VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

VERMONT Department of Financial Regulation

Licensing Information Handbook Effective as of September 1, 2019

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

Publishing by Prometric Providing License Examinations for the State of Vermont

Copyright © 2019 Prometric LLC REVISED 20190905

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Contents

Introduction 2 Series 14-25 ...... 20 A Message from the Department ...... 2 Vermont Producer's Examination for Accident, Health and HMO ...... 22 Overview of Licensing Process ...... 2 Series 14-27 ...... 22 Vermont Licensing Requirements 4 Vermont Producer's Examination for Life, Types of Licenses and Requirements ...... 4 Accident, Health and HMO ...... 25 Examination Waivers ...... 5 Series 14-29 ...... 25 Vermont Producer's Examination for Scheduling Your Exam 6 Property and Casualty Insurance ...... 30 Registering and Scheduling Information ...... 6 Series 14-31 ...... 30 Online ...... 6 150 questions (plus 5 unscored items) .. 30 By fax or mail ...... 6 Vermont Adjuster's Examination for By phone ...... 7 Property and Casualty Insurance ...... 34 Reschedule and Cancellation ...... 7 Series 14-33 ...... 34 If absent or late for your appointment ...... 7 150 questions (plus 5 unscored items) .. 34 Test Centers ...... 7 Vermont Adjuster's Examination for Workers Compensation Insurance ...... 36 Holidays ...... 7 Series 14-34 ...... 36 Emergency Closings ...... 7 Vermont Producer's Examination for Bail Testing Accommodations ...... 9 Bond ...... 37 Preparing for Your Exam 10 Series 14-35 ...... 37 Study Materials ...... 10 Vermont Examination for Motor Vehicle Damage Appraiser ...... 38 Content Outlines Overview ...... 10 Series 14-37 ...... 38 Practice Exams ...... 11 Vermont Agent's Examination for Title Taking Your Exam 12 Insurance ...... 38 Testing Process ...... 12 Series 14-38 ...... 38 Test center regulations ...... 12 Vermont Producer's Examination for Personal Lines Insurance ...... 39 Question Types ...... 14 Series 14-39 ...... 39 Experimental Questions ...... 14 Vermont Producer's Examination for Exam Results ...... 15 Property Insurance ...... 41 Appeals Process ...... 15 Series 14-41 ...... 41 Applying for Your License 17 Vermont Producer's Examination for Casualty Insurance ...... 44 Licensing Requirements by Residence ...... 17 Series 14-42 ...... 44 Resident License Requirements ...... 17 New Vermont Residents ...... 17 License Application and Forms 47 Licensing Fees ...... 17 Uniform Application for Individual Insurance Applying for a License Electronically ...... 17 Producer License/Registration ...... 48 Paper Submissions ...... 18 Attachment #1 - Social Security Disclosure .. 53 Nonresidents ...... 18 #2 - Required Certifications ...... 54 Other Licensing Information ...... 19 Examination Registration Form ...... 55 Exam Registration Form...... 56 Exam Content Outlines 20 Credit Card Payment Form ...... 57 Vermont Producer's Examination for ..... 20

Life Insurance ...... 20

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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 Inc., 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. Register and schedule your exam. The easiest way to register and schedule is online at www.prometric.com/vermont/insurance. Phone, fax and mail options are also available. 3. 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. 4. Take the scheduled examination, bringing required identification to the test center. 5. Apply for your license through the Department at: www.vermontinsuranceagent.info

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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/en-us/clients/insurance/Documents/

vermont/VTInsuranceExamFAQs.pdf

LICENSING INFORMATION Vermont Department of Financial Regulation 89 Main Street, Montpelier, VT 05620-3101 Phone: 802.828.3303 Web site: www.vermontinsuranceagent.info

QUESTIONS ABOUT EXAMINATION OR PRELICENSING Prometric Website: www.prometric.com/vermont/insurance E-mail: [email protected] Tel: (800) 868-6113 Fax: (800) 347-9242 TDD User: (800) 790-3926

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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. You and may take the exam at any Prometric test center in the United States. Follow the instructions here to register and schedule an appointment. Scheduling Testing Accommodations. If you require an Americans with Disabilities Act (ADA) Information accommodation(s) or English as Second Language (ESL) additional time, see the “Testing Accommodations” section below. Online  *Effective May 20, 2019 Vermont Insurance has migrated to a new Registration and Scheduling page within Prometric’s Candidate Management System. Register and schedule online—it saves time and it’s easy! You can easily register and schedule your exam online at any time using our Internet Registration Service by going to: 1 http://www.prometric.com/vermont/insurance. 2 Click on Create or Login to Your Account to register. a. You will be able to schedule any Vermont Insurance examination that you are eligible to test on (all eligible exams will be listed). 3 Click on Schedule Your Test and follow the prompts. a. You will need to create or login to your account and schedule any Vermont Insurance examination that you are eligible to test on.

By fax or mail You may fax the completed Exam Registration Form found at the end of this handbook to Prometric to (800) 347-9242. You must also include the completed Credit Card Payment Form (Visa, MasterCard or American Express). The cardholder’s signature must be on the Form. OR

You may mail the completed Exam Registration Form and the appropriate exam fee to the address on the form. When registering by mail, you may pay the exam fee by Visa, MasterCard or American Express, company check, cashier’s check or money order. Personal checks and cash are not accepted.

If paying by credit card, you must also include the completed Credit Card Payment Form (Visa, MasterCard or American Express). The cardholder’s signature must be

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on the Form. including a Visa, MasterCard or American Express payment information, company check, cashier’s check or money order. By phone If you are unable to schedule online, you may schedule the examination by calling (800) 868-6113 between 8 a.m. and 9 p.m. (Eastern Time), Monday through Friday, and between 10 a.m. and 3 p.m. (Eastern Time), Saturday and Sunday. Please have your exam information and credit card information for payment available.

Note An exam registration remains valid for 90 calendar days after it has been processed. It will expire without further notice at that time. We recommend that you do not register for your exam until you are prepared to take it. If you allow your exam registration to expire or did not pass your exam, you must re-register. Another exam registration fee is required.

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 reschedule or confirm your appointment, please go to http://www.prometric.com/connecticut/insurance .

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 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).

Test Centers You may take the exam at any Prometric test center in the United States. Test center locations are subject to change. Be sure to verify the address of and directions of the test center before you leave for the exam. Holidays Testing generally does not occur on federal holidays. Additional state holidays may be observed in the state where your schedule the exam appointment. Emergency Closings Severe weather or an emergency could require canceling scheduled exams. If this occurs, Prometric will attempt to contact you by phone; however, you may check for testing site closures by checking our website at https://www.prometric.com/en-us/pages/siteclosure.aspx or calling 7

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Prometric at (866) 370-3411. If the site is closed, the exam will be rescheduled without a rescheduling fee.

If a test center is open for testing and you choose not to appear for the appointment, you will forfeit the exam fees and must reschedule and pay another exam fee.

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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/en-us/for-test-takers/prepare-for-test- day/pages/arrange-testing-accommodations.aspx, 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.

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. Failure to follow any of these security procedures may result in your being disqualified from taking an examination. For more information on Prometric test center regulations, please visit: https://www.prometric.com/en-us/for-test-takers/pages/Test-Center- Security.aspx.

1 While in the test center, you will be continuously monitored by video. During your examination, you will also be monitored by physical walk-throughs and through an observation window. All testing sessions are video and audio recorded. 2 You must present valid (unexpired) and acceptable ID(s) in order to take your test. (See “Identification required” in the previous section).

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3 You will be scanned with a metal detector wand prior to every entry into the test room. If you refuse, you cannot test. 4 You will be required to raise your pants legs above your ankles, empty and turn all pockets inside-out and raise shirt sleeves above your wrists prior to every entry into the test room. 5 If you are wearing eyeglasses, you will be required to remove them for visual inspection to ensure they don’t contain a recording device. Large jewelry items must be stored in your locker due to concerns over concealed recording devices. 6 You must sign the test center roster each time you leave the test room. You must also sign back in and show your ID to the Test Center Administrator (TCA) in order to re-enter the test room. 7 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. 8 You must not talk to other candidates or refer to their screens, testing materials, or written notes in the test room. 9 You must not use written notes, published materials, or other testing aids. 10 You are allowed to bring soft ear plugs or center-supplied tissues into the test room. 11 Any clothing or jewelry items allowed to be worn in the test room must remain on your person at all times. Removed clothing or jewelry items must be stored in your locker. 12 You must not bring any personal/unauthorized items into the testing room. Such items include but are not limited to outerwear, hats, food, drinks, purses, briefcases, notebooks, pagers, watches, cellular telephones, recording devices, and photographic equipment. Weapons are not allowed at any Prometric test center. You will be asked to empty and turn your pockets inside out prior to every entry into the test room to confirm that you have no prohibited items. 13 You must return all materials issued to you by the test center administrator (“TCA”) at the end of your test. 14 You are not allowed to use any electronic device or phone during breaks. 15 If you have a medical condition that may require you to access food or medicine during your exam session, you must store those items separately from other items you place in the test center locker. You must inform the TCA before you retrieve the food or medicine, and the TCA will observe you obtaining the item from the locker. You are not allowed to access any item other than food or medicine needed for a medical reason.

16 You must conduct yourself in a civil manner at all times when on the premises of the test center. Exhibiting abusive behavior towards the TCA or any other staff member of the test center may result in examination disqualification and criminal prosecution. Failure to follow any of these security procedures may result in the disqualification of the examination. Prometric reserves the right to audio and videotape any examination session. For more information on Prometric test center regulations, please visit: www.prometric.com/en-us/for-test-takers/prepare-for-test- day/documents/TestCenterRegulations.pdf

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.

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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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Exam Results At the end of the exam, the score will be shown on the screen and you will receive a printed score report. The report indicates the overall score and grade, including the numerical percentage of questions answered correctly and whether you passed or failed.

The report also displays the correct percentage in each major section of the exam, as defined by the exam content outline. These section scores are shown to guide you, or your employer and/or trainer, about areas requiring additional preparation for retesting if you do not pass the exam. Even after you pass, you may want to focus on these areas as you begin to provide insurance products and services to the public.

Sample Score Report Score Report for Sample, Sarah A.

Vermont Producer's Life Examination Number of Number Percent Questions Correct Correct Life Total Test Score 100 80 80% Insurance Regulation 14 10 71% General Insurance 11 9 82% Life Insurance Basics 17 14 82% Life Insurance Policies 16 13 81% Life Insurance Provisions, Options and Riders 13 11 85% Annuities 11 10 91% Tax Considerations 10 7 70% Qualified Plans 8 6 75% Score: 80% Grade: Pass (A total score of 70 percent is required to pass)

Note that the section percentages will not average out to your total percentage score. That is because individual examination outline sections are allocated different numbers of questions on the examination. Your total percentage score is computed by dividing the number of questions you answered correctly by the total number of questions in the examination. The total score is not computed by adding the section percentages and dividing by the total number of sections. Duplicate score report. You may call or write to Prometric to request a duplicate of your score report for a period of two years after an examination at no cost to the candidate. Please direct any questions or comments about your examination to Prometric.

Appeals Prometric’s goal is to provide a quality examination and a pleasant testing Process experience for every candidate. If you would like to submit an appeal concerning examination content, registration, scheduling or test administration (testing site 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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VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

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 Acting without a license (4793; Captive Insurers Statutes Title 8, unless otherwise 4813c) Stock companies Shared commissions (4796) Mutual companies noted. When preceded by “Reg” refer Trust accounts — anti-commingling Fraternal benefit societies to Vermont Department Regulations, (Reg 95-1; 4724(12)) Lloyd's associations when preceded by “Bul” refer to Controlled business (4795) Risk retention groups Vermont Department Bulletins. Duties (4813c) Private versus government insurers Unfair trade practices (4724) Admitted versus nonadmitted Vermont Producer's Examination Misrepresentation (4724(1, 11, 13)) insurers for Non-guaranteed elements Domestic, foreign and alien insurers False advertising (4724(2)) Financial status (independent rating Life Insurance Defamation (4724(3)) services) Series 14-25 Boycott, coercion and intimidation Marketing (distribution) systems (4724(4)) 2.3 Producers and general rules 100 questions (plus 5 unscored False financial statements and entries of agency items) (4724(5)) Insurer as principal 2-hour time limit Illegal inducement (4724(6)) Producer/insurer relationship Unfair discrimination (4724(7)) Authority and powers of producers Effective November 3, 2019 Rebating (4724(8)) Express Failure to maintain complaint record Implied (4724(10)) Apparent 1.0 Insurance Regulation 14% Failure to act as fiduciary (4724(12); 2.4 Contracts (14 Items) Reg 95-1) Elements of a legal contract 1.1 Licensing Unsuitability (4724(16)) Offer and acceptance Process (4800; 4813f) Nondisclosure of fees or charges Consideration Types of licensees (4791) (4724(95-1)) Competent parties Resident (4800(3)(A)) Consumer privacy regulation (IH- Legal purpose Nonresident (4800(3)(B); 4813h) 2001-01) Distinct characteristics of an Maintenance and duration 1.3 Federal regulation insurance contract Renewal and expiration (4798) Fair Credit Reporting Act (15 USC Contract of adhesion Address change (4800(3)(F)) 1681–1681d) Aleatory contract Assumed business name (4813j) Fraud and false statements (18 USC Personal contract Reporting of actions (4813o) 1033, 1034) Unilateral contract Continuing education requirements Legal interpretations affecting (4800a; Reg 2000-2 Sec 4) contracts 2.0 General Insurance 11% (11 Disciplinary actions Ambiguities in a contract of adhesion Items) Denial of license (4800(3)(E)) Reasonable expectations Cease and desist order (3661) 2.1 Concepts Indemnity Suspension, revocation or Risk management key terms Utmost good faith nonrenewal (4804; 4806) Risk Representations/misrepresentations Penalties (3661(a)(2); 4804(d)) Exposure Warranties 1.2 State regulation Hazard Concealment Commissioner's general duties and Peril Fraud powers (4726; 4804) Loss Waiver and estoppel Company regulation Methods of handling risk Certificate of authority (3368) Avoidance 3.0 Life Insurance Basics 17% Unfair claim settlement practices Retention (17 Items) (4724(9); Reg 79-2 Sec 1–7) Sharing Policy forms (3541) Reduction 3.1 Insurable interest (3710) Examination of records (3565) Transfer Power to contract Producer appointment (4798(d); Elements of insurable risks 3.2 Personal uses of life 4813l) Adverse selection insurance Termination of appointment Law of large numbers Survivor protection (4798(d); 4813m) Reinsurance Estate creation Producer regulation 2.2 Insurers Cash accumulation Types of insurers Liquidity

