VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

VERMONT Department of Financial Regulation

Licensing Information Handbook Effective as of April 1, 2020

Register online at www.prometric.com/vermont/insurance

Publishing by Prometric Providing License Examinations for the State of Vermont

Copyright © 2020 Prometric LLC REVISED 04132020 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Contents

Introduction 2 Series 14-27 ...... 22 A Message from the Department ...... 2 Vermont Producer's Examination for Life, Accident, Health and HMO ...... 28 Overview of Licensing Process ...... 2 Series 14-29 ...... 28 Vermont Licensing Requirements 3 Vermont Producer's Examination for Property Types of Licenses and Requirements ...... 4 and Casualty Insurance ...... 37 Examination Waivers ...... 5 Series 14-31 ...... 37 150 questions (plus 5 unscored items) ...... 37 Scheduling Your Exam 6 Vermont Adjuster's Examination for Property Registering and Scheduling Information ...... 6 and Casualty Insurance ...... 42 Online ...... Error! Bookmark not defined. Series 14-33 ...... 42 By fax or mailError! Bookmark not defined. 150 questions (plus 5 unscored items) ...... 42 By phone .... Error! Bookmark not defined. Vermont Adjuster's Examination for Workers Reschedule and Cancellation ...... 6 Compensation Insurance ...... 47 If absent or late for your appointment ...... 7 Series 14-34 ...... 47 Test Centers .. Error! Bookmark not defined. Vermont Producer's Examination for Holidays ...... 7 Bail Bond ...... 48 Emergency Closings ...Error! Bookmark not Series 14-35 ...... 48 defined. Vermont Examination for Testing Accommodations ...... 8 Motor Vehicle Damage Appraiser ...... 49 Preparing for Your Exam 9 Series 14-37 ...... 49 Vermont Agent's Examination for Title Insurance Study Materials ...... 9 ...... 50 Content Outlines Overview ...... 9 Series 14-38 ...... 50 Practice Exams ...... 10 Vermont Producer's Examination for Personal Taking Your Exam 11 Lines Insurance...... 52 Series 14-39 ...... 52 Testing Process ...... 11 Vermont Producer's Examination for Property Test center regulations...... 12 Insurance ...... 56 Question Types ...... 13 Series 14-41 ...... 56 Experimental Questions ...... 13 Vermont Producer's Examination for Casualty Exam Results ...... 14 Insurance ...... 60 Appeals Process ...... 14 Series 14-42 ...... 60 Applying for Your License 15 License Application and Forms 65 Licensing Requirements by Residence ...... 15 Uniform Application for Individual Insurance Resident License Requirements ...... 15 Producer License/Registration ...... 66 New Vermont Residents ...... 15 Attachment #1 - Social Security Disclosure ... 71 Licensing Fees ...... 15 #2 - Required Certifications ...... 72 Applying for a License Electronically ...... 15 Examination Registration Form ...... 73 Paper Submissions ...... 16 Exam Registration Form ...... 74 Nonresidents ...... 16 Credit Card Payment Form ...... 75 Other Licensing Information...... 17 Exam Content Outlines 18 Vermont Producer's Examination for ...... 18 Life Insurance ...... 18 Series 14-25 ...... 18 Vermont Producer's Examination for Accident, Health and HMO ...... 22

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Introduction

A Message This handbook provides you with information about the process of taking an from the examination and becoming licensed by the Vermont Department of Financial Regulation (the Department). It also contains information that is useful after you Department become licensed. We suggest you keep this bulletin for future reference. Additional information about each license type and electronic application information is available on the Department’s Web site.

The Department has contracted with Prometric LLC, to conduct its examination program. We wish you well in preparing for your examination and remind you that by law Producers and Workers’ Compensation Adjusters are required to take continuing education.

Overview of This handbook provides information about the examination and licensing process for Licensing obtaining a resident insurance license. You should read this Licensing Handbook including the examination content outlines prior to taking an exam. If interested in Process applying for a nonresident license, you can apply online via NIPR at www.nipr.com or an NIPR authorized business partner.

Overview of Licensing Process  Follow these main steps if you are interested in obtaining an insurance license.

1. Read this handbook to learn about examination and licensing requirements. 2. If you don’t already have a profile with CMS, now is the time to create one. 3. Register and schedule your exam by phone (at this time to schedule any ProProctor exams you must call 800.868.6113 between 8 a.m. and 9 p.m. Eastern time Monday through Friday). 4. Review the examination content outlines, which can be found at the end of this document. The content outlines in this guide are the basis for the exams. 5. Take the scheduled examination, bringing required identification to the test center. 6. Apply for your license through the Department at: dfr.vermont.gov

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To get answers not provided in this handbook  Visit our Website: www.prometric.com/vermont/insurance

Frequently Asked Questions are available: https://www.prometric.com/sites/default/files/2019- 09/vtinsuranceexamfaqs.pdf

LICENSING INFORMATION Vermont Department of Financial Regulation 89 Main Street, Montpelier, VT 05620-3101 Phone: 802.828.3303 Web site: dfr.vermont.gov

For questions about Remote Proctored exams: Phone: 800.868.6113

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Vermont Licensing Requirements

This section describes: • The types of licenses offered and their requirements. • Examination waivers.

Types of Pursuant to Vermont Statutes Annotated Title 8, Chapter 131, the Vermont Department of Financial Regulation is authorized to issue the license types listed Licenses and below to qualified candidates to sell or provide insurance services and products in Requirements Vermont. Each license granted by the Department is valid only for the line/lines of authority named on the license.

License Type Description Insurance Producer Any individual who intends to sell, solicit or negotiate insurance. An insurance producer must be appointed by an insurer if the producer intends to act as an agent of the insurer. Limited Lines Any individual or partnership who is authorized by the Commissioner to solicit or negotiate Producer contracts for a particular line of insurance that does not require the professional competency demanded for an insurance producer’s license. Limited Lines include credit, crop, rental, surety and travel. Adjuster Any individual who investigates claims and negotiates settlement of claims arising under policies of insurance in behalf of insurers under such policies, or who advertises or solicits business from insurers as an adjuster. Public Adjuster Any individual who investigates claims and negotiates settlement of claims arising under policies of insurance on behalf of the insured under such policies, or who advertises or solicits business as such adjuster. Appraiser Any individual who, for compensation, appraises the loss or damage under policies of automobile insurance in behalf of the insurers under such policies. Consultant Any individual who, for a fee, holds himself or herself out to the public as engaged in the business of offering any advice, counsel, opinion or service with respect to the benefits, advantages or disadvantages promised under any policy of insurance that could be issued in this state. A consultant may not concurrently hold a producer license. Life Settlement Broker 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. Managing General Any individual who manages all or part of the insurance business of an insurer and acts as a Agent producer 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; or negotiates reinsurance on behalf of such insurer. Reinsurance Any individual, other than an officer or employee of the ceding insurer, who solicits, negotiates Intermediary Broker or places reinsurance cessions or retro-cessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer.

Reinsurance Any individual who has authority to bind or manage all or part of the assumed reinsurance Intermediary Manager business of a reinsurer, including the management of a separate division, department or underwriting office, and acts as a producer for such reinsurer whether known as a reinsurance intermediary-manager, manager or other similar term. Surplus Lines Any individual who solicits, negotiates or procures a policy of insurance with an insurance Insurance Broker company not licensed to transact business in this state, which cannot be procured from insurers licensed to do business in this state.

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Important Passing an exam does not guarantee that you will be issued a license. Issuance of a license depends on review and approval of all license application materials. See the “Applying for your license” section for more information.

The basic requirements for each type of license are shown in this chart. You should read the “Applying for your license” section in this handbook for specific details relevant to the type of license you need. Property and Workers' Limited Casualty Surplus Lines Compensation Consultants Lines Adjuster and Brokers Adjuster Producers Appraiser • must have at least • must have at • may not concurrently hold a • may be • must be licensed in two years of least two years of producer license and a consultant licensed to sell Vermont as insurance experience in, or experience in or license. credit, crop, producers qualified for special training, special training rental, surety the line or lines to be handling loss handling workers’ • must provide the Commissioner with and travel or written claims, or, in the compensation a $5,000 bond with an authorized other limited case of appraisers, claims. corporate surety approved by the lines producer • must have one or more in insurance loss Commissioner prior to licensure. types, as years of experience as an appraising. • must pass the determined by insurance producer or Vermont Workers’ • May not employ, be employed by, or the comparable employment • must pass the Compensation be in partnership with nor receive any Commissioner. with an insurance Vermont Workers’ adjuster payment whatsoever from any licensed company, agency or Compensation examination. insurance producer, surplus lines brokerage firm during the adjuster broker, limited lines producer, or three years immediately examination. insurer arising out of his or her preceding the date of activities as a consultant. application or such experience as the • must submit for the Commissioner’s Commissioner may deem approval, with their initial application, comparable. the written agreement intended for use with clients outlining the nature of the work to be performed and the fee prior to rendering any service.

Note: The results of the combination Life Accident and Health, and Property and Casualty examinations are reflected in one final score. You must pass the complete ✓ examination to qualify for a license. Do not schedule your examinations until you are familiar with all subject areas contained in the outline.

Examination Waivers • Applicants for a limited lines producer license are not required to take an examination. • Applicants for Title Agents license who have passed a state bar examination are not required to take the Title Examination.

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Scheduling Your Exam

Registering Prometric provides computerized testing through its multistate testing network. and Follow the instructions here to register and schedule an appointment. Scheduling Testing Accommodations. If you require an Americans with Disabilities Act (ADA) accommodation(s) or English as Second Language (ESL) additional time, see the Information “Testing Accommodations” section below. By Phone Schedule your exam by calling our Registration and Scheduling team at 800.868.6113.

Remote Proctored locations: You may take your exam at your home, or place of work. Your location must be:

• Indoors, in a walled room, well-lit area with a closed door and free of noise and distractions. • Alone • At a table free of pens, paper, electronic devices and study materials.

To take an exam in your place of work, additional steps may need to take depending upon your company’s security settings. For details on choosing this pathway, please call +1 800.868.6113 to learn more.

You will be using your personal computer. Your computer must meet our minimum system requirements:

• Windows 7 • Current version of Google Chrome • 0.5 mbps internet connection • Disconnected from a docking station, plugged directly into a power source • Contain or be connected to a moveable web-camera • Only one monitor is allowed. Computers with additional monitors must be configured in advance to support only one monitor. • Ensure you are on the same computer and in the same location for the exam, where you performed the first system check.

To see if your computer and network will allow testing through ProProctor™ visit https://rpcandidate.prometric.com/ and complete the system check. Reschedule and Cancellation To reschedule your existing exam appointment, you must contact Prometric 24 hours prior to the exam appointment date in order to avoid forfeiting your exam fee. If you need to confirm your appointment, please go to http://www.prometric.com/vermont/insurance. If you need to cancel or reschedule your exam please call 800-868-6113.

To cancel your existing exam appointment, you must contact Prometric at least three (3) calendar days prior to your scheduled exam appointment in order to avoid

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forfeiting $40 of your original exam fee. After you cancel your exam, you must initiate a refund by going to https://fs6.formsite.com/Prometric/form33/index.html and completing the refund form.

Prometric will review refund requests and email decisions to you within 7-10 business days of receipt unless further research and/or documentation are required. Prometric reserves the right to request documentation to support any illness or emergency claim. Refund requests made via phone will not be accepted.

If you change or cancel your appointment without proper notice, you will forfeit your examination fee(s). If absent or late for your appointment If you miss your appointment, or arrive late and are not allowed to test, you will forfeit your exam fee(s). Holidays Testing generally does not occur on federal holidays. Additional state holidays may be observed in the state where your schedule the exam appointment.

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Testing ADA Accommodation. Reasonable testing accommodations are provided to allow candidates with documented disabilities recognized under the ADA an opportunity to Accommodations demonstrate their skills and knowledge. Prometric makes every effort to provide reasonable testing accommodations that enable all test takers to take examinations.

If you require testing accommodations under the Americans with Disabilities Act (ADA), please complete and submit a Testing Accommodation Request Form online at https://www.prometric.com/sites/default/files/AccomodationRequestPacket. pdf, or contact Prometric at (888) 226-9406 to obtain an Accommodation Request Form.

Professional documentation of the disability must be submitted with the Accommodation Request Form to aid Prometric in determining the appropriate testing accommodations. Thirty days’ advance notice is required for all testing arrangements. There is no additional charge for these accommodations. ESL Accommodation. All examinations are given in English. If English is not your primary language, you may qualify for additional time for the test by requesting an ESL Authorization from Prometric. To request an ESL authorization, please submit: • A personal letter requesting the authorization; and • A letter from the English instructor or sponsoring company (on company letterhead), certifying that English is not your primary language.

Please fax documents to 800.347.9242 and allow three (3) days for processing. If your request is approved, Prometric may extend the time limit on your examination to time-and-one-half or 150% of the normal time limit. Prometric will inform you by mail whether your request for accommodation is approved. You should not schedule your exam until you have received the confirmation email. Exams scheduled before the ESL request has been approved will not include extra time.

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Preparing for Your Exam

Being well prepared will help you pass your examination. This section offers: • An overview of the examination content outlines in this bulletin. • Information about study materials. • Information about practice exams. Study M aterials Not all questions on the examinations will necessarily be covered in your study materials. The content outlines are updated periodically, and outdated study materials may not be consistent with them. Where such discrepancies exist, the outlines take precedence. Make sure your study materials cover the topics in the outlines.

You are free to use materials of your own choosing to prepare for the license examination. Manuals have been prepared by different publishers to assist candidates specifically in preparing for license examinations. Because of the number and the diversity of approach of these publications, neither the Department nor Prometric reviews or approves study materials. However, the following sources may be a starting point in your search for study materials. Be sure that the materials you use cover the topics listed in the content outline for the examination you are taking.

1 Kaplan Financial: 800.824.8742. 2 ABLE Incorporated: 800.586.2253, ext. 5638.

Vermont statutes and regulations. All examinations cover Vermont regulations and statutes. You may wish to consult a standard statute reference, which is generally available at any public or law library, or go to the Department’s Web site at http://www.dfr.vermont.gov/view/regbul for links to Regulations and Bulletins. Workers’ compensation materials. You may contact the Department of Labor at 802.828.2286 for study material for the Vermont Workers’ Compensation adjuster license or by visiting their website at http://labor.vermont.gov/workers- compensation.

Content The license examination for each type of license consists of questions that test Outlines knowledge of topical areas listed in the content outline for that examination. An overview of each examination content outline appears at the end of this Overview handbook. You can view a complete outline specific to your examination online at www.prometric.com/vermont/insurance

Note Do not schedule the exam until you are familiar with all subject areas in the applicable content outline.

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Practice Exams To take a practice exam, select or copy the link below to your browser: https://tcnet1.prometric.com/Login.aspx?ibt=853298600&ClientNameSingleSi te=practice-insurance.

While practice exams contain general, non-state specific insurance questions, they are created in the same format and use the same question types as the actual licensure exams. Practice exams are designed to help you become familiar with the computer-based testing process.

During the practice exam, you will get immediate feedback to correct and incorrect responses as well as overall feedback at the end of the session just as you would during the actual exam. Practice exams are available for:

• (LIPA) Life Insurance Producer/Agent Practice Exam in English and Spanish

• (HIPA) Health Insurance Producer/Agent Practice Exam in English and Spanish

• (PIPA) Property & Casualty Insurance Producer Practice Exam in English only

There is no cost to take Prometric Practice Exams!

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Taking Your Exam

Knowing what to expect when taking your examination may help you prepare for it. This section contains: • An overview of the testing process. • Regulations that will be enforced at the test center. • Information about the types of questions. • A guide to understanding your examination results. • Information about appeals.

Testing The exam will be administered by computer but you do not need any computer Process experience or typing skill to take the exam. Arrival. You should arrive at least 30 minutes before the scheduled exam appointment. This allows time for you to sign in and for staff to verify your identification and complete all security checks. Identification required. You must present a valid form of identification before you can test. That identification document must: • Be government-issued (e.g., driver’s license, state-issued identification card or military identification card). • Contain both a current photo and your signature. • Have a name that exactly matches the name used to register for the examination (including designations such as “Jr.” and “III”).

Important Failure to provide appropriate identification at the time of the

exam is considered a missed appointment. As a result, you will be required to pay another full examination fee before making another appointment. If you ✓ cannot provide the identification listed above, contact Prometric before scheduling the appointment to arrange an alternative way to meet this requirement.

You do not need any computer experience or typing skills to take your exam. After you schedule an appointment, you will receive an e-mail confirmation, with:

• ProProctor™ User Guide

You should complete the system check, and installation of the ProProctor™ application in advance of your test day. While you are not physically travelling to a test center, we recommend that you use the 30 minutes prior to your appointment to review the testing regulations and Environment Do’s and Don’ts and prepare to launch the Exam. The exam may not be launched more than 15 minutes prior to your appointment time and may not be launched more than 15 minutes after your appointment time.

You can also see if your computer and network will allow testing through ProProctor™ visit https://rpcandidate.prometric.com/ and complete the system check.

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Test Center Copyrighted questions. All test questions are the property of Prometric and are protected by copyright. Federal law provides severe civil and criminal penalties for Regulations the unauthorized reproduction, distribution, or exhibition of copyrighted materials.

To ensure that all candidates are tested under similar conditions, the following regulations and procedures will be enforced at each test center. The Remote Proctor (RP) and/or Security Agent (SA) is authorized to dismiss you from the test session for a violation of any of the Testing Regulations, including exhibiting abusive behavior towards the RP or SA. If you are found to have violated any of the regulations during your exam, the RP is required to notify Prometric and your test sponsor. 1 All exams are continuously monitored by video and audio recording. 2 You must present valid (unexpired) and acceptable ID(s) in order to take your test. (See “Identification required” in the previous section). 3 Unauthorized personal items may not be accessible while testing. Such items include, but are not limited to: outerwear, hats, food, drinks, purses, bags or briefcases, notebooks, watches, cell phones, electronic devices, or wearable technology. 4 Eating, drinking, smoking, and chewing gum are prohibited during the exam. 5 You will be required empty and turn all pockets inside-out and raise shirt sleeves above your wrists prior to starting your exam. 6 If you are wearing eyeglasses, you will be required to remove them for visual inspection to ensure they don’t contain a recording device. 7 You must also show your ID to the Test Center Administrator (TCA) and go through the security checks after any break in testing. 8 You are prohibited from communicating, publishing, reproducing, or transmitting any part of your test, in any form or by any means, verbal or written, for any purpose. 9 Written notes, published materials and other testing aids are strictly prohibited. 10 Light clothing items removed for comfort such as sweaters, suit jackets, scarves, etc., must be hung on the examinee’s chair, not placed in laps or on the workstation desktop. Outerwear such as heavy coats, parkas, rain coats, etc., is not permitted in the immediate testing area. 11 Changing location while testing, turning off lighting or audio, speaking to or receiving aid from other individuals is strictly prohibited. 12 You are not allowed to use any electronic device or phone during breaks. 13 Candidates are required to be professional, civil and respectful at all times while testing.

You are required to clear your testing area of personal items. Note the Personal following: • Electronic equipment—cameras, tape recorders, cell phones, PDAs, pagers, Items etc.—is not permitted in the testing area. • Other personal items—briefcases, backpacks, etc.—are not permitted in the testing area. Misconduct or Disruptive Candidates who engage in any kind of misconduct or disruptive or offensive Behavior behavior may be dismissed from the examination. Examples are: giving or receiving help, sharing supplies, taking part in an act of impersonation, removing test materials or notes from the testing room, and/or using rude or offensive language and behavior that delays or interrupts testing.

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Please note: Test center administrators are not allowed to answer any questions pertaining to the exam content. If you do not understand a question on the examination, you should answer the question to the best of your ability.

Question Types The examination contains four-option multiple-choice questions. These questions are designed to be as clear and concise as possible while testing knowledge and comprehension of insurance concepts as well as the application of the insurance concepts. The design of the exam ensures that those who possess the required knowledge of the specific insurance line of authority being tested should perform well on the examination for which they prepared. Question Formats. Three different multiple-choice formats are used. Each format is shown in the following examples. An asterisk (*) indicates the correct answer in each sample question.

