License Requirements
Information about licensing requirements, how to apply for a license and FAQs. Vermont Law defines a Managing General Agents to mean any person who manages all or part of the insurance business of an insurer and acts as an agent for such insurer, and, who, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross written premium greater than or equal to five percent of the policyholder surplus of the insurer in any one quarter or year; and adjusts or pays claims in excess of $10,000.00; or negotiates reinsurance on behalf of the insurer.
In order to obtain a Managing General Agents (MGA) license an applicant must be at least 18 years of age; be deemed by the Commissioner to be competent, trustworthy, and of good business reputation; submit a bond in the amount of $20,000; be licensed as a producer in Vermont and submit a license application and fees.
- MGA Insurance Bond
- Check out the fee schedule for initial or renewal licenses.
How to Apply for A License
Resident
An applicant must also submit additional paperwork for the department, including:
- Submit the NAIC Uniform Individual Application;
- A bond in the amount of $20,000;
- Send the original score report showing passage of the Producer Examination for the line(s) of insurance applying for;
- Send the application fee of $30.00 and a license fee of $300.00 (checks may be made payable to VT Dept. of Financial Regulation); and
- Review the Social Security Disclosure (Attachment 1) for your information.
Application Submission Note: Although a license can be issued without an appointment, a licensee cannot act as an agent of an insurer without an agent appointment by the insurer. Each insurer for whom you act as an agent must appoint you. Only an Insurer is authorized to submit an appointment form.
Nonresident
An applicant must also submit additional paperwork for the department, including:
- Submit the NAIC Uniform Individual Application;
- A home state certification (certifications should be dated no more than 90 days prior to receipt by the department of a completed application);
- A bond in the amount of $20,000;
- Send the original score report showing passage of the Producer Examination for the line(s) of insurance applying for;
- Send the application fee of $30.00 and and a biennial license fee. Use the See Fee Chart to determine your license fee. Please note, Vermont is a retaliatory fee state. Checks should be made payable to VT Dept. of Financial Regulation; and
- Review the Social Security Disclosure (Attachment 1) for your information.
Application Submission Note: Although a license can be issued without an appointment, a licensee cannot act as an agent of an insurer without an agent appointment by the insurer. Each insurer for whom you act as an agent must appoint you. Only an Insurer is authorized to submit an appointment form.
For further information about MGA’s and the duties of controlling agents, applicants should refer to Subchapter 2 of Chapter 131 Title 8, §4815-§4823.
FAQs
What is a Managing General Agent?
What is the license term?
What is the renewal fee?
Are there specific duties and requirements of Managing General Agents and Insurers using Managing General Agents?
What is a Managing General Agent?
A Managing General Agent is any person who:
(i) manages all or part of the insurance business of an insurer and acts as an agent for such insurer, and, who, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross written premium greater than or equal to five percent of the policyholder surplus of the insurer in any one quarter or year; and
(ii) engages in one or more of the following activities on the business produced:
(I) adjusts or pays claims in excess of $10,000.00; or
(II) negotiates reinsurance on behalf of the insurer.
(B) The following persons shall not be considered a managing general agent.
(i) An employee of the insurer;
(ii) A United States manager of the United States branch of an alien insurer;
(iii) An underwriting manager who, pursuant to contract, manages all, or part of the insurance operations of the insurer, is under common control with the insurer, subject to the holding company regulatory act, and whose compensation is not based on the volume of premiums written, or if based on the volume of premiums written is also based on the insurer earning a profit on the business written by such underwriting manager;
(iv) The attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney.
See Title 8, §4815.
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.
Check out the fee schedule for initial or renewal licenses.
Are there specific duties and requirements of Managing General Agents and Insurers using Managing General Agents?
Yes. Applicants should review the requirement of Subchapter 2 of Chapter 131 of Title 8 for the requirements of Managing General Agents. In particular, applicants should review Section §4818, addressing contract requirements; Section §4819, addressing duties of insurers utilizing Managing General Agents, 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 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