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Estate conservation Producer report Exclusions 3.3 Determining amount of Attending physician statement Representations in applications personal life insurance Investigative consumer (inspection) (3736) Human life value approach report 5.3 Beneficiaries Needs approach Medical Information Bureau (MIB) Designation options Types of information gathered Inquiry into sexual orientation 8 Individuals Determining lump-sum needs V.S.A Section 4724(7)(c) Classes Planning for income needs Medical examinations and lab tests Estates 3.4 Business uses of life including HIV (4724(20); Bul 138) Minors insurance Selection criteria and unfair Trusts Buy-sell funding discrimination (3701) Succession Key person Classification of risks Revocable versus irrevocable Executive bonuses Preferred Common disaster clause Deferred compensation funding Standard Spendthrift clause 3.5 Classes of life insurance Substandard 5.4 Settlement options policies Cash payment Group versus individual Interest only Ordinary (home service) 4.0 Life Insurance Policies 16% Interest on death benefits 8 V.S.A Permanent versus term (16 Items) Section 3665(c)(2). Participating versus nonparticipating 4.1 Term life insurance Fixed-period installments Fixed versus variable life insurance Level term Fixed-amount installments and annuities Annual renewable term Life income Regulation of variable products (SEC, Level premium term Single life FINRA and Vermont) (3855; Reg 88- Decreasing term Joint and survivor 3 Art VI, XI, 2001-03; Bul 121, 129) 4.2 Whole life insurance Retained asset accounts 3.6 Premiums Continuous premium (straight life) 5.5 Nonforfeiture options Factors in premium determination Limited payment Cash surrender value Mortality Single premium Extended term Interest 4.3 Flexible premium policies Reduced paid-up insurance Expense Universal life 5.6 Policy loan and withdrawal Premium concepts Indexed universal life options Net single premium 4.4 SEC regulated policies Cash loans Gross annual premium Variable life insurance Automatic premium loans Premium payment mode Variable universal life Withdrawals or partial surrenders 3.7 Producer responsibilities 4.5 Specialized policies 5.7 Dividend options Solicitation and sales presentations Joint life (first-to-die) Premium offset (Reg 77-2) Survivorship life (second-to-die) Cash payment Advertising Juvenile life Reduction of premium payments Life and Health Insurance Guaranty Indexed Life Products Accumulation at interest Association (4151–4185) 4.6 Group life insurance One-year term option Illustrations (Reg 98-1) Characteristics of group plans Paid-up additions Policy summary (Reg 77-2 Sec 5(A, Types of plan sponsors (3803– Paid-up insurance B), Appendix B) 3810a) 5.8 Disability riders General Rules (Reg 77-2 Sec 6 (B, C, Insurability (3816) Waiver of premium K, L, N, O, P)) Assignability (3713(a, b)) Waiver of cost of insurance Buyer's guide (Reg 77-2 Sec 5(A, B), Conversion to individual policy Disability income benefit Appendix A) (3820–3823) Payor benefit life/disability (juvenile Life insurance policy cost comparison Portability (3810a(c)) insurance) methods 4.7 Credit life insurance 5.9 Accelerated (living) benefit Replacement (Reg 2001-3 Sec 1–10) (individual versus group) provision/rider Indexed Annuity Buyer's Guide (Bul Conditions for payment 110) Effect on death benefit Indexed Life Insurance Products (Bul 5.0 Life Insurance Policy 5.10 Life settlements (3835– 121) Provisions, Options and Riders 3849; Reg 95-4 Sec 1–15) Suitability 13% (13 Items) Life settlement providers Use and disclosure of insurance 5.1 Required provisions (3731) Life settlement brokers information Required interest (Bul 159) Life insurance providers Field underwriting Entire contract (3731(3)) Life settlement contract provisions Notice of information practices Payment of premiums (3731(1)) Disclosure provisions Application procedures Grace period (3731(2)) Rules of conduct Delivery Reinstatement (3731(9)) 5.11 Riders covering additional Policy review Incontestability (3731(4)) insureds Effective date of coverage Misstatement of age (3731(5)) Spouse/other-insured term rider Premium collection Payment of claims (3731(10)) Children's term rider Statement of good health 5.2 Other provisions Family term rider 3.8 Individual underwriting by Power to contract (3710) 5.12 Riders affecting the death the insurer Assignment (3713(a, b)) benefit amount Information sources and regulation Modifications Paid-up addition rider Application Right to examine (free look) Accidental death

21 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Guaranteed insurability Distributions Reporting of actions (4813o) Cost of living 7.3 Taxation of non-qualified Continuing education requirements Return of premium annuities (4800a; Reg 2000-2 Sec 4) Individually-owned Disciplinary actions Accumulation phase (tax issues Denial of license (4800(3)(E)) 6.0 Annuities 20% (20 Items) related to withdrawals) Cease and desist order (3661) 6.1 Annuity principles and Annuity phase and the exclusion ratio Suspension, revocation or concepts Distributions at death nonrenewal (4804; 4806) Accumulation period versus annuity Corporate-owned Penalties (3661(a)(2); 4804(d)) period 7.4 Taxation of individual 1.2 State regulation Owner, annuitant and beneficiary retirement annuities (IRAs) Commissioner's general duties and Insurance aspects of annuities Traditional IRAs powers (4726; 4804) 6.2 Immediate versus deferred Contributions and deductible amounts Company regulation annuities Premature distributions (including Certificate of authority (3368) Single premium immediate annuities taxation issues) Unfair claim settlement practices (SPIAs) Annuity phase benefit payments (4724(9); Reg 79-2 Sec 1–7) Deferred annuities Values included in the annuitant's Policy forms (3541) Premium payment options estate Examination of records (3565) Nonforfeiture Amounts received by beneficiary Producer appointment (4798(d); Surrender charges Roth IRAs 4813l) Death benefits Contributions and limits Termination of appointment 6.3 Annuity (benefit) payment Distributions (4798(d); 4813m) options 7.5 Rollovers and transfers (IRAs Producer regulation Life contingency options and qualified plans) Acting without a license (4793; Pure life versus life with guaranteed 7.6 Section 1035 exchanges 4813c) minimum Shared commissions (4796) Single life versus multiple life Trust accounts — anti-commingling Annuities certain (types) 8.0 Qualified Plans 3% (3 (Reg 95-1; 4724(12)) 6.4 Annuity products Items) Controlled business (4795) Fixed annuities 8.1 General requirements Duties (4813c) General account assets 8.2 Federal tax considerations Unfair trade practices (4724) Interest rate guarantees (minimum Tax advantages for employers and Misrepresentation (4724(1, 11, 13)) versus current) employees False advertising (4724(2)) Level benefit payment amount Taxation of distributions (age- Defamation (4724(3)) Equity indexed annuities related) Boycott, coercion and intimidation Definition 8.3 Plan types, characteristics (4724(4)) Suitability and purchasers False financial statements and entries Market value adjusted annuities Simplified employee pensions (SEPs) (4724(5)) Variable annuity contracts Self-employed plans (HR 10 or Keogh Illegal inducement (4724(6)) 6.5 Uses of annuities plans) Unfair discrimination (4724(7)) Lump-sum settlements Profit-sharing and 401(k) plans Rebating (4724(8)) Qualified retirement plans SIMPLE plans Failure to maintain complaint record Group versus individual annuities 403(b) tax-sheltered annuities (TSAs) (4724(10)) Personal uses Failure to act as fiduciary (4724(12); Individual retirement annuities (IRAs) Reg 95-1)

Tax-deferred growth Unsuitability (4724(16)) Retirement income Vermont Producer's Examination Nondisclosure of fees or charges Education funds for Accident, Health and HMO (4724(14)) Series 14-27 Consumer privacy regulation (IH- 2001-01) 7.0 Federal Tax Considerations 100 questions (plus 5 unscored Vermont Fair Credit Reporting Act 9 for Life Insurance and Annuities V.S.A. 2480 a-n items) 6% (6 Items) 1.3 Federal regulation 7.1 Taxation of personal life 2-hour time limit Fair Credit Reporting Act (15 USC insurance Effective November 3, 2019 1681–1681d) Amounts available to policyowner Fraud and false statements (18 USC Cash value increases 1033, 1034)

Dividends 1.0 Insurance Regulation 5% (5 Policy loans Items) Surrenders 2.0 General Insurance 5% (5 Amounts received by beneficiary 1.1 Licensing Items) General rule and exceptions Process (4800; 4813f) 2.1 Concepts Settlement options Types of licensees (4791) Risk management key terms Values included in insured's estate Resident (4800(3)(A)) Risk 7.2 Modified endowment Nonresident (4800(3)(B); 4813h) Exposure contracts (MECs) Maintenance and duration Hazard Modified endowment versus life Renewal and expiration (4798) Peril insurance Address change (4800(3)(F)) Loss Seven-pay test Assumed business name (4813j) Methods of handling risk

22 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Avoidance Dental expense Pre-existing conditions Retention Long-term care expense Reg. H- Pre-existing condition exclusion Sharing 2009-1 regulation Reg 80-1 Sec 5(F), 6(E)), Reduction 3.3 Classes of health insurance 6(C) Transfer policies Benefits, limitation and exclusions Elements of insurable risks Individual versus group Reg. 80-1, Sec. 6 Adverse selection Private versus government Underwriting requirements Law of large numbers Limited versus comprehensive Reg. Reinsurance 80-1, Sec. 7(E); Reg. H-2009-03 2.2 Insurers Self-Funded Plans (ERISA) 4.0 Health Insurance Policy Types of insurers 3.4 Limited policies General Provisions (Non-group Captive insurers Limited perils and amounts and Group) 11% (11 Items) Stock companies Required notice to insured Reg. 80- 4.1 Uniform required provisions Mutual companies 1, Sec. 8; 8 V.S.A. Sec. 4063; 8 Entire contract; changes (4065(1), Fraternal benefit societies V.S.A. Sec. 4902 4080(1)) Lloyd's associations Types of limited policies Certificate of insurance (4080(2)) Risk retention groups Accident-only Reg. 80-1, Sec. 7(G) Time limit on certain defenses Private versus government insurers Specified (dread) disease Reg. 80-1, (4065(2)) Admitted versus nonadmitted Sec. 7(H) Grace period (4065(3)) insurers Hospital indemnity Reg. 80-1, Sec. New employees (4080(3)) Domestic, foreign and alien insurers 7(D) Part-time employees (4080(5)) Financial status (independent rating Blanket insurance (student accident, Reinstatement (4065(4)) services) passengers, others) 8 V.S.A. Sec. Claim procedures (4065(5–9); Reg Marketing (distribution) systems 4081 93-4) 2.3 Producers and general rules Prescription drugs 8 V.S.A. Sec. Physical examinations and autopsy of agency 4089(j) & 4089(i) (4065(10)) Insurer as principal Vision care/hearing care Legal actions (4065(11)) Producer/insurer relationship Suitability 8 V.S.A. Sec. 4724(16); 8 Change of beneficiary (4065(12)) Authority and powers of producers V.S.A. Sec. 4062 4.2 Optional provisions (4066) Express 3.5 Common exclusions from Change of occupation (4066(1)) Implied coverage (Pre-existing cond. Reg. Misstatement of age (4066(2)) Apparent 80-1, Sec. 6(C)) Other insurance in this insurer 2.4 Contracts 3.6 Producer responsibilities in (4066(3)) Elements of a legal contract individual health insurance Insurance with other insurers Offer and acceptance Marketing requirements Expense-incurred basis (4066(4)) Consideration Advertising (Reg 71-1) Other benefits (4066(5)) Competent parties Sales presentations Unpaid premium (4066(7)) Legal purpose Outline of coverage Reg 80-1 Sec Cancellation Reg 91-4B Sec 3(10)) Distinct characteristics of an 8(B)) Conformity with state statutes insurance contract Field underwriting (4066(9)) Contract of adhesion Nature and purpose Illegal occupation (4066(10)) Aleatory contract Privacy, Protected Health Information 4.3 Other general provisions Personal contract (ERISA) Right to examine (free look) Unilateral contract Application procedures Reg. 80-1, (4063(8)) Legal interpretations affecting Sec. 9 Mental health parity 8 V.S.A. 4089b contracts Requirements at delivery of policy Insuring clause Ambiguities in a contract of adhesion Common situations for Consideration clause Reasonable expectations errors/omissions Renewability clause Reg. 80-1, Sec. Indemnity Life and Health Insurance Guaranty 7(A)(1), (2) and (15)(f) Utmost good faith Association Title 8, Ch. 112 Noncancelable Representations/misrepresentations 3.7 Individual underwriting by Guaranteed renewable Warranties the insurer Conditionally renewable Concealment Underwriting criteria Renewable at option of insurer Fraud Sources of underwriting information Nonrenewable (cancelable, term) Waiver and estoppel Application Reduction in coverage Producer report Attending physician statement 3.0 Health Insurance Basics Investigative consumer (inspection) 5.0 Disability Income and 11% (3 Items) report Title 9 Sec. 2480a (5) Related Insurance (Reg. 80-1, Sec. 3.1 Definitions of perils Medical Information Bureau (MIB) 7(F)) 10% (10 Items) Accidental injury Reg. 80-1, Sec. Medical examinations and lab tests 5.1 Qualifying for disability 5(D) including HIV (4724(20)) benefits Sickness Reg. 80-1, Sec. 5(E) Unfair discrimination 8 V.S.A. Sec. Inability to perform duties Reg. 80- 3.2 Principal types of losses and 4724(7) 1, Sec. 5(I), (J), and (K) benefits Genetic testing Title 18 Sec. 9331– Own occupation Loss of income from disability Reg. 9335; 8 V.S.A. Sec. 4724(22) Any occupation 80-1, Sec. 5(I), (J), (K) 3.8 Considerations in replacing Pure loss of income (income Medical expense Reg. 80-1, Sec. 5; health insurance Reg. 80-1, Sec. replacement contracts) Reg. H-2009-03, Sec. 1.4 9, replacement Presumptive disability

23 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Requirement to be under physician Large group market Eligibility care Off-exchange Guaranteed issue 5.2 Individual disability income Dental Insurance Pre-existing conditions insurance Availability of coverage Creditable coverage Basic total disability plan Individual and employer-sponsored Renewability Income benefits (monthly indemnity) group plans Protected Health Information (PHI) Elimination and benefit periods Provider network 6.7 Medical Savings Accounts Waiver of premium feature Stand-alone dental plans (SADPs) (MSAs), Health Savings Accounts Coordination with social insurance Pediatric dental coverage under the (HSAs) and High Deductible and workers compensation benefits ACA Health Plans (HDHPs) Additional monthly benefit (AMB) Waiting periods Definition Social insurance supplement (SIS) 6.2 Medical plan concepts Eligibility Occupational versus nonoccupational Fee-for-service basis versus prepaid Contribution limits coverage basis At-work benefits Specified coverages versus Partial disability benefit comprehensive care 7.0 Health Maintenance Residual disability benefit Benefit schedule versus Organizations (HMOs) 8% (8 Other provisions affecting income usual/reasonable/customary charges Items) benefits Managed care versus non-managed 7.1 General characteristics Cost of living adjustment (COLA) care (Reg. H-2009-03) Combined health care delivery and rider Expense based versus indemnity financing Future increase option (FIO) rider based In network versus out of network Relation of earnings to insurance 6.3 Types of providers and plans Limited service area (4066(6)) Major medical insurance Limited choice of providers Other cash benefits Characteristics Gatekeeper concept Accidental death and dismemberment Common limitations Copayments Reg. 80-1, Sec. 7(G) Exclusions from coverage Prepaid basis Rehabilitation benefit Provisions affecting cost to insured 7.2 HMO Services Medical reimbursement benefit Major-med coverage in VT (Reg. H- Preventive care services (nondisabling injury) (Subject to 2009-03) Well-child care applicable health & sickness rule) Health maintenance organizations Immunizations Exclusions (Bul HCA 127) (HMOs) Routine physical examinations 5.3 Unique aspects of individual Preferred provider organizations Wellness programs disability underwriting (PPOs) Physician services Occupational considerations General characteristics Primary care physician (PCP) Benefit limits Open or closed network Referral (specialty) physician Policy issuance alternatives Types of parties to the provider Emergency care 5.4 Group disability income contract Urgent care center insurance Exclusive provider organizations Hospital emergency room Group versus individual plans (EPOs) Hospital services 5.5 Social Security disability General characteristics Skilled nursing facility services Qualification for disability benefits Open or closed network Home health care (4096) Definition of disability Point-of-service (POS) plans Family planning services Waiting period Nature and purpose Mental health/substance abuse Disability income benefits Non-network provider access (open- benefits 5.6 Workers compensation ended HMO) Prescription drugs Eligibility PCP referral (gatekeeper PPO) Additional plans and services Benefits Indemnity plan features Dental services (PPACA requires 6.4 Utilization management (H- pediatric dental coverage only) 2009-03) Vision care/hearing care (PPACA 6.0 Medical Plans 18% (18 Prior approval H-2009-03, Sec. 3.1 requires pediatric vision coverage Items) Appeal/Grievance procedures H- only) 6.1 Patient Protection and 2009-03, Sec. 3.3 Affordable Care Act (PPACA, or 6.5 Vermont eligibility ACA) requirements (non-group and/or 8.0 Group Health Insurance Vermont Health Connect (VHC) group) 10% (10 Items) (V.S.A. Title 33, Ch. 18) Child age limit, whether or not 8.1 Characteristics of group Eligibility dependent insurance Income levels Adopted child coverage (4100c) Group contract 8 V.S.A. Sec. 4080 Private insurance products through Disabled child coverage 8 V.S.A. Certificate of coverage 8 V.S.A. Sec. VHC Sec. 4089d) 4080 Person ineligible Newborn child coverage (4092) Experience rating versus community Premium subsidies Civil unions (Title 15 Sec 1201, rating Pre-existing condition exclusions 4063a, Reg IH-2001, Bul. 128) 8.2 Types of eligible groups 8 Ten Essential Health Benefits (EHB) Same-sex marriage 15 V.S.A. Sec. V.S.A. Sec. 4079 Lifetime and annual limits 8; 18 V.S.A. Sec. 5131(a)(2) Employment-related groups Preventive benefits 6.6 HIPAA (Health Insurance Individual employer groups Individual and small group major Portability and Accountability Multiple-Employer Trusts (METs) med market Act) requirements

