Vermont § 7124 - Licensing and registration

§ 7124. Licensing and registration

• (a) The Commissioner may issue to an individual or a business entity that has complied
  with the requirements of this chapter and filed an application for such limited lines
  travel insurance producer license in a form and manner prescribed by the Commissioner,
  a limited lines travel insurance producer license, which authorizes the limited lines
  travel insurance producer to sell, solicit, or negotiate travel insurance through
  a licensed insurer. A person may not act as a limited lines travel insurance producer
  or travel retailer unless properly licensed or registered, respectively. (b) A travel retailer may offer and disseminate travel insurance under a limited lines
  travel insurance producer license only if the following conditions are met: (1) The limited lines travel insurance producer or travel retailer provides to purchasers
  of travel insurance: (A) a description of the material terms or the actual material terms of the insurance
  coverage at the time of purchase; (B) a description of the process for filing a claim; (C) a description of the review and cancellation process for the travel insurance policy;
  and (D) the identity and contact information of the insurer and limited lines travel insurance
  producer. (2) At the time of licensure, the limited lines travel insurance producer has established
  and maintains a register on a form prescribed by the Commissioner of each travel retailer
  that offers travel insurance on the limited lines travel insurance producer’s behalf.
  The register shall be maintained and updated annually by the limited lines travel
  insurance producer and shall include the name, address, and contact information of
  the travel retailer and an officer or person who directs or controls the travel retailer’s
  operations, and the travel retailer’s Federal Tax Identification Number. The limited
  lines travel insurance producer shall submit such register within 30 days of request
  by the Commissioner. The limited lines travel insurance producer shall also certify
  that the travel retailer registered complies with 18 U.S.C. § 1033. The grounds for the suspension and revocation and the penalties applicable to resident
  insurance producers under 8 V.S.A. § 4804 shall be applicable to the limited lines travel insurance producers and travel retailers. (3) The limited lines travel insurance producer has designated one of its employees who
  is a licensed individual producer as the person responsible for the limited lines
  travel insurance producer’s compliance with the travel insurance laws, rules, and
  regulations of the State. This person shall be identified as the Designated Responsible
  Licensed Producer (DRLP). (4) The DRLP, president, secretary, treasurer, and any other officer or person who directs
  or controls the limited lines travel insurance producer’s insurance operations has
  complied with the fingerprinting requirements applicable to insurance producers in
  the resident state of the limited lines travel insurance producer. (5) The limited lines travel insurance producer has paid all applicable insurance producer
  licensing fees as set forth in section 4800 of this title. (6) The limited lines travel insurance producer requires each employee and authorized
  representative of the travel retailer whose duties include offering and disseminating
  travel insurance to receive a program of instruction or training, which may be subject
  to review by the Commissioner. The training material shall, at a minimum, contain
  instructions on the types of insurance offered, ethical sales practices, and required
  disclosures to prospective customers. (c) Any travel retailer offering or disseminating travel insurance shall make available
  to prospective purchasers brochures or other written materials that have been approved
  by the travel insurer. Such materials shall include information that, at a minimum: (1) provides the identity and contact information of the insurer and the limited lines
  travel insurance producer; (2) explains that the purchase of travel insurance is not required in order to purchase
  any other product or service from the travel retailer; and (3) explains that an unlicensed travel retailer is permitted to provide general information
  about the insurance offered by the travel retailer, including a description of the
  coverage and price, but is not qualified or authorized to answer technical questions
  about the terms and conditions of the insurance offered by the travel retailer or
  to evaluate the adequacy of the customer’s existing insurance coverage. (d) A travel retailer’s employee or authorized representative who is not licensed as an
  insurance producer may not: (1) evaluate or interpret the technical terms, benefits, or conditions of the offered
  travel insurance coverage; (2) evaluate or provide advice concerning a prospective purchaser’s existing insurance
  coverage; or (3) hold themself out as a licensed insurer, licensed producer, or insurance expert. (e) A travel retailer whose insurance-related activities, and those of its employees and
  authorized representatives, are limited to offering and disseminating travel insurance
  on behalf of and under the direction of a limited lines travel insurance producer
  meeting the conditions stated in this section is authorized to do so and receive related
  compensation for such services, upon registration by the limited lines travel insurance
  producer as described in subdivision (b)(2) of this section. (f) As the insurer’s designee, a limited lines travel insurance producer is responsible
  for the acts of each of its registered travel retailers related to the offer and dissemination
  of travel insurance and shall use reasonable means to ensure the travel retailer’s
  compliance with this chapter. (g) Any person licensed in a major line of authority as an insurance producer is authorized
  to sell, solicit, and negotiate travel insurance. A property and casualty insurance
  producer is not required to become appointed by an insurer in order to sell, solicit,
  or negotiate travel insurance. (h) The limited lines travel insurance producer and any travel retailer offering and disseminating
  travel insurance under a limited lines travel insurance producer license shall be
  subject to the provisions of sections 13 and 4804 and chapter 129 of this title. (Added 2021, No. 139 (Adj. Sess.), § 10, eff. August 25, 2022.)