Vermont Law defines a Business Entity to mean, a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. The Business Entity Producer license is not a mandatory license in order to do business in Vermont. Possession of a Business Entity Producer license does not relieve any natural person who sells, solicits or negotiates insurance of the requirement to be licensed (and appointed by an insurer if acting as the agent of the insurer). See Subchapter 2 of Chapter 131 of Title 8, §4813a.
Check out the fee schedule for initial or renewal licenses.
License Requirements
A business entity must designate a licensed producer who is a natural person to be responsible for the business entity’s compliance with Vermont laws and regulations. If the Designated Responsible Producer License (DRLP) is terminated for any reason, the business entity’s license will simultaneously terminate. In order to avoid the cost and inconvenience of reapplying for a business entity license, anytime a DRLP license terminates for any reason, the designated producer should be replaced by notifying the department prior to the termination of the existing designee.
There are no lines of authority associated with a Business Entity Producer License. Business entity producers cannot be appointed by insurers.
How to Apply for a License
Nonresident Application
Nonresident Business Entities must apply electronically using one of the third party vendors listed below.
- Nonresident producers must apply electronically using NIPR.
- Complete the online application process and pay the relevant fees.
- If your application is routine, and does not require any additional information, the license is generally issued within 48 hours.
- If your application is not routine, you will be notified online that additional information must be submitted directly by you to the department. All additional information that must be submitted is outlined on the application, and can be faxed to 802-828-1633. Your license application will be reviewed after all required information has been received.
Resident
- Apply Online
- Residents must wait 48 hours after passing their producer examination before submitting an electronic application.
- Complete the online application process using NIPR and pay the relevant fees.
- If your application is routine, and does not require any additional information, the license is generally issued within 48 hours.
- If your application is not routine, you will be notified online that additional information must be submitted directly by you to the department. All additional information that must be submitted is outlined on the application, and can be faxed to 802-828-1633. Your license application will be reviewed after all required information has been received.
- Paper Application
- An applicant must also submit additional paperwork for the department, including:
- Submit the NAIC Uniform Individual Application;
- Resident Fees: Application fee of $30.00, and license fee of $30.00 made payable to VT Dept. of Financial Regulation.
- The business entity must have designated a licensed producer who is a natural person to be responsible for the business entity’s compliance with the insurance laws and regulations. The DRLP must be identified on the application.
- Review the Social Security Disclosure (Attachment 1) for your information.
- An applicant must also submit additional paperwork for the department, including:
FAQs
What is a Business Entity Producer?
What is the license term?
What is the renewal fee?
Is a Business Entity Producer license required?
What happens if the Designated Responsible Licensed Producer (DRLP) is terminated?
Does possession of a Business Entity Producer license by an agency or an intermediary relieve an individual Producer from the requirement to be licensed?
Does a Business Entity Producer need to be appointed?
What is a Business Entity Producer?
Vermont law defines a Business Entity to mean a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. A Producer is defined to mean a person required to be licensed under the laws of this state to sell, solicit or negotiate insurance.
What is the license term?
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?
Check out the fee schedule for initial or renewal licenses.
Is a Business Entity Producer license required?
In general, an insurance agency is not required to obtain a Business Entity Producer license in order for a licensed Producer to sell in connection with that agency. A natural person, however, must always be licensed as a Producer if they are selling, soliciting or negotiating insurance, even if the sales activity is in connection with a licensed Business Entity Producer.
What happens if the Designated Responsible Licensed Producer (DRLP) is terminated?
A requirement for a Business Entity Producer license is the designation of a licensed Producer who is a natural person to be responsible for the business entity’s compliance with Vermont laws and regulations. Failure to maintain a designation with an active Producer will result in the termination of the Business Entity Producer license. A business entity should designate a new DRLP prior to the termination of an existing DRLP.
Does possession of a Business Entity Producer license by an agency or an intermediary relieve an individual Producer from the requirement to be licensed?
No. Licensure of a Business Entity does not relieve any natural person who sells, solicits or negotiates insurance of the requirement to be licensed.
Does a Business Entity Producer need to be appointed?
No, an appointment is not required or available, with the exception of limited lines business entity licenses for credit or rental insurance.
For answers to additional questions that have not been addressed in the FAQs above, send an email to dfr.producerlicensing@vermont.gov 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