24 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Exempt associations (alumni, Buyer's guide (Reg H-2009-04 Sec Suitability (Regulation H-2009-1, professional, other) 17(A)(6)) Section 29) Trusts (unions, employers) Outline of coverage (Reg H-2009-04 Replacement (Reg. H-2009-1, 8.3 Marketing considerations Sec 17(D)) Section 14) Advertising (Reg. 71-1) Right to return (Reg H-2009-04 Sec Vermont regulations and required Regulatory jurisdiction/place of 17(A)(5)) provisions delivery Pre-existing conditions (Reg H-2009- Standards for Marketing (Reg. H- 8.4 Employer group health 04 Sec 8(A)(1), Sec 8.1(A)(1)) 2009-1, Sections 9, 23) insurance Duplication of Medicare benefits (Reg Buyer's Guide (8 V.S.A. Section Vermont underwriting requirements H-2009-04 Sec 21(B)) 8098, Reg. H-2009-1, Section 23) (4079) Replacement (Reg H-2009-04 Sec Outline of Coverage (8 V.S.A. Insurer underwriting criteria 18, 23) Section 87090, Reg. H-2009-1, Characteristics of group Required disclosure provisions (Reg Section 32) Plan design factors H-2009-04 Sec 17) Right to Return (free look) (8 V.S.A. Persistency factors Permitted compensation Section 8089, Reg. H-2009-1, Administrative capability arrangements (Reg H-2009-04 Sec Section 6 (L)) Eligibility for coverage 16) Replacement (Reg. H-2009-1, Open enrollment Renewability and cancellation (Reg Section 14) Employee eligibility (4080(5)) H-2009-04 Sec 8(A)(5), Sec Benefit Standards (8 V.S.A. Section Dependent eligibility 8.1(A)(5)) 8085) Coordination of benefits provision Continuation and conversion Prohibited Policy Provisions (8 V.S.A. Change of insurance companies or requirements (Reg H-2009-04 Sec Sections 8086, 8087; Reg. H-2009-1, loss of coverage 8(A)(5), Sec 8.1(A)(5)) Sections 6, 25) Events that terminate coverage Notice requirements (Reg H-2009-04 Renewal Considerations (Reg. H- Extension of benefits (4091e) Sec 17(B)) 2009-1, Sections 7(B) and 8(B)) 8.5 Small employer group Medicare Select (Reg H-2009-04 Sec Inflation Protection (Reg. H-2009-1, medical plans 10) Section 13) Definition of small employer 9.3 Other options for individuals Pre-existing Conditions (8 V.S.A. 1811(a)(3)(B) with Medicare Section 8086, Reg. H-2009-1, Availability of coverage Employer group health plans Section 25) 1811(a)(3)(B) Disabled employees Non-forfeiture requirements (8 Employees with kidney failure V.S.A. Section 8095, Reg. H-2009-1, Individuals age 65 and older Section 28) 9.0 Insurance for Senior Citizens Medicaid and Special Needs Individuals Eligibility 13% (13 Items) Benefits 10.0 Federal Tax Considerations 9.1 Medicare 9.4 LTC, Medicare and Medicaid for Health Insurance 9% (9 Nature, financing and administration compared Items) Part A — Hospital Insurance Individual vs. Group 10.1 Personally-owned health Individual eligibility requirements Continuation and Conversion (Reg. insurance Enrollment H-2009-01, Section 6(D)) Disability income insurance Coverages and cost-sharing amounts Eligibility for Benefits Medical expense insurance Part B — Medical Insurance Elimination Period (Reg. H-2009-I, Long-term care insurance Individual eligibility requirements Section 6(I)) 10.2 Employer group health Enrollment Activities of Daily Living (Reg. H- insurance Coverages and cost-sharing amounts 2009-1, Section 29) Disability income (STD, LTD) Exclusions Cognitive Impairment (Reg. H-2009- Medical and dental expense Claims terminology and other key I, Section 29) Long-term care insurance terms Coverage of Mental Health Conditions Accidental death and dismemberment Part C — Medicare Advantage (Reg. H-2009-I, Section 6(J)(3)) 10.3 Medical expense coverage Part D — Prescription Drug Insurance Appeal of Benefit Determinations for sole proprietors and partners 9.2 Medicare supplements (Reg (Reg. H-2009-I, Section 31) 10.4 Medical savings accounts H-2009-04 Sec 1-25) Internal Appeal (Reg. H-2009-I, (MSAs) Purpose (Reg H-2009-04 Sec 1) Section 31 (A)-(C)) Open enrollment (Reg H-2009-04 Independent Review (Reg. H-2009-I, Sec 11) Section 31 (D)-(E)) Vermont Producer's Examination Standardized Medicare supplement Level of Benefits (Reg. H-2009-1, plans (Reg H-2009-04 Sec 8, 9) Section 6(H)(4)-(5)) for Life, Accident, Health and Core benefits (Reg H-2009-04 Sec Home Health Care HMO 8(B)) Personal Care Series 14-29 Additional benefits (Reg H-2009-04 Adult Day Care Sec 8(C)) Nursing Facility 150 questions (plus 5 unscored Vermont regulations and required Hospice Care items) provisions Required Benefit Configurations Standards for marketing (Reg H- (Reg. H-2009-1, Section 6 (K)) 2.5-hour time limit 2009-04 Sec 20) Qualified Long Term Care Plans Effective November 3, 2019 Advertising (Reg H-2009-04 Sec 19) (Regulation H-2009-1, Section 30) Appropriateness of recommended Underwriting Considerations purchase (Reg H-2009-04 Sec 21)

25 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

1.0 Insurance Regulation 5% (7 2.0 General Insurance 4% (6 3.1 Insurable interest (3710) Items) Items) Power to contract 1.1 Licensing 2.1 Concepts 3.2 Personal uses of life Process (4800; 4813e,f) Risk management key terms insurance Types of licensees (4791) Risk Survivor protection Resident (4800(3)(A)) Exposure Estate creation Nonresident (4800(3)(B); 4813h) Hazard Cash accumulation Maintenance and duration Peril Liquidity Renewal and expiration (4798) Loss Estate conservation Address change (4800(3)(F)) Methods of handling risk 3.3 Determining amount of Assumed business name (4813j) Avoidance personal life insurance Reporting of actions (4813o) Retention Human life value approach Continuing education requirements Sharing Needs approach (4800a; Reg 2000-2 Sec 4) Reduction Types of information gathered Disciplinary actions Transfer Determining lump-sum needs Denial of license (4800(3)(E)) Elements of insurable risks Planning for income needs Cease and desist order (3661) Adverse selection 3.4 Business uses of life Suspension, revocation or Law of large numbers insurance nonrenewal (4804; 4806) Reinsurance Buy-sell funding Penalties (3661(a)(2); 4804(d)) 2.2 Insurers Key person 1.2 State regulation Types of insurers Executive bonuses Commissioner's general duties and Captive insurers Deferred compensation funding powers (4726; 4804) Stock companies 3.5 Classes of life insurance Company regulation Mutual companies policies Certificate of authority (3368) Fraternal benefit societies Group versus individual Unfair claim settlement practices Lloyd's associations Ordinary versus industrial (home (4724(9); Reg 79-2 Sec 1–7) Risk retention groups service) Policy forms (3541) Private versus government insurers Permanent versus term Examination of records (3565) Admitted versus nonadmitted Participating versus nonparticipating Producer appointment (4798(d); insurers Fixed versus variable life insurance 4813l) Domestic, foreign and alien insurers and annuities Termination of appointment Financial status (independent rating Regulation of variable products (SEC, (4798(d); 4813m) services) FINRA and Vermont) (3855; Reg 88- Producer regulation Marketing (distribution) systems 3 Art VI, XI, 2001-03; Bul 121, 129) Acting without a license (4793; 2.3 Producers and general rules 3.6 Premiums 4813c) of agency Factors in premium determination Shared commissions (4796) Insurer as principal Mortality Trust accounts — anti-commingling Producer/insurer relationship Interest (Reg 95-1; 4724(12)) Authority and powers of producers Expense Controlled business (4795) Express Premium concepts Duties (4813c) Implied Net single premium Unfair trade practices (4724) Apparent Gross annual premium Misrepresentation (4724(1, 11, 13)) 2.4 Contracts Premium payment mode False advertising (4724(2)) Elements of a legal contract 3.7 Producer responsibilities Defamation (4724(3)) Offer and acceptance Solicitation and sales presentations Boycott, coercion and intimidation Consideration (Reg 77-2) (4724(4)) Competent parties Advertising False financial statements and entries Legal purpose Life and Health Insurance Guaranty (4724(5)) Distinct characteristics of an Association (4151–4185) Illegal inducement (4724(6)) insurance contract Illustrations (Reg 98-1) Unfair discrimination (4724(7)) Contract of adhesion Policy summary (Reg 77-2 Sec 5(A, Rebating (4724(8)) Aleatory contract B), Appendix B) Failure to maintain complaint record Personal contract General Rules (Reg 77-2 Sec 6 (B, C, (4724(10)) Unilateral contract K, L, N, O, P) Failure to act as fiduciary (4724(12); Legal interpretations affecting Buyer's guide (Reg 77-2 Sec 5(A, B), Reg 95-1) contracts Appendix A) Unsuitability (4724(16)) Ambiguities in a contract of adhesion Life insurance policy cost comparison Nondisclosure of fees or charges Reasonable expectations methods (4724(14)) Indemnity Replacement (Reg 2001-3 Sec 1–10) Consumer privacy regulation (IH- Utmost good faith Suitability 2001-01) Representations/misrepresentations Use and disclosure of insurance 1.3 Federal regulation Warranties information Fair Credit Reporting Act (15 USC Concealment Field underwriting 1681–1681d; VT FCRA 9; V.S.A. Fraud Notice of information practices 2480 a-n) Waiver and estoppel Application procedures Fraud and false statements (18 USC Delivery 1033, 1034) Policy review 3.0 Life Insurance Basics 9% Effective date of coverage (13 Items) Premium collection

26 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Statement of good health Modifications Guaranteed insurability 3.8 Individual underwriting by Right to examine (free look) Cost of living the insurer Exclusions Return of premium Information sources and regulation Representations in applications Application (3736) Producer report 5.3 Beneficiaries 6.0 Annuities 8% (12 Items) Attending physician statement Designation options 6.1 Annuity principles and Investigative consumer (inspection) Individuals concepts report (4724(7)) Classes Accumulation period versus annuity Medical Information Bureau (MIB) Estates period Inquiry into sexual orientation 8 Minors Owner, annuitant and beneficiary V.S.A. Section 4724(7)(c). Trusts Insurance aspects of annuities Medical examinations and lab tests Succession 6.2 Immediate versus deferred including HIV (4724(20); Bul 138) Revocable versus irrevocable annuities Selection criteria and unfair Common disaster clause Single premium immediate annuities discrimination (3701) Spendthrift clause (SPIAs) Classification of risks 5.4 Settlement options Deferred annuities Preferred Cash payment Premium payment options Standard Interest only Nonforfeiture Substandard Interest on death benefits Bul 159 (8 Surrender charges V.S.A Section 3665(c)(2)) Death benefits Fixed-period installments 6.3 Annuity (benefit) payment 4.0 Life Insurance Policies 9% Fixed-amount installments options (13 Items) Life income Life contingency options 4.1 Term life insurance Single life Pure life versus life with guaranteed Level term Joint and survivor minimum Annual renewable term Retained asset accounts Single life versus multiple life Level premium term 5.5 Nonforfeiture options Annuities certain (types) Decreasing term Cash surrender value 6.4 Annuity products 4.2 Whole life insurance Extended term Fixed annuities Continuous premium (straight life) Reduced paid-up insurance General account assets Limited payment 5.6 Policy loan and withdrawal Interest rate guarantees (minimum Single premium options versus current) 4.3 Flexible premium policies Cash loans Level benefit payment amount Universal life Automatic premium loans Equity indexed annuities Indexed universal life Withdrawals or partial surrenders Definition 4.4 SEC regulated policies 5.7 Dividend options Suitability Variable life insurance Cash payment Market value adjusted annuities Variable universal life Reduction of premium payments Variable annuity contracts 4.5 Specialized policies Accumulation at interest 6.5 Uses of annuities Joint life (first-to-die) One-year term option Lump-sum settlements Survivorship life (second-to-die) Paid-up additions Qualified retirement plans Juvenile life Paid-up insurance Group versus individual annuities 4.6 Group life insurance 5.8 Disability riders Personal uses Characteristics of group plans Waiver of premium Individual retirement annuities (IRAs) Types of plan sponsors (3803– Waiver of cost of insurance Tax-deferred growth 3810a) Disability income benefit Retirement income Insurability (3816) Payor benefit life/disability (juvenile Education funds Assignability (3713(a, b)) insurance) Conversion to individual policy 5.9 Accelerated (living) benefit (3820–3823) provision/rider 7.0 Federal Tax Considerations 4.7 Credit life insurance Conditions for payment for Life Insurance and Annuities (individual versus group) Effect on death benefit 6% (9 Items) 5.10 Life settlements (3835– 7.1 Taxation of personal life 3849; Reg 95-4 Sec 1–15) insurance 5.0 Life Insurance Policy Life settlement providers Amounts available to policyowner Provisions, Options and Riders Life settlement brokers Cash value increases 7% (11 Items) Life insurance providers Dividends 5.1 Required provisions (3731) Life settlement contract provisions Policy loans Entire contract (3731(3)) Disclosure provisions Surrenders Payment of premiums (3731(1)) Rules of conduct Amounts received by beneficiary Grace period (3731(2)) 5.11 Riders covering additional General rule and exceptions Reinstatement (3731(9)) insureds Settlement options Incontestability (3731(4)) Spouse/other-insured term rider Values included in insured's estate Misstatement of age (3731(5)) Children's term rider 7.2 Modified endowment Payment of claims (3731(10)) Family term rider contracts (MECs) 5.2 Other provisions 5.12 Riders affecting the death Modified endowment versus life Ownership (3710) benefit amount insurance Assignment (3713(a, b)) Accidental death Seven-pay test