Format 1—Direct Which one of the following is a type of health insurance policy designed to replace question the wages of an insured that is unable to work due to an accident or sickness? * 1. Disability Income Insurance Policy 2. Employer-Sponsored Group Major Medical Policy 3. Hospital Expense Insurance Policy 4. Special Risk Policy

Format 2— Benefits under workers’ compensation insurance are payable: Incomplete 1. For bodily injury that is accidental or intentional sentence * 2. Regardless of the liability of the employer 3. Unless safety rules are violated 4. Up to a maximum of 30 percent of weekly wages

Format 3—All of A life insurance policy may include provisions that do all of the following EXCEPT: the following 1. Restrict coverage if death is caused by suicide except 2. Require evidence of insurability to reinstate coverage * 3. Extend the contestable period beyond two years 4. Adjust proceeds if the insured’s age is misstated on the application

Experimental The examination may include some experimental questions that will not be scored. If Questions present, they are distributed throughout the examination and will not be identified as such. These are used to gather statistical information on the questions before they are added to the examination as scored items. These experimental questions will not be counted for or against you in the final examination score.

You will be helping us help future test takers by completing 5 experimental test questions in your exam. We plan to use the experimental questions on future exams based on your performance.

The questions will:

• be randomly distributed within your test

• will not be counted in your final score

• time spent on the question will not be deducted from your test time

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At the end of your exam, you will receive a notice of completion via email. For Exam Results questions regarding your exam, contact Prometric.

Duplicate score reports, please use our electronic score report portal to download or print duplicate copies of your candidate score report when or as needed. Please visit https://scorereports.prometric.com. You will be required to enter the confirmation number of your exam and your last name to complete this task. Prometric’s goal is to provide a quality examination and a pleasant testing experience for every candidate. If you would like to submit an appeal concerning Appeals examination content, registration, scheduling or test administration (testing site Process procedures, equipment, personnel, etc.), please submit an appeal by visiting www.prometric.com/contactus and clicking on “Request an Appeal”.

Once submitted you will receive an email response within 20 days indicating whether your appeal has been approved.

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Applying for Your License

This section offers information about: • Applying for your license. • License Requirements by residence. • Licensing fees. • Other licensing information. Note: Applicants for Life Settlement Broker, Managing General Agent and Reinsurance Intermediary should visit the Departments website for license instructions and procedures at www.vermontinsuranceagent.info.

Applicants should visit the Department’s website for more information about licensing, including FAQs. Licensing Resident License Requirements Requirements Vermont residents desiring any type of insurance license must be: by Residence • 18 years of age; • A resident of, or actually residing in, Vermont or maintaining a principal place of business in this state; and; • Deemed by the Commissioner of the Department of Financial Regulation to be competent, trustworthy, financially responsible, and of good personal and business reputation.

Important If a producer acts as an agent of an insurer, he or she must be appointed by the insurer as its agent. Individuals licensed as producers must be ✓ appointed by each insurer for whom they act as an agent. New Vermont Residents An individual who applies for an insurance producer license in this state who was previously licensed for the same lines of authority in another state shall not be required to complete any pre-licensing education or examination. This exemption is only available if the person is currently licensed in that state or if the application is received within 90 days of the cancellation of the applicant’s previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state’s producer database records, maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries, indicate that the producer is or was licensed in good standing for the line of authority requested. Licensing Fees The initial license application must be accompanied by a $30 application fee and the appropriate licensing fee. Visit the Department’s Web site at www.vermontinsuranceagent.info for the fee charts under each license type. Applying for a License Electronically Residents can apply electronically using the NIPR website (www.nipr.com) 48 hours after passing the exam. Applying electronically significantly reduces the time for processing your application.

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Paper Submissions After passing your license examination, you must submit: • A completed NAIC Uniform Application, found at the end of this handbook. • The original score report showing passage of the appropriate examination. • The $30 application fee. • The appropriate license fee. • Adjuster, public adjuster and appraiser applicants must also submit Attachment #2 Required Certifications (available online at www.vermontinsuranceagent.info or at the end of this handbook). Please allow a minimum of 10 days for processing time prior to checking on your license status if submitted through the mail. Nonresidents In order to obtain a Vermont insurance license, a nonresident must hold a similar license in another state or province of Canada and must be deemed by the Commissioner to be competent, trustworthy, financially responsible, and of good personal and business reputation.

Nonresidents MUST apply for licensure ELECTRONICALLY effective September 1, 2012 using one of the electronic service providers listed below. An applicant may request a hardship exception to the submission of an electronic application. To request a hardship exception, you must submit the reason for the hardship by faxing a signed statement to 802-828-1633.

Nonresidents can process license applications electronically using NIPR (www.nipr.com). Retaliatory fees. Producer’s, surplus lines broker’s, consultant’s, adjuster’s, appraiser’s, public adjuster’s, limited lines producer’s, managing general agent’s, reinsurance intermediary, and life settlement broker’s licenses and fees are retaliatory to the applicant’s state of residence. This means that a nonresident must pay the Vermont license fee, or the fee of the resident state if higher.

Note If you are seeking a nonresident Workers’ Compensation adjuster license, you must take and pass the Vermont Workers’ Compensation adjuster ✓ examination. You must also complete the educational or training program required by the Commissioner after your first license renewal or eligibility for renewal.

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Other Change of Address Any change of business, home or mailing address must be reported to the Department within 30 days. If you have moved, Licensing but still reside in the same state or have moved from one state Information to another, you must submit the address change electronically using NIPR’s Address Change Request (ACR) service at www.nipr.com ; OR Sircon’s Producer Edge at http://www.sircon.com. Name Change If you need to change your name with the Department, please submit it in writing along with a copy of the documentation that supports the name change via email ([email protected]) or fax (802.828.1633). Licensing of Vermont statute requires individuals to be licensed and allows individuals, business entities to be licensed as insurance producers. partnerships and Producers may assign their commissions to an insurance agency corporations or to persons who do not sell, solicit or negotiate insurance. Continuing Vermont law requires insurance producers to complete 24 Education credit hours of continuing education (CE) every two years. For further information, contact Prometric, the Department’s CE vendor, online at www.prometric.com/CE/vtceprod.htm, or at 800.532.2199 Duration of License All licenses in Vermont expire on a common expiration date regardless of when they were issued. Vermont does not prorate fees. Producer licenses are biennial, effective from April 1 (or date of issuance) to March 31 of each odd-numbered year. All licenses must be renewed by the individual, and it is the licensee’s responsibility to see that the renewal license is in effect, even if a notice is not received. Licenses other than producer licenses are biennial, and are effective from April 1 (or date of issuance) to March 31 of even-numbered years. Business Entity A business entity must designate a licensed producer to be Producer License responsible for the business entity’s compliance with Vermont laws and regulations. Temporary License The Commissioner may issue a temporary insurance producer license for a period not to exceed 180 days without requiring an examination. A temporary license may be issued to the surviving spouse or court-appointed personal representative or employee, or to the administrator, executor or employee of a deceased or disabled licensed producer, to the designee of a producer who has entered active service in the armed forces of the United States of America, or in any other circumstances where the Commissioner deems that the public interest will be best served by issuing such a license.

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Exam Content Outlines

The following outlines give an overview of the content of each For example, 10 percent means that 10 questions will be of the Vermont insurance examinations. Each examination will drawn on a 100-question examination and 15 will be drawn on include questions on the subjects contained in the outline. a 150-question examination. The percentages indicate the relative weight assigned to each An outline that includes more descriptive subsections for section of the examination. your examination is available online at www.prometric.com/vermont/insurance.

All citations are Vermont Insurance Suspension, False advertising Statutes Title 8, unless otherwise revocation or (4724(2)) nonrenewal (4804; noted. When preceded by “Reg” refer 4806) Defamation (4724(3)) to Vermont Department Regulations, Boycott, coercion and when preceded by “Bul” refer to Penalties intimidation Vermont Department Bulletins. (3661(a)(2); 4804(d)) (4724(4))

Vermont Producer's Examination 1.2 State regulation False financial for statements and Life Insurance Commissioner's general entries (4724(5)) duties and powers Series 14-25 (4726; 4804) Illegal inducement (4724(6)) 100 questions (plus 5 unscored Company regulation items) Unfair discrimination 2-hour time limit Certificate of authority (4724(7)) (3368) Effective November 3, 2019 Rebating (4724(8)) Unfair claim settlement practices Failure to maintain 1.0 Insurance Regulation 14% (4724(9); Reg 79-2 complaint record (14 Items) Sec 1–7) (4724(10)) 1.1 Licensing Policy forms (3541) Failure to act as fiduciary Process (4800; 4813f) Examination of (4724(12); Reg 95- Types of licensees (4791) records (3565) 1)

Resident Producer appointment Unsuitability (4800(3)(A)) (4798(d); 4813l) (4724(16))

Nonresident Termination of Nondisclosure of fees (4800(3)(B); appointment or charges 4813h) (4798(d); 4813m) (4724(95-1))

Maintenance and duration Producer regulation Consumer privacy regulation (IH-2001-01) Renewal and Acting without a expiration (4798) license (4793; 1.3 Federal regulation 4813c) Address change Fair Credit Reporting Act (4800(3)(F)) Shared commissions (15 USC 1681–1681d) (4796) Assumed business Fraud and false statements name (4813j) Trust accounts — anti- (18 USC 1033, 1034) commingling (Reg Reporting of actions 95-1; 4724(12)) (4813o) Controlled business 2.0 General Insurance 11% (11 Continuing education (4795) Items) requirements 2.1 Concepts (4800a; Reg 2000-2 Duties (4813c) Sec 4) Risk management key Unfair trade practices terms Disciplinary actions (4724) Risk Denial of license Misrepresentation (4800(3)(E)) (4724(1, 11, 13)) Exposure

Cease and desist Non-guaranteed Hazard elements order (3661) Peril

18 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Loss Competent parties Buy-sell funding

Methods of handling risk Legal purpose Key person

Avoidance Distinct characteristics of Executive bonuses an insurance contract Retention Deferred compensation Contract of adhesion funding Sharing Aleatory contract 3.5 Classes of life insurance Reduction policies Personal contract Transfer Group versus individual Unilateral contract Elements of insurable risks Ordinary (home service) Legal interpretations Adverse selection affecting contracts Permanent versus term

Law of large numbers Ambiguities in a Participating versus Reinsurance contract of adhesion nonparticipating

2.2 Insurers Reasonable Fixed versus variable life expectations insurance and annuities Types of insurers Indemnity Regulation of variable Captive Insurers products (SEC, Utmost good faith FINRA and Vermont) Stock companies Representations/misre (3855; Reg 88-3 Art Mutual companies presentations VI, XI, 2001-03; Bul 121, 129) Fraternal benefit Warranties societies 3.6 Premiums Concealment Lloyd's associations Factors in premium Fraud determination Risk retention groups Waiver and estoppel Mortality Private versus government insurers Interest

Admitted versus 3.0 Life Insurance Basics 17% Expense (17 Items) nonadmitted insurers Premium concepts 3.1 Insurable interest Domestic, foreign and alien (3710) Net single premium insurers Power to contract Gross annual premium Financial status (independent rating 3.2 Personal uses of life Premium payment mode services) insurance 3.7 Producer Marketing (distribution) Survivor protection responsibilities systems Estate creation Solicitation and sales 2.3 Producers and general presentations (Reg 77- rules of agency Cash accumulation 2)

Insurer as principal Liquidity Advertising

Producer/insurer Estate conservation Life and Health relationship 3.3 Determining amount of Insurance Guaranty personal life insurance Association (4151– Authority and powers of 4185) producers Human life value approach Illustrations (Reg 98- Express Needs approach 1)

Implied Types of information Policy summary (Reg Apparent gathered 77-2 Sec 5(A, B), Appendix B) 2.4 Contracts Determining lump- sum needs General Rules (Reg Elements of a legal 77-2 Sec 6 (B, C, K, contract Planning for income L, N, O, P)) needs Offer and acceptance Buyer's guide (Reg 3.4 Business uses of life 77-2 Sec 5(A, B), Consideration insurance Appendix A)

19 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Life insurance policy Substandard Required interest (Bul cost comparison 159) methods Entire contract (3731(3)) Replacement (Reg 4.0 Life Insurance Policies 16% 2001-3 Sec 1–10) (16 Items) Payment of premiums 4.1 Term life insurance (3731(1)) Indexed Annuity Buyer's Guide (Bul Level term Grace period (3731(2)) 110) Annual renewable Reinstatement (3731(9)) Indexed Life term Incontestability (3731(4)) Insurance Products (Bul 121) Level premium term Misstatement of age (3731(5)) Suitability Decreasing term 4.2 Whole life insurance Payment of claims Use and disclosure of (3731(10)) insurance Continuous premium information (straight life) 5.2 Other provisions

Field underwriting Limited payment Power to contract (3710)

Notice of information Single premium Assignment (3713(a, b)) practices 4.3 Flexible premium Modifications Application procedures policies Right to examine (free Delivery Universal life look)

Policy review Indexed universal life Exclusions

Effective date of 4.4 SEC regulated policies Representations in coverage applications (3736) Variable life insurance Premium collection 5.3 Beneficiaries Variable universal life Statement of good Designation options health 4.5 Specialized policies Individuals 3.8 Individual underwriting Joint life (first-to-die) by the insurer Classes Survivorship life (second- Information sources and to-die) Estates regulation Juvenile life Minors Application Indexed Life Products Trusts Producer report 4.6 Group life insurance Succession Attending physician Revocable versus statement Characteristics of group plans irrevocable Investigative Common disaster clause consumer Types of plan sponsors (inspection) report (3803–3810a) Spendthrift clause

Medical Information Insurability (3816) 5.4 Settlement options Bureau (MIB) Assignability (3713(a, b)) Cash payment Inquiry into sexual Conversion to individual Interest only orientation 8 V.S.A policy (3820–3823) Section 4724(7)(c) Interest on death benefits Portability (3810a(c)) Medical examinations 8 V.S.A Section and lab tests 4.7 Credit life insurance 3665(c)(2). including HIV (individual versus Fixed-period installments (4724(20); Bul 138) group) Fixed-amount installments Selection criteria and unfair discrimination Life income (3701) 5.0 Life Insurance Policy Provisions, Options and Single life Classification of risks Riders 13% (13 Items) Joint and survivor Preferred 5.1 Required provisions (3731) Retained asset accounts Standard

20 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

5.5 Nonforfeiture options 5.12 Riders affecting the Market value adjusted death benefit amount annuities Cash surrender value Paid-up addition rider Variable annuity contracts Extended term Accidental death 6.5 Uses of annuities Reduced paid-up insurance Guaranteed insurability Lump-sum settlements 5.6 Policy loan and withdrawal options Cost of living Qualified retirement plans

Cash loans Return of premium Group versus individual annuities Automatic premium loans Personal uses Withdrawals or partial 6.0 Annuities 20% (20 Items) surrenders 6.1 Annuity principles and Individual retirement annuities (IRAs) 5.7 Dividend options concepts Tax-deferred growth Premium offset Accumulation period versus annuity period Retirement income Cash payment Owner, annuitant and Education funds Reduction of premium beneficiary payments Insurance aspects of Accumulation at interest annuities 7.0 Federal Tax Considerations for Life Insurance and One-year term option 6.2 Immediate versus Annuities 6% (6 Items) deferred annuities Paid-up additions 7.1 Taxation of personal life Single premium immediate insurance Paid-up insurance annuities (SPIAs) Amounts available to 5.8 Disability riders Deferred annuities policyowner

Waiver of premium Premium payment Cash value increases options Waiver of cost of insurance Dividends Nonforfeiture Disability income benefit Policy loans Payor benefit life/disability Surrender charges Surrenders (juvenile insurance) Death benefits Amounts received by 5.9 Accelerated (living) 6.3 Annuity (benefit) beneficiary benefit provision/rider payment options General rule and Conditions for payment Life contingency options exceptions Effect on death benefit Pure life versus life Settlement options 5.10 Life settlements with guaranteed Values included in (3835–3849; Reg 95-4 minimum insured's estate Sec 1–15) Single life versus 7.2 Modified endowment Life settlement providers multiple life contracts (MECs) Life settlement brokers Annuities certain (types) Modified endowment Life insurance providers 6.4 Annuity products versus life insurance

Life settlement contract Fixed annuities Seven-pay test provisions General account Distributions Disclosure provisions assets 7.3 Taxation of non- Rules of conduct Interest rate qualified annuities guarantees 5.11 Riders covering (minimum versus Individually-owned additional insureds current) Accumulation phase Spouse/other-insured term Level benefit payment (tax issues related rider amount to withdrawals)

Children's term rider Equity indexed annuities Annuity phase and the exclusion ratio Family term rider Definition Distributions at death Suitability

21 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Corporate-owned Unfair claim settlement practices 7.4 Taxation of individual Vermont Producer's Examination (4724(9); Reg 79-2 retirement annuities for Accident, Health and HMO Sec 1–7) (IRAs) Series 14-27 Policy forms (3541) Traditional IRAs 100 questions (plus 5 unscored Examination of Contributions and records (3565) deductible amounts items) 2-hour time limit Producer appointment Premature Effective November 3, 2019 (4798(d); 4813l) distributions (including taxation Termination of issues) appointment 1.0 Insurance Regulation 5% (5 (4798(d); 4813m) Annuity phase benefit Items) payments 1.1 Licensing Producer regulation

Values included in the Process (4800; 4813f) Acting without a annuitant's estate license (4793; Types of licensees (4791) 4813c) Amounts received by beneficiary Resident Shared commissions (4800(3)(A)) (4796) Roth IRAs Nonresident Trust accounts — anti- Contributions and (4800(3)(B); commingling (Reg limits 4813h) 95-1; 4724(12))

Distributions Maintenance and duration Controlled business 7.5 Rollovers and transfers Renewal and (4795) (IRAs and qualified expiration (4798) Duties (4813c) plans) Address change Unfair trade practices 7.6 Section 1035 exchanges (4800(3)(F)) (4724)

Assumed business Misrepresentation name (4813j) 8.0 Qualified Plans 3% (3 (4724(1, 11, 13)) Items) Reporting of actions False advertising 8.1 General requirements (4813o) (4724(2))

8.2 Federal tax Continuing education Defamation (4724(3)) considerations requirements (4800a; Reg 2000-2 Boycott, coercion and Tax advantages for Sec 4) intimidation employers and (4724(4)) employees Disciplinary actions False financial Taxation of distributions Denial of license statements and (age-related) (4800(3)(E)) entries (4724(5))

8.3 Plan types, Cease and desist Illegal inducement characteristics and order (3661) (4724(6)) purchasers Suspension, Unfair discrimination Simplified employee revocation or (4724(7)) pensions (SEPs) nonrenewal (4804; 4806) Rebating (4724(8)) Self-employed plans (HR 10 or Keogh plans) Penalties Failure to maintain (3661(a)(2); complaint record Profit-sharing and 401(k) 4804(d)) (4724(10)) plans 1.2 State regulation Failure to act as SIMPLE plans fiduciary Commissioner's general (4724(12); Reg 95- 403(b) tax-sheltered duties and powers 1) annuities (TSAs) (4726; 4804) Unsuitability Company regulation (4724(16))

Certificate of authority Nondisclosure of fees (3368) or charges (4724(14))

22 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Consumer privacy Financial status Sickness Reg. 80-1, Sec. regulation (IH- (independent rating 5(E) 2001-01) services) 3.2 Principal types of losses Vermont Fair Credit Marketing (distribution) and benefits Reporting Act 9 systems V.S.A. 2480 a-n Loss of income from 2.3 Producers and general disability Reg. 80-1, 1.3 Federal regulation rules of agency Sec. 5(I), (J), (K)

