Passing your Vermont insurance license exam is a pivotal part of becoming a licensed insurance agent in the state of Vermont.

In this guide, we’ll break down the general information that you need to know in order to pass your exam, outline the differences between each examination line, and offer tips on both: how to prepare for your Vermont insurance licensing exam, and on what to do after you pass.

Vermont Insurance Exam Basics

General Information

The state of Vermont uses Prometric to administer its insurance agent licensing. This means you can register and book all of your licensing examinations through the Prometric website. Your test can be carried out online or in person.

Each major insurance line examination is made up of multiple-choice questions and includes both general and state-specific material.

The general questions test your federal insurance product and agent knowledge, whereas the state-specific questions test you on the Vermont insurance regulations and laws that you will need to know in order to operate as an insurance agent.

Score Explanation

As soon as you complete your exam, a score report will be emailed to you. 

The report will show you your overall score and grade, including the percentage of questions that you answered correctly and whether you passed or failed.

You will also be shown how well you did on each major section of the exam. You can use these sections as guides if you end up needing to retake an exam as a result of failing.

Note: You will need to obtain a score of at least 70% in order to pass an insurance license exam in Vermont.

Cost

Your Vermont insurance license exam cost will depend on the type and number of examinations that you take:

Examination	Cost	Time Allowed
Producer’s Life, Accident, Health and HMO	$65	150 Minutes
Producer’s Life	$50	120 Minutes
Producer’s Accident, Health and HMO	$50	120 Minutes
Producer’s Property and Casualty	$65	150 Minutes
Producer’s Casualty	$50	120 Minutes
Producer’s Property	$50	120 Minutes

Note: You should focus on one exam at a time. This will likely increase the amount of time and effort you can allocate to each examination and should allow you to feel more prepared when you sit your exam.

Vermont Life and Health Insurance Exam

Below you can find the content outline offered by Prometric.

We recommend using it as a checklist when working through your pre-license education course. This way, you’ll be absolutely sure that you haven’t missed any topic that you will be tested on later on.

Vermont Life, Accident, Health and HMO Exam

150 scorable questions, plus five pretest questions.

I. Insurance Regulation

1. Licensing
2. State regulation
3. Federal regulation

II. General Insurance

1. Concepts
2. Insurers
3. Producers and general rules of agency
4. Contracts

III. Life Insurance Basics

1. Insurable interest
2. Personal uses of life insurance
3. Determining amount of personal life insurance
4. Business uses of life insurance
5. Classes of life insurance policies
6. Premiums
7. Producer responsibilities
8. Individual underwriting by the insurer

IV. Life Insurance Policies

1. Term life insurance
2. Whole life insurance
3. Flexible premium policies
4. SEC regulated policies
5. Specialized policies
6. Group life insurance
7. Credit life insurance (individual versus group)

V. Life Insurance Policy Provisions, Options, and Riders

1. Required provisions
2. Other provisions
3. Beneficiaries
4. Settlement options
5. Nonforfeiture options
6. Policy loan and withdrawal options
7. Dividend options
8. Disability riders
9. Accelerated (living) benefit provision/rider
10. Life settlements
11. Riders covering additional insureds
12. Riders affecting the death benefit amount

VI. Annuities

1. Annuity principles and concepts
2. Immediate versus deferred annuities
3. Annuity (benefit) payment options
4. Annuity products
5. Uses of annuities

VII. Federal Tax Considerations for Life Insurance and Annuities

1. Taxation of personal life insurance
2. Modified endowment contracts (MECs)
3. Taxation of non-qualified annuities
4. Taxation of individual retirement annuities (IRAs)
5. Rollovers and transfers (IRAs and qualified plans)
6. Section 1035 exchanges

VIII. Qualified Plans

1. General requirements
2. Federal tax considerations
3. Plan types, characteristics, and purchasers

IX. Health Insurance Basics

1. Definitions of perils
2. Principal types of losses and benefits
3. Classes of health insurance policies
4. Limited policies
5. Common exclusions from coverage
6. Producer responsibilities in individual health insurance
7. Individual underwriting by the insurer
8. Considerations in replacing health insurance

X. Health Insurance Policy General Provisions (Non-group and Group)

1. Uniform required provisions
2. Optional provisions
3. Other general provisions

XI. Disability Income and Related Insurance 

1. Qualifying for disability benefits
2. Individual disability income insurance
3. Unique aspects of individual disability underwriting
4. Group disability income insurance
5. Social Security disability
6. Workers compensation

XII. Medical Plans

1. Patient Protection and Affordable Care Act
2. Medical plan concepts
3. Types of providers and plans
4. Utilization Management
5. Vermont eligibility requirements
6. HIPAA (Health Insurance Portability and Accountability Act) requirements
7. Medical savings accounts (MSAs), Health Savings Accounts (HSAs) and High Deductible Health Plans

XIII. Health Maintenance Organizations (HMOs)

1. General characteristics
2. HMO Services

XIV. Group Health Insurance 

1. Characteristics of group insurance
2. Types of eligible groups
3. Marketing considerations
4. Employer group health insurance
5. Small employer group medical plans

XV. Insurance for Senior Citizens and Special Needs Individuals

1. Medicare
2. Medicare supplements
3. Other options for individuals with Medicare
4. LTC, Medicare, and Medicaid compared

XVI. Federal Tax Considerations for Health Insurance

1. Personally-owned health insurance
2. Employer group health insurance
3. Medical expense coverage for sole proprietors and partners
4. Medical savings accounts (MSAs)

Vermont Property and Casualty License Exam

Below you can find the content outline offered by Prometric.

