Vermont Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency regulates insurance and licenses resident property and casualty producers in Vermont?
- a.The Vermont Secretary of State
- b.The Vermont Department of Financial Regulation (Insurance Division)✓
- c.The Vermont Department of Motor Vehicles
- d.The Vermont Agency of Commerce and Community Development
Insurance in Vermont is regulated by the Vermont Department of Financial Regulation (DFR) through its Insurance Division, led by the Commissioner (8 V.S.A. 11; 3 V.S.A. 212). DFR licenses producers and adjusters, reviews forms and rates, and enforces the insurance laws. On the exam, remember it is DFR, not the Secretary of State or DMV, that licenses property and casualty producers.
A Vermont producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under Vermont's unfair trade practices law this is generally:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be disclosed but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under Vermont's unfair trade practices law and can bring fines and license action by the Vermont Department of Financial Regulation.
After a Vermont personal auto or homeowners policy is past its initial underwriting period, an insurer's mid-term cancellation is generally allowed only:
- a.For specific statutory grounds such as nonpayment of premium or fraud, with required advance written notice✓
- b.For any reason, with no notice
- c.Only during the first 24 hours of the policy
- d.Never, once the policy is issued
Vermont limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment or fraud and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute and can change; verify current figures with the Vermont Department of Financial Regulation.