Vermont Personal Lines Insurance License Exam — All Questions

Which agency regulates insurance and licenses resident personal lines producers in Vermont?

• a.The Insurance Division of the Vermont Department of Financial Regulation (DFR)✓
• b.The Vermont Bureau of Insurance Agents
• c.The National Association of Insurance Commissioners
• d.The federal Department of Insurance

Insurance in Vermont is regulated by the Insurance Division of the Vermont Department of Financial Regulation (DFR), under the Commissioner. It licenses and renews producers, reviews rates and forms, and enforces the state insurance laws. The NAIC is a standards body, not a licensing agency, and there is no federal insurance department. Source: Vermont Department of Financial Regulation (https://dfr.vermont.gov).

After a producer is licensed in Vermont, what generally must occur before he or she can transact business for a specific insurer?

• a.Nothing further - a license alone lets the producer bind any insurer
• b.The insurer must appoint the producer and file the appointment with the Vermont DFR✓
• c.The producer must be elected by policyholders
• d.The producer must register with the NAIC

A license lets a person act as a producer, but to represent a specific insurer that company must appoint the producer, and the appointment is filed with the Vermont Department of Financial Regulation. A producer may hold appointments from many insurers at once. Source: Vermont Department of Financial Regulation.

Which statement about continuing education (CE) for resident personal lines producers in Vermont is correct?

• a.Producers must complete state-approved CE, typically including an ethics component, each renewal cycle✓
• b.CE is never required once the license is issued
• c.CE is set and enforced by the federal government
• d.Only life producers have any CE duty

To renew, resident Vermont producers must complete state-approved continuing education each cycle, typically including an ethics component. Exact hour totals and the renewal period are set by the Vermont DFR and can change, so verify current requirements at https://dfr.vermont.gov rather than memorizing a number.