Fair Credit Reporting Act Insurer as principal Medical expense Reg. 80- (15 USC 1681–1681d) 1, Sec. 5; Reg. H-2009- Producer/insurer 03, Sec. 1.4 Fraud and false statements relationship (18 USC 1033, 1034) Dental expense Authority and powers of producers Long-term care expense Reg. H-2009-1 2.0 General Insurance 5% (5 Express Items) 3.3 Classes of health Implied 2.1 Concepts insurance policies Apparent Risk management key Individual versus group terms 2.4 Contracts Private versus government

Risk Elements of a legal Limited versus contract Exposure comprehensive Reg. 80- Offer and acceptance 1, Sec. 7(E); Reg. H- Hazard 2009-03 Consideration Peril Self-Funded Plans (ERISA) Competent parties Loss 3.4 Limited policies Legal purpose Methods of handling risk Limited perils and amounts Distinct characteristics of Avoidance an insurance contract Required notice to insured Reg. 80-1, Sec. 8; 8 Retention Contract of adhesion V.S.A. Sec. 4063; 8 V.S.A. Sec. 4902 Sharing Aleatory contract Types of limited policies Reduction Personal contract Transfer Accident-only Reg. Unilateral contract 80-1, Sec. 7(G) Elements of insurable risks Legal interpretations Specified (dread) Adverse selection affecting contracts disease Reg. 80-1, Sec. 7(H) Law of large numbers Ambiguities in a contract of adhesion Hospital indemnity Reinsurance Reasonable Reg. 80-1, Sec. 7(D) 2.2 Insurers expectations Blanket insurance Types of insurers Indemnity (student accident, passengers, others) Captive insurers Utmost good faith 8 V.S.A. Sec. 4081

Stock companies Representations/misre Prescription drugs 8 presentations V.S.A. Sec. 4089(j) Mutual companies & 4089(i) Warranties Fraternal benefit Vision care/hearing societies Concealment care

Lloyd's associations Fraud Suitability 8 V.S.A. Risk retention groups Waiver and estoppel Sec. 4724(16); 8 V.S.A. Sec. 4062 Private versus government insurers 3.5 Common exclusions 3.0 Health Insurance Basics from coverage (Pre- Admitted versus 11% (3 Items) existing cond. Reg. 80-1, nonadmitted insurers 3.1 Definitions of perils Sec. 6(C))

Domestic, foreign and alien Accidental injury Reg. 80- 3.6 Producer insurers 1, Sec. 5(D) responsibilities in

23 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

individual health Pre-existing condition Conformity with state insurance exclusion regulation Reg statutes (4066(9)) 80-1 Sec 5(F), 6(E)), Marketing requirements 6(C) Illegal occupation (4066(10)) Advertising (Reg 71- Benefits, limitation and 1) exclusions Reg. 80-1, 4.3 Other general provisions Sales presentations Sec. 6 Underwriting requirements Right to examine (free Outline of coverage look) (4063(8)) Reg 80-1 Sec 8(B)) Mental health parity 8 Field underwriting 4.0 Health Insurance Policy V.S.A. 4089b Nature and purpose General Provisions (Non- group and Group) 11% Insuring clause Privacy, Protected (11 Items) Consideration clause Health Information 4.1 Uniform required (ERISA) provisions Renewability clause Reg. 80-1, Sec. 7(A)(1), (2) Application procedures Entire contract; changes and (15)(f) Reg. 80-1, Sec. 9 (4065(1), 4080(1)) Noncancelable Requirements at Certificate of insurance delivery of policy (4080(2)) Guaranteed renewable

Common situations for Time limit on certain Conditionally errors/omissions defenses (4065(2)) renewable

Life and Health Insurance Grace period (4065(3)) Renewable at option Guaranty Association of insurer Title 8, Ch. 112 New employees (4080(3)) Nonrenewable 3.7 Individual underwriting Part-time employees (cancelable, term) by the insurer (4080(5)) Reduction in coverage Underwriting criteria Reinstatement (4065(4))

Sources of underwriting Claim procedures information (4065(5–9); Reg 93-4) 5.0 Disability Income and Related Insurance (Reg. 80- Application Physical examinations and 1, Sec. 7(F)) 10% (10 autopsy (4065(10)) Items) Producer report Legal actions (4065(11)) 5.1 Qualifying for disability Attending physician benefits statement Change of beneficiary (4065(12)) Inability to perform duties Investigative Reg. 80-1, Sec. 5(I), (J), consumer 4.2 Optional provisions and (K) (inspection) report (4066) Title 9 Sec. 2480a Own occupation (5) Change of occupation (4066(1)) Any occupation Medical Information Pure loss of income Bureau (MIB) Misstatement of age (4066(2)) (income replacement Medical examinations contracts) Other insurance in this and lab tests Presumptive disability including HIV insurer (4066(3)) (4724(20)) Insurance with other Requirement to be under physician care Unfair discrimination 8 insurers V.S.A. Sec. 4724(7) Expense-incurred 5.2 Individual disability income insurance Genetic testing Title 18 basis (4066(4)) Sec. 9331–9335; 8 Other benefits Basic total disability plan V.S.A. Sec. 4724(22) (4066(5)) Income benefits 3.8 Considerations in Unpaid premium (monthly indemnity) replacing health (4066(7)) insurance Reg. 80-1, Elimination and Sec. 9, replacement Cancellation Reg 91-4B benefit periods Sec 3(10)) Pre-existing conditions Waiver of premium feature

24 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Coordination with social Waiting period Benefit schedule versus insurance and workers usual/reasonable/custom compensation benefits Disability income benefits ary charges

Additional monthly 5.6 Workers compensation Managed care versus non- benefit (AMB) Eligibility managed care (Reg. H- 2009-03) Social insurance Benefits supplement (SIS) Expense based versus indemnity based Occupational versus nonoccupational 6.0 Medical Plans 18% (18 6.3 Types of providers and coverage Items) plans

At-work benefits 6.1 Patient Protection and Major medical insurance Affordable Care Act Partial disability (PPACA, or ACA) Characteristics benefit Vermont Health Connect Common limitations Residual disability (VHC) (V.S.A. Title 33, benefit Ch. 18) Exclusions from coverage Other provisions affecting Eligibility income benefits Provisions affecting Income levels cost to insured Cost of living adjustment (COLA) Private insurance Major-med coverage rider products through in VT (Reg. H-2009- VHC 03) Future increase option (FIO) rider Person ineligible Health maintenance organizations (HMOs) Relation of earnings to Premium subsidies insurance (4066(6)) Preferred provider Pre-existing condition organizations (PPOs) Other cash benefits exclusions General characteristics Accidental death and Ten Essential Health dismemberment Benefits (EHB) Open or closed network Reg. 80-1, Sec. 7(G) Lifetime and annual limits Rehabilitation benefit Types of parties to the Preventive benefits provider contract Medical Individual and small group Exclusive provider reimbursement major med market benefit organizations (EPOs) (nondisabling injury) Large group market General characteristics (Subject to applicable health & Off-exchange Open or closed sickness rule) Dental Insurance network

Exclusions (Bul HCA 127) Availability of Point-of-service (POS) plans 5.3 Unique aspects of coverage individual disability Individual and Nature and purpose underwriting employer- Non-network provider Occupational sponsored group access (open-ended considerations plans HMO)

Benefit limits Provider network PCP referral (gatekeeper PPO) Policy issuance alternatives Stand-alone dental plans (SADPs) Indemnity plan 5.4 Group disability income features insurance Pediatric dental coverage under 6.4 Utilization management Group versus individual the ACA (H-2009-03) plans Waiting periods Prior approval H-2009-03, 5.5 Social Security Sec. 3.1 disability 6.2 Medical plan concepts Appeal/Grievance Qualification for disability Fee-for-service basis versus prepaid basis procedures H-2009-03, benefits Sec. 3.3 Definition of disability Specified coverages versus comprehensive care

25 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

6.5 Vermont eligibility 7.2 HMO Services Individual employer requirements (non- groups group and/or group) Preventive care services Multiple-Employer Child age limit, whether or Well-child care Trusts (METs) not dependent Immunizations Exempt associations Adopted child coverage Routine physical (alumni, professional, (4100c) examinations other)

Disabled child coverage 8 Wellness programs Trusts (unions, employers) V.S.A. Sec. 4089d) Physician services 8.3 Marketing Newborn child coverage considerations (4092) Primary care physician (PCP) Advertising (Reg. 71-1) Civil unions (Title 15 Sec 1201, 4063a, Reg IH- Referral (specialty) Regulatory 2001, Bul. 128) physician jurisdiction/place of delivery Same-sex marriage 15 Emergency care V.S.A. Sec. 8; 18 V.S.A. 8.4 Employer group health Sec. 5131(a)(2) Urgent care center insurance

6.6 HIPAA (Health Hospital emergency Vermont underwriting Insurance Portability room requirements (4079) and Accountability Hospital services Insurer underwriting Act) requirements criteria Skilled nursing facility Eligibility services Characteristics of group Guaranteed issue Home health care (4096) Plan design factors Pre-existing conditions Family planning services Persistency factors Creditable coverage Mental health/substance Renewability abuse benefits Administrative capability Protected Health Prescription drugs Eligibility for coverage Information (PHI) Additional plans and 6.7 Medical Savings services Open enrollment Accounts (MSAs), Dental services Employee eligibility Health Savings (PPACA requires (4080(5)) Accounts (HSAs) and pediatric dental High Deductible Health coverage only) Dependent eligibility Plans (HDHPs) Vision care/hearing Coordination of benefits Definition care (PPACA provision Eligibility requires pediatric Change of insurance vision coverage companies or loss of Contribution limits only) coverage

Events that terminate 7.0 Health Maintenance 8.0 Group Health Insurance coverage Organizations (HMOs) 8% 10% (10 Items) Extension of benefits (8 Items) 8.1 Characteristics of group (4091e) 7.1 General characteristics insurance 8.5 Small employer group Combined health care Group contract 8 V.S.A. medical plans delivery and financing Sec. 4080 Definition of small In network versus out of Certificate of coverage 8 employer 1811(a)(3)(B) network V.S.A. Sec. 4080 Availability of coverage Limited service area Experience rating versus 1811(a)(3)(B) community rating Limited choice of providers 8.2 Types of eligible groups 8 V.S.A. Sec. 4079 9.0 Insurance for Senior Citizens Gatekeeper concept and Special Needs Employment-related Individuals 13% (13 Copayments groups Items) Prepaid basis 9.1 Medicare

26 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Nature, financing and Outline of coverage Continuation and administration (Reg H-2009-04 Sec Conversion (Reg. 17(D)) H-2009-01, Section Part A — Hospital 6(D)) Insurance Right to return (Reg H-2009-04 Sec Eligibility for Benefits Individual eligibility 17(A)(5)) requirements Elimination Period Pre-existing conditions (Reg. H-2009-I, Enrollment (Reg H-2009-04 Sec Section 6(I)) Coverages and cost- 8(A)(1), Sec 8.1(A)(1)) Activities of Daily sharing amounts Living (Reg. H- Part B — Medical Duplication of 2009-1, Section 29) Insurance Medicare benefits (Reg H-2009-04 Sec Cognitive Impairment Individual eligibility 21(B)) (Reg. H-2009-I, requirements Section 29) Replacement (Reg H- Enrollment 2009-04 Sec 18, 23) Coverage of Mental Health Conditions Coverages and cost- Required disclosure (Reg. H-2009-I, sharing amounts provisions (Reg H- Section 6(J)(3)) 2009-04 Sec 17) Exclusions Appeal of Benefit Permitted Determinations Claims terminology compensation (Reg. H-2009-I, and other key terms arrangements (Reg Section 31) H-2009-04 Sec 16) Part C — Medicare Internal Appeal Advantage Renewability and (Reg. H-2009-I, Part D — Prescription Drug cancellation (Reg H- Section 31 (A)- Insurance 2009-04 Sec (C)) 8(A)(5), Sec 9.2 Medicare supplements 8.1(A)(5)) Independent (Reg H-2009-04 Sec 1- Review (Reg. H- 25) Continuation and 2009-I, Section conversion 31 (D)-(E)) Purpose (Reg H-2009-04 requirements (Reg Sec 1) H-2009-04 Sec Level of Benefits (Reg. H- 8(A)(5), Sec 2009-1, Section 6(H)(4)- Open enrollment (Reg H- 8.1(A)(5)) (5)) 2009-04 Sec 11) Notice requirements Home Health Care Standardized Medicare (Reg H-2009-04 Sec Personal Care supplement plans (Reg 17(B)) H-2009-04 Sec 8, 9) Adult Day Care Medicare Select (Reg H- Core benefits (Reg H- 2009-04 Sec 10) Nursing Facility 2009-04 Sec 8(B)) 9.3 Other options for Hospice Care Additional benefits individuals with (Reg H-2009-04 Sec Medicare Required Benefit 8(C)) Configurations (Reg. H- Employer group health 2009-1, Section 6 (K)) Vermont regulations and plans required provisions Qualified Long Term Care Disabled employees Plans (Regulation H- Standards for 2009-1, Section 30) marketing (Reg H- Employees with 2009-04 Sec 20) kidney failure Underwriting Considerations Advertising (Reg H- Individuals age 65 and 2009-04 Sec 19) older Suitability (Regulation H-2009-1, Section Appropriateness of Medicaid 29) recommended purchase (Reg H- Eligibility Replacement (Reg. H- 2009-04 Sec 21) Benefits 2009-1, Section 14)

Buyer's guide (Reg H- 9.4 LTC, Medicare and Vermont regulations and 2009-04 Sec Medicaid compared required provisions 17(A)(6)) Individual vs. Group Standards for Marketing (Reg. H-

27 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

2009-1, Sections 9, Long-term care insurance nonrenewal (4804; 23) 4806) Accidental death and Buyer's Guide (8 dismemberment Penalties V.S.A. Section 8098, (3661(a)(2); Reg. H-2009-1, 10.3 Medical expense 4804(d)) Section 23) coverage for sole proprietors and 1.2 State regulation Outline of Coverage partners (8 V.S.A. Section Commissioner's general 87090, Reg. H- 10.4 Medical savings duties and powers 2009-1, Section 32) accounts (MSAs) (4726; 4804)

Right to Return (free Company regulation look) (8 V.S.A. Certificate of authority Section 8089, Reg. (3368) H-2009-1, Section 6 Vermont Producer's Examination (L)) for Life, Accident, Health and Unfair claim HMO settlement practices Replacement (Reg. H- (4724(9); Reg 79-2 2009-1, Section 14) Series 14-29 Sec 1–7) Benefit Standards (8 150 questions (plus 5 unscored Policy forms (3541) V.S.A. Section 8085) items) Examination of Prohibited Policy 2.5-hour time limit records (3565) Provisions (8 V.S.A. Effective November 3, 2019 Sections 8086, Producer appointment 8087; Reg. H-2009- (4798(d); 4813l) 1, Sections 6, 25) 1.0 Insurance Regulation 5% Termination of Renewal appointment (7 Items) Considerations (4798(d); 4813m) (Reg. H-2009-1, 1.1 Licensing Producer regulation Sections 7(B) and Process (4800; 4813e,f) 8(B)) Acting without a Types of licensees (4791) Inflation Protection license (4793; 4813c) (Reg. H-2009-1, Resident Section 13) (4800(3)(A)) Shared commissions (4796) Pre-existing Nonresident Conditions (8 V.S.A. (4800(3)(B); Trust accounts — anti- Section 8086, Reg. 4813h) commingling (Reg H-2009-1, Section 95-1; 4724(12)) 25) Maintenance and duration Controlled business Renewal and Non-forfeiture (4795) requirements (8 expiration (4798) Duties (4813c) V.S.A. Section 8095, Address change Reg. H-2009-1, (4800(3)(F)) Section 28) Unfair trade practices (4724) Assumed business

name (4813j) Misrepresentation (4724(1, 11, 13)) 10.0 Federal Tax Considerations Reporting of actions for Health Insurance 9% (4813o) False advertising (9 Items) (4724(2)) 10.1 Personally-owned Continuing education health insurance requirements Defamation (4724(3)) (4800a; Reg 2000-2 Disability income insurance Sec 4) Boycott, coercion and intimidation Medical expense insurance Disciplinary actions (4724(4))

Long-term care insurance Denial of license False financial (4800(3)(E)) statements and 10.2 Employer group health entries (4724(5)) insurance Cease and desist order (3661) Illegal inducement Disability income (STD, (4724(6)) LTD) Suspension, revocation or Unfair discrimination Medical and dental (4724(7)) expense

28 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Rebating (4724(8)) Fraternal benefit Warranties societies Failure to maintain Concealment complaint record Lloyd's associations (4724(10)) Fraud Risk retention groups Failure to act as Waiver and estoppel Private versus government fiduciary (4724(12); Reg 95- insurers 1) Admitted versus 3.0 Life Insurance Basics 9% (13 Items) Unsuitability nonadmitted insurers (4724(16)) 3.1 Insurable interest Domestic, foreign and alien (3710) Nondisclosure of fees insurers Power to contract or charges Financial status (4724(14)) (independent rating 3.2 Personal uses of life Consumer privacy services) insurance regulation (IH-2001-01) Marketing (distribution) Survivor protection systems 1.3 Federal regulation Estate creation 2.3 Producers and general Fair Credit Reporting Act Cash accumulation (15 USC 1681–1681d; rules of agency VT FCRA 9; V.S.A. 2480 Insurer as principal Liquidity a-n) Producer/insurer Estate conservation Fraud and false statements relationship (18 USC 1033, 1034) 3.3 Determining amount of Authority and powers of personal life insurance

producers Human life value approach 2.0 General Insurance 4% (6 Express Items) Needs approach 2.1 Concepts Implied Types of information Apparent gathered Risk management key terms 2.4 Contracts Determining lump- sum needs Risk Elements of a legal contract Planning for income Exposure needs Offer and acceptance Hazard 3.4 Business uses of life Consideration Peril insurance Competent parties Loss Buy-sell funding Legal purpose Methods of handling risk Key person Distinct characteristics of Avoidance Executive bonuses an insurance contract Retention Deferred compensation Contract of adhesion funding Sharing Aleatory contract 3.5 Classes of life insurance Reduction policies Personal contract Transfer Group versus individual Unilateral contract Elements of insurable risks Ordinary versus industrial Legal interpretations (home service) Adverse selection affecting contracts Permanent versus term Law of large numbers Ambiguities in a contract of adhesion Participating versus Reinsurance nonparticipating Reasonable 2.2 Insurers expectations Fixed versus variable life insurance and annuities Types of insurers Indemnity Captive insurers Regulation of variable Utmost good faith products (SEC, Stock companies Representations/misre FINRA and Vermont) (3855; Reg 88-3 Art Mutual companies presentations

29 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

VI, XI, 2001-03; Bul Statement of good Variable universal life 121, 129) health 4.5 Specialized policies 3.6 Premiums 3.8 Individual underwriting by the insurer Joint life (first-to-die) Factors in premium determination Information sources and Survivorship life (second- regulation to-die) Mortality Application Juvenile life Interest Producer report 4.6 Group life insurance Expense Attending physician Characteristics of group Premium concepts statement plans

Net single premium Investigative Types of plan sponsors (3803–3810a) Gross annual premium consumer (inspection) report Insurability (3816) Premium payment mode (4724(7)) Assignability (3713(a, b)) 3.7 Producer Medical Information responsibilities Bureau (MIB) Conversion to individual policy (3820–3823) Solicitation and sales Inquiry into sexual presentations (Reg 77- orientation 8 V.S.A. 4.7 Credit life insurance 2) Section 4724(7)(c). (individual versus group) Advertising Medical examinations and lab tests Life and Health including HIV Insurance Guaranty (4724(20); Bul 138) 5.0 Life Insurance Policy Association (4151– Provisions, Options and 4185) Selection criteria and Riders 7% (11 Items) unfair discrimination 5.1 Required provisions Illustrations (Reg 98- (3701) 1) (3731) Classification of risks Policy summary (Reg Entire contract (3731(3)) 77-2 Sec 5(A, B), Preferred Payment of premiums Appendix B) Standard (3731(1)) General Rules (Reg Grace period (3731(2)) 77-2 Sec 6 (B, C, K, Substandard L, N, O, P) Reinstatement (3731(9))

