Life Settlement Broker | Department of Financial Regulation

Vermont Law defines a Life Settlement Broker to mean a natural person who is working exclusively on behalf of a policy owner and, for a fee, commission, or other valuable consideration, offers or attempts to negotiate life settlement contracts between an owner and one or more life settlement providers. Notwithstanding the manner in which the life settlement broker is compensated, a life settlement broker is deemed to represent only the policy owner and not the insurer or the life settlement provider and to owe a fiduciary duty to the policy owner to act according to the policy owner’s instructions and in the best interest of the policy owner. The term does not include an attorney or a certified public accountant who is retained to represent the policy owner and whose compensation is not paid directly or indirectly by the life settlement provider or purchaser. This license becomes available on January 1, 2010. See Chapter 103, Title 8, §3835.

License Requirements

In order to obtain a Life Settlement Broker license an individual must be at least 18 years of age; must be deemed by the commissioner to be competent, trustworthy and financially responsible; must obtain and keep a surety bond or letter of credit solely in favor of this state; must possess an insurance producer license and must have had not less than two years’ experience as an insurance producer.

How to Apply for a License

Resident

An applicant must submit to the department the following:

NAIC Uniform Individual Application;
Submit a surety bond or letter of credit issued solely in favor of the Commissioner in an amount based on the annual aggregate life settlement payments attributable to the licensee to policy owners in Vermont as follows:

a. $0.00 to $2,000,000.00, a bond or letter of credit not less than $25,000.00;
b. $2,000,000.01 to $5,000,000.00, a bond or letter of credit not less than $50,000.00;
c. $5,000,000.01 to $15,000,000.00 a bond or letter of credit not less than $75,000.00; and
d. $15,000,000.01 and more, a bond or letter of credit not less than $100,000.00.

A license application fee of $30.00 and a license fee of $100.00; Checks should be made payable to VT Dept. of Financial Regulation; and,
Has had at least 2 years prior experience as a licensed Life Insurance Producer.

Note: In addition to the CE requirements for producers, a life settlement broker must complete an additional 15 hours of CE related to life settlements and approved under section Title 8, §4800a.

Attachment #1 Social Security Disclosure is for your information.

Nonresident

An applicant must submit to the department the following:

NAIC Uniform Individual Application;
Submit a surety bond or letter of credit issued solely in favor of the Commissioner in an amount based on the annual aggregate life settlement payments attributable to the licensee to policy owners in Vermont as follows:

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.
Nonresident applicants must designate in writing an agent for service of process or file with the Commissioner applicant’s irrevocable consent that any action against the applicant may be commenced by service of process on the secretary of state, pursuant to Title 11, §1633.
Has had at least 2 years prior experience as a licensed Life Insurance Producer.
Attachment #1 Social Security Disclosure is for your information.

For further information about life settlements and the duties of a life settlement broker, applicants should refer to Chapter 103 of Title 8, §3836 for licensing requirements.

FAQs

What is the license term?
What are the CE requirements for Life Settlement Brokers?
Do I need a Viatical Settlement Broker license?
Who should I contact with questions?

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.

What are the CE requirements for Life Settlement Brokers?

A licensee must complete on a biennial basis an additional 15 hours of continuing education that is related to life settlements. This requirement is in addition to the existing requirements for continuing education of producers and must comply with the requirements of Title 8, §4800a and Regulation. Brokers will be required to submit copies of course completion certificates to demonstrate satisfaction of the CE requirement in order to renew a license. The CE requirement for Life Settlement Brokers will not apply to applicants who apply after January 1 of even years until after the applicant’s first license renewal, or eligibility for renewal.

Do I need a Viatical Settlement Broker license?

No. The Viatical Settlement Broker license has been replaced by the Life Settlement Broker license effective January 1, 2010. Existing Viatical Settlement Brokers will be able to renew as a Life Settlement Broker on or before April 1, 2010, subject to the requirements for licensure of Life Settlement Brokers.

Who should I contact with questions?

For questions about the application process, license renewal, and continuing education, please contact dfr.producerlicensing@vermont.gov.

For questions about Vermont’s Life Settlement Law and Broker duties and requirements, please contact Producer Licensing Supervisor at kevin.gaffney@vermont.gov.

Vermont Department of Financial Regulation
Insurance Division – Producer Licensing
89 Main Street
Montpelier, VT 05620-3101
(802) 828-3303 Telephone
(802) 828-1633 Fax