Statement from Commissioner Michael Pieciak

Statement from Commissioner Pieciak: DFR staff have been directed to work remotely from home, and will continue to do so until further notice. The department is still conducting business, however the remote nature of our work may cause some temporary disruptions or delays in DFR services. Read the full letter for more information about contacting DFR.

Business Entity Limited Lines Producer for Self-Storage Insurance License

Company Certificate Self-Storage

“Self-storage facility” means any real property designed and used for the purpose of renting or leasing individual storage space to occupants who are to have access to such space for the purpose of storing and removing personal property, as defined in 9 V.S.A. § 3901(6).

“Self-storage insurance” means personal property insurance offered and disseminated in connection with and incidental to the rental of storage space at a self-storage facility and that provides coverage to occupants at the self-storage facility where the insurance is transacted for the loss of or damage to personal property that occurs at that facility or when such property is in transit to or from that facility during the period of the rental agreement.

“Self-storage insurance producer” means an owner that is licensed to sell, solicit, or negotiate self-storage insurance pursuant to VT Ins. Regulation I-2019-02.

License Requirements

In order to obtain a Business Entity Limited Lines Producer license, the entity must be deemed by the Commissioner to be competent, trustworthy and financially responsible and satisfy the requirements of VT Ins. Regulation I-2019-02, titled Business Entity Limited Lines Producer for Self-Storage Insurance License.  This regulation sets out the requirements for licensure, the duties and responsibilities of a license holder, and the rules governing the use of employees and representatives.

How to Apply for a License

Resident and Nonresident

A paper application is currently the only option for a Business Entity Limited Lines Producer License for Self-Storage Insurance License.  An applicant must submit the following:

  • NAIC Uniform Business Entity Application
  • Fees:
    • Resident Fees:  Application fee of $30.00 and a biennial license fee of $30.00 (checks payable to VT Dept. of Financial Regulation);
    • Nonresident Fees:  Application fee of $30.00 and a biennial license fee (checks payable to VT Dept. of Financial Regulation)
  • Appoint a Designated Responsible Licensed Producer (DRLP) on the Application (see FAQs below).
Application Submission Notes
  • Although an appointment by an Insurer is not required to obtain a license, a business entity cannot act as the agent of an Insurer or use unlicensed employees to sell insurance for self-storage facilities unless appointed by the Insurer and all training and supervision requirements set forth in VT Ins. Regulation I-2019-02 have been satisfied.
  • Responses to Question 2 of the application may be limited to insurance related administrative actions or any other actions related to conduct that involves dishonesty, breach of a trust or fiduciary duty or mishandling of customer funds.

Designated Responsible Licensed Producer

In order to be a Designated Responsible Licensed Producer (DRLP) for a Business Entity Selling Self-Storage Insurance, the applicant:

  • Must possess an Insurance Producer license; and
  • Must be appointed with the same Insurers that have appointed the Business Entity.
Appointing Insurer Responsibilities

Each Insurer must appoint a business entity that is acting as its agent or intends to use unlicensed employees to sell, solicit or negotiate insurance for self-storage facilities on its behalf.  In order for the Business Entity to sell insurance and to use unlicensed employees, the Insurer MUST submit the following:

  • The Insurance Company Certificate; and,
  • The NAIC Uniform Appointment/Termination Form (Appointment fees are billed to the Insurer on a monthly basis) for both the business entity and the DRLP (if not already appointed).

FAQs

  • What is an appointment?
  • What happens if all of the Business Entity’s appointments are terminated?
  • What is a Designated Responsible Licensed Producer (DRLP)?
  • What happens if the DRLP ceases his or her association with the Business Entity or does not maintain a license or appointments?
  • What is a Company Certificate?
  • What is the license term and how do I maintain the license?
  • What is the renewal fee?
  • What are the responsibilities under the license?
  • Who should submit my application and/or DRLP Certification?
  • Who should I contact if I have questions about applying for the license or my responsibilities under the license?

Does the Business Entity need to obtain a license?

