VT life settlement provider bonds.
From $100. Enter your amount.
No one may operate as a life settlement provider in Vermont without a license from the Commissioner of Financial Regulation, and 8 V.S.A. § 3836(a)(5)(D) conditions that license on evidence of financial responsibility — a surety bond running solely in favor of the State. The penal sum is tiered to the annual aggregate life settlement payments you make to Vermont policy owners. Premiums cost 1% of the bond amount, $100 minimum; the application collects no credit information, and most applications approve instantly. Enter the tier your filing requires and your exact price appears at the application.
Trusted by industry leaders
Apply to filed in one sitting.
The bond is one attachment in a licensing packet that also carries a plan of operation and an anti-fraud plan — so we made the bond the fast part:
Apply online
Your entity details, the county, the bond amount your tier requires, and an effective date. That is the entire application — no credit section and no financial statements on our side.
Pay & e-sign
Your price is final at checkout — 1% of the bond amount, $100 minimum. The application collects no credit information, and most applications approve instantly.
File with DFR
Attach the executed bond to your Life Settlement Provider application or biennial renewal and mail it to the Insurance Division, Company Licensing, 89 Main Street, Montpelier. Wet-ink original on request.
What it is and who needs it.
What the life settlement provider bond covers
A life settlement provider buys an in-force life insurance policy from its owner for more than the cash surrender value and less than the death benefit. Because the seller is usually elderly or ill and hands over an asset in exchange for a promise of payment, Vermont licenses providers through the Department of Financial Regulation and will not issue the license until the applicant has demonstrated a sound plan of operation, competence and trustworthiness, an anti-fraud plan, and financial responsibility.
The bond is that financial responsibility. 8 V.S.A. § 3836(a)(5)(D) requires it to run solely in favor of the State of Vermont and to specifically authorize recovery by the Commissioner on behalf of any person in Vermont who sustained damages as the result of erroneous acts, failure to act, conviction of fraud, or conviction of unfair practices by the provider. A letter of credit on a Commissioner-approved form is the statutory alternative — a bond simply costs a premium instead of tying up six figures of bank collateral.
The amount steps with volume: $50,000 where annual aggregate life settlement payments attributable to you and made to Vermont policy owners run from $0 to $1,000,000; $100,000 from there to $15,000,000; and $150,000 at $15,000,000 or more. Those are floors, not caps — the statute lets the Commissioner require "such other amount as the Commissioner may require," ask for evidence of financial responsibility at any time, and adjust the brackets by rule to match the aggregate payment data filed in annual statements under 8 V.S.A. § 3839. Do not size yourself off the broker table by mistake: a life settlement broker files a different ladder that starts at $25,000.
You need this bond if you are
One application, issued instantly.
These are the actual issuing fields — entity details, county, the bond amount your tier requires, and an effective date. There is no credit section in this application.
Start the application →Common questions.
Other Vermont bonds.
One attachment left on the DFR packet.
Enter your tier, see the exact price, and file the executed bond with Company Licensing the same day. Free until issued.