Buyer's guide (Reg 4.0 Life Insurance Policies 9% Incontestability (3731(4)) 77-2 Sec 5(A, B), (13 Items) Appendix A) Misstatement of age 4.1 Term life insurance (3731(5)) Life insurance policy cost comparison Level term Payment of claims (3731(10)) methods Annual renewable Replacement (Reg term 5.2 Other provisions 2001-3 Sec 1–10) Level premium term Ownership (3710)

Suitability Decreasing term Assignment (3713(a, b))

Use and disclosure of 4.2 Whole life insurance Modifications insurance information Continuous premium Right to examine (free (straight life) look) Field underwriting Limited payment Exclusions Notice of information practices Single premium Representations in applications (3736) Application procedures 4.3 Flexible premium policies 5.3 Beneficiaries Delivery Universal life Designation options Policy review Indexed universal life Individuals Effective date of coverage 4.4 SEC regulated policies Classes

Premium collection Variable life insurance Estates

30 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Minors Conditions for payment Pure life versus life with guaranteed Trusts Effect on death benefit minimum

Succession 5.10 Life settlements Single life versus (3835–3849; Reg 95-4 multiple life Revocable versus Sec 1–15) irrevocable Annuities certain (types) Life settlement providers Common disaster clause 6.4 Annuity products Life settlement brokers Spendthrift clause Fixed annuities Life insurance providers 5.4 Settlement options General account Life settlement contract assets Cash payment provisions Interest only Interest rate Disclosure provisions guarantees Interest on death benefits Rules of conduct (minimum versus Bul 159 (8 V.S.A Section current) 3665(c)(2)) 5.11 Riders covering additional insureds Level benefit payment Fixed-period installments amount Spouse/other-insured term Fixed-amount installments rider Equity indexed annuities

Life income Children's term rider Definition

Single life Family term rider Suitability

Joint and survivor 5.12 Riders affecting the Market value adjusted annuities Retained asset accounts death benefit amount Variable annuity contracts 5.5 Nonforfeiture options Accidental death 6.5 Uses of annuities Cash surrender value Guaranteed insurability Lump-sum settlements Extended term Cost of living Qualified retirement plans Reduced paid-up insurance Return of premium Group versus 5.6 Policy loan and individual annuities withdrawal options 6.0 Annuities 8% (12 Items) Personal uses Cash loans 6.1 Annuity principles and concepts Individual retirement Automatic premium loans annuities (IRAs) Accumulation period Withdrawals or partial versus annuity period Tax-deferred growth surrenders Owner, annuitant and Retirement income 5.7 Dividend options beneficiary Education funds Cash payment Insurance aspects of

Reduction of premium annuities payments 6.2 Immediate versus 7.0 Federal Tax Considerations for Life Insurance and Accumulation at interest deferred annuities Annuities 6% (9 Items) One-year term option Single premium immediate 7.1 Taxation of personal life annuities (SPIAs) insurance Paid-up additions Deferred annuities Amounts available to Paid-up insurance Premium payment policyowner 5.8 Disability riders options Cash value increases Waiver of premium Nonforfeiture Dividends Waiver of cost of insurance Surrender charges Policy loans Disability income benefit Death benefits Surrenders Payor benefit life/disability 6.3 Annuity (benefit) Amounts received by (juvenile insurance) payment options beneficiary 5.9 Accelerated (living) Life contingency options General rule and benefit provision/rider exceptions

31 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Settlement options Tax advantages for Accident-only Reg. employers and 80-1, Sec. 7(G) Values included in employees insured's estate Specified (dread) Taxation of distributions disease Reg. 80-1, 7.2 Modified endowment (age-related) Sec. 7(H) contracts (MECs) 8.3 Plan types, Hospital indemnity Modified endowment characteristics and Reg. 80-1, Sec. 7(D) versus life insurance purchasers Blanket insurance Seven-pay test Simplified employee (student accident, Distributions pensions (SEPs) passengers, other) 8 V.S.A. Sec. 4081 7.3 Taxation of non- Self-employed plans (HR qualified annuities 10 or Keogh plans) Prescription drugs 8 V.S.A. Secs. 4089(j) Individually-owned Profit-sharing and 401(k) & 4089(i) plans Accumulation phase Vision care/hearing (tax issues related SIMPLE plans care to withdrawals) 403(b) tax-sheltered Suitability 8 V.S.A. Annuity phase and the annuities (TSAs) Sec. 4724(16); 8 exclusion ratio V.S.A. Sec. 4062

Distributions at death 9.0 Health Insurance Basics 6% 9.5 Common exclusions (9 Items) from coverage (Pre- Corporate-owned existing cond. Reg. 80-1, 9.1 Definitions of perils 7.4 Taxation of individual Sec. 5(F), 6(C) retirement annuities Accidental injury Reg. 80- 9.6 Producer (IRAs) 1, Sec. 5(D) responsibilities in Traditional IRAs Sickness Reg. 80-1, Sec. individual health 5(E) insurance Contributions and deductible amounts 9.2 Principal types of losses Marketing requirements and benefits Premature Advertising (Reg 71- distributions Loss of income from 1) (including taxation disability Reg. 80-1, Sales presentations issues) Sec. 5(I), (J), (K) Outline of coverage Annuity phase benefit Medical expense Reg. 80- Reg 80-1 Sec 8(B) payments 1, Sec. 5; Reg. H-2009- 03, Sec. 1.4 Field underwriting Values included in the annuitant's estate Dental expense Nature and purpose

Amounts received by Long-term care expense Privacy, Protected beneficiary Reg. H 2009 - 01 Health Information (ERISA) Roth IRAs 9.3 Classes of health insurance policies Application procedures Contributions and Reg. 80-1, Sec. 9 limits Individual versus group Requirements for Distributions Private versus government replacement

7.5 Rollovers and transfers Limited versus Requirements at (IRAs and qualified comprehensive Reg. 80- delivery of policy plans) 1, Sec. 7(E); Reg. H- Common situations for 2009-03 7.6 Section 1035 exchanges errors/omissions Self-Funded Plans (ERISA) Life and Health Insurance 9.4 Limited policies Guaranty Association 8.0 Qualified Plans 2% (3 Title 8, Ch. 112, Items) Limited perils and amounts including 8 V.S.A. Sec. 4064(e); 4164(e) 8.1 General requirements Required notice to insured 8.2 Federal tax Reg. 80-1, Sec. 8; 8 9.7 Individual underwriting considerations V.S.A. Sec. 4063; 8 by the insurer V.S.A. Sec. 4902 Underwriting criteria Types of limited policies

32 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Sources of underwriting Claim procedures 11.0 Disability Income and information (4065(5–9); Reg 93-4) Related Insurance (Reg. 80- 1, Sec. 7(F)) 6% (9 Items) Application Physical examinations and autopsy (4065(10)) 11.1 Qualifying for Producer report disability benefits Legal actions (4065(11)) Attending physician Inability to perform duties statement Change of beneficiary (Reg. 80-1, Sec. 5(I), (4065(12)) (J), (K), and 7 (A) (10) Investigative consumer 10.2 Optional provisions Own occupation (inspection) report (4066) (4724(7)) Any occupation Change of occupation Medical Information (4066(1)) Pure loss of income Bureau (MIB) (income replacement Misstatement of age contracts) Medical examinations (4066(2)) and lab tests Presumptive disability including HIV Other insurance in this insurer (4066(3)) Requirement to be under (4724(20)) physician care Unfair discrimination 8 Insurance with other insurers 11.2 Individual disability V.S.A. Sec. 4724(7) income insurance Expense-incurred Genetic testing (Title 18 Basic total disability plan Sec 9331–9335); 8 basis (4066(4)) V.S.A. Sec. 4724(22) Other benefits Income benefits (monthly indemnity) 9.8 Considerations in (4066(5)) replacing health Unpaid premium Elimination and insurance Reg. 80-1, (4066(7)) benefit periods Sec. 9, replacement Cancellation (4066(8); Waiver of premium Pre-existing conditions Reg 91-4B Sec 3(10)) feature

Pre-existing condition Conformity with state Coordination with social exclusion regulation statutes (4066(9)) insurance and workers Reg. 80-1, Sec. 5(F), compensation benefits 6(E)), 6(C) Illegal occupation (4066(10)) Additional monthly Benefits, limitations and benefit (AMB) exclusions Reg. 80-1, 10.3 Other general Sec. 6 provisions Social insurance supplement (SIS) Underwriting requirements Mental health parity 8 V.S.A. 4089(b) Occupational versus nonoccupational Right to examine (free coverage 10.0 Health Insurance Policy look) (4063(8)) General Provisions (Non- At-work benefits group and Group) 6% (9 Insuring clause Items) Partial disability Consideration clause benefit 10.1 Uniform required provisions Renewability clause Reg. Residual disability 80-1, Sec. 7(A)(1), (2) benefit Entire contract; changes and (15)(f) (4065(1), 4080(1)) Other provisions affecting Noncancelable income benefits Certificate of insurance (4080(2)) Guaranteed renewable Cost of living adjustment (COLA) Conditionally Time limit on certain rider defenses (4065(2)) renewable Future increase option Renewable at option Grace period (4065(3)) (FIO) rider of insurer New employees (4080(3)) Relation of earnings to Nonrenewable insurance (4066(6)) Part-time employees (cancelable, term) (4080(5) Other cash benefits Reduction in coverage Reinstatement (4065(4)) Accidental death and dismemberment Reg. 80-1, Sec. 7(G)

33 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Rehabilitation benefit Preventive benefits Open or closed network Medical Individual and small group reimbursement major med market Types of parties to the benefit provider contract (nondisabling injury) Large group market Exclusive provider (Subject to Off-exchange applicable health & organizations (EPOs) sickness rules) Dental Insurance General characteristics

Exclusions (Bul HCA 127) Availability of Open or closed coverage 11.3 Unique aspects of network individual disability Individual and Point-of-service (POS) underwriting employer- plans sponsored group Occupational plans Nature and purpose considerations Provider network Non-network provider Benefit limits access (open-ended Stand-alone dental HMO) Policy issuance alternatives plans (SADPs) 11.4 Group disability PCP referral Pediatric dental (gatekeeper PPO) income insurance coverage under Group versus individual the ACA Indemnity plan features plans Waiting periods 12.4 Utilization 11.5 Social Security 12.2 Medical plan concepts disability Management (H-2009- Fee-for-service basis 03) Qualification for disability versus prepaid basis benefits Prior approval H-2009-03, Specified coverages versus Sec. 3. Definition of disability comprehensive care Appeal/Grievance Waiting period Benefit schedule versus procedures H-2009-03, Sec. 3.3 Disability income benefits usual/reasonable/custom ary charges 12.5 Vermont eligibility 11.6 Workers compensation Managed care versus non- requirements (non- Eligibility managed care (Reg. H- group and/or group) 2009-03) Benefits Child age limit, whether or Expense based versus not dependent

indemnity based Adopted child coverage 12.0 Medical Plans 9% (14 12.3 Types of providers and (4100c) Items) plans Child coverage; 12.1 Patient Protection and Major medical insurance noncustodial parents Affordable Care Act (4100b) (PPACA, or ACA) (indemnity plans) Characteristics Disabled child coverage 8 Vermont Health Connect V.S.A. Sec. 4089d) (VHC) (V.S.A. Title 33, Common limitations Ch. 18) Newborn child coverage Exclusions from (4092) Eligibility coverage Civil unions (4063a; Title Income levels Provisions affecting 15 Sec 1201; Reg IH- Private insurance cost to insured 2001, Bul HCA 110) products through Major-med coverage Same sex marriage 15 VHC in VT (Reg. H-2009- V.S.A. Sec. 8; 18 V.S.A. Person ineligible 03) Sec. 5131(a)(2)

Premium subsidies Health maintenance 12.6 HIPAA (Health organizations (HMOs) Insurance Portability Pre-existing condition and Accountability exclusions Preferred provider Act) requirements organizations (PPOs) Ten Essential Health Eligibility Benefits (EHB) General characteristics Guaranteed issue Lifetime and annual limits

34 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Pre-existing conditions Home health care (4096) Administrative capability Creditable coverage Family planning services Eligibility for coverage Renewability Mental health/substance abuse benefits Open enrollment Protected Health Information (PHI) Prescription drugs Employee eligibility (4080(5)) 12.7 Medical savings Additional plans and accounts (MSAs), services Dependent eligibility Health Savings Accounts (HSAs) and Dental services Coordination of benefits High Deductible Health (effects of PPACA) provision Plans (HDHPs) Vision care/hearing Change of insurance Definition care (effects of companies or loss of PPACA) coverage Eligibility Coinsurance and Contribution limits deductible carryover 14.0 Group Health Insurance 5% (8 Items) No-loss no-gain

13.0 Health Maintenance 14.1 Characteristics of Events that terminate Organizations (HMOs) 7% group insurance coverage (10 Items) Group contract 8 V.S.A. Extension of benefits 13.1 General characteristics Sec. 4080 (4091e)

Combined health care Certificate of coverage 8 Continuation of delivery and financing V.S.A. Sec. 4080 coverage under In network versus out of Experience rating versus COBRA and Vermont network community rating specific rules, VIPER

Limited service area 14.2 Types of eligible Conversion privilege groups (8 V.S.A. Sec. (8 s 4090a–g) Limited choice of 4079) providers 14.5 Small employer group Employment-related medical plans Gatekeeper concept groups Definition of small Copayments Individual employer employer (4080a(a)(1)) Prepaid basis groups Availability of coverage (4080a(d)) 13.2 HMO Services Multiple-Employer Trusts (METs) Preventive care services Exempt associations 15.0 Insurance for Senior Well-child care (alumni, professional, Citizens and Special Needs other) Immunizations Individuals 6% (9 Items) Trusts (unions, employers) 15.1 Medicare Routine physical examinations 14.3 Marketing Nature, financing and considerations administration Wellness programs Advertising (Reg. 71-1) Part A — Hospital Physician services Insurance Regulatory Primary care physician jurisdiction/place of Individual eligibility (PCP) delivery requirements

Referral (specialty) 14.4 Employer group health Enrollment physician insurance Coverages and cost- Emergency care Vermont underwriting sharing amounts requirements (4079) Urgent care center Part B — Medical Hospital emergency Insurer underwriting Insurance criteria room Individual eligibility Hospital services Characteristics of requirements group Skilled nursing facility Enrollment Plan design factors services Coverages and cost- Persistency factors sharing amounts

35 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Exclusions Permitted Appeal of Benefit compensation Determinations Claims terminology arrangements (Reg (Reg. H-2009-I, and other key terms H-2009-04 Sec 16) Section 31)

Part C — Medicare Renewability and Internal Appeal (Reg. Advantage cancellation (Reg H- H-2009-I, Section Part D — Prescription Drug 2009-04 Sec 31 (A)-(C)) Insurance 8(A)(5), Sec 8.1(A)(5)) Independent Review 15.2 Medicare supplements (Reg. H-2009-I, (Reg H-2009-04 Sec 1– Continuation and Section 31 (D)-(E)) 25) conversion requirements (Reg Level of Benefits (Reg. H- Purpose (Reg H-2009-04 H-2009-04 Sec 2009-1, Section 6(H)(4)- Sec 1) 8(A)(5), Sec (5)) 8.1(A)(5)) Open enrollment (Reg H- Home Health Care 2009-04 Sec 11) Notice requirements Personal Care (Reg H-2009-04 Sec Standardized Medicare 17(B)) Adult Day Care supplement plans (Reg H-2009-04 Sec 8, 9) Medicare Select (Reg H- Nursing Facility 2009-04 Sec 10) Core benefits (Reg H- Hospice Care 2009-04 Sec 8(B)) 15.3 Other options for individuals with Required Benefit Additional benefits Medicare Configurations (Reg. H- (Reg H-2009-04 Sec 2009-1, Section 6 (K)) 8(C)) Employer group health plans Qualified Long Term Care Vermont regulations and Plans (Regulation H- required provisions Disabled employees 2009-1, Section 30)

Standards for Employees with Underwriting marketing (Reg H- kidney failure Considerations 2009-04 Sec 20) Individuals age 65 and Suitability (Regulation Advertising (Reg H- older H-2009-1, Section 2009-04 Sec 19) 29) Medicaid Appropriateness of Replacement (Reg. H- recommended Eligibility 2009-1, Section 14) purchase (Reg H- Benefits 2009-04 Sec 21) Vermont regulations and 15.4 LTC, Medicare and required provisions Buyer's guide (Reg H- Medicaid compared 2009-04 Sec Standards for 17(A)(6)) Individual vs. Group Marketing (Reg. H- 2009-1, Sections 9, Outline of coverage Continuation and 23) (Reg H-2009-04 Sec Conversion (Reg. 17(D)) H-2009-01, Section Buyer's Guide (8 6(D)) V.S.A. Section 8098, Right to return (Reg Reg. H-2009-1, H-2009-04 Sec Eligibility for Benefits Section 23) 17(A)(5)) Elimination Period Outline of Coverage Pre-existing conditions (Reg. H-2009-I, (8 V.S.A. Section (Reg H-2009-04 Sec Section 6(I)) 87090, Reg. H- 8(A)(1), Sec 2009-1, Section 32) 8.1(A)(1)) Activities of Daily Living (Reg. H- Right to Return (free Duplication of 2009-1, Section 29) look) (8 V.S.A. Medicare benefits Section 8089, Reg. (Reg H-2009-04 Sec Cognitive Impairment H-2009-1, Section 6 21(B)) (Reg. H-2009-I, (L)) Section 29) Replacement (Reg H- Replacement (Reg. H- 2009-04 Sec 18, 23) Coverage of Mental 2009-1, Section 14) Health Conditions Required disclosure (Reg. H-2009-I, Benefit Standards (8 provisions (Reg H- Section 6(J)(3)) V.S.A. Section 8085) 2009-04 Sec 17)

36 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Prohibited Policy Vermont Producer's Examination Unfair claim Provisions (8 V.S.A. for Property and Casualty settlement practices Sections 8086, Insurance (4724(9); Reg 79-2 8087; Reg. H-2009- Sec 1–7) 1, Sections 6, 25) Series 14-31 Policy forms (3541) Renewal 150 questions (plus 5 unscored Considerations items) Examination of (Reg. H-2009-1, records (3565) Sections 7(B) and 2.5-hour time limit Producer appointment 8(B)) Effective November 3, 2019 (4798(d); 4813l)

Inflation Protection Termination of (Reg. H-2009-1, appointment Section 13) 1.0 Insurance Regulation 10% (15 Items) (4798(d); 4813m) Pre-existing 1.1 Licensing Producer regulation Conditions (8 V.S.A. Section 8086, Reg. Process (4800; 4813f) Acting without a H-2009-1, Section license (4793; 25) Types of licensees (4791) 4813c)

Non-forfeiture Resident Shared commissions requirements (8 (4800(3)(A)) (4796) V.S.A. Section 8095, Nonresident Trust accounts — anti- Reg. H-2009-1, (4800(3)(B); Section 28) commingling (Reg 4813h) 95-1; 4724(12))

Maintenance and duration Controlled business 16.0 Federal Tax Considerations Renewal and (4795) for Health Insurance 5% expiration (4798) Duties (4813c) (8 Items) Address change 16.1 Personally-owned Unfair trade practices (4800(3)(F)) health insurance (4724) Assumed business Disability income insurance Misrepresentation name (4813j) (4724(1, 11, 13)) Medical expense insurance Reporting of actions False advertising Long-term care insurance (4813o) (4724(2))