27 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Distributions Required notice to insured Reg. 80- 10.0 Health Insurance Policy 7.3 Taxation of non-qualified 1, Sec. 8; 8 V.S.A. Sec. 4063; 8 General Provisions (Non-group annuities V.S.A. Sec. 4902 and Group) 6% (9 Items) Individually-owned Types of limited policies 10.1 Uniform required provisions Accumulation phase (tax issues Accident-only Reg. 80-1, Sec. 7(G) Entire contract; changes (4065(1), related to withdrawals) Specified (dread) disease Reg. 80-1, 4080(1)) Annuity phase and the exclusion ratio Sec. 7(H) Certificate of insurance (4080(2)) Distributions at death Hospital indemnity Reg. 80-1, Sec. Time limit on certain defenses Corporate-owned 7(D) (4065(2)) 7.4 Taxation of individual Blanket insurance (student accident, Grace period (4065(3)) retirement annuities (IRAs) passengers, other) 8 V.S.A. Sec. New employees (4080(3)) Traditional IRAs 4081 Part-time employees (4080(5) Contributions and deductible amounts Prescription drugs 8 V.S.A. Secs. Reinstatement (4065(4)) Premature distributions (including 4089(j) & 4089(i) Claim procedures (4065(5–9); Reg taxation issues) Vision care/hearing care 93-4) Annuity phase benefit payments Suitability 8 V.S.A. Sec. 4724(16); 8 Physical examinations and autopsy Values included in the annuitant's V.S.A. Sec. 4062 (4065(10)) estate 9.5 Common exclusions from Legal actions (4065(11)) Amounts received by beneficiary coverage (Pre-existing cond. Reg. Change of beneficiary (4065(12)) Roth IRAs 80-1, Sec. 5(F), 6(C) 10.2 Optional provisions (4066) Contributions and limits 9.6 Producer responsibilities in Change of occupation (4066(1)) Distributions individual health insurance Misstatement of age (4066(2)) 7.5 Rollovers and transfers (IRAs Marketing requirements Other insurance in this insurer and qualified plans) Advertising (Reg 71-1) (4066(3)) 7.6 Section 1035 exchanges Sales presentations Insurance with other insurers Outline of coverage Reg 80-1 Sec Expense-incurred basis (4066(4)) 8(B) Other benefits (4066(5)) 8.0 Qualified Plans 2% (3 Field underwriting Items) Unpaid premium (4066(7)) Nature and purpose Cancellation (4066(8); Reg 91-4B 8.1 General requirements Privacy, Protected Health Information Sec 3(10)) 8.2 Federal tax considerations (ERISA) Conformity with state statutes Tax advantages for employers and Application procedures Reg. 80-1, (4066(9)) employees Sec. 9 Requirements for replacement Illegal occupation (4066(10)) Taxation of distributions (age- Requirements at delivery of policy 10.3 Other general provisions related) Common situations for Mental health parity 8 V.S.A. 8.3 Plan types, characteristics errors/omissions 4089(b) and purchasers Life and Health Insurance Guaranty Right to examine (free look) Simplified employee pensions (SEPs) Association Title 8, Ch. 112, (4063(8)) Self-employed plans (HR 10 or Keogh including 8 V.S.A. Sec. 4064(e); Insuring clause plans) 4164(e) Consideration clause Profit-sharing and 401(k) plans 9.7 Individual underwriting by Renewability clause Reg. 80-1, Sec. SIMPLE plans the insurer 7(A)(1), (2) and (15)(f) 403(b) tax-sheltered annuities (TSAs) Underwriting criteria Noncancelable Sources of underwriting information Guaranteed renewable Application Conditionally renewable 9.0 Health Insurance Basics 6% Producer report (9 Items) Renewable at option of insurer Attending physician statement Nonrenewable (cancelable, term) 9.1 Definitions of perils Investigative consumer (inspection) Reduction in coverage Accidental injury Reg. 80-1, Sec. report (4724(7)) 5(D) Medical Information Bureau (MIB) Sickness Reg. 80-1, Sec. 5(E) Medical examinations and lab tests 11.0 Disability Income and 9.2 Principal types of losses and including HIV (4724(20)) Related Insurance (Reg. 80-1, Sec. benefits Unfair discrimination 8 V.S.A. Sec. 7(F)) 6% (9 Items) 4724(7) Loss of income from disability Reg. 11.1 Qualifying for disability Genetic testing (Title 18 Sec 9331– 80-1, Sec. 5(I), (J), (K) benefits 9335); 8 V.S.A. Sec. 4724(22) Medical expense Reg. 80-1, Sec. 5; Inability to perform duties (Reg. 80- 9.8 Considerations in replacing Reg. H-2009-03, Sec. 1.4 1, Sec. 5(I), (J), (K), and 7 (A) (10) health insurance Reg. 80-1, Sec. Dental expense Own occupation 9, replacement Long-term care expense Reg. H Any occupation Pre-existing conditions 2009 - 01 Pure loss of income (income Pre-existing condition exclusion 9.3 Classes of health insurance replacement contracts) regulation Reg. 80-1, Sec. 5(F), policies Presumptive disability 6(E)), 6(C) Individual versus group Requirement to be under physician Benefits, limitations and exclusions Private versus government care Reg. 80-1, Sec. 6 Limited versus comprehensive Reg. 11.2 Individual disability income Underwriting requirements 80-1, Sec. 7(E); Reg. H-2009-03 insurance

Self-Funded Plans (ERISA) Basic total disability plan 9.4 Limited policies Income benefits (monthly indemnity) Limited perils and amounts Elimination and benefit periods

28 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Waiver of premium feature Stand-alone dental plans (SADPs) Creditable coverage Coordination with social insurance Pediatric dental coverage under the Renewability and workers compensation benefits ACA Protected Health Information (PHI) Additional monthly benefit (AMB) Waiting periods 12.7 Medical savings accounts Social insurance supplement (SIS) 12.2 Medical plan concepts (MSAs), Health Savings Accounts Occupational versus nonoccupational Fee-for-service basis versus prepaid (HSAs) and High Deductible coverage basis Health Plans (HDHPs) At-work benefits Specified coverages versus Definition Partial disability benefit comprehensive care Eligibility Residual disability benefit Benefit schedule versus Contribution limits Other provisions affecting income usual/reasonable/customary charges benefits Managed care versus non-managed Cost of living adjustment (COLA) care (Reg. H-2009-03) 13.0 Health Maintenance rider Expense based versus indemnity Organizations (HMOs) 7% (10 Future increase option (FIO) rider based Items) Relation of earnings to insurance 12.3 Types of providers and 13.1 General characteristics (4066(6)) plans Combined health care delivery and Other cash benefits Major medical insurance (indemnity financing Accidental death and dismemberment plans) In network versus out of network Reg. 80-1, Sec. 7(G) Characteristics Limited service area Rehabilitation benefit Common limitations Limited choice of providers Medical reimbursement benefit Exclusions from coverage Gatekeeper concept (nondisabling injury) (Subject to Provisions affecting cost to insured Copayments applicable health & sickness rules) Major-med coverage in VT (Reg. H- Prepaid basis Exclusions (Bul HCA 127) 2009-03) 13.2 HMO Services 11.3 Unique aspects of individual Health maintenance organizations Preventive care services disability underwriting (HMOs) Well-child care Occupational considerations Preferred provider organizations Immunizations Benefit limits (PPOs) Routine physical examinations Policy issuance alternatives General characteristics Wellness programs 11.4 Group disability income Open or closed network Physician services insurance Types of parties to the provider Primary care physician (PCP) Group versus individual plans contract Referral (specialty) physician 11.5 Social Security disability Exclusive provider organizations Emergency care Qualification for disability benefits (EPOs) Urgent care center Definition of disability General characteristics Hospital emergency room Waiting period Open or closed network Hospital services Disability income benefits Point-of-service (POS) plans Skilled nursing facility services 11.6 Workers compensation Nature and purpose Home health care (4096) Eligibility Non-network provider access (open- Family planning services Benefits ended HMO) Mental health/substance abuse PCP referral (gatekeeper PPO) benefits Indemnity plan features Prescription drugs 12.0 Medical Plans 9% (14 12.4 Utilization Management (H- Additional plans and services Items) 2009-03) Dental services (effects of PPACA) 12.1 Patient Protection and Prior approval H-2009-03, Sec. 3. Vision care/hearing care (effects of Affordable Care Act (PPACA, or Appeal/Grievance procedures H- PPACA) ACA) 2009-03, Sec. 3.3 Vermont Health Connect (VHC) 12.5 Vermont eligibility (V.S.A. Title 33, Ch. 18) requirements (non-group and/or 14.0 Group Health Insurance Eligibility group) 5% (8 Items) Income levels Child age limit, whether or not 14.1 Characteristics of group Private insurance products through dependent insurance VHC Adopted child coverage (4100c) Group contract 8 V.S.A. Sec. 4080 Person ineligible Child coverage; noncustodial parents Certificate of coverage 8 V.S.A. Sec. Premium subsidies (4100b) 4080 Pre-existing condition exclusions Disabled child coverage 8 V.S.A. Experience rating versus community Ten Essential Health Benefits (EHB) Sec. 4089d) rating Lifetime and annual limits Newborn child coverage (4092) 14.2 Types of eligible groups (8 Preventive benefits Civil unions (4063a; Title 15 Sec V.S.A. Sec. 4079) Individual and small group major 1201; Reg IH-2001, Bul HCA 110) Employment-related groups med market Same sex marriage 15 V.S.A. Sec. Individual employer groups Large group market 8; 18 V.S.A. Sec. 5131(a)(2) Multiple-Employer Trusts (METs) Off-exchange 12.6 HIPAA (Health Insurance Exempt associations (alumni, Dental Insurance Portability and Accountability professional, other) Availability of coverage Act) requirements Trusts (unions, employers) Individual and employer-sponsored Eligibility 14.3 Marketing considerations group plans Guaranteed issue Advertising (Reg. 71-1) Provider network Pre-existing conditions

29 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Regulatory jurisdiction/place of Buyer's guide (Reg H-2009-04 Sec Suitability (Regulation H-2009-1, delivery 17(A)(6)) Section 29) 14.4 Employer group health Outline of coverage (Reg H-2009-04 Replacement (Reg. H-2009-1, insurance Sec 17(D)) Section 14) Vermont underwriting requirements Right to return (Reg H-2009-04 Sec Vermont regulations and required (4079) 17(A)(5)) provisions Insurer underwriting criteria Pre-existing conditions (Reg H-2009- Standards for Marketing (Reg. H- Characteristics of group 04 Sec 8(A)(1), Sec 8.1(A)(1)) 2009-1, Sections 9, 23) Plan design factors Duplication of Medicare benefits (Reg Buyer's Guide (8 V.S.A. Section Persistency factors H-2009-04 Sec 21(B)) 8098, Reg. H-2009-1, Section 23) Administrative capability Replacement (Reg H-2009-04 Sec Outline of Coverage (8 V.S.A. Eligibility for coverage 18, 23) Section 87090, Reg. H-2009-1, Open enrollment Required disclosure provisions (Reg Section 32) Employee eligibility (4080(5)) H-2009-04 Sec 17) Right to Return (free look) (8 V.S.A. Dependent eligibility Permitted compensation Section 8089, Reg. H-2009-1, Coordination of benefits provision arrangements (Reg H-2009-04 Sec Section 6 (L)) Change of insurance companies or 16) Replacement (Reg. H-2009-1, loss of coverage Renewability and cancellation (Reg Section 14) Coinsurance and deductible carryover H-2009-04 Sec 8(A)(5), Sec Benefit Standards (8 V.S.A. Section No-loss no-gain 8.1(A)(5)) 8085) Events that terminate coverage Continuation and conversion Prohibited Policy Provisions (8 V.S.A. Extension of benefits (4091e) requirements (Reg H-2009-04 Sec Sections 8086, 8087; Reg. H-2009-1, Continuation of coverage under 8(A)(5), Sec 8.1(A)(5)) Sections 6, 25) COBRA and Vermont specific rules, Notice requirements (Reg H-2009-04 Renewal Considerations (Reg. H- VIPER Sec 17(B)) 2009-1, Sections 7(B) and 8(B)) Conversion privilege (8 s 4090a–g) Medicare Select (Reg H-2009-04 Sec Inflation Protection (Reg. H-2009-1, 14.5 Small employer group 10) Section 13) medical plans 15.3 Other options for Pre-existing Conditions (8 V.S.A. Definition of small employer individuals with Medicare Section 8086, Reg. H-2009-1, (4080a(a)(1)) Employer group health plans Section 25) Availability of coverage (4080a(d)) Disabled employees Non-forfeiture requirements (8 Employees with kidney failure V.S.A. Section 8095, Reg. H-2009-1, Individuals age 65 and older Section 28) 15.0 Insurance for Senior Medicaid Citizens and Special Needs Eligibility Individuals 6% (9 Items) Benefits 16.0 Federal Tax Considerations 15.1 Medicare 15.4 LTC, Medicare and Medicaid for Health Insurance 5% (8 Nature, financing and administration compared Items) Part A — Hospital Insurance Individual vs. Group 16.1 Personally-owned health Individual eligibility requirements Continuation and Conversion (Reg. insurance Enrollment H-2009-01, Section 6(D)) Disability income insurance Coverages and cost-sharing amounts Eligibility for Benefits Medical expense insurance Part B — Medical Insurance Elimination Period (Reg. H-2009-I, Long-term care insurance Individual eligibility requirements Section 6(I)) 16.2 Employer group health Enrollment Activities of Daily Living (Reg. H- insurance Coverages and cost-sharing amounts 2009-1, Section 29) Disability income (STD, LTD) Exclusions Cognitive Impairment (Reg. H-2009- Medical and dental expense Claims terminology and other key I, Section 29) Long-term care insurance terms Coverage of Mental Health Conditions Accidental death and dismemberment Part C — Medicare Advantage (Reg. H-2009-I, Section 6(J)(3)) 16.3 Medical expense coverage Part D — Prescription Drug Insurance Appeal of Benefit Determinations for sole proprietors and partners 15.2 Medicare supplements (Reg (Reg. H-2009-I, Section 31) 16.4 Medical savings accounts H-2009-04 Sec 1–25) Internal Appeal (Reg. H-2009-I, (MSAs) Purpose (Reg H-2009-04 Sec 1) Section 31 (A)-(C)) Open enrollment (Reg H-2009-04 Independent Review (Reg. H-2009-I, Sec 11) Section 31 (D)-(E)) Vermont Producer's Examination Standardized Medicare supplement Level of Benefits (Reg. H-2009-1, plans (Reg H-2009-04 Sec 8, 9) Section 6(H)(4)-(5)) for Property and Casualty Core benefits (Reg H-2009-04 Sec Home Health Care Insurance 8(B)) Personal Care Series 14-31 Additional benefits (Reg H-2009-04 Adult Day Care 150 questions (plus 5 unscored Sec 8(C)) Nursing Facility items) Vermont regulations and required Hospice Care provisions Required Benefit Configurations Standards for marketing (Reg H- (Reg. H-2009-1, Section 6 (K)) 2.5-hour time limit 2009-04 Sec 20) Qualified Long Term Care Plans Effective November 3, 2019 Advertising (Reg H-2009-04 Sec 19) (Regulation H-2009-1, Section 30)

Appropriateness of recommended Underwriting Considerations purchase (Reg H-2009-04 Sec 21)

