Key Takeaways
- Vermont producers have fiduciary duties to clients
- Producers must disclose compensation and conflicts of interest
- Premium funds must be handled according to strict requirements
- Records must be maintained for regulatory examination
- Continuing education includes ethics requirements
Last updated: January 2026
Producer Conduct and Fiduciary Duties
Vermont insurance producers have legal and ethical obligations to their clients and the public.
Fiduciary Duties
Producers owe fiduciary duties to their clients:
Key Duties
| Duty | Description |
|---|---|
| Loyalty | Put client's interests first |
| Disclosure | Reveal all material information |
| Competence | Maintain professional knowledge |
| Confidentiality | Protect client information |
| Good Faith | Act honestly in all dealings |
Disclosure Requirements
Vermont producers must disclose:
- Method of compensation
- Material conflicts of interest
- All material terms and conditions
- Limitations and exclusions
Handling of Funds
Producers must handle premiums according to strict rules:
Premium Collection
| Requirement | Rule |
|---|---|
| Deposit | Promptly to insurer or trust account |
| Commingling | Cannot mix with personal funds |
| Trust Account | Required for holding premiums |
| Records | Must maintain detailed records |
Consequences of Mishandling
- License suspension or revocation
- Required restitution
- Civil liability
- Potential criminal charges
Continuing Education
Vermont requires ongoing education for producers:
- Completion of required hours each renewal period
- Ethics training component required
- Must be completed before license renewal
Test Your Knowledge
What happens if a Vermont producer commingles client premium funds with personal funds?
A
B
C
D