16.2 Employer group health Continuing education Defamation (4724(3)) insurance requirements (4800a; Reg 2000-2 Boycott, coercion and Disability income (STD, Sec 4) intimidation LTD) (4724(4)) Disciplinary actions Medical and dental False financial expense Denial of license statements and (4800(3)(E)) entries (4724(5)) Long-term care insurance Cease and desist Illegal inducement Accidental death and order (3661) (4724(6)) dismemberment Suspension, Unfair discrimination 16.3 Medical expense revocation or (4724(7)) coverage for sole nonrenewal (4804; proprietors and 4806) Rebating (4724(8)) partners Penalties Failure to maintain 16.4 Medical savings (3661(a)(2); complaint record accounts (MSAs) 4804(d)) (4724(10))

1.2 State regulation Failure to act as fiduciary

Commissioner's general (4724(12); Reg 95- duties and powers 1) (4726; 4804) Unsuitability Company regulation (4724(16))

Certificate of authority Nondisclosure of fees (3368) or charges (4724(14))

37 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Consumer privacy Marketing (distribution) Loss ratio regulation (IH-2001-01) systems Rates 1.3 Federal regulation 2.3 Producers and general rules of agency Types Fair Credit Reporting Act (15 USC 1681–1681d) Insurer as principal Loss costs

Fraud and false statements Producer/insurer Components (18 USC 1033, 1034) relationship Hazards

Authority and powers of Physical producers 2.0 General Insurance 9% (13 Moral Items) Express Morale 2.1 Concepts Implied Negligence Risk management key Apparent terms Elements of a 2.4 Contracts Risk negligent act Elements of a legal Exposure Defenses against contract negligence Hazard Offer and acceptance Damages Peril Consideration Compensatory — Loss Competent parties special versus general Methods of handling risk Legal purpose Punitive Avoidance Distinct characteristics of Absolute liability Retention an insurance contract Strict liability Sharing Contract of adhesion Vicarious liability Reduction Aleatory contract Causes of loss (perils) Transfer Personal contract Unilateral contract Named perils versus Elements of insurable risks special (open) perils Adverse selection Legal interpretations affecting contracts Direct loss Law of large numbers Ambiguities in a Consequential or indirect Reinsurance contract of adhesion loss

2.2 Insurers Reasonable Blanket versus specific expectations insurance Types of insurers Indemnity Basic types of construction Captive insurers Utmost good faith Loss valuation Stock companies Representations/misre Actual cash value Mutual companies presentations Replacement cost Fraternal benefit Warranties societies Functional Concealment replacement cost Lloyd's associations Fraud Market value Risk retention groups Waiver and estoppel Agreed value Private versus government insurers Stated amount

Admitted versus 3.0 Property and Casualty Valued policy nonadmitted insurers Insurance Basics 10% (15 3.2 Policy structure Items) Domestic, foreign and alien Declarations insurers 3.1 Principles and concepts Definitions Financial status Insurable interest Insuring agreement or (independent rating Underwriting services) clause Function

38 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Additional/supplementary Standard mortgage Other coverages coverage clause 4.4 General exclusions Conditions Loss payable clause 4.5 Conditions Exclusions No benefit to Bailee 4.6 Selected endorsements Endorsements 3.4 Vermont laws, regulations and Special provisions — 3.3 Common policy required provisions Vermont (DP 01 44) provisions Vermont Property and Automatic increase in Insureds — named, first Casualty Insurance insurance (DP 04 11) named, additional Guaranty Association Broad theft coverage (DP Policy period (3611–3626) 04 72)

Policy territory Renewal notice (3882; Dwelling under 4715) construction (DP 11 43) Cancellation and nonrenewal Cancellation and 4.7 Personal liability nonrenewal (3879– supplement Deductibles 3881; 3883; 4711– 4714) Other insurance Consent to rate (4688(f); 5.0 Homeowners Policy 17% Nonconcurrency Reg I-2010-03) (26 Items) Primary and excess Loss payment (3868; Reg 5.1 Coverage forms Pro rata 79-2 Sec 6, 8) HO-2 through HO-6

Contribution by equal Discrimination (3861) 5.2 Definitions shares Coinsurance (3961–3968) 5.3 Section I — Property Limits of liability Pollution coverage (Bul coverages Per occurrence 111) Coverage A — Dwelling (accident) Required provisions Coverage B — Other Per person (4203) structures

Aggregate — general Federal Terrorism Coverage C — Personal versus products — Insurance Program (Bul property completed 142, 150; 15 USC 6701; operations Public Law 107–297, Coverage D — Loss of use 109–144, 110–160) Split Additional coverages

Combined single 5.4 Section II — Liability 4.0 Dwelling Policy 5% (8 coverages Restoration/nonreduction Items) of limits Coverage E — Personal 4.1 Characteristics and liability Coinsurance purpose Coverage F — Medical Vacancy or unoccupancy 4.2 Coverage forms — Perils payments to others insured against Named insured provisions Additional coverages Basic Duties after loss 5.5 Perils insured against Broad Assignment 5.6 Exclusions Special Abandonment 5.7 Conditions 4.3 Property coverages Insurer provisions 5.8 Selected endorsements Coverage A — Dwelling Liberalization Special provisions — Coverage B — Other Vermont (HO 01 44) Subrogation structures Limited fungi, wet or dry Salvage Coverage C — Personal rot, or bacteria coverage property Claim settlement — Vermont (HO 04 02) options Coverage D — Fair rental Permitted incidental value Duty to defend occupancies (HO 04 42) Coverage E — Additional Third-party provisions Earthquake (HO 04 54) living expense

39 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Scheduled personal Liability coverage Trailer interchange property (HO 04 61) coverage Bodily injury and Personal property property damage Physical damage replacement cost (HO coverage 04 90) Supplementary payments Exclusions Home day care — Vermont (HO 23 45) Exclusions Conditions

Business pursuits (HO 24 Medical payments Definitions 71) Uninsured Selected endorsements Watercraft (HO 24 75) motorist/underinsured motorist coverage Lessor — additional Personal injury (HO 24 insured and loss 82) Coverage for damage to payee (CA 20 01) your auto Mobile equipment (CA Collision 20 15) 6.0 Auto Insurance 21% (31 Items) Other than collision Auto medical payments coverage 6.1 Laws Deductibles (CA 99 03)

Vermont Motor Vehicle Transportation Drive other car Financial Responsibility expense coverage (CA 99 and Insurance Laws 10) (Title 23 Sec 800–943) Exclusions Duties after an accident or Individual named Required limits of insured (CA 99 17) liability (Title 23 loss Sec 801) General provisions Commercial carrier regulations Required proof of Selected endorsements insurance (Bul 77) The Motor Carrier Act Amendment of policy of 1980 Vermont Automobile provisions — Insurance Plan (4241– Vermont (PP 01 72) Endorsement for 4246) motor carrier Towing and labor policies of insurance Eligibility costs (PP 03 03) for public liability (MCS-90) Liability limitations Extended non-owned coverage (PP 03 Physical damage 06) coverage limitations 7.0 Commercial Package Policy Miscellaneous type Uninsured/underinsured (CPP) 8% (12 Items) vehicle (PP 03 23) motorist (Title 23 Sec 7.1 Components of a 941) Joint ownership commercial policy coverage — Definitions Common policy Vermont (PP 03 80) declarations Required limits of 6.3 Commercial auto liability Common policy conditions Commercial auto coverage Bodily injury Interline endorsements forms Property damage One or more coverage Business auto parts Cancellation/nonrenewal Auto Dealers 7.2 Commercial general Grounds (4223) Business auto physical liability damage Notice (4224–4226) Commercial general Notice of eligibility in Truckers liability coverage forms assigned risk plan Motor carrier Bodily injury and (4227) property damage Coverage form sections Binders (Title 23 Sec 942) liability Covered autos Surcharges (4671–4675) Personal and advertising injury Liability coverage 6.2 Personal auto policy liability Garagekeepers Definitions Medical payments coverage

40 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Supplementary (discovery/loss 7.6 Equipment breakdown payments sustained) Equipment breakdown Who is an insured Government crime protection coverage form coverage forms (EB 00 20) Limits of liability (discovery/loss Selected endorsement Conditions sustained) Coverages Actual cash value (EB Definitions 99 59) Employee theft Exclusions 7.7 Farm coverage Forgery or alteration Premises and operations Farm property coverage Products and completed Inside the premises — forms operations theft of money and securities Coverage A — Insured contract Dwellings Inside the premises — 7.3 Commercial property robbery or safe Coverage B — Other burglary of other private structures Commercial property property conditions form Coverage C — Outside premises Household personal Coverage forms property Computer fraud Building and personal Coverage D — Loss of property Funds transfer fraud use

Condominium Money orders and Coverage E — association counterfeit money Scheduled farm personal property Condominium Other crime coverage commercial unit- Coverage F — owners Extortion — Unscheduled farm commercial entities personal property Builders risk 7.5 Commercial inland Coverage G — Other Business income marine farm structures

Legal liability Commercial inland marine Farm liability coverage conditions form Extra expense form Inland marine coverage Causes of loss forms Coverage H — Bodily forms injury and property Basic Accounts receivable damage liability

Broad Bailee's customers Coverage I — Personal advertising injury Special Commercial articles liability

Selected endorsements Contractors Coverage J — Medical Ordinance or law (CP equipment floater payments 04 05) Electronic data Mobile agricultural Spoilage (CP 04 40) processing machinery and equipment coverage Peak season limit of Equipment dealers form insurance (CP 12 Installation floater 30) Livestock coverage form Jewelers block Value reporting form Definitions (CP 13 10) Signs Cause of loss (basic, broad 7.4 Commercial crime Valuable papers and and special) records General definitions Conditions Transportation coverages Burglary Exclusions Common carrier cargo Limits Theft liability Additional coverages Robbery Motor truck cargo Crime coverage forms forms

Commercial crime Transit coverage 8.0 Businessowners Policy 6% coverage forms forms (9 Items)

41 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

8.1 Characteristics and Federal workers Errors and omissions purpose compensation laws Directors and officers 8.2 Businessowners Section Federal Employer liability I — Property Liability Act (FELA) (45 USC 51–60) Fiduciary liability Coverage U.S. Longshore & Liquor liability Exclusions Harbor Workers' Employment practices Limits Compensation Act liability (33 USC 904) Deductibles 10.3 Surplus lines The Jones Act (46 Loss conditions USC 688) Definitions and markets

General conditions 9.2 Workers compensation Licensing requirements and employers liability Optional coverages insurance policy 10.4 Surety bonds

Definitions General section Principal, obligee, surety

8.3 Businessowners Section Part One — Workers Contract bonds II — Liability compensation insurance License and permit bonds Coverages Part Two — Employers Judicial bonds Exclusions liability insurance 10.5 Ocean marine Who is an insured Part Three — Other states insurance insurance Limits of insurance Hull insurance Part Four — Your duties if General conditions injury occurs Cargo insurance

Definitions Part Five — Premium Freight insurance

8.4 Businessowners Section Part Six — Conditions Protection and indemnity III — Common Policy Conditions Voluntary compensation 10.6 National Flood endorsement Insurance Program 8.5 Selected endorsements 9.3 Premium computation "Write your own" versus Protective safeguards (BP government 04 30) Job classification — payroll and rates Eligibility Utility services — direct damage (BP 04 56) Experience modification Coverage factor Utility services — time Limits Premium discounts element (BP 04 57) Deductibles 9.4 Other sources of coverages 9.0 Workers Compensation Insurance 7% (10 Items) Vermont workers' compensation 9.1 Workers compensation administration fund Vermont Adjuster's Examination laws for Property and Casualty Self-insured employers Insurance Type of law and employer groups Series 14-33 Compulsory versus elective 150 questions (plus 5 unscored 10.0 Other Coverages and items) Vermont Workers' Options 7% (11 Items) Compensation Law 2.5-hour time limit 10.1 Umbrella/excess Effective November 3, 2019 Exclusive remedy liability policies

Employment covered Personal (DL 98 01) (required, 1.0 Insurance Regulation 5% (7 Commercial (CU 00 01) voluntary) Items) Covered injuries 10.2 Specialty liability 1.1 Licensing requirements insurance Occupational disease Qualifications (4803(a)) Cyber liability coverage Benefits provided Process (4800, 4800a) Professional liability

42 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Licensing exceptions Representations/misre Definitions (4803(d)(2)) presentations Insuring agreement or Nonresident adjuster Warranties clause (4803(d)) Concealment Additional/supplementary 1.2 Maintenance and coverage duration Fraud Conditions Renewal (4798, 4800a) Waiver and estoppel Exclusions Expiration (4798) 2.2 Principles and concepts Endorsements Records (4803(c)) Insurable interest 2.4 Common policy 1.3 Disciplinary actions Hazards provisions

Denial of license Physical Insureds — named, first (4800(3)(E)) Moral named, additional

Cease and desist order Morale Policy period (3661) Negligence Policy territory Suspension, revocation or nonrenewal (4804; Elements of a Cancellation and 4806) negligent act nonrenewal

Fines (4804(d)) Defenses against Deductibles negligence 1.4 Claims settlement laws Other insurance and regulations Damages Nonconcurrency (4724(9); Reg 79-2 Sec 1-9; Bulletin 162) Compensatory — Primary and excess special versus 1.5 Federal regulation general Pro rata

Fraud and false statements Punitive Contribution by equal (18 USC 1033, 1034) shares Absolute liability Limits of liability Strict liability 2.0 Insurance Basics 15% (23 Per occurrence Vicarious liability Items) (accident) 2.1 Contracts Causes of loss (perils) Per person

Elements of a legal Named perils versus Aggregate — general contract special (open) perils versus products — completed Offer and acceptance Direct loss operations Consideration Consequential or indirect loss Split Competent parties Blanket versus specific Combined single Legal purpose insurance Restoration/nonreduction Distinct characteristics of Basic types of construction of limits an insurance contract Loss valuation Coinsurance Contract of adhesion Actual cash value Vacancy or unoccupancy Aleatory contract Replacement cost Assignment Personal contract Functional Insurer provisions Unilateral contract replacement cost Liberalization Legal interpretations Market value Duty to defend affecting contracts Agreed value Third-party provisions Ambiguities in a contract of adhesion Stated amount Standard mortgage clause Reasonable Valued policy expectations 2.3 Policy structure Loss payable clause Indemnity Declarations No benefit to Bailee Utmost good faith

43 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

2.5 Vermont laws, Depreciation 4.3 Property coverages regulations and required provisions Salvage Coverage A — Dwelling

Vermont Property and Claim settlement options Coverage B — Other structures Casualty Insurance Payment and discharge Guaranty Association Coverage C — Personal (3611–3626) 3.4 Liability losses property

Renewal notice (3882; Investigation procedures Coverage D — Fair rental 4715) Verify coverage value Cancellation and Determine liability Coverage E — Additional nonrenewal (3879– living expense 3881; 3883; 4711– Gathering evidence 4714) Other coverages Physical evidence Coinsurance (3961–3968) 4.4 General exclusions Witness statements Pollution coverage (Bul 4.5 Conditions 111) Police reports 4.6 Selected endorsements Required provisions Determining value of (4203) intangible damages Special provisions — Vermont (DP 01 44) 3.5 Coverage problems Automatic increase in 3.0 Adjusting Losses 20% (30 Dealing with coverage insurance (DP 04 11) Items) disputes Broad theft coverage (DP 3.1 Role of the adjuster Reservation of rights 04 72) letter Duties and responsibilities Dwelling under Nonwaiver agreement Staff and independent construction (DP 11 43) adjuster versus public Declaratory judgment 4.7 Personal liability adjuster (4791) action supplement Relationship to the legal 3.6 Claims adjustment profession procedures 5.0 Homeowners Policy 15% 3.2 Claim reporting Settlement procedures (22 Items) Claim investigation Advance payments 5.1 Coverage forms

Claim file documentation of Draft authority HO-2 through HO-6 events Execution of releases 5.2 Definitions Types of reports Subrogation procedures 5.3 Section I — Property Initial or first field coverages Alternative dispute Interim or status resolution Coverage A — Dwelling

Full formal Appraisal Coverage B — Other structures 3.3 Property losses Arbitration Coverage C — Personal Duties of insured after a Competitive estimates property loss Mediation Coverage D — Loss of use Notice to insurer Negotiation Additional coverages Minimizing the loss 5.4 Section II — Liability Proof of loss coverages 4.0 Dwelling Policy 6% (9 Special requirements Items) Coverage E — Personal Production of books 4.1 Characteristics and liability and records purpose Coverage F — Medical Abandonment 4.2 Coverage forms — Perils payments to others insured against Determining value and loss Additional coverages Basic Burden of proof of 5.5 Perils insured against value and loss Broad 5.6 Exclusions Estimates Special

44 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

5.7 Conditions Grounds (4223) Covered autos

5.8 Selected endorsements Notice (4224–4226) Liability coverage

Special provisions — 6.2 Personal auto policy Garagekeepers Vermont (HO 01 44) coverage Definitions Limited fungi, wet or dry Trailer interchange rot, or bacteria coverage Liability coverage coverage — Vermont (HO 04 02) Bodily injury and Physical damage Permitted incidental property damage coverage occupancies (HO 04 42) Supplementary Exclusions Earthquake (HO 04 54) payments Conditions Scheduled personal Exclusions Definitions property (HO 04 61) Duty to defend Selected endorsements Personal property Medical payments replacement cost (HO Lessor — additional 04 90) Uninsured insured and loss motorist/underinsured payee (CA 20 01) Home day care — Vermont motorist coverage (HO 23 45) Mobile equipment (CA Coverage for damage to 20 15) Business pursuits (HO 24 your auto 71) Auto medical Collision Watercraft (HO 24 75) payments coverage Other than collision (CA 99 03) Personal injury (HO 24 82) Deductibles Drive other car coverage (CA 99 Transportation 10) expense 6.0 Auto Insurance 12% (18 Individual named Items) Exclusions insured (CA 99 17) 6.1 Laws Duties after an accident or Commercial carrier loss Vermont Motor Vehicle regulations Financial Responsibility General provisions The Motor Carrier Act and Insurance Laws of 1980 (Title 23 Chapter 11 Sec Selected endorsements 800–943) Endorsement for Amendment of policy motor carrier Required limits of provisions — policies of insurance liability (Title 23 Vermont (PP 01 72) for public liability Chapter 11 Sec 801) Towing and labor (MCS-90) Required proof of costs (PP 03 03) insurance (Bul 77) Extended non-owned 7.0 Commercial Package Policy coverage (PP 03 Vermont Automobile (CPP) 12% (18 Items) Insurance Plan (4241– 06) 4246) 7.1 Components of a Miscellaneous type commercial policy Eligibility vehicle (PP 03 23) Common policy Liability limitations Joint ownership declarations coverage — Physical damage Vermont (PP 03 80) Common policy conditions coverage limitations 6.3 Commercial auto Interline endorsements Uninsured/underinsured motorist (Title 23 Commercial auto coverage One or more coverage Chapter 11 Sec 941) forms parts

Definitions Business auto 7.2 Commercial general liability Required limits of Business auto physical liability damage Commercial general liability coverage forms Bodily injury Truckers Bodily injury and Property damage Motor carrier property damage liability Cancellation/nonrenewal Coverage form sections

45 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Personal and Robbery Motor truck cargo advertising injury forms liability Crime coverage forms Transit coverage Medical payments Commercial crime forms coverage forms Supplementary (discovery/loss 7.6 Equipment breakdown payments sustained) Equipment breakdown Who is an insured Government crime protection coverage form coverage forms (EB 00 20) Limits of liability (discovery/loss Selected endorsement Conditions sustained) Coverages Actual cash value (EB Definitions 99 59) Employee theft Exclusions 7.7 Farm coverage Forgery or alteration Premises and operations Farm property coverage Products and completed Inside the premises — forms operations theft of money and securities Coverage A — Insured contract Dwellings Inside the premises — 7.3 Commercial property robbery or safe Coverage B — Other burglary of other private structures Commercial property property conditions form Coverage C — Outside premises Household personal Coverage forms property Computer fraud Building and personal Coverage D — Loss of property Funds transfer fraud use

Condominium Money orders and Coverage E — association counterfeit money Scheduled farm personal property Condominium Other crime coverage commercial unit- Coverage F — owners Extortion — Unscheduled farm commercial entities personal property Builders risk 7.5 Commercial inland Coverage G — Other Business income marine farm structures