30 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

1.0 Insurance Regulation 10% 2.0 General Insurance 9% (13 3.0 Property and Casualty (15 Items) Items) Insurance Basics 10% (15 1.1 Licensing 2.1 Concepts Items) Process (4800; 4813f) Risk management key terms 3.1 Principles and concepts Types of licensees (4791) Risk Insurable interest Resident (4800(3)(A)) Exposure Underwriting Nonresident (4800(3)(B); 4813h) Hazard Function Maintenance and duration Peril Loss ratio Renewal and expiration (4798) Loss Rates Address change (4800(3)(F)) Methods of handling risk Types Assumed business name (4813j) Avoidance Loss costs Reporting of actions (4813o) Retention Components Continuing education requirements Sharing Hazards (4800a; Reg 2000-2 Sec 4) Reduction Physical Disciplinary actions Transfer Moral Denial of license (4800(3)(E)) Elements of insurable risks Morale Cease and desist order (3661) Adverse selection Negligence Suspension, revocation or Law of large numbers Elements of a negligent act nonrenewal (4804; 4806) Reinsurance Defenses against negligence Penalties (3661(a)(2); 4804(d)) 2.2 Insurers Damages 1.2 State regulation Types of insurers Compensatory — special versus Commissioner's general duties and Captive insurers general powers (4726; 4804) Stock companies Punitive Company regulation Mutual companies Absolute liability Certificate of authority (3368) Fraternal benefit societies Strict liability Unfair claim settlement practices Lloyd's associations Vicarious liability (4724(9); Reg 79-2 Sec 1–7) Risk retention groups Causes of loss (perils) Policy forms (3541) Private versus government insurers Named perils versus special (open) Examination of records (3565) Admitted versus nonadmitted perils Producer appointment (4798(d); insurers Direct loss 4813l) Domestic, foreign and alien insurers Consequential or indirect loss Termination of appointment Financial status (independent rating Blanket versus specific insurance (4798(d); 4813m) services) Basic types of construction Producer regulation Marketing (distribution) systems Loss valuation Acting without a license (4793; 2.3 Producers and general rules Actual cash value 4813c) of agency Replacement cost Shared commissions (4796) Insurer as principal Functional replacement cost Trust accounts — anti-commingling Producer/insurer relationship Market value (Reg 95-1; 4724(12)) Authority and powers of producers Agreed value Controlled business (4795) Express Stated amount Duties (4813c) Implied Valued policy Unfair trade practices (4724) Apparent 3.2 Policy structure Misrepresentation (4724(1, 11, 13)) 2.4 Contracts Declarations False advertising (4724(2)) Elements of a legal contract Definitions Defamation (4724(3)) Offer and acceptance Insuring agreement or clause Boycott, coercion and intimidation Consideration Additional/supplementary coverage (4724(4)) Competent parties Conditions False financial statements and entries Legal purpose Exclusions (4724(5)) Distinct characteristics of an Endorsements Illegal inducement (4724(6)) insurance contract 3.3 Common policy provisions Unfair discrimination (4724(7)) Contract of adhesion Insureds — named, first named, Rebating (4724(8)) Aleatory contract additional Failure to maintain complaint record Personal contract Policy period (4724(10)) Unilateral contract Policy territory Failure to act as fiduciary (4724(12); Legal interpretations affecting Cancellation and nonrenewal Reg 95-1) contracts Deductibles Unsuitability (4724(16)) Ambiguities in a contract of adhesion Other insurance Nondisclosure of fees or charges Reasonable expectations Nonconcurrency (4724(14)) Indemnity Primary and excess Consumer privacy regulation (IH- Utmost good faith Pro rata 2001-01) Representations/misrepresentations Contribution by equal shares 1.3 Federal regulation Warranties Limits of liability Fair Credit Reporting Act (15 USC Concealment Per occurrence (accident) 1681–1681d) Fraud Per person Fraud and false statements (18 USC Waiver and estoppel Aggregate — general versus products 1033, 1034) — completed operations Split Combined single Restoration/nonreduction of limits

31 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Coinsurance HO-2 through HO-6 Supplementary payments Vacancy or unoccupancy 5.2 Definitions Exclusions Named insured provisions 5.3 Section I — Property Medical payments Duties after loss coverages Uninsured motorist/underinsured Assignment Coverage A — Dwelling motorist coverage Abandonment Coverage B — Other structures Coverage for damage to your auto Insurer provisions Coverage C — Personal property Collision Liberalization Coverage D — Loss of use Other than collision Subrogation Additional coverages Deductibles Salvage 5.4 Section II — Liability Transportation expense Claim settlement options coverages Exclusions Duty to defend Coverage E — Personal liability Duties after an accident or loss Third-party provisions Coverage F — Medical payments to General provisions Standard mortgage clause others Selected endorsements Loss payable clause Additional coverages Amendment of policy provisions — No benefit to Bailee 5.5 Perils insured against Vermont (PP 01 72) 3.4 Vermont laws, regulations 5.6 Exclusions Towing and labor costs (PP 03 03) and required provisions 5.7 Conditions Extended non-owned coverage (PP Vermont Property and Casualty 5.8 Selected endorsements 03 06) Insurance Guaranty Association Special provisions — Vermont (HO Miscellaneous type vehicle (PP 03 (3611–3626) 01 44) 23) Renewal notice (3882; 4715) Limited fungi, wet or dry rot, or Joint ownership coverage — Vermont Cancellation and nonrenewal (3879– bacteria coverage — Vermont (HO (PP 03 80) 3881; 3883; 4711–4714) 04 02) 6.3 Commercial auto Consent to rate (4688(f); Reg I- Permitted incidental occupancies (HO Commercial auto coverage forms 2010-03) 04 42) Business auto Loss payment (3868; Reg 79-2 Sec Earthquake (HO 04 54) Auto Dealers 6, 8) Scheduled personal property (HO 04 Business auto physical damage Discrimination (3861) 61) Truckers Coinsurance (3961–3968) Personal property replacement cost Motor carrier Pollution coverage (Bul 111) (HO 04 90) Coverage form sections Required provisions (4203) Home day care — Vermont (HO 23 Covered autos Federal Terrorism Insurance Program 45) Liability coverage (Bul 142, 150; 15 USC 6701; Public Business pursuits (HO 24 71) Garagekeepers coverage Law 107–297, 109–144, 110–160) Watercraft (HO 24 75) Trailer interchange coverage Personal injury (HO 24 82) Physical damage coverage Exclusions 4.0 Dwelling Policy 5% (8 Conditions Items) 6.0 Auto Insurance 21% (31 Definitions 4.1 Characteristics and purpose Items) Selected endorsements 4.2 Coverage forms — Perils 6.1 Laws Lessor — additional insured and loss insured against Vermont Motor Vehicle Financial payee (CA 20 01) Basic Responsibility and Insurance Laws Mobile equipment (CA 20 15) Broad (Title 23 Sec 800–943) Auto medical payments coverage Special Required limits of liability (Title 23 (CA 99 03) 4.3 Property coverages Sec 801) Drive other car coverage (CA 99 10) Coverage A — Dwelling Required proof of insurance (Bul 77) Individual named insured (CA 99 17) Coverage B — Other structures Vermont Automobile Insurance Plan Commercial carrier regulations Coverage C — Personal property (4241–4246) The Motor Carrier Act of 1980 Coverage D — Fair rental value Eligibility Endorsement for motor carrier Coverage E — Additional living Liability limitations policies of insurance for public liability expense Physical damage coverage limitations (MCS-90) Other coverages Uninsured/underinsured motorist 4.4 General exclusions (Title 23 Sec 941) 4.5 Conditions Definitions 7.0 Commercial Package Policy 4.6 Selected endorsements Required limits of liability (CPP) 8% (12 Items) Special provisions — Vermont (DP 01 Bodily injury 7.1 Components of a commercial 44) Property damage policy Automatic increase in insurance (DP Cancellation/nonrenewal Common policy declarations 04 11) Grounds (4223) Common policy conditions Broad theft coverage (DP 04 72) Notice (4224–4226) Interline endorsements Dwelling under construction (DP 11 Notice of eligibility in assigned risk One or more coverage parts 43) plan (4227) 7.2 Commercial general liability 4.7 Personal liability supplement Binders (Title 23 Sec 942) Commercial general liability coverage Surcharges (4671–4675) forms 6.2 Personal auto policy Bodily injury and property damage 5.0 Homeowners Policy 17% Definitions liability (26 Items) Liability coverage Personal and advertising injury 5.1 Coverage forms Bodily injury and property damage liability

32 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Medical payments Common carrier cargo liability 9.0 Workers Compensation Supplementary payments Motor truck cargo forms Insurance 7% (10 Items) Who is an insured Transit coverage forms 9.1 Workers compensation laws Limits of liability 7.6 Equipment breakdown Type of law Conditions Equipment breakdown protection Compulsory versus elective Definitions coverage form (EB 00 20) Vermont Workers' Compensation Law Exclusions Selected endorsement Exclusive remedy Premises and operations Actual cash value (EB 99 59) Employment covered (required, Products and completed operations 7.7 Farm coverage voluntary) Insured contract Farm property coverage forms Covered injuries 7.3 Commercial property Coverage A — Dwellings Occupational disease Commercial property conditions form Coverage B — Other private Benefits provided Coverage forms structures Federal workers compensation laws Building and personal property Coverage C — Household personal Federal Employer Liability Act (FELA) Condominium association property (45 USC 51–60) Condominium commercial unit- Coverage D — Loss of use U.S. Longshore & Harbor Workers' owners Coverage E — Scheduled farm Compensation Act (33 USC 904) Builders risk personal property The Jones Act (46 USC 688) Business income Coverage F — Unscheduled farm 9.2 Workers compensation and Legal liability personal property employers liability insurance Extra expense Coverage G — Other farm structures policy Causes of loss forms Farm liability coverage form General section Basic Coverage H — Bodily injury and Part One — Workers compensation Broad property damage liability insurance Special Coverage I — Personal advertising Part Two — Employers liability Selected endorsements injury liability insurance Ordinance or law (CP 04 05) Coverage J — Medical payments Part Three — Other states insurance Spoilage (CP 04 40) Mobile agricultural machinery and Part Four — Your duties if injury Peak season limit of insurance (CP equipment coverage form occurs 12 30) Livestock coverage form Part Five — Premium Value reporting form (CP 13 10) Definitions Part Six — Conditions 7.4 Commercial crime Cause of loss (basic, broad and Voluntary compensation endorsement General definitions special) 9.3 Premium computation Burglary Conditions Job classification — payroll and rates Theft Exclusions Experience modification factor Robbery Limits Premium discounts Crime coverage forms Additional coverages 9.4 Other sources of coverages Commercial crime coverage forms Vermont workers' compensation (discovery/loss sustained) administration fund Government crime coverage forms 8.0 Businessowners Policy 6% (9 Items) Self-insured employers and employer (discovery/loss sustained) groups Coverages 8.1 Characteristics and purpose Employee theft 8.2 Businessowners Section I — Forgery or alteration Property 10.0 Other Coverages and Inside the premises — theft of money Coverage Options 7% (11 Items) and securities Exclusions 10.1 Umbrella/excess liability Inside the premises — robbery or Limits policies safe burglary of other property Deductibles Personal (DL 98 01) Outside premises Loss conditions Commercial (CU 00 01) Computer fraud General conditions 10.2 Specialty liability insurance Funds transfer fraud Optional coverages Cyber liability coverage Money orders and counterfeit money Definitions Professional liability Other crime coverage 8.3 Businessowners Section II — Errors and omissions Extortion — commercial entities Liability Directors and officers liability 7.5 Commercial inland marine Coverages Fiduciary liability Commercial inland marine conditions Exclusions Liquor liability form Who is an insured Employment practices liability Inland marine coverage forms Limits of insurance 10.3 Surplus lines Accounts receivable General conditions Definitions and markets Bailee's customers Definitions Licensing requirements Commercial articles 8.4 Businessowners Section III 10.4 Surety bonds Contractors equipment floater — Common Policy Conditions Principal, obligee, surety Electronic data processing 8.5 Selected endorsements Contract bonds Equipment dealers Protective safeguards (BP 04 30) License and permit bonds Installation floater Utility services — direct damage (BP Judicial bonds Jewelers block 04 56) 10.5 Ocean marine insurance Signs Utility services — time element (BP Hull insurance Valuable papers and records 04 57) Cargo insurance Transportation coverages Freight insurance

33 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Protection and indemnity Representations/misrepresentations Duty to defend 10.6 National Flood Insurance Warranties Third-party provisions Program Concealment Standard mortgage clause "Write your own" versus government Fraud Loss payable clause Eligibility Waiver and estoppel No benefit to Bailee Coverage 2.2 Principles and concepts 2.5 Vermont laws, regulations Limits Insurable interest and required provisions Deductibles Hazards Vermont Property and Casualty Physical Insurance Guaranty Association Moral (3611–3626) Morale Renewal notice (3882; 4715) Vermont Adjuster's Examination Negligence Cancellation and nonrenewal (3879– for Property and Casualty Elements of a negligent act 3881; 3883; 4711–4714) Insurance Defenses against negligence Coinsurance (3961–3968) Series 14-33 Damages Pollution coverage (Bul 111) 150 questions (plus 5 unscored Compensatory — special versus Required provisions (4203) general items) Punitive Absolute liability 3.0 Adjusting Losses 20% (30 2.5-hour time limit Strict liability Items) Effective November 3, 2019 Vicarious liability 3.1 Role of the adjuster Causes of loss (perils) Duties and responsibilities

Named perils versus special (open) Staff and independent adjuster 1.0 Insurance Regulation 5% (7 perils versus public adjuster (4791) Items) Direct loss Relationship to the legal profession Consequential or indirect loss 3.2 Claim reporting 1.1 Licensing requirements Blanket versus specific insurance Claim investigation Qualifications (4803(a)) Basic types of construction Claim file documentation of events Process (4800, 4800a) Loss valuation Types of reports Licensing exceptions (4803(d)(2)) Actual cash value Initial or first field Nonresident adjuster (4803(d)) Replacement cost Interim or status 1.2 Maintenance and duration Functional replacement cost Full formal Renewal (4798, 4800a) Market value 3.3 Property losses Expiration (4798) Agreed value Duties of insured after a loss Records (4803(c)) Stated amount Notice to insurer 1.3 Disciplinary actions Valued policy Minimizing the loss Denial of license (4800(3)(E)) 2.3 Policy structure Proof of loss Cease and desist order (3661) Declarations Special requirements Suspension, revocation or Definitions Production of books and records nonrenewal (4804; 4806) Insuring agreement or clause Abandonment Fines (4804(d)) Additional/supplementary coverage Determining value and loss 1.4 Claims settlement laws and Conditions Burden of proof of value and loss regulations (4724(9); Reg 79-2 Sec Exclusions Estimates 1-9; Bulletin 162) Endorsements Depreciation 1.5 Federal regulation 2.4 Common policy provisions Salvage Fraud and false statements (18 USC Insureds — named, first named, Claim settlement options 1033, 1034) additional Payment and discharge

Policy period 3.4 Liability losses 2.0 Insurance Basics 15% (23 Policy territory Investigation procedures Items) Cancellation and nonrenewal Verify coverage Deductibles Determine liability 2.1 Contracts Other insurance Gathering evidence Elements of a legal contract Nonconcurrency Physical evidence Offer and acceptance Primary and excess Witness statements Consideration Pro rata Police reports Competent parties Contribution by equal shares Determining value of intangible Legal purpose Limits of liability damages Distinct characteristics of an Per occurrence (accident) 3.5 Coverage problems insurance contract Per person Dealing with coverage disputes Contract of adhesion Aggregate — general versus products Reservation of rights letter Aleatory contract — completed operations Nonwaiver agreement Personal contract Split Declaratory judgment action Unilateral contract Combined single 3.6 Claims adjustment Legal interpretations affecting Restoration/nonreduction of limits procedures contracts Coinsurance Settlement procedures Ambiguities in a contract of adhesion Vacancy or unoccupancy Advance payments Reasonable expectations Assignment Draft authority Indemnity Insurer provisions Execution of releases Utmost good faith Liberalization Subrogation procedures