You should use this outline as a checklist when working through your pre-license education course in order to ensure that you haven’t missed any topic that you will be tested on later on.

Vermont Property and Casualty Insurance Exam

150 scorable questions, plus five pretest questions.

I. Insurance Regulation

1. Licensing
2. State regulation
3. Federal regulation

II. General Insurance

1. Concepts
2. Insurers
3. Producers and general rules of agency
4. Contracts

III. Property and Casualty Insurance Basics

1. Principles and concepts
2. Policy structure
3. Common policy provisions
4. Vermont laws, regulations, and required provisions

IV. Dwelling Policy

1. Characteristics and purpose
2. Coverage forms — Perils insured against
3. Property coverages
4. General exclusions
5. Conditions
6. Selected endorsements
7. Personal liability supplement

V. Homeowners Policy

1. Coverage forms
2. Definitions
3. Section I — Property coverages
4. Section II — Liability coverages
5. Perils insured against 
6. Exclusions
7. Conditions
8. Selected endorsements

VI. Auto Insurance

1. Laws
2. Personal auto policy
3. Commercial auto

VII. Commercial Package Policy (CPP)

1. Components of a commercial policy
2. Commercial general liability
3. Commercial property
4. Commercial crime
5. Commercial inland marine
6. Equipment breakdown
7. Farm coverage

VIII. Businessowners Policy

1. Characteristics and purpose
2. Businessowners Section I — Property
3. Businessowners Section II — Liability
4. Businessowners Section III — Common Policy Conditions
5. Selected endorsements

IX. Workers Compensation Insurance

1. Workers compensation laws
2. Workers compensation and employers liability insurance policy
3. Premium computation
4. Other sources of coverages

X. Other Coverages and Options

1. Umbrella/excess liability policies
2. Specialty liability insurance
3. Surplus lines
4. Surety bonds
5. Ocean marine insurance
6. National Flood Insurance Program

How to Pass the Vermont Insurance Exam

Passing your Vermont insurance exam ultimately comes down to your mindset and degree of preparation.

We have composed a few helpful exam tips and tricks that should help you perform as well as you can during your exam day.

Get a Pre-License Course

Even though this is not a requirement in the state of Vermont, getting a pre-license course can be incredibly beneficial. These courses can help you get accustomed to the extensive amount of content that you will have to memorize.

We recommend Kaplan’s course because it offers a variety of helpful features, including:

• Online exam simulations
• Live online training
• Printable study guides
• End of chapter reviews

Make Enough Time to Study

Not leaving enough time to prepare is one of the easiest ways to ensure that you do not pass your exam on your first attempt.

Remember, there are zero questions on your exam that are based on common sense or critical thinking. All questions are purely factual, and so will relate to how well you understand and remember the content that you have learned.

We recommend allocating around one to two weeks to prepare for your exam, as this should allow you to go through all of the material at least twice.

Control Test Anxiety

Even though you cannot control whether you get exam anxiety or not, you can take a few steps when preparing to limit its effect on your performance:

• Establish a consistent pretest routine — Acclimate yourself to exam conditions by following a specific routine on each practice exam at home. This should help you feel less anxious during your exam day.
• Get plenty of sleep — Lack of sleep can exacerbate your anxiety and increase your self-doubt. Make sure you are consistently getting a good night’s sleep in the week leading up to your exam.
• Study effectively — This sounds obvious, but make sure you are actually tailoring your studying to the exam that you are taking. Remember, there are no critical thinking or common sense questions involved.
• Arrive early — If you are planning to sit your exam in person, we recommend you arrive at least 30 minutes before it’s due to start in order to get used to your surroundings and have time to check in with your center’s administrator.

Getting Your Vermont Insurance License

Your next steps will depend on whether you actually passed your exam, as well as on whether you plan to get licensed for any additional lines.

You can attempt passing additional insurance line exams before filing your licensing application, if that is something that you are interested in.

After you have passed your insurance licensing exam, you will need to:

• Complete a fingerprint and background check
• File your licensing application
• Wait for your application to be reviewed

Vermont Department of Financial Regulation Contact Information

Mailing Address:

Insurance Division
89 Main Street
Montpelier, Vermont 05620-3101

Phone: (802) 828-3303

Fax: (802) 828-1633

Email: dfr.producerlicensing@vermont.gov

Website: https://dfr.vermont.gov/industry/insurance/producer-and-individual-licensing

License Search: Vermont Insurance License Search and Lookup