of that person to obtain any line of authority previously held in the prior state except where the Commissioner determines otherwise by regulation.
(c) A person who applies for a limited lines travel insurance producer license under chapter 148 of this title shall not be required to be examined by the Commissioner.
(d), (e) [Repealed.]
(f) At the discretion of the Commissioner, a limited lines producer may be exempt from examination. (Added 2001, No. 97 (Adj. Sess.), § 18; amended 2009, No. 137 (Adj. Sess.), § 12; 2021, No. 139 (Adj. Sess.), § 11, eff. August 25, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813k. Temporary licensing

§ 4813k. Temporary licensing
(a) The Commissioner may issue a temporary insurance producer license for a period not to exceed 180 days without requiring an examination if the Commissioner deems that the temporary license is necessary for the servicing of an insurance business in the following cases:
(1) to the surviving spouse or court-appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled to allow adequate time for the sale of the insurance business owned by the producer or for the recovery or return of the producer to the business or to provide for the training and licensing of new personnel to operate the producer’s business;
(2) to a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or license;
(3) to the designee of a licensed insurance producer entering active service in the Armed Forces of the United States of America; or
(4) in any other circumstance where the Commissioner deems that the public interest will best be served by the issuance of this license.
(b) The Commissioner may, by order, limit the authority of any temporary licensee in any way deemed necessary to protect insureds and the public. The Commissioner may require the temporary licensee to have a suitable sponsor who is a licensed producer or insurer and who assumes responsibility for all acts of the temporary licensee and may impose other similar requirements designed to protect insureds and the public. The Commissioner may, by order, revoke a temporary license if the interest of insureds or the public is endangered. A temporary license may not continue after the owner or the personal representative disposes of the business. (Added 2001, No. 97 (Adj. Sess.), § 18.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813l. Appointments

§ 4813l. Appointments
(a) An insurance producer or limited lines producer shall not act as an agent of an insurer unless the producer becomes an appointed agent of that insurer. A producer who is not acting as an agent of an insurer is not required to become appointed.
(b) An appointment shall be made by an insurer designating an insurance producer or limited lines producer as an agent of the insurer for the lines of insurance the producer will be authorized to sell, solicit, or negotiate for the insurer.
(c) As set forth in section 4813g of this subchapter, an insurer shall make a separate appointment for each line of insurance for which an insurance producer or limited lines producer will be acting as an agent of the insurer.
(d) To appoint a producer as its agent, the appointing insurer shall file, in a format approved by the Commissioner, a notice of appointment within 15 days from the date the agency contract is executed or the first insurance application is submitted, whichever is sooner.
(e) An insurer shall pay an appointment fee, in the amount and method of payment set forth in section 4800 of this title, for each insurance producer appointed by the insurer and for each line of insurance in which a producer is qualified.
(f) An insurer shall remit, in a manner prescribed by the Commissioner, a renewal appointment fee in the amount set forth in section 4800 of this title.
(g) As soon as practicable, the Commissioner shall permit an insurer to appoint a producer to all or some insurers within the insurer’s holding company system or group by the filing of a single appointment request. (Added 2001, No. 97 (Adj. Sess.), § 18.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813n. Reciprocity

§ 4813n. Reciprocity
(a) The Commissioner shall waive any requirements for a nonresident license applicant with a valid license from his or her home state, except the requirements imposed by section 4813g of this chapter, if the applicant’s home state awards nonresident licenses to residents of this State on the same basis.
(b) A nonresident producer’s satisfaction of his or her home state’s continuing education requirements for licensed insurance producers shall constitute satisfaction of this State’s continuing education requirements if the nonresident producer’s home state recognizes the satisfaction of its continuing education requirements imposed upon producers from this State on the same basis. (Added 2001, No. 97 (Adj. Sess.), § 18.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4813o. Reporting of actions

§ 4813o. Reporting of actions
(a) A producer shall report to the Commissioner any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state within 30 days of the final disposition of the matter. This report shall include a copy of the order, consent to order, or other relevant legal documents.
(b) Within 30 days of the initial pretrial hearing date, a producer shall report to the Commissioner any criminal prosecution of the producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents. (Added 2001, No. 97 (Adj. Sess.), § 18.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4816. Applicability of subchapter to controlling producers

§ 4816. Applicability of subchapter to controlling producers
(a) The provisions of this subchapter shall apply to a controlling producer if, in any calendar year, the aggregate amount of gross written premium on business placed with a controlled insurer is greater than or equal to five percent of the admitted assets of the controlled insurer, as reported in the controlled insurer’s quarterly statement filed as of September 30 of the prior year.
(b) The provisions of this subchapter shall not apply if the controlling producer:
(1) places insurance only with the controlled insurer, or only with the controlled insurer and a member or members of the controlled insurer’s holding company system, or the controlled insurer’s parent, affiliate, or subsidiary and receives no compensation based upon the amount of premiums written in connection with such insurance;
(2) accepts insurance placements only from nonaffiliated subproducers, and not directly from insureds; and
(3) the controlled insurer, except for insurance business written through a residual market facility such as The Vermont Automobile Insurance Plan, accepts insurance business only from a controlling producer, a producer controlled by the controlled insurer, or a producer that is a subsidiary of the controlled insurer. (Added 1991, No. 249 (Adj. Sess.), § 18, eff. Jan. 1, 1993.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 131 - Licensing Requirements › § 4820. Examination authority

§ 4820. Examination authority
(a) The acts of the managing general agent are considered to be the acts of the insurer on whose behalf it is acting. A managing general agent may be examined as if it were the insurer.
(b) A reinsurance intermediary shall be subject to examination by the Commissioner. The Commissioner shall have reasonable access to all books, bank accounts, and records of the reinsurance intermediary in a form usable to the Commissioner.
(c) A reinsurance intermediary-manager may be examined as if it were the reinsurer. (Added 1991, No. 249 (Adj. Sess.), § 18, eff. Jan. 1, 1993.)