34 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Alternative dispute resolution Personal property replacement cost Garagekeepers coverage Appraisal (HO 04 90) Trailer interchange coverage Arbitration Home day care — Vermont (HO 23 Physical damage coverage Competitive estimates 45) Exclusions Mediation Business pursuits (HO 24 71) Conditions Negotiation Watercraft (HO 24 75) Definitions Personal injury (HO 24 82) Selected endorsements Lessor — additional insured and loss 4.0 Dwelling Policy 6% (9 payee (CA 20 01) Items) 6.0 Auto Insurance 12% (18 Mobile equipment (CA 20 15) 4.1 Characteristics and purpose Items) Auto medical payments coverage 4.2 Coverage forms — Perils 6.1 Laws (CA 99 03) insured against Vermont Motor Vehicle Financial Drive other car coverage (CA 99 10) Basic Responsibility and Insurance Laws Individual named insured (CA 99 17) Broad (Title 23 Chapter 11 Sec 800–943) Commercial carrier regulations Special Required limits of liability (Title 23 The Motor Carrier Act of 1980 4.3 Property coverages Chapter 11 Sec 801) Endorsement for motor carrier Coverage A — Dwelling Required proof of insurance (Bul 77) policies of insurance for public liability Coverage B — Other structures Vermont Automobile Insurance Plan (MCS-90) Coverage C — Personal property (4241–4246) Coverage D — Fair rental value Eligibility Coverage E — Additional living Liability limitations 7.0 Commercial Package Policy expense Physical damage coverage limitations (CPP) 12% (18 Items) Other coverages Uninsured/underinsured motorist 7.1 Components of a commercial 4.4 General exclusions (Title 23 Chapter 11 Sec 941) policy 4.5 Conditions Definitions Common policy declarations 4.6 Selected endorsements Required limits of liability Common policy conditions Special provisions — Vermont (DP 01 Bodily injury Interline endorsements 44) Property damage One or more coverage parts Automatic increase in insurance (DP Cancellation/nonrenewal 7.2 Commercial general liability 04 11) Grounds (4223) Commercial general liability coverage Broad theft coverage (DP 04 72) Notice (4224–4226) forms Dwelling under construction (DP 11 6.2 Personal auto policy Bodily injury and property damage 43) Definitions liability 4.7 Personal liability supplement Liability coverage Personal and advertising injury Bodily injury and property damage liability Supplementary payments Medical payments 5.0 Homeowners Policy 15% Exclusions Supplementary payments (22 Items) Duty to defend Who is an insured 5.1 Coverage forms Medical payments Limits of liability HO-2 through HO-6 Uninsured motorist/underinsured Conditions 5.2 Definitions motorist coverage Definitions 5.3 Section I — Property Coverage for damage to your auto Exclusions coverages Collision Premises and operations Coverage A — Dwelling Other than collision Products and completed operations Coverage B — Other structures Deductibles Insured contract Coverage C — Personal property Transportation expense 7.3 Commercial property Coverage D — Loss of use Exclusions Commercial property conditions form Additional coverages Duties after an accident or loss Coverage forms 5.4 Section II — Liability General provisions Building and personal property coverages Selected endorsements Condominium association Coverage E — Personal liability Amendment of policy provisions — Condominium commercial unit- Coverage F — Medical payments to Vermont (PP 01 72) owners others Towing and labor costs (PP 03 03) Builders risk Additional coverages Extended non-owned coverage (PP Business income 5.5 Perils insured against 03 06) Extra expense 5.6 Exclusions Miscellaneous type vehicle (PP 03 Legal liability 5.7 Conditions 23) Causes of loss forms 5.8 Selected endorsements Joint ownership coverage — Vermont Basic Special provisions — Vermont (HO (PP 03 80) Broad 01 44) 6.3 Commercial auto Special Limited fungi, wet or dry rot, or Commercial auto coverage forms Selected endorsements bacteria coverage — Vermont (HO Business auto Ordinance or law (CP 04 05) 04 02) Business auto physical damage Spoilage (CP 04 40) Permitted incidental occupancies (HO Truckers Peak season limit of insurance (CP 04 42) Motor carrier 12 30) Earthquake (HO 04 54) Coverage form sections Value reporting form (CP 13 10) Scheduled personal property (HO 04 Covered autos 7.4 Commercial crime 61) Liability coverage General definitions

35 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Burglary Conditions 2.0 Workers Compensation Theft Exclusions Insurance 55% (28 Items) Robbery Limits 2.1 Workers compensation laws Crime coverage forms Additional coverages and rules Commercial crime coverage forms Vermont Workers' Compensation Law (discovery/loss sustained) and Department of Labor Rules Government crime coverage forms 8.0 Businessowners Policy 15% (23 Items) (Related Regulation 94-1 Rule (discovery/loss sustained) 1.0000) Coverages 8.1 Characteristics and purpose Definitions (RR 94-1 Rule 2.0000) Employee theft 8.2 Businessowners Section I — Exclusive remedy Forgery or alteration Property Employment covered (required, Inside the premises — theft of money Coverage voluntary) and securities Exclusions Independent contractor versus Inside the premises — robbery or Limits employee safe burglary of other property Deductibles Statutory employer Outside premises Loss conditions Covered injuries Computer fraud General conditions First-aid-only injuries (Title 21 sec. Funds transfer fraud Optional coverages 640(e)) Money orders and counterfeit money Definitions Pre-authorization requests and Other crime coverage 8.3 Businessowners Section II — denials T. 21 s 640b Rule 6.000 Extortion — commercial entities Liability Benefits provided 7.5 Commercial inland marine Coverages Out-of-state injuries Commercial inland marine conditions Exclusions Jurisdiction form Who is an insured Subrogation (Rule 21.13; Title 21 Inland marine coverage forms Limits of insurance sec. 624(e)(2)) Accounts receivable General conditions Bars to recovery Bailee's customers Definitions Willful intention Commercial articles 8.4 Businessowners Section III Intoxication Contractors equipment floater — Common Policy Conditions Failure to use safety appliance Electronic data processing 8.5 Selected endorsements Statute of limitations Equipment dealers Protective safeguards (BP 04 30) Average weekly wage (RR 94-1 Rule Installation floater Utility services — direct damage (BP 8.0000) Jewelers block 04 56) Choice of physician (RR 94-1 Rule Signs Utility services — time element (BP 4.0000) Valuable papers and records 04 57) Medical examination (RR 94-1 Rule Transportation coverages 6.0000) Common carrier cargo liability Notice of injury and claim (RR 94-1 Motor truck cargo forms Vermont Adjuster's Examination Rule 3.0000) Transit coverage forms for Workers Compensation Compensation agreements and 7.6 Equipment breakdown disputed claims (RR 94-1 Rule Equipment breakdown protection Insurance 9.0000) coverage form (EB 00 20) Series 14-34 Termination of compensation (RR Selected endorsement 94-1 Rule 12.0000) Actual cash value (EB 99 59) 50 questions (plus 5 unscored Lump-sum payments (RR 94-1 Rule 7.7 Farm coverage items) 13.0000) Farm property coverage forms 2.2 Workers compensation and 1-hour time limit Coverage A — Dwellings employer liability insurance Coverage B — Other private Effective November 3, 2019 policy structures General section Coverage C — Household personal Part One — Workers compensation property 1.0 Insurance Regulation 9% (4 insurance Coverage D — Loss of use Items) Part Two — Employers liability Coverage E — Scheduled farm insurance personal property 1.1 Licensing requirements Qualifications (4803(a)) Part Three — Other states insurance Coverage F — Unscheduled farm Part Four — Your duties if injury personal property Process (4800, 4800a) 1.2 Maintenance and duration occurs Coverage G — Other farm structures Farm liability coverage form Renewal (4798) Coverage H — Bodily injury and Expiration (4798) 3.0 Workers Compensation Claim property damage liability Records (4803(c)) Principles 36% (18 Items) Coverage I — Personal advertising 1.3 Disciplinary actions 3.1 Role of the adjuster injury liability Denial of license (4800(3)(E)) Duties and responsibilities Coverage J — Medical payments Cease and desist order (3661) 3.2 Controlling medical costs Mobile agricultural machinery and Suspension, revocation or Designated provider equipment coverage form nonrenewal (4804; 4806) Medical fee schedule (RR 95-22 Rule Livestock coverage form Fines (4804(d)) 40.01–.11) Definitions Administrative penalties (RR 95-20 Hospital bill auditing Cause of loss (basic, broad and Rule 45 Sec 5000) Reimbursement requirements (RR special) 95-22 Rule 40.02)

36 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Fees for depositions, mileage and Elements of a legal contract Vermont Producer's Examination supplemental reports (RR 95-22 Rule Offer and acceptance 40.11) 21VSA sec. 678 for Bail Bond Consideration Payment without prejudice 3.2300 Series 14-35 Competent parties Concurrent employment Legal purpose 3.3 Investigation and evaluation 50 questions (plus 5 unscored Concealment Compensability items) Fraud Death benefits for fatality claim 2.3 Court jurisdiction 1-hour time limit Employment relationship Original jurisdiction Compensable injury Effective November 3, 2019 Territorial Causal relationship Personal

Timely notice Appellate jurisdiction Workers compensation fraud 1.0 Insurance Regulation 20% 2.4 Terminology Burdens of proof (10 Items) Arrest Documentation Concurrent bail 1.1 Licensing First report of injury Consecutive bail Persons to be licensed (4793; Title Types of evidence Conviction 13 Sec 7554a) Time limits Custody Resident vs. non-resident 4800(a) Surveillance Defendant Process (4800; 4813f) Adjuster's log notes Discharge Producer appointment (4798(c); Medical determination Disposition 4798(d); 4813l) Medical authorization Extradition Termination of appointment Causal relationship Felony (4798(d); 4813m) Aggravation/recurrence Final judgment Examination of records (3565) 8 VSA Disability status Hearing Sec. 13 Temporary/Permanency Incarceration Maintenance and duration Independent Medical Examinations Indictment Renewal and expiration (4798) (IME) (Rule 6.000) Misdemeanor Address change (4800(3)(F)) 3.4 Claim reserves Mittimus Disciplinary actions Components Posting of bail Denial of license (4800(3)(E)) Indemnity Recognizance Cease and desist order (3661) Medical Warrant Suspension, revocation or Expense nonrenewal (4804; 4806) Factors affecting reserves 1.2 Unfair trade practices 3.5 Claims management 3.0 Bail Bond Principles and (4724) Analysis Practices 70% (35 Items) Misrepresentation (4724(1, 11, 13)) Identifying treating physician 3.1 Parties to a surety bond False advertising (4724(2)) Identifying treatment plan Principal Defamation (4724(3)) Identifying return-to-work capacity Indemnitor for principal Boycott, coercion and intimidation Contested claims adjustment Indemnity agreement (4724(4)) procedures Obligee False financial statements and entries Form 27 (RR 94-1 Rule 12.0000) Surety (4724(5)) Notice and application for hearing; Surety's agent (producer) Unfair discrimination (4724(7)) filing of papers (RR 94-1 Rule Obligation to court (13 V.S.A. Rebating (4724(8)) 14.0000) 7554a) Failure to maintain complaint record Representation (RR 94-1 Rule 3.2 Duties of a bail bond (4724(10)) 15.0000) producer Failure to act as fiduciary (4724(12)) Informal resolution (RR 94-1 Rule Approval Nondisclosure of fees or charges 16.0000) Premium receipt (4724(14)) Formal hearing (RR 94-1 Rule Obligation to court Failure to comply with filed rates, 17.0000) Power of attorney rules, regulations or forms Appeals (RR 94-1 Rule 17.0000) Collateral and trust obligations (4724(19)) Attorney's fees (RR 94-1 Rule 3.3 Types of bonds 1.3 Trust accounts (Reg 95-1) 20.0000) Bail Fiduciary duties and responsibilities Dispositions Peace bond (13 V.S.A. 7573) Accounting requirements Resolving medical disputes (RR 94-1 Property bond 1.4 Federal regulation Rule 5.0000) Secured appearance bond Fraud and false statements (18 USC Resolving permanency disputes Unsecured appearance bond 1033, 1034) Settlement negotiation 3.4 Procedure

Form 16 Application for bond 3.6 Vocational rehabilitation 2.0 The Legal Framework 10% (surety/defendant contract) programs (Title 21. sec. 641) (5 Items) Collateral security Referral Surety contract 2.1 Powers and authority of Individual written rehabilitation plan Posting the bond producers 3.5 Court procedures Express Court appearances Implied Arraignment Apparent Trial 2.2 Contracts Appeal

37 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Conditions of release 3.3 Determining value and loss 1.1 Licensing Prior to trial Adjustment procedures Process (4800; 4813e; 4813f) Pending appeal Salvage Persons to be licensed (4813b) Failure to appear Appraisal Maintenance and duration Revocation of bail (13 V.S.A. 7575) Depreciation Renewal and expiration (4798) 3.6 Release of surety Repair or replacement Address change (4800(3)(F)) 3.7 Surrender of principal Repair options and procedures Assumed business name (4813j) (defendant) "Like kind and quality" Reporting of actions (4813o) Discharge of bond Aftermarket parts Continuing education requirements Return of premium Partial loss versus total loss (4800a; Reg I-2000-02 Sec 4, 7) Return of collateral Constructive total loss Disciplinary actions 3.8 Bond forfeiture Motor Vehicle Total Loss Using A Price Denial of license (4800(3)(E)) Notice to defendant and sureties Guide Bul 182 Cease and desist order (3661) Judgment Diminished value Suspension, revocation or Dispersal of funds 3.4 Vehicle inspection nonrenewal (4804; 4806) Arrest after forfeiture Proper vehicle identification and 1.2 State regulation options ID Commissioner's general duties and Evaluate with regard to powers (4726) circumstances of accident Company regulation Vermont Examination for Motor Estimate of repairs form Forms filing exceptions (Reg I-2010- Vehicle Damage Appraiser 3.5 Vehicle parts and 03 Sec 4) Series 14-37 construction Unfair claim settlement practices Body (4724(9); Reg 79-2 Sec 1–9) 60 questions (plus 5 unscored Front end Examination of records (3565) items) Rear body Agent regulation Quarter panels Acting without a license (4793) 1-hour time limit Doors Shared commissions (4796) Effective November 3, 2019 Roof Unfair trade practices (4724) Bumpers/urethane repairs Misrepresentation (4724(1, 11, 13))

Lamps False advertising (4724(2))

Cowl Defamation (4724(3)) 1.0 Vermont Insurance Practices Floor pan Boycott, coercion and intimidation 10% (6 Items) Rocker panels (4724(4)) Pillars False financial statements and entries 1.1 Authority of the Insurance Substructure (4724(5)) Commissioner (4726) Frame Illegal inducement (4724(6)) 1.2 Licensing requirements Unibody Unfair discrimination (4724(7)) (4791, 4800, 4800a) Mechanical Rebating (4724(8)) Qualifications (4803) Engine Failure to maintain complaint record Records (4803) Cooling system (4724(10)) Disciplinary actions (4804, 4806) Electrical system/computers Failure to act as fiduciary (4724(12)) Renewal (4798) Exhaust system Nondisclosure of fees or charges 1.3 Claim settlement laws and Fuel system (4724(14)) regulations (4724(9); Reg 79-2 Sec Heating and air conditioning systems 1.3 Federal regulation 1-9; Bulletin 162) Brakes/ABS Fair Credit Reporting Act (15 USC

