The Vermont Statutes Online
Banking and Insurance
FRATERNAL BENEFIT SOCIETIES
4488. Licensing of agents
societies shall be licensed in accordance with the provisions of this section.
agent defined. The term "insurance agent" as used in this section
means any authorized or acknowledged agent of a society who acts as such in the
solicitation, negotiation, procurement, or making of a life insurance, accident
and health insurance, or annuity contract.
required. Any person who in this State acts as insurance agent for a society
without having authority so to do by virtue of a license issued and in force
pursuant to the provisions of this section shall, except as provided in
subdivision (1) of this section, be guilty of a misdemeanor.
(3) Payment of
commissions forbidden. No society doing business in this State may pay any
commission or other compensation to any person for any services in obtaining in
this State any new contract of life, accident, or health insurance, or any new
annuity contract, except to a licensed insurance agent of the society and
except to an agent exempted by the Commissioner of Financial Regulation.
Prerequisites, issuance, and renewal of insurance agents' licenses.
Commissioner of Financial Regulation may issue a license to any person who has
paid an annual license fee of $30.00 and who has complied with the requirements
of this section, authorizing the licensee to act as an insurance agent on
behalf of any society named in the license which is authorized to do business
in this State.
(B) Before any
insurance agent's license shall be issued there shall be on file in the office
of the Commissioner of Financial Regulation the following documents:
(i) A written
application by the prospective licensee in such form or forms and supplements
thereto, and containing such information, as the Commissioner of Financial
Regulation may prescribe.
certificate by the society which is to be named in the license, stating that
the society has satisfied itself that the named applicant is trustworthy and
competent to act as an insurance agent and that the society will appoint the
applicant to act as its agent if the license applied for is issued by the
Commissioner of Financial Regulation. The certificates shall be executed and
acknowledged by an officer or managing agent of the society.
(C) A written
examination may be required of any individual seeking to be named as a licensee
to represent a fraternal benefit society as its agent.
Commissioner of Financial Regulation may refuse to issue or renew any insurance
agent's license if in his or her judgment the proposed licensee is not
trustworthy and competent to act as an agent, or has given cause for revocation
or suspension of the license, or has failed to comply with any prerequisite for
the issuance or renewal, as the case may be, of the license.
license issued pursuant to this section, and every renewal thereof, shall
expire on December 31 of the even-numbered calendar year following the calendar
year in which the license or renewal license was issued.
(F) If the application
for a renewal license has been filed with the Commissioner of Financial
Regulation on or before December 31 of the year in which the existing license
is to expire, the applicant named in the existing license may continue to act
as insurance agent under the existing license, unless it shall be revoked or
suspended, until the issuance by the Commissioner of Financial Regulation of
the renewal license or until the expiration of five days after he or she has
refused to renew the license and has served written notice of the refusal on
the applicant. If the applicant shall, within 30 days after the notice is
given, notify the Commissioner of Financial Regulation in writing of his or her
request for a hearing on such refusal, the Commissioner of Financial Regulation
shall, within a reasonable time after receipt of such notice, grant the
hearing, and he or she may, in his or her discretion, reinstate the license.
(G) A renewal
license of an insurance agent may be issued upon the application of the society
named in the existing license. The application shall be in the form or forms
prescribed by the Commissioner of Financial Regulation and shall contain such
information as he or she may require. The application shall contain a
certificate executed by the president, or by a vice president, a secretary, an
assistant secretary, or corresponding officer by whatever name known, or by an
employee expressly designated and authorized to execute the certificate of a
domestic or foreign society or by the United States manager of an alien
society, stating that the addresses therein given of the agents of the society
for whom renewal licenses are requested therein have been verified in each
instance immediately preceding the preparation of the application.
Notwithstanding the filing of the application, the Commissioner of Financial
Regulation may, after reasonable notice to the society, require that any or all
agents of the society to be named as licensees in renewal licenses shall
execute and file separate applications for the renewal of the licenses, as
hereinbefore specified, and he or she may also require that each such
application shall be accompanied by the certificate specified in subdivision
(B)(ii) of this subdivision (4).
(5) Notice of
termination of appointment of insurance agent. Notice of termination of
appointment of insurance agent. Every society doing business in this State
shall, upon the termination of the appointment of any insurance agent licensed
to represent it in this State, forthwith file with the Commissioner of
Financial Regulation, a statement, in such form as he or she may prescribe, of
the facts relative to the termination and the cause thereof. Every statement
made pursuant to this section is privileged and shall be kept confidential to
the same extent as provided under subsection 4813m(f) of this title.
or suspension of insurance agent's license.
Commissioner of Financial Regulation may revoke or may suspend for such period
as he or she may determine, any insurance agent's license if, after notice and
hearing as specified in this section, he or she determines that the licensee
(i) violated any
provision of, or any obligation imposed by, this section, or has violated any
law in the course of his or her dealings as agent;
(ii) made a
material misstatement in the application for the license;
guilty of fraudulent or dishonest practices;
demonstrated his or her incompetency or untrustworthiness to act as an
insurance agent; or
(v) been guilty
of rebating as defined by the laws of this State applicable to life insurance
revocation or suspension of any insurance agent's license shall terminate
forthwith the license of the agent. No individual whose license has been
revoked shall be entitled to obtain any insurance agent's license under the
provisions of this section for a period of one year after the revocation or, if
the revocation be judicially reviewed, for one year after the final
determination thereof affirming the action of the Commissioner of Financial
Regulation in revoking the license. (Added 1959, No. 197, § 28, eff. Nov. 22,
1959; amended 1985, No. 236 (Adj. Sess.), § 1, eff. June 3, 1986; 1989, No. 225
(Adj. Sess.), § 25; 1991, No. 166 (Adj. Sess.), § 9; 1995, No. 180 (Adj.
Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2015, No. 29,