Vermont Long-Term Care Training Requirement
Effective March 31, 2010 a Long-Term Care training requirement will be in effect for producers in Vermont.
Section 34 of RULE H-2009-01 outlines these new producer training requirements. Below is the long-term care training requirement as published by the state of Vermont.
Section 34. Producer Requirements
A. An individual may not sell, solicit or negotiate long-term care insurance
unless the individual is licensed as an insurance agent or producer for accident and health or sickness or life and has completed the training requirements set forth in subsection B. For resident licensees, this training can count towards the twenty-four (24) hours of continuing education required in 8 V.S.A. § 4800a and any regulation promulgated thereunder if the training satisfies all requirements for continuing education, including course approval and provider registration. The training requirements of Subsection B must be approved for continuing education under 8 V.S.A. § 4800a.
B. Training Requirements.
(1) An agent or producer selling, soliciting or negotiating the sale of any long-term care insurance policy must complete one, eight (8) hour course specific to long- term care, not less than two hours of which shall contain Vermont-specific information including Vermont Medicaid information. The Vermont-specific information can be part of an eight-hour course or may be provided as a separate course. The initial training requirement shall apply as follows:
(a) Insurance agents or producers licensed to sell long-term care insurance policies after March 31, 2010 must complete the one- time eight-hour training before the agent or producer may sell, solicit or negotiate the sale of any long-term care insurance policy.
(b) Insurance agents or producers licensed to sell long-term care insurance policies on or before March 31, 2010 must complete the one-time eight-hour training or before March 31, 2011.
(2) An agent or producer selling, soliciting or negotiating the sale of any long-term care insurance policy must also complete no less than four (4) hours of ongoing training every 24 months ending March 31st of odd-numbered calendar years. The Commissioner may, at his or her discretion, require agents and producers licensed to sell long-term care insurance to complete additional ongoing training if the Commissioner determines that such training is needed due to significant changes in the long-term care statute or the Medicaid program.
(3) The training required under Subsections (B)(1) and (B)(2) shall consist of topics related to long-term care insurance, long-term care services and, if applicable, qualified state long-term care insurance Partnership programs, including, but not limited to:
a. State and federal regulations and requirements and the relationship between qualified state long-term care insurance Partnership programs and other public and private coverage of long-term care services, including Medicaid;
b. Available long-term care services and providers;
c. Changes or improvements in long-term care services or providers;
d. Alternatives to the purchase of private long-term care insurance;
e. The effect of inflation on benefits and the importance of inflation protection; and
f. Consumer suitability standards and guidelines.
(4) The training required by this section shall not include training that is insurer or company product specific or that includes any sales or marketing
information, materials, or training, other than those required by state or federal law.
C. Insurer’s Obligations.
(1) Insurers subject to this Regulation shall obtain verification that an agent or producer receives training required by this Regulation before an agent or producer is permitted to sell, solicit or negotiate the insurer’s long-term care insurance products, maintain records subject to the state’s record retention requirements, and make that verification available to the Commissioner upon request.
(2) Each insurer subject to this Regulation shall maintain the training records that demonstrate that agents and producers have received the training contained in subsection (B)(1) and (B)(2). These records shall be maintained in accordance with the state’s record retention requirements and shall be made available to the Department upon request.
D. Satisfaction of the training requirements in any state shall be deemed to satisfy the training requirements in Vermont, except for the Vermont-specific training required as set forth in Subsection (B)(1) of this Section.
E. Agent and Producer Compensation Requirements.
(1) Agents and producers must obtain a prior written agreement with an applicant, policyholder or other member of the public concerning fees or charges made by that agent or producer directly to the applicant, policyholder or other member of the public for that agent or producer procuring, servicing, or providing advice on insurance contracts.
(2) Commissions, expense allowances, bonuses, fees or any other compensation received directly by agents or producers from any legal entity engaged in the insurance business is exempt from this requirement.