Steering 1681–1681d) 2.0 Insurance Basics 10% (6 Suspension Fraud and false statements (18 USC Items) Transmission 1033, 1034) Air bags/SRS (seat belts) 2.1 Property insurance principles Glass Insurable interest Interior 2.0 General Insurance 7% (4 Causes of loss (perils) Paint Items) Direct versus indirect loss 2.1 Concepts Valuation Risk management key terms Actual cash value Risk Replacement cost Vermont Agent's Examination for Exposure

Title Insurance Hazard 3.0 Appraising Auto Physical Series 14-38 Peril Damage Claims 80% (48 Items) Loss 60 questions (plus 5 unscored Methods of handling risk 3.1 The role of the appraiser Avoidance Duties and responsibilities items) Retention Relationship to adjusters 1-hour time limit Sharing 3.2 Duties of insured after a loss Effective November 3, 2019 Reduction Notice to insurer Transfer Minimizing the loss Elements of insurable risks Proof of loss Adverse selection Inspection and appraisal of vehicle 1.0 Insurance Regulation 6% (4 Insurable interest Special requirements Items) Reinsurance

38 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

2.2 Agents and general rules of Trust agreements Equitable interests agency Limited Liability Company (LLC) Attachments Insurer as principal 3.3 Legal descriptions Executions Agent/insurer relationship Types of legal descriptions Covenants Authority and powers of agents Types of measurements used Conditions Express Language of real descriptions Restrictions Implied Structure and format Glebe land Apparent Interpretation Building and zoning laws Responsibilities to the Survey requirements 5.2 Special problem areas and applicant/insured 3.4 Recording concerns 2.3 Contracts Types of records Acknowledgments Elements of a legal contract Types of recording systems Mechanic's lien Offer and acceptance Requirements to record Bankruptcy Consideration Recording steps Probate Competent parties Acknowledgments Good faith Legal purpose Presumptions Foreclosure Distinct characteristics of an Claims against the title insurance contract Ancient roads Contract of adhesion 4.0 Title Insurance 24% (14 5.3 Principles of clearing title Aleatory contract Items) Releases Personal contract 4.1 Title insurance principles Assignments Unilateral contract Risks covered by title insurance Subordinations Legal interpretations affecting Risk of error in public records Affidavits contracts Hidden off-record title risks Reconveyances Ambiguities in a contract of adhesion Risk of omission and commission by Reasonable expectations agent Indemnity Entities that can be insured; need for Vermont Producer's Examination Utmost good faith insurance Representations/misrepresentations Individual for Personal Lines Insurance Warranties Commercial Series 14-39 Concealment Interests that can be insured Fraud Fee simple estate 100 questions (plus 5 unscored Waiver and estoppel Estate in common items) Leasehold estate 2-hour time limit Life estate 3.0 Real Property 34% (20 Easements Effective November 3, 2019 Items) Title insurance forms

3.1 Concepts, principles and Commitments practices Insured closing protection letters 1.0 Insurance Regulation 8% (8 Definition of real property Owner's policy Items) Types of real property Loan policy/short form residential 1.1 Licensing Title to real property loan policy Process (4800; 4813f) Marketable title Leasehold policy Types of licensees (4791) 3.2 Acquisition and transfer of Title insurance policy structure and Resident (4800(3)(A)) real property provisions Nonresident (4800(3)(B); 4813h) Conveyances Insuring provisions Maintenance and duration Encumbrances Schedule A Renewal and expiration (4798) Adverse possession Schedule B — Exceptions from Address change (4800(3)(F)) Condemnation coverage Assumed business name (4813j) Accession Exclusions from coverage Reporting of actions (4813o) Escheats Conditions and stipulations Continuing education requirements Involuntary alienation Endorsements (4800a; Reg 2000-2 Sec 4) Abandonment Disciplinary actions Judicial sales Denial of license (4800(3)(E)) Decedents' estates 5.0 Title Exceptions and Cease and desist order (3661) Intestate Procedures for Clearing Title Suspension, revocation or Testate 29% ( 18 Items) nonrenewal (4804; 4806) Trusts 5.1 Principles and concepts Penalties (3661(a)(2); 4804(d)) Types of joint ownership General exceptions 1.2 State regulation Tenants in common Voluntary and involuntary liens Commissioner's general duties and Joint tenancy Federal liens powers (4726; 4804) Tenants by the entirety Mortgage deeds Company regulation Acknowledgments Judgments Certificate of authority (3368) Legal capacity of parties Taxes and assessments Unfair claim settlement practices Individuals Surveys (4724(9); Reg 79-2 Sec 1–7) Corporations Condominiums and common interest Policy forms (3541) General partnerships communities Examination of records (3565) Limited partnerships Water rights Fictitious names Mineral rights

39 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Producer appointment (4798(d); Domestic, foreign and alien insurers Basic types of construction 4813l) Financial status (independent rating Loss valuation Termination of appointment services) Actual cash value (4798(d); 4813m) Marketing (distribution) systems Replacement cost Producer regulation 2.3 Producers and general rules Functional replacement cost Acting without a license (4793; of agency Market value 4813c) Insurer as principal Agreed value Shared commissions (4796) Producer/insurer relationship Stated amount Trust accounts — anti-commingling Authority and powers of producers Valued policy (Reg 95-1; 4724(12)) Express 3.2 Policy structure Controlled business (4795) Implied Declarations Duties (4813c) Apparent Definitions Unfair trade practices (4724) 2.4 Contracts Insuring agreement or clause Misrepresentation (4724(1, 11, 13)) Elements of a legal contract Additional/supplementary coverage False advertising (4724(2)) Offer and acceptance Conditions Defamation (4724(3)) Consideration Exclusions Boycott, coercion and intimidation Competent parties Endorsements (4724(4)) Legal purpose 3.3 Common policy provisions False financial statements and entries Distinct characteristics of an Insureds — named, first named, (4724(5)) insurance contract additional Illegal inducement (4724(6)) Contract of adhesion Policy period Unfair discrimination (4724(7)) Aleatory contract Policy territory Rebating (4724(8)) Personal contract Cancellation and nonrenewal Failure to maintain complaint record Unilateral contract Deductibles (4724(10)) Legal interpretations affecting Other insurance Failure to act as fiduciary (4724(12); contracts Nonconcurrency Reg 95-1) Ambiguities in a contract of adhesion Primary and excess Unsuitability (4724(16)) Reasonable expectations Pro rata Nondisclosure of fees or charges Indemnity Limits of liability (4724(14)) Utmost good faith Per occurrence (accident) Consumer privacy regulation (IH- Representations/misrepresentations Per person 2001-01) Warranties Split 1.3 Federal regulation Concealment Combined single Fair Credit Reporting Act (15 USC Fraud Restoration/nonreduction of limits 1681–1681d) Waiver and estoppel Coinsurance Fraud and false statements (18 USC Vacancy or unoccupancy 1033, 1034) Named insured provisions 3.0 Property and Casualty Duties after loss Insurance Basics 15% (15 Assignment 2.0 General Insurance 7% (7 Items) Abandonment Items) 3.1 Principles and concepts Insurer provisions 2.1 Concepts Insurable interest Liberalization Risk management key terms Underwriting Subrogation Risk Function Salvage Exposure Loss ratio Claim settlement options Hazard Rates Duty to defend Peril Types Third-party provisions Loss Loss costs Standard mortgage clause Methods of handling risk Components Loss payable clause Avoidance Hazards No benefit to Bailee Retention Physical 3.4 Vermont laws, regulations Sharing Moral and required provisions Reduction Morale Vermont Property and Casualty Transfer Negligence Insurance Guaranty Association Elements of insurable risks Elements of a negligent act (3611–3626) Adverse selection Defenses against negligence Renewal notice (3882) Law of large numbers Damages Cancellation and nonrenewal (3879– Reinsurance Compensatory — special versus 3881; 3883) 2.2 Insurers general Consent to rate (4688(f); Reg I- Types of insurers Punitive 2010-03)) Captive insurers Absolute liability Loss payment (3868; Reg 79-2 Sec Stock companies Strict liability 6, 8) Mutual companies Vicarious liability Discrimination (3861) Fraternal benefit societies Causes of loss (perils) Coinsurance (3961–3968) Lloyd's associations Named perils versus special (open) Required provisions (4203) Risk retention groups perils Private versus government insurers Direct loss Admitted versus nonadmitted Consequential or indirect loss 4.0 Dwelling Policy 5% (5 insurers Blanket versus specific insurance Items)

40 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

4.1 Characteristics and purpose 6.0 Auto Insurance 28% (28 Coverage F — Unscheduled farm 4.2 Coverage forms — Perils Items) personal property insured against 6.1 Laws Coverage G — Other farm structures Basic Vermont Motor Vehicle Financial Mobile agricultural machinery and Broad Responsibility and Insurance Laws equipment coverage form Special (Title 23 Sec 800–943) Livestock coverage form 4.3 Property coverages Required limits of liability (Title 23 7.2 Farm liability coverage forms Coverage A — Dwelling Sec 801) Coverage H — Bodily injury and Coverage B — Other structures Required proof of insurance (Bul 77) property damage liability Coverage C — Personal property Vermont Automobile Insurance Plan Coverage I — Personal and Coverage D — Fair rental value (4241–4246) advertising injury liability Coverage E — Additional living Eligibility Coverage J — Medical payments expense Liability limitations 7.3 Cause of loss (basic, broad Other coverages Physical damage coverage limitations and special) 4.4 General exclusions Uninsured/underinsured motorist 7.4 Exclusions 4.5 Conditions (Title 23 Sec 941) 7.5 Other provisions 4.6 Selected endorsements Definitions Additional coverages Special provisions — Vermont (DP 01 Required limits of liability Conditions 44) Bodily injury Definitions Automatic increase in insurance (DP Property damage Limits 04 11) Cancellation/nonrenewal Broad theft coverage (DP 04 72) Grounds (4223) Dwelling under construction (DP 11 8.0 Other Coverages and Options Notice (4224–4226) 10% (10 Items) 43) Notice of eligibility in assigned risk 4.7 Personal liability supplement plan (4227) 8.1 Personal umbrella policy (DL Binders (Title 23 Sec 942) 98 01) Surcharges (4671–4675) 8.2 National Flood Insurance 5.0 Homeowners Policy 25% Program (25 Items) 6.2 Personal auto policy Definitions "Write your own" versus government 5.1 Coverage forms Liability coverage Eligibility HO-2 through HO-6 Bodily injury and property damage Coverage 5.2 Definitions Supplementary payments Limits 5.3 Section I — Property Exclusions Deductibles coverages Medical payments 8.3 Other policies Coverage A — Dwelling Uninsured motorist/underinsured Boatowners Coverage B — Other structures motorist coverage Coverage C — Personal property Coverage for damage to your auto Coverage D — Loss of use Collision Vermont Producer's Examination Additional coverages Other than collision for Property Insurance 5.4 Section II — Liability Deductibles coverages Transportation expense Series 14-41 Coverage E — Personal liability Exclusions Coverage F — Medical payments to Duties after an accident or loss 100 questions (plus 5 unscored others General provisions items) Additional coverages Selected endorsements 2-hour time limit 5.5 Perils insured against Amendment of policy provisions — Effective November 3, 2019 5.6 Exclusions Vermont (PP 01 72) 5.7 Conditions Towing and labor costs (PP 03 03) 5.8 Selected endorsements Extended non-owned coverage (PP Special provisions — Vermont (HO 03 06) 1.0 Insurance Regulation 10% 01 44) Miscellaneous type vehicle (PP 03 (10 Items) Limited fungi, wet or dry rot, or 23) 1.1 Licensing bacteria coverage — Vermont (HO Joint ownership coverage — Vermont Process (4800; 4813f) 04 02) (PP 03 80) Types of licensees (4791) Permitted incidental occupancies (HO Resident (4800(3)(A)) 04 42) Nonresident (4800(3)(B); 4813h) Earthquake (HO 04 54) 7.0 Farm Coverage 2% (2 Temporary (4800(3)(D)(ii); 4813k) Scheduled personal property (HO 04 Items) Maintenance and duration 61) 7.1 Farm property coverage Renewal and expiration (4798) Personal property replacement cost forms Address change (4800(3)(F)) (HO 04 90) Coverage A — Dwellings Assumed business name (4813j) Home day care — Vermont (HO 23 Coverage B — Other private Reporting of actions (4813o) 45) structures Continuing education requirements Business pursuits (HO 24 71) Coverage C — Household personal (4800a; Reg 2000-2 Sec 4) Watercraft (HO 24 75) property Disciplinary actions Personal injury (HO 24 82) Coverage D — Loss of use Denial of license (4800(3)(E))

Coverage E — Scheduled farm Cease and desist order (3661) personal property

41 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Suspension, revocation or Reinsurance Blanket versus specific insurance nonrenewal (4804; 4806) 2.2 Insurers Basic types of construction Penalties (3661(a)(2); 4804(d)) Types of insurers Loss valuation 1.2 State regulation Captive insurers Actual cash value Commissioner's general duties and Stock companies Replacement cost powers (4726; 4804) Mutual companies Functional replacement cost Company regulation Fraternal benefit societies Market value Certificate of authority (3368) Lloyd's associations Agreed value Unfair claim settlement practices Risk retention groups Stated amount (4724(9); Reg 79-2 Sec 1–7) Private versus government insurers Valued policy Policy forms (3541) Admitted versus nonadmitted 3.2 Policy structure Examination of records (3565) insurers Declarations Producer appointment (4798(c); Domestic, foreign and alien insurers Definitions 4813l) Financial status (independent rating Insuring agreement or clause Termination of appointment services) Additional/supplementary coverage (4798(d); 4813m) Marketing (distribution) systems Conditions Producer regulation 2.3 Producers and general rules Exclusions Acting without a license (4793; of agency Endorsements 4813c) Insurer as principal 3.3 Common policy provisions Shared commissions (4796) Producer/insurer relationship Insureds — named, first named, Trust accounts — anti-commingling Authority and powers of producers additional (Reg 95-1; 4724(12)) Express Policy period Controlled business (4795) Implied Policy territory Duties (4813c) Apparent Cancellation and nonrenewal Unfair trade practices (4724) 2.4 Contracts Deductibles Misrepresentation (4724(1, 11, 13)) Elements of a legal contract Other insurance False advertising (4724(2)) Offer and acceptance Nonconcurrency Defamation (4724(3)) Consideration Primary and excess Boycott, coercion and intimidation Competent parties Pro rata (4724(4)) Legal purpose Policy limits False financial statements and entries Distinct characteristics of an Restoration/nonreduction of limits (4724(5)) insurance contract Coinsurance Illegal inducement (4724(6)) Contract of adhesion Vacancy or unoccupancy Unfair discrimination (4724(7)) Aleatory contract Named insured provisions Rebating (4724(8)) Personal contract Duties after loss Failure to maintain complaint record Unilateral contract Assignment (4724(10)) Legal interpretations affecting Abandonment Failure to act as fiduciary (4724(12); contracts Insurer provisions Reg 95-1) Ambiguities in a contract of adhesion Liberalization Unsuitability (4724(16)) Reasonable expectations Subrogation Nondisclosure of fees or charges Indemnity Salvage (4724(14)) Utmost good faith Claim settlement options Consumer privacy regulation (IH- Representations/misrepresentations Third-party provisions 2001-01) Warranties Standard mortgage clause 1.3 Federal regulation Concealment Loss payable clause Fair Credit Reporting Act (15 USC Fraud No benefit to Bailee 1681–1681d) Waiver and estoppel 3.4 Vermont laws, regulations Fraud and false statements (18 USC and required provisions 1033, 1034) Vermont Property and Casualty 3.0 Property Insurance Basics Insurance Guaranty Association 13% (13 Items) (3611–3626) 2.0 General Insurance 9% (9 3.1 Principles and concepts Renewal notice (3882; 4715) Items) Insurable interest Cancellation and nonrenewal (3879– 2.1 Concepts Underwriting 3881; 3883; 4711–4714) Risk management key terms Function Consent to rate (4688(f); Reg I- Risk Loss ratio 2010-03) Exposure Rates Loss payment (3868; Reg 79-2 Sec Hazard Types 6, 8) Peril Loss costs Discrimination (3861) Loss Components Coinsurance (3961–3968) Methods of handling risk Hazards Federal Terrorism Insurance Program Avoidance Physical (Bul 142, 150; 15 USC 6701; Public Retention Moral Law 107–297, 109–144, 110–160) Sharing Morale Reduction Causes of loss (perils) Transfer Named perils versus special (open) 4.0 Dwelling Policy 7% (7 Elements of insurable risks perils Items) Adverse selection Direct loss 4.1 Characteristics and purpose Law of large numbers Consequential or indirect loss

