SOUTH BURLINGTON, Vt. (2/11/08)--Association of Vermont Credit Unions (AVCU) President Joe Bergeron informed state credit union CEOs and managers last week that credit insurance licensing regulations are about to be implemented. The regulations come after more than two years of work from the insurance arm of the state regulator--the Banking, Insurance, Securities, and Health Care Administration (BISCHA). BISCHA sent a final version of the regulations to the Secretary of State for official filing. A review by the statehouse’s Legislative Committee on Administrative Rules (LCAR) is all that remains before the planned April 1 effective compliance date (Newslines Express
Feb. 8) . Under the new regulations, credit unions, banks, car dealers and others selling credit-related insurance would be required to attain a limited line license for their entity and/or employees--such as loan officers--involved in the sale of insurance. Previously, financial institutions were exempt from licensing requirements. Additional disclosure requirements and employee training also are part of the new regulatory mandate. CUNA Mutual Group’s (CMG) legal department has worked closely with AVCU during the past two years to influence the impact of BISCHA’s credit insurance license regulations on credit unions. Following the Feb. 20 LCAR review, credit unions will have one month to prepare for compliance. On behalf of credit unions, AVCU has sought from BISCHA an extension of time for initial compliance. AVCU has provided to member credit unions these details:
* An overview and Q&A of the limited Lines License Regulations; * Copies of the actual regulations from BISCHA; and * AVCU’s letter to BISCHA, requesting additional time for credit union compliance.
CMG is developing a compliance training program for all Vermont credit unions. AVCU continues to seek final details from BISCHA and will coordinate and provide compliance assistance. Soon, pending final release of the regulations, CUNA Mutual and AVCU likely will schedule a teleconference to provide further details to member credit unions.