Extra expense Commercial inland marine Farm liability coverage conditions form Legal liability form Inland marine coverage Causes of loss forms Coverage H — Bodily forms injury and property Basic Accounts receivable damage liability

Broad Bailee's customers Coverage I — Personal advertising injury Special Commercial articles liability

Selected endorsements Contractors Coverage J — Medical Ordinance or law (CP equipment floater payments 04 05) Electronic data Mobile agricultural Spoilage (CP 04 40) processing machinery and equipment coverage Peak season limit of Equipment dealers form insurance (CP 12 Installation floater 30) Livestock coverage form Jewelers block Value reporting form Definitions (CP 13 10) Signs Cause of loss (basic, broad 7.4 Commercial crime Valuable papers and and special) records General definitions Conditions Transportation coverages Burglary Exclusions Common carrier cargo Limits Theft liability

46 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Additional coverages Qualifications (4803(a)) Jurisdiction

Process (4800, 4800a) Subrogation (Rule 21.13; Title 21 sec. 8.0 Businessowners Policy 15% 1.2 Maintenance and 624(e)(2)) (23 Items) duration Bars to recovery 8.1 Characteristics and Renewal (4798) purpose Willful intention Expiration (4798) 8.2 Businessowners Section Intoxication I — Property Records (4803(c)) Failure to use Coverage 1.3 Disciplinary actions safety appliance

Exclusions Denial of license Statute of (4800(3)(E)) Limits limitations Cease and desist order Deductibles Average weekly wage (3661) (RR 94-1 Rule Loss conditions Suspension, revocation or 8.0000) General conditions nonrenewal (4804; Choice of physician 4806) (RR 94-1 Rule Optional coverages Fines (4804(d)) 4.0000) Definitions Administrative penalties Medical examination 8.3 Businessowners Section (RR 95-20 Rule 45 Sec (RR 94-1 Rule II — Liability 5000) 6.0000)

Coverages Notice of injury and claim (RR 94-1 Rule Exclusions 2.0 Workers Compensation 3.0000) Insurance 55% (28 Who is an insured Items) Compensation agreements and Limits of insurance 2.1 Workers compensation disputed claims (RR laws and rules General conditions 94-1 Rule 9.0000) Vermont Workers' Definitions Termination of Compensation Law and compensation (RR 8.4 Businessowners Section Department of Labor 94-1 Rule 12.0000) III — Common Policy Rules (Related Conditions Regulation 94-1 Rule Lump-sum payments 1.0000) (RR 94-1 Rule 8.5 Selected endorsements 13.0000) Definitions (RR 94-1 Protective safeguards (BP Rule 2.0000) 2.2 Workers compensation 04 30) and employer liability Exclusive remedy insurance policy Utility services — direct damage (BP 04 56) Employment covered General section (required, Utility services — time voluntary) Part One — Workers element (BP 04 57) compensation insurance Independent contractor Part Two — Employers versus employee liability insurance

Statutory Part Three — Other states Vermont Adjuster's Examination employer insurance for Workers Compensation Insurance Covered injuries Part Four — Your duties if injury occurs Series 14-34 First-aid-only injuries (Title 21 sec. 50 questions (plus 5 unscored 640(e)) 3.0 Workers Compensation Claim items) Pre-authorization Principles 36% (18 Items) 1-hour time limit requests and denials 3.1 Role of the adjuster Effective November 3, 2019 T. 21 s 640b Rule 6.000 Duties and responsibilities

1.0 Insurance Regulation 9% (4 Benefits provided 3.2 Controlling medical costs Items) Out-of-state injuries 1.1 Licensing requirements Designated provider

47 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Medical fee schedule (RR Medical Vermont Producer's Examination 95-22 Rule 40.01–.11) Expense for Bail Bond Hospital bill auditing Factors affecting reserves Series 14-35 Reimbursement requirements (RR 3.5 Claims management 50 questions (plus 5 unscored 95-22 Rule 40.02) items) Analysis 1-hour time limit Fees for depositions, Identifying treating Effective November 3, 2019 mileage and physician supplemental reports (RR 95-22 Identifying treatment 1.0 Insurance Regulation 20% Rule 40.11) 21VSA plan (10 Items) sec. 678 Identifying return-to- 1.1 Licensing Payment without work capacity prejudice 3.2300 Persons to be licensed Contested claims (4793; Title 13 Sec Concurrent adjustment procedures 7554a) employment Form 27 (RR 94-1 Resident vs. non-resident 3.3 Investigation and Rule 12.0000) 4800(a) evaluation Notice and application Process (4800; 4813f) Compensability for hearing; filing of papers (RR 94-1 Producer appointment Death benefits for Rule 14.0000) (4798(c); 4798(d); fatality claim 4813l) Representation (RR Employment 94-1 Rule 15.0000) Termination of relationship appointment (4798(d); Informal resolution 4813m) Compensable injury (RR 94-1 Rule Examination of records Causal relationship 16.0000) (3565) 8 VSA Sec. 13 Timely notice Formal hearing (RR 94-1 Rule 17.0000) Maintenance and duration Workers compensation Renewal and fraud Appeals (RR 94-1 Rule 17.0000) expiration (4798) Burdens of proof Attorney's fees (RR Address change Documentation 94-1 Rule 20.0000) (4800(3)(F))

First report of injury Dispositions Disciplinary actions

Types of evidence Resolving medical disputes Denial of license (RR 94-1 Rule 5.0000) (4800(3)(E)) Time limits Resolving permanency Cease and desist Surveillance disputes order (3661)

Adjuster's log notes Settlement negotiation Suspension, revocation or Medical determination Form 16 nonrenewal (4804; 4806) Medical authorization 3.6 Vocational Causal relationship rehabilitation 1.2 Unfair trade practices programs (Title 21. sec. (4724) Aggravation/recurrenc 641) e Misrepresentation Referral (4724(1, 11, 13)) Disability status Individual written False advertising Temporary/Perma rehabilitation plan (4724(2)) nency Defamation (4724(3)) Independent Medical Examinations (IME) Boycott, coercion and (Rule 6.000) intimidation (4724(4))

3.4 Claim reserves False financial statements and entries (4724(5)) Components Unfair discrimination Indemnity (4724(7))

48 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Rebating (4724(8)) Defendant Application for bond (surety/defendant Failure to maintain Discharge contract) complaint record (4724(10)) Disposition Collateral security

Failure to act as fiduciary Extradition Surety contract (4724(12)) Felony Posting the bond Nondisclosure of fees or Final judgment charges (4724(14)) 3.5 Court procedures Hearing Failure to comply with filed Court appearances rates, rules, regulations Incarceration Arraignment or forms (4724(19)) Indictment Trial 1.3 Trust accounts (Reg 95-1) Misdemeanor Appeal

Fiduciary duties and Mittimus Conditions of release responsibilities Posting of bail Prior to trial Accounting requirements Recognizance Pending appeal 1.4 Federal regulation Warrant Failure to appear Fraud and false statements (18 USC 1033, 1034) Revocation of bail (13 3.0 Bail Bond Principles and V.S.A. 7575)

Practices 70% (35 Items) 3.6 Release of surety 2.0 The Legal Framework 10% 3.1 Parties to a surety bond 3.7 Surrender of principal (5 Items) Principal (defendant) 2.1 Powers and authority of producers Indemnitor for Discharge of bond principal Express Return of premium Indemnity agreement Implied Return of collateral Obligee Apparent 3.8 Bond forfeiture Surety 2.2 Contracts Notice to defendant and Surety's agent sureties Elements of a legal (producer) contract Judgment Obligation to court Offer and acceptance (13 V.S.A. 7554a) Dispersal of funds

Consideration 3.2 Duties of a bail bond Arrest after forfeiture Competent parties producer

Legal purpose Approval Premium receipt Concealment Vermont Examination for Motor Fraud Obligation to court Vehicle Damage Appraiser

2.3 Court jurisdiction Power of attorney Series 14-37

Original jurisdiction Collateral and trust 60 questions (plus 5 unscored obligations items) Territorial 3.3 Types of bonds 1-hour time limit Personal Effective November 3, 2019 Bail Appellate jurisdiction Peace bond (13 V.S.A. 2.4 Terminology 7573)

Arrest Property bond 1.0 Vermont Insurance Practices 10% (6 Items) Concurrent bail Secured appearance bond 1.1 Authority of the Consecutive bail Unsecured appearance Insurance bond Commissioner (4726) Conviction 3.4 Procedure 1.2 Licensing requirements Custody (4791, 4800, 4800a)

49 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Qualifications (4803) Partial loss versus total Air bags/SRS (seat loss belts) Records (4803) Constructive total loss Glass Disciplinary actions (4804, 4806) Motor Vehicle Total Loss Interior Using A Price Guide Bul Renewal (4798) 182 Paint

1.3 Claim settlement laws Diminished value and regulations (4724(9); Reg 79-2 Sec 3.4 Vehicle inspection 1-9; Bulletin 162) Proper vehicle Vermont Agent's Examination for identification and options Title Insurance ID 2.0 Insurance Basics 10% (6 Series 14-38 Items) Evaluate with regard to 60 questions (plus 5 unscored 2.1 Property insurance circumstances of items) principles accident 1-hour time limit Estimate of repairs form Insurable interest Effective November 3, 2019 Causes of loss (perils) 3.5 Vehicle parts and construction Direct versus indirect loss 1.0 Insurance Regulation 6% (4 Body Items) Valuation Front end 1.1 Licensing Actual cash value Rear body Process (4800; 4813e; Replacement cost 4813f) Quarter panels Persons to be licensed Doors (4813b) 3.0 Appraising Auto Physical Roof Damage Claims 80% (48 Maintenance and duration Items) Bumpers/urethane Renewal and repairs 3.1 The role of the expiration (4798) appraiser Lamps Address change Duties and responsibilities Cowl (4800(3)(F)) Relationship to adjusters Floor pan Assumed business 3.2 Duties of insured after a name (4813j) Rocker panels loss Reporting of actions Pillars Notice to insurer (4813o) Substructure Minimizing the loss Continuing education requirements Frame Proof of loss (4800a; Reg I-2000- Unibody 02 Sec 4, 7) Inspection and appraisal of vehicle Mechanical Disciplinary actions

Special requirements Engine Denial of license (4800(3)(E)) 3.3 Determining value and Cooling system loss Cease and desist Electrical order (3661) Adjustment procedures system/computers Suspension, Salvage Exhaust system revocation or nonrenewal (4804; Appraisal Fuel system 4806) Depreciation Heating and air 1.2 State regulation conditioning Repair or replacement systems Commissioner's general Repair options and duties and powers Brakes/ABS procedures (4726) Steering "Like kind and quality" Company regulation Suspension Aftermarket parts Transmission

50 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Forms filing Exposure Utmost good faith exceptions (Reg I- 2010-03 Sec 4) Hazard Representations/misre presentations Unfair claim Peril Warranties settlement practices Loss (4724(9); Reg 79-2 Concealment Sec 1–9) Methods of handling risk Fraud Examination of Avoidance records (3565) Waiver and estoppel Retention Agent regulation Sharing Acting without a 3.0 Real Property 34% (20 license (4793) Reduction Items) Shared commissions Transfer 3.1 Concepts, principles and practices (4796) Elements of insurable risks Definition of real property Unfair trade practices Adverse selection (4724) Types of real property Insurable interest Misrepresentation Title to real property (4724(1, 11, 13)) Reinsurance Marketable title False advertising 2.2 Agents and general (4724(2)) rules of agency 3.2 Acquisition and transfer of real property Defamation (4724(3)) Insurer as principal Conveyances Boycott, coercion and Agent/insurer relationship intimidation Encumbrances (4724(4)) Authority and powers of agents Adverse possession False financial statements and Express Condemnation entries (4724(5)) Implied Accession

Illegal inducement Apparent Escheats (4724(6)) Responsibilities to the Involuntary alienation Unfair discrimination applicant/insured (4724(7)) Abandonment 2.3 Contracts Rebating (4724(8)) Judicial sales Elements of a legal Failure to maintain contract Decedents' estates complaint record (4724(10)) Offer and acceptance Intestate

Failure to act as Consideration Testate fiduciary Competent parties Trusts (4724(12)) Legal purpose Types of joint ownership Nondisclosure of fees or charges Distinct characteristics of Tenants in common (4724(14)) an insurance contract Joint tenancy 1.3 Federal regulation Contract of adhesion Tenants by the Fair Credit Reporting Act Aleatory contract entirety (15 USC 1681–1681d) Personal contract Acknowledgments Fraud and false statements (18 USC 1033, 1034) Unilateral contract Legal capacity of parties

Legal interpretations Individuals affecting contracts Corporations 2.0 General Insurance 7% (4 Items) Ambiguities in a General partnerships contract of adhesion 2.1 Concepts Limited partnerships Reasonable Risk management key expectations Fictitious names terms Indemnity Trust agreements Risk

51 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Limited Liability Owner's policy Bankruptcy Company (LLC) Loan policy/short form Probate 3.3 Legal descriptions residential loan policy Good faith Types of legal descriptions Leasehold policy Foreclosure Types of measurements used Title insurance policy Claims against the title structure and provisions Language of real Ancient roads descriptions Insuring provisions 5.3 Principles of clearing Structure and format Schedule A title

Interpretation Schedule B — Releases Exceptions from Assignments Survey requirements coverage Subordinations 3.4 Recording Exclusions from Types of records coverage Affidavits

Types of recording systems Conditions and Reconveyances stipulations Requirements to record Endorsements Recording steps

Acknowledgments Vermont Producer's Examination 5.0 Title Exceptions and for Personal Lines Insurance Presumptions Procedures for Clearing Title 29% ( 18 Items) Series 14-39

5.1 Principles and concepts 100 questions (plus 5 unscored 4.0 Title Insurance 24% (14 items) Items) General exceptions 2-hour time limit 4.1 Title insurance Voluntary and involuntary Effective November 3, 2019 principles liens

Risks covered by title Federal liens insurance 1.0 Insurance Regulation 8% (8 Mortgage deeds Items) Risk of error in public records Judgments 1.1 Licensing

Hidden off-record title Taxes and assessments Process (4800; 4813f) risks Surveys Types of licensees (4791)

Risk of omission and Condominiums and Resident commission by common interest (4800(3)(A)) agent communities Nonresident Entities that can be Water rights (4800(3)(B); insured; need for 4813h) insurance Mineral rights Maintenance and duration Individual Equitable interests Renewal and Commercial Attachments expiration (4798)

Interests that can be Executions Address change insured Covenants (4800(3)(F)) Fee simple estate Conditions Assumed business Estate in common name (4813j) Restrictions Leasehold estate Reporting of actions Glebe land (4813o) Life estate Building and zoning laws Continuing education Easements requirements 5.2 Special problem areas (4800a; Reg 2000-2 Title insurance forms and concerns Sec 4)

Commitments Acknowledgments Disciplinary actions Insured closing Mechanic's lien protection letters

52 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Denial of license False financial Types of insurers (4800(3)(E)) statements and entries (4724(5)) Captive insurers Cease and desist order (3661) Illegal inducement Stock companies (4724(6)) Suspension, Mutual companies revocation or Unfair discrimination Fraternal benefit nonrenewal (4804; (4724(7)) societies 4806) Rebating (4724(8)) Lloyd's associations Penalties (3661(a)(2); Failure to maintain Risk retention groups 4804(d)) complaint record (4724(10)) Private versus government 1.2 State regulation insurers Failure to act as Commissioner's general fiduciary Admitted versus duties and powers (4724(12); Reg 95- nonadmitted insurers (4726; 4804) 1) Domestic, foreign and alien Company regulation Unsuitability insurers (4724(16)) Certificate of authority Financial status (3368) Nondisclosure of fees (independent rating or charges services) Unfair claim (4724(14)) settlement practices Marketing (distribution) (4724(9); Reg 79-2 Consumer privacy systems Sec 1–7) regulation (IH-2001-01) 2.3 Producers and general Policy forms (3541) 1.3 Federal regulation rules of agency Examination of Fair Credit Reporting Act Insurer as principal records (3565) (15 USC 1681–1681d) Producer/insurer Producer appointment Fraud and false statements relationship (4798(d); 4813l) (18 USC 1033, 1034) Authority and powers of Termination of producers appointment (4798(d); 4813m) 2.0 General Insurance 7% (7 Express Items) Implied Producer regulation 2.1 Concepts Apparent Acting without a Risk management key license (4793; terms 2.4 Contracts 4813c) Risk Elements of a legal Shared commissions contract (4796) Exposure Offer and acceptance Trust accounts — anti- Hazard commingling (Reg Consideration 95-1; 4724(12)) Peril Competent parties Controlled business Loss Legal purpose (4795) Methods of handling risk Duties (4813c) Distinct characteristics of Avoidance an insurance contract Unfair trade practices Retention (4724) Contract of adhesion Sharing Misrepresentation Aleatory contract (4724(1, 11, 13)) Reduction Personal contract

False advertising Transfer Unilateral contract (4724(2)) Elements of insurable risks Legal interpretations Defamation (4724(3)) affecting contracts Adverse selection Boycott, coercion and Ambiguities in a Law of large numbers intimidation contract of adhesion (4724(4)) Reinsurance Reasonable 2.2 Insurers expectations

53 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Indemnity Basic types of construction Assignment

Utmost good faith Loss valuation Abandonment

Representations/misre Actual cash value Insurer provisions presentations Replacement cost Liberalization Warranties Functional Subrogation Concealment replacement cost Salvage Fraud Market value Claim settlement Waiver and estoppel Agreed value options

Stated amount Duty to defend

3.0 Property and Casualty Valued policy Third-party provisions Insurance Basics 15% (15 Items) 3.2 Policy structure Standard mortgage clause 3.1 Principles and concepts Declarations Loss payable clause Insurable interest Definitions No benefit to Bailee Underwriting Insuring agreement or clause 3.4 Vermont laws, Function regulations and Additional/supplementary required provisions Loss ratio coverage Rates Vermont Property and Conditions Casualty Insurance Types Exclusions Guaranty Association (3611–3626) Loss costs Endorsements Renewal notice (3882) Components 3.3 Common policy provisions Cancellation and Hazards nonrenewal (3879– Physical Insureds — named, first 3881; 3883) named, additional Moral Consent to rate (4688(f); Policy period Reg I-2010-03)) Morale Policy territory Loss payment (3868; Reg Negligence 79-2 Sec 6, 8) Cancellation and Elements of a nonrenewal Discrimination (3861) negligent act Deductibles Coinsurance (3961–3968) Defenses against negligence Other insurance Required provisions (4203) Damages Nonconcurrency

Compensatory — Primary and excess 4.0 Dwelling Policy 5% (5 special versus Pro rata general Items) Limits of liability 4.1 Characteristics and Punitive purpose Per occurrence Absolute liability (accident) 4.2 Coverage forms — Perils insured against Strict liability Per person Basic Vicarious liability Split Broad Causes of loss (perils) Combined single Special Named perils versus Restoration/nonreduction special (open) perils of limits 4.3 Property coverages

Direct loss Coinsurance Coverage A — Dwelling

Consequential or indirect Vacancy or unoccupancy Coverage B — Other loss structures Named insured provisions Blanket versus specific Coverage C — Personal Duties after loss insurance property

54 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Coverage D — Fair rental Permitted incidental 6.2 Personal auto policy value occupancies (HO 04 42) Definitions Coverage E — Additional Earthquake (HO 04 54) living expense Liability coverage Scheduled personal Other coverages property (HO 04 61) Bodily injury and property damage 4.4 General exclusions Personal property replacement cost (HO Supplementary 4.5 Conditions 04 90) payments

4.6 Selected endorsements Home day care — Vermont Exclusions Special provisions — (HO 23 45) Medical payments Vermont (DP 01 44) Business pursuits (HO 24 Uninsured Automatic increase in 71) motorist/underinsured insurance (DP 04 11) Watercraft (HO 24 75) motorist coverage