Businesses that want to use unlicensed employees or representatives to sell insurance for self-storage facilities obtain the Business Entity license and satisfy the requirements of VT Ins. Regulation I-2019-02.  NOTE:  A Business Entity does not have to be licensed if its employees or representatives who sell insurance are individually licensed.

Someone who sells insurance for a self-storage facility must:

  • Hold a full Insurance Producer license; or,
  • Be employed by or represent a business that has obtained a Business Entity Limited Lines Producer for Self-Storage Insurance License.
What is an appointment?

An Insurer is required to submit an appointment to the Department for any Producer acting as its agent.  In order to obtain and maintain a Business Entity Limited Lines Producer for Self-Storage Insurance license, the Business Entity must be appointed by an Insurer and the DRLP must also be appointed with the Insurer.  Every Insurer for whom the Business Entity is acting as its agent must appoint both the Business Entity and the DRLP.  It is the Insurer’s responsibility to make the appointment and only the Insurer is authorized to make an appointment.

What happens if all of the Business Entity’s appointments are terminated?

The license will be inactivated.  In order to maintain a license, the Business Entity must have an active appointment by an Insurer.

What is a Designated Responsible Licensed Producer?

As part of the NAIC uniform Business Entity Application, a Designated Responsible Licensed Producer is the individual appointed by each Insurer for whom the Business Entity is selling insurance, who:

  • Is responsible for the Business Entity’s compliance with the insurance laws and VT Ins. Regulation I-2019-02; and,
  • Is licensed as an Insurance Producer.
What happens if the DRLP ceases his or her association with the Business Entity or does not maintain a license or appointments?

If the DRLP terminates his or her association with the Business Entity or does not maintain his or her license or appointments, the Business Entity’s license will be inactivated. A DRLP association is a condition of licensure for the Business Entity.  Business Entities MUST notify the Department of a replacement DRLP prior to the termination of the existing DRLP in order to avoid the license inactivation of the Business Entity’s license.

What is a Company Certificate?

A Company Certificate is a certificate submitted by each Appointing Insurer stating that the Business Entity is trustworthy and competent, that the Insurer has provided the training and education required by VT Ins. Regulation I-2019-02, and that the Insurer will appoint the Business Entity as its agent.

What is the license term and how do I maintain the license?

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, the license fees are not prorated and the license term is fixed, regardless of time of application.

What is the renewal fee?

The 2021 renewal period begins January 4, 2021, and the renewal chart may be found at:  https://dfr.vermont.gov/document/insurance-producer-renewal-fee-chart

What are the responsibilities under the license?

A Business Entity has important responsibilities under the license.  The DRLP for the Business Entity must read and understand VT Ins. Regulation I-2019-02, Business Entity Limited Lines Producer for Self-Storage Insurance License and must ensure the Business Entity is in compliance with Vermont law.  This Regulation describes the duties and limitations placed on the license.

The Business Entity must:

  • Be appointed by the Insurer for whom it is acting as an agent;
  • Have a DRLP associated with it;
  • Ensure employees are qualified to sell insurance under the Regulation;
  • Provide employees with a training and education program;
  • Provide consumers with the required consumer disclosures; and,
  • Provide required brochures to all consumers.
Who should submit my application and/or DRLP Certification?

The Insurer who is appointing the DRLP should submit the DRLP Application (if not already licensed) with the Business Entity Application including the Insurer Certification.  The Insurer’s Appointments may be filed simultaneously with the Application or within 15 business days of the Application’s submission.

Who should I contact if I have questions about applying for the license or my responsibilities under the license?

For answers to additional questions that have not been addressed in the FAQs above, send an email to dfr.producerlicensing@vermont.gov or by mail to:

Vermont Dept. of Financial Regulation
Insurance Division – Producer Licensing
89 Main Street
Montpelier, VT  05620-3101

(802) 828-3303 – Telephone
(802) 828-1633 – Fax

Please be sure to provide a telephone number where we can contact you.

 

 

Contact Information

Department of Financial Regulation
Consumer Services 
89 Main Street, Montpelier, VT 05620 - 3101

802-828-3301
833-DFR-HOTLINE (toll free)
833-337-4685 (toll free)

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