42 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

4.2 Coverage forms — Perils Deductibles Electronic data processing insured against Transportation expense Equipment dealers Basic Exclusions Installation floater Broad Duties after an accident or loss Jewelers block Special General provisions Signs 4.3 Property coverages Selected endorsements Valuable papers and records Coverage A — Dwelling Amendment of policy provisions — Transportation coverages Coverage B — Other structures Vermont (PP 01 72) Common carrier cargo liability Coverage C — Personal property Towing and labor costs (PP 03 03) Motor truck cargo forms Coverage D — Fair rental value Miscellaneous type vehicle (PP 03 Transit coverage forms Coverage E — Additional living 23) 7.4 Equipment breakdown expense Joint ownership coverage — Vermont Equipment breakdown protection Other coverages (PP 03 80) coverage form (EB 00 20) 4.4 General exclusions 6.3 Commercial auto Selected endorsement 4.5 Conditions Commercial auto coverage forms Actual cash value (EB 99 59) 4.6 Selected endorsements Business auto 7.5 Farm coverage Special provisions — Vermont (DP 01 Business auto physical damage Farm property coverage forms 44) Truckers Coverage A — Dwellings Automatic increase in insurance (DP Motor carrier Coverage B — Other private 04 11) Coverage form sections structures Broad theft coverage (DP 04 72) Covered autos Coverage C — Household personal Dwelling under construction (DP 11 Physical damage coverage property 43) Exclusions Coverage D — Loss of use 4.7 Personal liability supplement Conditions Coverage E — Scheduled farm Definitions personal property Selected endorsements Coverage F — Unscheduled farm 5.0 Homeowners Policy 22% Lessor — additional insured and loss personal property (22 Items) payee (CA 20 01) Coverage G — Other farm structures 5.1 Coverage forms Mobile equipment (CA 20 15) Mobile agricultural machinery and HO-2 through HO-6 Individual named insured (CA 99 17) equipment coverage form 5.2 Definitions Livestock coverage form 5.3 Section I — Property Definitions coverages 7.0 Commercial Package Policy Cause of loss (basic, broad and Coverage A — Dwelling (CPP) 14% (14 Items) special) Coverage B — Other structures 7.1 Components of a commercial Conditions Coverage C — Personal property policy Exclusions Coverage D — Loss of use Common policy declarations Limits Additional coverages Common policy conditions Additional coverages 5.4 Perils insured against Interline endorsements 5.5 Exclusions One or more coverage parts 5.6 Conditions 7.2 Commercial property 8.0 Businessowners Policy 13% 5.7 Selected endorsements Commercial property conditions form (13 Items) Special provisions — Vermont (HO Coverage forms 8.1 Characteristics and purpose 01 44) Building and personal property 8.2 Businessowners Section I — Limited fungi, wet or dry rot, or Condominium association Property bacteria coverage — Vermont (HO Condominium commercial unit- Coverage 04 02) owners Exclusions Permitted incidental occupancies (HO Builders risk Limits 04 42) Business income Deductibles Earthquake (HO 04 54) Legal liability Loss conditions Scheduled personal property (HO 04 Extra expense General conditions 61) Causes of loss forms Optional coverages Personal property replacement cost Basic Definitions (HO 04 90) Broad 8.3 Businessowners Section III Home day care — Vermont (HO 23 Special — Common Policy Conditions 45) Selected endorsements 8.4 Selected endorsements Ordinance or law (CP 04 05) Protective safeguards (BP 04 30) Spoilage (CP 04 40) Utility services — direct damage (BP 6.0 Auto Insurance 7% (7 Peak season limit of insurance (CP 04 56) Items) 12 30) Utility services — time element (BP 6.1 Laws Value reporting form (CP 13 10) 04 57) Cancellation/nonrenewal 7.3 Commercial inland marine Grounds (4223) Commercial inland marine conditions Notice (4224–4226) form 9.0 Other Coverages and Options 6.2 Personal auto policy Inland marine coverage forms 5% (5 Items) Definitions Accounts receivable 9.1 Ocean marine insurance Coverage for damage to your auto Bailee's customers Hull insurance Collision Commercial articles Cargo insurance Other than collision Contractors equipment floater Freight insurance

43 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

9.2 National Flood Insurance Boycott, coercion and intimidation Competent parties Program (4724(4)) Legal purpose "Write your own" versus government False financial statements and entries Distinct characteristics of an Eligibility (4724(5)) insurance contract Coverage Illegal inducement (4724(6)) Contract of adhesion Limits Unfair discrimination (4724(7)) Aleatory contract Deductibles Rebating (4724(8)) Personal contract Failure to maintain complaint record Unilateral contract (4724(10)) Legal interpretations affecting Failure to act as fiduciary (4724(12); contracts Vermont Producer's Examination Reg 95-1) Ambiguities in a contract of adhesion for Casualty Insurance Unsuitability (4724(16)) Reasonable expectations Series 14-42 Nondisclosure of fees or charges Indemnity (4724(14)) Utmost good faith 100 questions (plus 5 unscored Consumer privacy regulation (IH- Representations/misrepresentations items) 2001-01) Warranties 1.3 Federal regulation Concealment 2-hour time limit Fair Credit Reporting Act (15 USC Fraud Effective November 3, 2019 1681–1681d) Waiver and estoppel Fraud and false statements (18 USC

1033, 1034) 3.0 Casualty Insurance Basics 1.0 Insurance Regulation 10% 12% (12 Items) (10 Items) 2.0 General Insurance 9% (9 3.1 Principles and concepts 1.1 Licensing Items) Insurable interest Process (4800; 4813f) 2.1 Concepts Underwriting Types of licensees (4791) Risk management key terms Function Resident (4800(3)(A)) Risk Loss ratio Nonresident (4800(3)(B); 4813h) Exposure Rates Temporary (4800(3)(D)(ii); 4813k) Hazard Types Maintenance and duration Peril Loss costs Renewal and expiration (4798) Loss Components Address change (4800(3)(F)) Methods of handling risk Hazards Assumed business name (4813j) Avoidance Physical Reporting of actions (4813o) Retention Moral Continuing education requirements Sharing Morale (4800a; Reg 2000-2 Sec 4) Reduction Negligence Disciplinary actions Transfer Elements of a negligent act Denial of license (4800(3)(E)) Elements of insurable risks Defenses against negligence Cease and desist order (3661) Adverse selection Damages Suspension, revocation or Law of large numbers Compensatory — special versus nonrenewal (4804; 4806) Reinsurance general Penalties (3661(a)(2); 4804(d)) 2.2 Insurers Punitive 1.2 State regulation Types of insurers Absolute liability Commissioner's general duties and Captive insurers Strict liability powers (4726; 4804) Stock companies Vicarious liability Company regulation Mutual companies 3.2 Policy structure Certificate of authority (3368) Fraternal benefit societies Declarations Unfair claim settlement practices Lloyd's associations Definitions (4724(9); Reg 79-2 Sec 1–7) Risk retention groups Insuring agreement or clause Policy forms (3541) Private versus government insurers Additional/supplementary coverage Examination of records (3565) Admitted versus nonadmitted Conditions Producer appointment (4798(c); insurers Exclusions 4813l) Domestic, foreign and alien insurers Endorsements Termination of appointment Financial status (independent rating 3.3 Common policy provisions (4798(d); 4813m) services) Insureds — named, first named, Producer regulation Marketing (distribution) systems additional Acting without a license (4793; 2.3 Producers and general rules Policy period 4813c) of agency Policy territory Shared commissions (4796) Insurer as principal Cancellation and nonrenewal Trust accounts — anti-commingling Producer/insurer relationship Deductibles (Reg 95-1; 4724(12)) Authority and powers of producers Other insurance Controlled business (4795) Express Nonconcurrency Duties (4813c) Implied Primary and excess Unfair trade practices (4724) Apparent Pro rata Misrepresentation (4724(1, 11, 13)) 2.4 Contracts Contribution by equal shares False advertising (4724(2)) Elements of a legal contract Limits of liability Defamation (4724(3)) Offer and acceptance Per occurrence (accident) Consideration Per person

44 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

Aggregate — general versus products Eligibility Endorsement for motor carrier — completed operations Liability limitations policies of insurance for public liability Split Physical damage coverage limitations (MCS-90) Combined single Uninsured/underinsured motorist Named insured provisions (Title 23 Sec 941) Duties after loss Definitions 6.0 Commercial Package Policy Assignment Required limits of liability (CPP) 9% (9 Items) Insurer provisions Bodily injury 6.1 Components of a commercial Liberalization Property damage policy Subrogation Cancellation/nonrenewal Common policy declarations Duty to defend Grounds (4223) Common policy conditions 3.4 Vermont laws, regulations Notice (4224–4226) Interline endorsements and required provisions Notice of eligibility in assigned risk One or more coverage parts Vermont Property and Casualty plan (4227) 6.2 Commercial general liability Insurance Guaranty Association Binders (Title 23 Sec 942) Commercial general liability coverage (3611–3626) Surcharges (4671–4675) forms Renewal notice (3882; 4715) 5.2 Personal auto policy Bodily injury and property damage Cancellation and nonrenewal (3879– Definitions liability 3881; 3883; 4711–4714) Liability coverage Personal and advertising injury Consent to rate (4688(f); Reg I- Bodily injury and property damage liability 2010-03) Supplementary payments Medical payments Loss payment (Reg 79-2 Sec 6, 8) Exclusions Supplementary payments Discrimination (3861) Medical payments Who is an insured Pollution coverage (Bul 111) Uninsured motorist/underinsured Limits of liability Required provisions (4203) motorist coverage Conditions Federal Terrorism Insurance Program Coverage for damage to your auto Definitions (Bul 142, 150; 15 USC 6701; Public Collision Exclusions Law 107–297, 109–144, 110–160) Other than collision Premises and operations Deductibles Products and completed operations Transportation expense Insured contract 4.0 Homeowners Policy 17% Exclusions 6.3 Commercial crime (17 Items) Duties after an accident or loss General definitions 4.1 Coverage forms General provisions Burglary HO-2 through HO-6 Selected endorsements Theft 4.2 Definitions Amendment of policy provisions — Robbery 4.3 Section II — Liability Vermont (PP 01 72) Crime coverage forms coverages Towing and labor costs (PP 03 03) Commercial crime coverage forms Coverage E — Personal liability Extended non-owned coverage (PP (discovery/loss sustained) Coverage F — Medical payments to 03 06) Government crime coverage forms others Miscellaneous type vehicle (PP 03 (discovery/loss sustained) Additional coverages 23) Coverages 4.4 Exclusions Joint ownership coverage — Vermont Employee theft 4.5 Conditions (PP 03 80) Forgery or alteration 4.6 Selected endorsements 5.3 Commercial auto Inside the premises — theft of money Special provisions — Vermont (HO Commercial auto coverage forms and securities 01 44) Business auto Inside the premises — robbery or Limited fungi, wet or dry rot, or Auto Dealers safe burglary of other property bacteria coverage — Vermont (HO Business auto physical damage Outside premises 04 02) Truckers Computer fraud Permitted incidental occupancies (HO Motor carrier Funds transfer fraud 04 42) Coverage form sections Money orders and counterfeit money Home day care — Vermont (HO 23 Covered autos Other crime coverage 45) Liability coverage Extortion — commercial entities Business pursuits (HO 24 71) Garagekeepers coverage 6.4 Farm coverage Watercraft (HO 24 75) Trailer interchange coverage Farm liability coverage form Personal injury (HO 24 82) Physical damage coverage Coverage H — Bodily injury and Exclusions property damage liability Conditions Coverage I — Personal advertising 5.0 Auto Insurance 21% (21 Definitions injury liability Items) Selected endorsements Coverage J — Medical payments 5.1 Laws Lessor — additional insured and loss Definitions Vermont Motor Vehicle Financial payee (CA 20 01) Conditions Responsibility and Insurance Laws Mobile equipment (CA 20 15) Exclusions (Title 23 Sec 800–943) Auto medical payments coverage Limits Required limits of liability (Title 23 (CA 99 03) Additional coverages Sec 801) Drive other car coverage (CA 99 10) Required proof of insurance (Bul 77) Individual named insured (CA 99 17) Vermont Automobile Insurance Plan Commercial carrier regulations 7.0 Businessowners Policy 8% (4241–4246) The Motor Carrier Act of 1980 (8 Items)

45 VERMONT DEPARTMENT O F FINANCIAL REGULATI ON

7.1 Characteristics and purpose U.S. Longshore & Harbor Workers' 9.0 Other Coverages and Options 7.2 Businessowners Section II — Compensation Act (33 USC 904) 7% (7 Items) Liability The Jones Act (46 USC 688) 9.1 Umbrella/excess liability Coverages 8.2 Workers compensation and policies Exclusions employers liability insurance Personal (DL 98 01) Who is an insured policy Commercial (CU 00 01) Limits of insurance General section 9.2 Specialty liability insurance General conditions Part One — Workers compensation Cyber liability coverage Definitions insurance Professional liability 7.3 Businessowners Section III Part Two — Employers liability Errors and omissions — Common Policy Conditions insurance Directors and officers liability Part Three — Other states insurance Fiduciary liability Part Four — Your duties if injury Liquor liability 8.0 Workers Compensation occurs Insurance 7% (7 Items) Employment practices liability Part Five — Premium 9.3 Surplus lines 8.1 Workers compensation laws Part Six — Conditions Definitions and markets Type of law Voluntary compensation endorsement Licensing requirements Compulsory versus elective 8.3 Premium computation 9.4 Surety bonds Vermont Workers' Compensation Law Job classification — payroll and rates Principal, obligee, surety Exclusive remedy Experience modification factor Contract bonds Employment covered (required, Premium discounts License and permit bonds voluntary) 8.4 Other sources of coverages Judicial bonds Covered injuries Vermont workers' compensation 9.5 Ocean marine insurance Occupational disease administration fund Protection and indemnity Benefits provided Self-insured employers and employer Federal workers compensation laws groups Federal Employer Liability Act (FELA) (45 USC 51–60)

46 VERMONT DEPARTM ENT OF FINANCIAL REG ULATION

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.

47

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.

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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.

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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).

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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 53 of this bulletin. This form is Page 56 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

55

Exam Registration Form Vermont Insurance Examinations To conveniently register online, please go to www.prometric.com/vermont/insurance

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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