Broad theft coverage (DP Personal injury (HO 24 Coverage for damage to 04 72) 82) your auto

Dwelling under Collision construction (DP 11 43) 6.0 Auto Insurance 28% (28 Other than collision 4.7 Personal liability Items) supplement Deductibles 6.1 Laws Transportation Vermont Motor Vehicle expense 5.0 Homeowners Policy 25% Financial Responsibility (25 Items) and Insurance Laws Exclusions 5.1 Coverage forms (Title 23 Sec 800–943) Duties after an accident or loss HO-2 through HO-6 Required limits of liability (Title 23 General provisions 5.2 Definitions Sec 801) Selected endorsements 5.3 Section I — Property Required proof of coverages insurance (Bul 77) Amendment of policy provisions — Coverage A — Dwelling Vermont Automobile Vermont (PP 01 72) Insurance Plan (4241– Coverage B — Other 4246) Towing and labor structures costs (PP 03 03) Eligibility Coverage C — Personal Extended non-owned property Liability limitations coverage (PP 03 06) Coverage D — Loss of use Physical damage coverage limitations Additional coverages Miscellaneous type vehicle (PP 03 23) Uninsured/underinsured 5.4 Section II — Liability motorist (Title 23 Sec coverages Joint ownership 941) coverage — Vermont (PP 03 80) Coverage E — Personal Definitions liability

Required limits of Coverage F — Medical liability payments to others 7.0 Farm Coverage 2% (2 Bodily injury Items) Additional coverages 7.1 Farm property coverage Property damage 5.5 Perils insured against forms Cancellation/nonrenewal 5.6 Exclusions Coverage A — Dwellings Grounds (4223) 5.7 Conditions Coverage B — Other Notice (4224–4226) private structures 5.8 Selected endorsements Notice of eligibility in Coverage C — Household Special provisions — assigned risk plan personal property Vermont (HO 01 44) (4227) Coverage D — Loss of use Limited fungi, wet or dry Binders (Title 23 Sec 942) rot, or bacteria coverage Coverage E — Scheduled — Vermont (HO 04 02) Surcharges (4671–4675) farm personal property

55 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Coverage F — Unscheduled Vermont Producer's Examination Certificate of authority farm personal property for Property Insurance (3368)

Coverage G — Other farm Series 14-41 Unfair claim structures settlement practices 100 questions (plus 5 unscored (4724(9); Reg 79-2 Mobile agricultural Sec 1–7) machinery and items) equipment coverage 2-hour time limit Policy forms (3541) form Effective November 3, 2019 Examination of Livestock coverage form records (3565)

7.2 Farm liability coverage 1.0 Insurance Regulation 10% Producer appointment forms (10 Items) (4798(c); 4813l) 1.1 Licensing Coverage H — Bodily Termination of injury and property Process (4800; 4813f) appointment damage liability (4798(d); 4813m) Types of licensees (4791) Coverage I — Personal and Producer regulation advertising injury liability Resident (4800(3)(A)) Acting without a Coverage J — Medical license (4793; payments Nonresident 4813c) (4800(3)(B); 7.3 Cause of loss (basic, 4813h) Shared commissions broad and special) (4796) Temporary 7.4 Exclusions (4800(3)(D)(ii); Trust accounts — anti- 4813k) commingling (Reg 7.5 Other provisions 95-1; 4724(12)) Maintenance and duration Additional coverages Controlled business Renewal and Conditions (4795) expiration (4798) Definitions Duties (4813c) Address change Limits (4800(3)(F)) Unfair trade practices (4724) Assumed business name (4813j) Misrepresentation 8.0 Other Coverages and Options (4724(1, 11, 13)) 10% (10 Items) Reporting of actions (4813o) False advertising 8.1 Personal umbrella (4724(2)) policy (DL 98 01) Continuing education requirements Defamation (4724(3)) 8.2 National Flood (4800a; Reg 2000-2 Boycott, coercion and Insurance Program Sec 4) intimidation "Write your own" versus Disciplinary actions (4724(4)) government Denial of license False financial Eligibility (4800(3)(E)) statements and entries (4724(5)) Coverage Cease and desist Limits order (3661) Illegal inducement (4724(6)) Deductibles Suspension, revocation or Unfair discrimination 8.3 Other policies nonrenewal (4804; (4724(7)) 4806) Boatowners Rebating (4724(8)) Penalties Failure to maintain (3661(a)(2); complaint record 4804(d)) (4724(10)) 1.2 State regulation Failure to act as Commissioner's general fiduciary duties and powers (4724(12); Reg 95- (4726; 4804) 1)

Company regulation Unsuitability (4724(16))

56 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Nondisclosure of fees Financial status Underwriting or charges (independent rating (4724(14)) services) Function

Consumer privacy Marketing (distribution) Loss ratio regulation (IH-2001-01) systems Rates

1.3 Federal regulation 2.3 Producers and general Types rules of agency Fair Credit Reporting Act Loss costs (15 USC 1681–1681d) Insurer as principal Components Fraud and false statements Producer/insurer (18 USC 1033, 1034) relationship Hazards

Authority and powers of Physical producers 2.0 General Insurance 9% (9 Moral Items) Express Morale 2.1 Concepts Implied Causes of loss (perils) Risk management key Apparent terms Named perils versus 2.4 Contracts special (open) perils Risk Elements of a legal Direct loss Exposure contract Consequential or indirect Hazard Offer and acceptance loss

Peril Consideration Blanket versus specific insurance Loss Competent parties Basic types of construction Methods of handling risk Legal purpose Loss valuation Avoidance Distinct characteristics of Retention an insurance contract Actual cash value

Sharing Contract of adhesion Replacement cost Functional Reduction Aleatory contract replacement cost Transfer Personal contract Market value Elements of insurable risks Unilateral contract Agreed value Adverse selection Legal interpretations affecting contracts Stated amount Law of large numbers Ambiguities in a Valued policy Reinsurance contract of adhesion 3.2 Policy structure 2.2 Insurers Reasonable expectations Declarations Types of insurers Indemnity Definitions Captive insurers Utmost good faith Insuring agreement or Stock companies clause Representations/misre Mutual companies presentations Additional/supplementary coverage Fraternal benefit Warranties societies Conditions Concealment Lloyd's associations Exclusions Fraud Risk retention groups Endorsements Waiver and estoppel Private versus government 3.3 Common policy insurers provisions

Admitted versus 3.0 Property Insurance Basics Insureds — named, first nonadmitted insurers 13% (13 Items) named, additional

Domestic, foreign and alien 3.1 Principles and concepts Policy period insurers Insurable interest Policy territory

57 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Cancellation and Public Law 107–297, Coverage D — Loss of use nonrenewal 109–144, 110–160) Additional coverages Deductibles 5.4 Perils insured against Other insurance 4.0 Dwelling Policy 7% (7 Items) 5.5 Exclusions Nonconcurrency 4.1 Characteristics and 5.6 Conditions Primary and excess purpose 5.7 Selected endorsements Pro rata 4.2 Coverage forms — Perils insured against Special provisions — Policy limits Vermont (HO 01 44) Basic Restoration/nonreduction Limited fungi, wet or dry of limits Broad rot, or bacteria coverage — Vermont (HO 04 02) Coinsurance Special Permitted incidental Vacancy or unoccupancy 4.3 Property coverages occupancies (HO 04 42)

Named insured provisions Coverage A — Dwelling Earthquake (HO 04 54)

Duties after loss Coverage B — Other Scheduled personal structures Assignment property (HO 04 61) Coverage C — Personal Abandonment Personal property property replacement cost (HO Insurer provisions Coverage D — Fair rental 04 90) Liberalization value Home day care — Vermont (HO 23 45) Subrogation Coverage E — Additional living expense Salvage Other coverages 6.0 Auto Insurance 7% (7 Claim settlement Items) options 4.4 General exclusions 6.1 Laws Third-party provisions 4.5 Conditions Cancellation/nonrenewal Standard mortgage 4.6 Selected endorsements clause Grounds (4223) Special provisions — Loss payable clause Vermont (DP 01 44) Notice (4224–4226)

No benefit to Bailee Automatic increase in 6.2 Personal auto policy insurance (DP 04 11) 3.4 Vermont laws, Definitions regulations and Broad theft coverage (DP Coverage for damage to required provisions 04 72) your auto Vermont Property and Dwelling under Collision Casualty Insurance construction (DP 11 43) Guaranty Association 4.7 Personal liability Other than collision (3611–3626) supplement Deductibles Renewal notice (3882;

4715) Transportation 5.0 Homeowners Policy 22% expense Cancellation and (22 Items) nonrenewal (3879– Exclusions 5.1 Coverage forms 3881; 3883; 4711– Duties after an accident or 4714) HO-2 through HO-6 loss Consent to rate (4688(f); 5.2 Definitions General provisions Reg I-2010-03) 5.3 Section I — Property Selected endorsements Loss payment (3868; Reg coverages 79-2 Sec 6, 8) Amendment of policy Coverage A — Dwelling provisions — Discrimination (3861) Vermont (PP 01 72) Coverage B — Other Coinsurance (3961–3968) structures Towing and labor Federal Terrorism costs (PP 03 03) Coverage C — Personal Insurance Program (Bul property 142, 150; 15 USC 6701;

58 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Miscellaneous type Builders risk Actual cash value (EB vehicle (PP 03 23) 99 59) Business income Joint ownership 7.5 Farm coverage coverage — Legal liability Vermont (PP 03 80) Farm property coverage Extra expense forms 6.3 Commercial auto Causes of loss forms Coverage A — Commercial auto coverage Basic Dwellings forms Broad Coverage B — Other Business auto private structures Special Business auto physical Coverage C — damage Selected endorsements Household personal property Truckers Ordinance or law (CP 04 05) Coverage D — Loss of Motor carrier use Spoilage (CP 04 40) Coverage form sections Coverage E — Peak season limit of Covered autos Scheduled farm insurance (CP 12 personal property Physical damage 30) coverage Coverage F — Value reporting form Unscheduled farm Exclusions (CP 13 10) personal property

Conditions 7.3 Commercial inland Coverage G — Other marine farm structures Definitions Commercial inland marine Mobile agricultural Selected endorsements conditions form machinery and Lessor — additional Inland marine coverage equipment coverage insured and loss forms form payee (CA 20 01) Accounts receivable Livestock coverage form Mobile equipment (CA Definitions 20 15) Bailee's customers Commercial articles Cause of loss (basic, broad Individual named and special) insured (CA 99 17) Contractors Conditions equipment floater Exclusions 7.0 Commercial Package Policy Electronic data (CPP) 14% (14 Items) processing Limits 7.1 Components of a Equipment dealers Additional coverages commercial policy Installation floater Common policy Jewelers block declarations 8.0 Businessowners Policy 13% Signs (13 Items) Common policy conditions 8.1 Characteristics and Valuable papers and Interline endorsements purpose records One or more coverage 8.2 Businessowners Section Transportation coverages parts I — Property Common carrier cargo 7.2 Commercial property Coverage liability Commercial property Exclusions Motor truck cargo conditions form forms Limits Coverage forms Transit coverage Deductibles Building and personal forms property Loss conditions 7.4 Equipment breakdown Condominium General conditions Equipment breakdown association protection coverage form Optional coverages (EB 00 20) Condominium Definitions commercial unit- Selected endorsement owners

59 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

8.3 Businessowners Section Renewal and Duties (4813c) III — Common Policy expiration (4798) Conditions Unfair trade practices Address change (4724) 8.4 Selected endorsements (4800(3)(F)) Misrepresentation Protective safeguards (BP Assumed business (4724(1, 11, 13)) 04 30) name (4813j) False advertising Utility services — direct Reporting of actions (4724(2)) damage (BP 04 56) (4813o) Defamation (4724(3)) Utility services — time Continuing education element (BP 04 57) requirements Boycott, coercion and (4800a; Reg 2000-2 intimidation Sec 4) (4724(4))

9.0 Other Coverages and Options Disciplinary actions False financial 5% (5 Items) statements and 9.1 Ocean marine insurance Denial of license entries (4724(5)) (4800(3)(E)) Hull insurance Illegal inducement Cease and desist (4724(6)) Cargo insurance order (3661) Unfair discrimination Freight insurance Suspension, (4724(7)) revocation or 9.2 National Flood nonrenewal (4804; Rebating (4724(8)) Insurance Program 4806) Failure to maintain "Write your own" versus Penalties complaint record government (3661(a)(2); (4724(10)) Eligibility 4804(d)) Failure to act as 1.2 State regulation fiduciary Coverage (4724(12); Reg 95- Limits Commissioner's general 1) duties and powers Deductibles (4726; 4804) Unsuitability (4724(16)) Company regulation Nondisclosure of fees Certificate of authority or charges (3368) (4724(14)) Vermont Producer's Examination Unfair claim Consumer privacy for Casualty Insurance settlement practices regulation (IH-2001-01) Series 14-42 (4724(9); Reg 79-2 Sec 1–7) 1.3 Federal regulation 100 questions (plus 5 unscored Policy forms (3541) Fair Credit Reporting Act items) (15 USC 1681–1681d) 2-hour time limit Examination of Effective November 3, 2019 records (3565) Fraud and false statements (18 USC 1033, 1034) Producer appointment (4798(c); 4813l) 1.0 Insurance Regulation 10% (10 Items) Termination of 2.0 General Insurance 9% (9 1.1 Licensing appointment Items) (4798(d); 4813m) 2.1 Concepts Process (4800; 4813f) Producer regulation Risk management key Types of licensees (4791) terms Acting without a Resident license (4793; Risk (4800(3)(A)) 4813c) Exposure Nonresident Shared commissions (4800(3)(B); (4796) Hazard 4813h) Trust accounts — anti- Peril Temporary commingling (Reg Loss (4800(3)(D)(ii); 95-1; 4724(12)) 4813k) Methods of handling risk Controlled business Maintenance and duration (4795) Avoidance

60 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Retention Contract of adhesion Vicarious liability

Sharing Aleatory contract 3.2 Policy structure

Reduction Personal contract Declarations

Transfer Unilateral contract Definitions

Elements of insurable risks Legal interpretations Insuring agreement or affecting contracts clause Adverse selection Ambiguities in a Additional/supplementary Law of large numbers contract of adhesion coverage

Reinsurance Reasonable Conditions expectations 2.2 Insurers Exclusions Indemnity Types of insurers Endorsements Utmost good faith Captive insurers 3.3 Common policy Stock companies Representations/misre provisions presentations Mutual companies Insureds — named, first Warranties named, additional Fraternal benefit societies Concealment Policy period

Lloyd's associations Fraud Policy territory

Risk retention groups Waiver and estoppel Cancellation and nonrenewal Private versus government Deductibles insurers 3.0 Casualty Insurance Basics Admitted versus 12% (12 Items) Other insurance nonadmitted insurers 3.1 Principles and concepts Nonconcurrency

Domestic, foreign and alien Insurable interest Primary and excess insurers Underwriting Pro rata Financial status (independent rating Function Contribution by equal services) Loss ratio shares

Marketing (distribution) Rates Limits of liability systems Types Per occurrence 2.3 Producers and general (accident) rules of agency Loss costs Per person Insurer as principal Components Aggregate — general Producer/insurer Hazards versus products — relationship completed Physical operations Authority and powers of producers Moral Split

Express Morale Combined single

Implied Negligence Named insured provisions

Apparent Elements of a Duties after loss negligent act 2.4 Contracts Assignment Defenses against Elements of a legal negligence Insurer provisions contract Damages Liberalization Offer and acceptance Compensatory — Subrogation Consideration special versus general Duty to defend Competent parties Punitive 3.4 Vermont laws, Legal purpose regulations and Absolute liability required provisions Distinct characteristics of an insurance contract Strict liability

61 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Vermont Property and Personal injury (HO 24 Coverage for damage to Casualty Insurance 82) your auto Guaranty Association (3611–3626) Collision

Renewal notice (3882; 5.0 Auto Insurance 21% (21 Other than collision Items) 4715) Deductibles 5.1 Laws Cancellation and Transportation nonrenewal (3879– Vermont Motor Vehicle expense 3881; 3883; 4711– Financial Responsibility 4714) and Insurance Laws Exclusions (Title 23 Sec 800–943) Consent to rate (4688(f); Duties after an accident or Reg I-2010-03) Required limits of loss liability (Title 23 Loss payment (Reg 79-2 Sec 801) General provisions Sec 6, 8) Required proof of Selected endorsements Discrimination (3861) insurance (Bul 77) Amendment of policy Pollution coverage (Bul Vermont Automobile provisions — 111) Insurance Plan (4241– Vermont (PP 01 72) Required provisions 4246) Towing and labor (4203) Eligibility costs (PP 03 03)

Federal Terrorism Liability limitations Extended non-owned Insurance Program (Bul coverage (PP 03 142, 150; 15 USC 6701; Physical damage 06) Public Law 107–297, coverage limitations 109–144, 110–160) Miscellaneous type Uninsured/underinsured vehicle (PP 03 23) motorist (Title 23 Sec 941) Joint ownership 4.0 Homeowners Policy 17% coverage — (17 Items) Definitions Vermont (PP 03 80) 4.1 Coverage forms Required limits of 5.3 Commercial auto liability HO-2 through HO-6 Commercial auto coverage forms 4.2 Definitions Bodily injury Business auto 4.3 Section II — Liability Property damage coverages Cancellation/nonrenewal Auto Dealers

Coverage E — Personal Grounds (4223) Business auto physical liability damage Notice (4224–4226) Coverage F — Medical Truckers payments to others Notice of eligibility in assigned risk plan Motor carrier Additional coverages (4227) Coverage form sections 4.4 Exclusions Binders (Title 23 Sec 942) Covered autos 4.5 Conditions Surcharges (4671–4675) Liability coverage 4.6 Selected endorsements 5.2 Personal auto policy Garagekeepers Special provisions — Definitions coverage Vermont (HO 01 44) Liability coverage Trailer interchange Limited fungi, wet or dry coverage rot, or bacteria coverage Bodily injury and — Vermont (HO 04 02) property damage Physical damage coverage Permitted incidental Supplementary occupancies (HO 04 42) payments Exclusions

Home day care — Vermont Exclusions Conditions (HO 23 45) Medical payments Definitions Business pursuits (HO 24 Selected endorsements 71) Uninsured motorist/underinsured Watercraft (HO 24 75) motorist coverage

62 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Lessor — additional Products and completed Additional coverages insured and loss operations payee (CA 20 01) Insured contract Mobile equipment (CA 7.0 Businessowners Policy 8% 20 15) 6.3 Commercial crime (8 Items) General definitions 7.1 Characteristics and Auto medical purpose payments coverage Burglary (CA 99 03) 7.2 Businessowners Section Theft II — Liability Drive other car coverage (CA 99 Robbery Coverages 10) Crime coverage forms Exclusions Individual named insured (CA 99 17) Commercial crime Who is an insured coverage forms Commercial carrier (discovery/loss Limits of insurance regulations sustained) General conditions

The Motor Carrier Act Government crime Definitions of 1980 coverage forms (discovery/loss 7.3 Businessowners Section Endorsement for sustained) III — Common Policy motor carrier Conditions policies of insurance Coverages for public liability (MCS-90) Employee theft 8.0 Workers Compensation Forgery or alteration Insurance 7% (7 Items) Inside the premises — 6.0 Commercial Package Policy 8.1 Workers compensation theft of money and (CPP) 9% (9 Items) laws securities 6.1 Components of a Type of law commercial policy Inside the premises — robbery or safe Compulsory versus Common policy burglary of other elective declarations property Vermont Workers' Common policy conditions Outside premises Compensation Law

Interline endorsements Computer fraud Exclusive remedy

One or more coverage Funds transfer fraud Employment covered parts (required, Money orders and voluntary) 6.2 Commercial general counterfeit money liability Covered injuries Other crime coverage Commercial general Occupational disease liability coverage forms Extortion — commercial entities Benefits provided Bodily injury and property damage 6.4 Farm coverage Federal workers liability compensation laws Farm liability coverage Personal and form Federal Employer advertising injury Liability Act (FELA) Coverage H — Bodily liability (45 USC 51–60) injury and property Medical payments damage liability U.S. Longshore & Harbor Workers' Supplementary Coverage I — Personal Compensation Act payments advertising injury (33 USC 904) liability Who is an insured The Jones Act (46 Coverage J — Medical USC 688) Limits of liability payments 8.2 Workers compensation Conditions Definitions and employers liability insurance policy Definitions Conditions General section Exclusions Exclusions

Premises and operations Limits

63 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Part One — Workers Vermont workers' Fiduciary liability compensation insurance compensation administration fund Liquor liability Part Two — Employers liability insurance Self-insured employers Employment practices and employer groups liability Part Three — Other states insurance 9.3 Surplus lines

Part Four — Your duties if 9.0 Other Coverages and Options Definitions and markets injury occurs 7% (7 Items) Licensing requirements Part Five — Premium 9.1 Umbrella/excess liability policies 9.4 Surety bonds Part Six — Conditions Personal (DL 98 01) Principal, obligee, surety Voluntary compensation Contract bonds endorsement Commercial (CU 00 01) License and permit bonds 8.3 Premium computation 9.2 Specialty liability insurance Judicial bonds Job classification — payroll and rates Cyber liability coverage 9.5 Ocean marine insurance

Experience modification Professional liability Protection and indemnity factor Errors and omissions Premium discounts Directors and officers 8.4 Other sources of liability coverages

64 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

License Application and Forms

This section provides printable copies of various forms and information that may be needed or helpful for completing them. It contains the following: • NAIC Application form for individual insurance producer license. • Social Security Disclosure statement. • Attachment #2, Required Certifications. • Vermont Address Change Form. • Examination registration form.

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Uniform Application for Individual Insurance Producer License/Registration (Please Print or Type) Check appropriate box for license requested. ❑ Resident License ❑ Non-Resident License • Identify Home State: ______

1 Soc. Security Number 2 If assigned, National Producer Number (NPN) - -

3 If applicable, FINRA Individual Central Registration Depository (CRD) Number

4 Last Name JR./SR. etc 5 First Name 6 Middle Name 7 Date of Birth (month) ___ (day) ___ (year)____ 8 Residence/Home Address (Physical Street) 9 City 10 State 11 Zip Code 12 Foreign Country

13 Home Phone Number 14 Gender (Circle One) 15 Are you a Citizen of the United States? (Check One) 3 ( ) - Male Female Yes No (If No, of which country are you a citizen?) Individual Applicant Email Address (If NO, and this is an application for a Resident License, you must supply proof of eligibility to work in the U.S.) 16 Business Entity Name

17 Business Address (Physical Street) 18 P.O. Box 19 City 20 State 21 Zip Code 22 Foreign Country

23 Business Phone Number 24 Business Fax Number 25 Business E-Mail Address 26 Business Web Site Address (include extension) ( ) - ( ) - 27 Applicant’s Mailing Address 28 P.O. Box 29 City 30 State 31Zip Code 32 Foreign Country

33 a. List any other assumed, fictitious, alias, maiden or trade names which you have used in the past.

b. List any trade names under which you are currently doing business or intend to do business.

(May be subject to state approval) Agency or Business Entity Affiliations 34 List your Insurance Agency Affiliations: (Complete only if the applicant is to be licensed as an active member of the business entity)

FEIN ______NPN ______Name of Agency ______FEIN ______NPN ______Name of Agency ______FEIN ______NPN ______Name of Agency ______Employment History 35 Account for all time for the past five years. Give all employment experience starting with your current employer working back five years. Include full and part-time work, self-employment, military service, unemployment and full-time education. From To Month Year Month Year Position Held Name City State Foreign Country Name City State Foreign Country Name City State Foreign Country Name City State Foreign Country (State Use)

© 2011 National Association of Insurance Commissioners Page 1 of 5

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Uniform Application for Individual Insurance Producer License/Registration Jurisdiction and Type of License Requested 36 Next to each jurisdiction, check the license type(s) and line(s) of authority for which you are applying. License Types: A – Agent B – Broker P – Producer SLP – Surplus Lines Producer H – Accident & V – Variable Life/ PL – Personal Lines of Authority: L – Life Health or P – Property C – Casualty Variable Annuity Lines Sickness O – Other: Specify Limited Lines: Credit – Credit CR – Car Rental CROP – Crop T – Travel S – Surety Type LICENSE TYPE Major Lines of Authority Limited Lines of Authority Jurisdiction A B P SLP V L H P C PL Credit CR CROP T S O ______AK AL AR AZ CA CO CT DC DE FL GA GU HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA PR RI SC SD TN TX UT VI VA VT WA WI WV WY © 2011 National Association of Insurance Commissioners Page 2 of 5

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Uniform Application for Individual Insurance Producer License/Registration Background Information 37 The Applicant must read the following very carefully and answer every question. All written statements submitted by the Applicant 7 must include an original signature.

1. Have you ever been convicted of a crime, had a judgment withheld or deferred, or are you currently charged with committing a crime? Yes ___ No ___

Note: “Crime” includes a misdemeanor, a felony or a military offense. You may exclude misdemeanor traffic citations and misdemeanor convictions or pending misdemeanor charges involving driving under the influence (DUI) or driving while intoxicated (DWI), driving without a license, reckless driving, or driving with a suspended or revoked license and juvenile offenses. “Convicted” includes, but is not limited to, having been found guilty by verdict of a judge or jury, having entered a plea of guilty or nolo contendere or no contest, or having been given probation, a suspended sentence, or a fine. If you answer yes, you must attach to this application: a) a written statement explaining the circumstances of each incident, b) a copy of the charging document, c) a copy of the official document, which demonstrates the resolution of the charges or any final judgment.

If you have a felony conviction involving dishonesty or breach of trust, have you applied for written consent to engage in the business of insurance in your home state as required by 18 USC 1033? N/A_____ Yes_____ No _____ If so, was consent granted? (Attach copy of 1033 consent approved by home state.) N/A ____ Yes ____ No ____

2. Have you ever been named or involved as a party in an administrative proceeding regarding any professional or occupational license Yes ___ No ___ or registration? “Involved” means having a license censured, suspended, revoked, canceled, terminated; or, being assessed a fine, a cease and desist order, a prohibition order, a compliance order, placed on probation or surrendering a license to resolve an administrative action. “Involved” also means being named as a party to an administrative or arbitration proceeding, which is related to a professional or occupational license. “Involved” also means having a license application denied or the act of withdrawing an application to avoid a denial. INCLUDE Any business so named because of your actions, in your capacity as an owner, partner, officer, director, or member or manager of a Limited Liability Company. You may EXCLUDE terminations due solely to noncompliance with continuing education requirements or failure to pay a renewal fee.

If you answer yes, you must attach to this application: a) a written statement identifying the type of license and explaining the circumstances of each incident, b) a copy of the Notice of Hearing or other document that states the charges and allegations, and c) a copy of the official document, which demonstrates the resolution of the charges or any final judgment.

3. Has any demand been made or judgment rendered against you or any business in which you are or were an owner, partner, officer or Yes ___ No ___ director, or member or manager of a limited liability company, for overdue monies by an insurer, insured or producer, or have you ever been subject to a bankruptcy proceeding? Do not include personal bankruptcies, unless they involve funds held on behalf of others. If you answer yes, submit a statement summarizing the details of the indebtedness and arrangements for repayment, and/or type and location of bankruptcy.

4. Have you been notified by any jurisdiction to which you are applying of any delinquent tax obligation that is not the subject Yes ___ No ___ of a repayment agreement? If you answer yes, identify the jurisdiction(s): ______

5. Are you currently a party to, or have you ever been found liable in, any lawsuit, arbitration or mediation proceeding involving Yes ___ No ___ allegations of fraud, misappropriation or conversion of funds, misrepresentation or breach of fiduciary duty? If you answer yes, you must attach to this application: a) a written statement summarizing the details of each incident, b) a copy of the Petition, Complaint or other document that commenced the lawsuit or arbitration, or mediation proceedings, and c) a copy of the official document, which demonstrates the resolution of the charges or any final judgment.

© 2011 National Association of Insurance Commissioners Page 3 of 5

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Uniform Application for Individual Insurance Producer License/Registration

6. Have you or any business in which you are or were an owner, partner, officer or director, or member or manager of a limited Yes ___ No___ liability company, ever had an insurance agency contract or any other business relationship with an insurance company terminated for any alleged misconduct?

If you answer yes, you must attach to this application:

a) a written statement summarizing the details of each incident and explaining why you feel this incident should not prevent you from receiving an insurance license, and b) copies of all relevant documents. Yes ___ No___ 7. Do you have a child support obligation in arrearage?

If you answer yes, ______Months a) by how many months are you in arrearage? Yes ___ No___ b) are you currently subject to and in compliance with any repayment agreement? Yes ___ No___ c) are you the subject of a child support related subpoena/warrant? (If you answered yes, provide documentation showing proof of current payments or an approved repayment plan from the appropriate state child support agency.) N/A ___ Yes ___ No___ 8). In response to a “yes” answer to one or more of the Background Questions for this application, are you submitting document(s) to the NAIC/NIPR Attachments Warehouse?

Yes ___ No___ If you answer yes,

Will you be associating (linking) previously filed documents from the NAIC/NIPR Attachments Warehouse to this application?

Note: If you have previously submitted documents to the Attachments Warehouse that are intended to be filed with this application, you must go to the Attachments Warehouse and associate (link) the supporting document(s) to this application based upon the particular background question number you have answered yes to on this application. You will receive information in a follow-up page at the end of the application process, providing a link to the Attachment Warehouse instructions.

© 2011 National Association of Insurance Commissioners Page 4 of 5

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Uniform Application for Individual Insurance Producer License/Registration

Applicant’s Certification and Attestation 38 The Applicant must read the following very carefully:

1. I hereby certify that, under penalty of perjury, all of the information submitted in this application and attachments is true and complete. I am aware that submitting false information or omitting pertinent or material information in connection with this application is grounds for license revocation or denial of the license and may subject me to civil or criminal penalties. 2. Unless provided otherwise by law or regulation of the jurisdiction , I hereby designate the Commissioner, Director or Superintendent of Insurance, or other appropriate party in each jurisdiction for which this application is made to be my agent for service of process regarding all insurance matters in the respective jurisdiction and agree that service upon the Commissioner, Director or Superintendent of Insurance, or other appropriate party of that jurisdiction is of the same legal force and validity as personal service upon myself. 3 I further certify that I grant permission to the Commissioner, Director or Superintendent of Insurance, or other appropriate party in each jurisdiction for which this application is made to verify information with any federal, state or local government agency, current or former employer, or insurance company. 4. I further certify that, under penalty of perjury, a) I have no child-support obligation, b) I have a child-support obligation and I am currently in compliance with that obligation, or c) I have identified my child support obligation arrearage on this application. 5. I authorize the jurisdictions to give any information concerning me, as permitted by law, to any federal, state or municipal agency, or any other organization and I release the jurisdictions and any person acting on their behalf from any and all liability of whatever nature by reason of furnishing such information. 6. I acknowledge that I understand and will comply with the insurance laws and regulations of the jurisdictions to which I am applying for licensure. 7. For Non-Resident License Applications, I certify that I am licensed and in good standing in my home state/resident state for the lines of authority requested from the non-resident state. 8. I hereby certify that upon request, I will furnish the jurisdiction(s) to which I am applying, certified copies of any documents attached to this application or requested by the jurisdiction(s).

______Month/Day/Year

______Original Producer Signature

______Full Legal Name (Printed or Typed)

Attachments

39The following attachments must accompany the application otherwise the application may be returned unprocessed or considered deficient.

1. For Non-Resident License Applications and unless otherwise noted in the State Matrix of Business Rules, a state will rely on an electronic verification of an Applicant’s resident license through the NAIC’s State Producer Licensing Database in lieu of requiring an original Letter of Certification from the resident state. 2. Any jurisdiction specific attachments listed in the State Matrix of Business Rules (www.nipr.com).

© 2011 National Association of Insurance Commissioners Page 5 of 5

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Attachment #1 - Social Security Disclosure ATTACHMENT 1

SOCIAL SECURITY DISCLOSURE

1. The Department requires you to provide your Social Security number in connection with your application for an occupational and professional license pursuant to federal law as set out in 42 U.S.C. §§ 405(c)(2)(C)(i), 654 and 666. Your Social Security number may then be used for the purposes set forth in those statutes, including the enforcement of spousal and child support orders and paternity determinations, and the administration of any tax and may be shared with the agencies that have responsibility for those matters. Your Social Security number will not appear on the face of your license, but will be kept on file by the Department with your license information.

2. In addition, you may on a voluntary basis permit the Department to use your Social Security number for internal identification purposes and to share your Social Security number with the National Association of Insurance for inclusion in the National Producer Database (PDB). The PDB is intended to assist in a uniform nationwide system of licensing through the National Insurance Producer Registry and to assist the states, territories and the District of Columbia in their producer licensing programs, including issuing, renewing, monitoring, suspending and revoking licenses. If you do not wish your Social Security number included in the National Producer Database, you will not be able to take advantage of electronic processing of your license and nationwide licensing using the PDB.

IF YOU DO NOT AGREE TO THE USE OF YOUR SOCIAL SECURITY NUMBER AS DESCRIBED IN PARAGRAPH 2, YOU MUST SO NOTIFY THE DEPARTMENT IN WRITING AND ATTACH SUCH NOTICE TO YOUR APPLICATION

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#2 - Required Certifications Vermont Department of Financial Regulation INSURANCE DIVISION - PRODUCER AND INDIVIDUAL LICENSING SECTION ATTACHMENT #2 REQUIRED CERTIFICATIONS

In order to apply for a license you must certify to statement 1 and 2 below:

Certification of Examination and knowledge of Vermont Unfair Trade Practices Act and Regulation 79-2 1) I certify to the following (initial all that apply): I have passed a written examination for the license type for which I am applying, and I have read and understand the Vermont Insurance Trade Practices Act Title 8 V.S.A Chapter 129, Sections 4724-4726 and Insurance Regulation 79-2 (available at http://www.vermontinsuranceagent.info/) regarding claim settlement practices, prohibitive acts and the duties of a licensee. ______Initial 2) Certification of Experience or Supervision In order to obtain a license an applicant must certify that he/she has either two years of appropriate experience or that the applicant is subject to supervision by a qualified person. Check the appropriate certification below, but not both. Applications that are submitted without a certification will be returned. IF YOU CANNOT CERTIFY BASED UPON EXPERIENCE, YOU MUST COMPLETE THE SUPERVISION CERTIFICATION BELOW AND PROVIDE THE NAME OF YOUR SUPERVISOR. Certification of Experience I certify that I possess two years’ experience handling loss claims if I am applying for an adjuster license or two years’ experience loss appraising if I am applying for an appraiser license. ______Initial OR Certification of Supervision I certify that I am subject to the immediate personal supervision of a licensed adjuster or appraiser (for appraiser applicants) who is licensed in Vermont and who has been licensed (in Vermont or elsewhere) for not less than three years immediately preceding the date of my application. I understand that I must be supervised until I have two years experience and that I cannot act under the license unless I am so supervised. I will notify the Department within thirty days of any change of my supervisor. ______Initial Name of Supervisor ______

Supervisor’s Vermont License Number ______

I certify that the above is true and correct.

Applicant Signature ______Date___/___/___

Applicant Printed Name ______

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Mail to: Vermont Department of Financial Regulation Attn: Producer Licensing Section Examination89 Main Street, Registration Drawer 20 Form Montpelier, VT 05620-3101 for Vermont Insurance Examinations VERMONT ADDRESS CHANGE FORM Last Name First Name Middle Name Social Security Number*

Residence Address (Your address of legal residence is required) Date of Birth

City State ZIP Code Daytime Phone Number (including area code) ( )

Employer (insurance company, if known) Evening Phone Number (including area code) ( )

E-mail address Fax Number (including area code) ( )

*For further information regarding Social Security number disclosure, please see Page 71 of this bulletin. This form is Page 74 of the Vermont Licensing Information Bulletin. We recommend you read the entire bulletin.

Examination Series Examination Title Total Fee 14-25 Producer’s Life $73 $ 14-27 Producer’s Accident, Health and HMO $73 $ 14-29 Producer’s Life, Accident, Health and HMO $87 $ 14-31 Producer’s Property and Casualty $87 $ 14-33 Adjuster’s Property and Casualty $87 $ 14-34 Adjuster’s Workers’ Compensation $73 $ 14-35 Bail Bond $73 $ 14-37 Motor Vehicle Damage Appraiser $73 $ 14-38 Agent’s Title $73 $ 14-39 Personal Lines $73 $ 14-41 Producer’s Property $73 $ 14-42 Producer’s Casualty $73 $ By filing this registration, you assume full responsibility for examination selection. Fees for these examinations are not refundable and not transferable. If you are unsure which examination is needed for the license you are seeking, resolve this question before you Total Fees $ register. Examination fees are valid for 90 days from receipt at Prometric.

Fee may be paid by cashier’s check, company check, money order, MasterCard or Visa. Make checks payable to Prometric. Please put your phone number on the check. Personal checks and cash are not accepted. Registration fees are not refundable. To pay by credit card, please complete the information below. Register online at www.prometric.com/vermont, by calling 800.868.6113 or by faxing this completed form to 800.347.9242. To register by mail, send this completed form along with the appropriate fee to: Prometric, ATTN: VT Insurance Examination Registration 3110 Lord Baltimore Dr., Ste. 200 Windsor Mill, MD 21244

Card Type (Check One) Card Number Expiration Date MasterCard Visa

Name of Cardholder (Print) Signature of Cardholder

73

Exam Registration Form Vermont Insurance Examinations To conveniently register, please call 800.868.6113.

Print or type clearly and neatly. Incomplete or illegible forms will not be processed. Last Name First Name Middle Name

Residence Address (Your address of legal residence is required) Date of Birth

City State ZIP Code Daytime Phone Number (including area code) ( ) Employer (insurance company, if known) Evening Phone Number (including area code) ( ) E-mail address (applications without an email address may experience delays) Fax Number (including area code) ( )

Series Examination Title Examination Fee Total 14-25 Producer’s Life $50 $ 14-27 Producer’s Accident and Health or Sickness $50 $ 14-29 Producer’s Life, Accident and Health or Sickness $65 $ 14-31 Producer’s Property and Casualty $65 $ 14-33 Adjuster’s Property and Casualty $65 $ 14-34 Adjuster’s Workers’ Compensation $50 $ 14-35 Bail Bond $50 $ 14-37 Motor Vehicle Damage Appraiser $50 $ 14-38 Agent’s Title $50 $ 14-39 Personal Lines $50 $ 14-41 Producer’s Property $50 $ 14-42 Producer’s Casualty $50 $ Total Fee $ By filing this registration, you assume full responsibility for exam selection. If you are unsure about which exam you need for the license you are seeking, resolve this question before you register. Fees for these exams are non-refundable and non-transferrable. Exam fees are valid for 90 days from receipt at Prometric.

Please allow 7-10 business days for receipt and processing of your application. An authorized Prometric Client Service Representative will contact you by phone to obtain your social security number to complete the registration process. Once you have registered for your exam, you can schedule your exam appointment online or by phone. Registration fees are not refundable. Fees may be paid by cashier’s check, company check, money order, MasterCard , Visa or American Express. Make company checks, cashier’s checks and money orders payable to Prometric. Please put your phone number on the check. Personal checks and cash are not accepted. To pay by credit card (when registering by mail or fax), please complete the Credit Card Payment Form on the next page and fax to 800.347.9242, or send this completed form along with the appropriate fee to:

Prometric ATTN: VT Insurance Examination Registration 7941 Corporate Drive, Nottingham, MD 21236

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Credit Card Payment Form

Print or type clearly and neatly. Incomplete or illegible forms will not be processed.

Card Type (Check One) MasterCard Visa American Express

Card Number Expiration Date

Amount

$ ______. __ __

Name of Cardholder (Print)

Signature of Cardholder

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