Vermont Insurance

About Vermont Insurance Laws, Health Insurance and Regulations…


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The Vermont insurance industry has faced down several daunting challenges over the years and remains relatively robust. The insurance market in the state is small, but represents a strong niche for the insurance companies that operate within the state itself. The state regulates its insurance industry through the Vermont Insurance Division. The Vermont Insurance Division is part of the larger Department of Financial Regulation and is responsible for ensuring that state and federal insurance regulations and standards are upheld.

Auto insurance is mandatory in Vermont. The Vermont Insurance Division has determined that drivers may carry a minimum level of coverage in order for their vehicles to be considered insured.

This coverage must account for: $25,000 for injury/death to any one person; $50,000 for injuries/deaths for two or more people; and $10,000 for damages to property in any one accident.

Drivers are not required to carry personal injury protection (PIP) coverage by the state.

Vermont homeowners are not required to purchase insurance protection for their properties. Because of  the state’s proximity to the East Coast, there is a risk that homeowners could fall victim tVermont Insuranceo hurricanes and other storms that produce heavy floods. Because of the potential threat of natural disasters, the Vermont Insurance Division advises homeowners to purchase the appropriate coverage for their properties. Though homeowners insurance is not mandated by the state, the Vermont Insurance Division does regulate the property insurance industry to ensure fairness and balance.

Homeowners insurance coverage, as well as flood insurance coverage, is often a stipulation of a mortgage agreement with a financial institution. Homeowners are encouraged to research their coverage options to ensure they purchase policies that meet their specific needs and comply with any agreements they may have with a bank.

Vermont is one of the smallest states in the Union, in terms of population. The state is one to approximately 600,000 residents, 10% of which do not have health insurance coverage. The majority of residents that do have insurance coverage receive their policies through their employers. Beginning in 2014, federal law will require all U.S. citizens to carry some form of health insurance coverage. This same law requires states to host health insurance exchange programs that will help mitigate the financial impact associated with the insurance mandate.

In 2011, Governor Peter Shumlin signed legislation into law that helped pave the way for the state to build a health insurance exchange. The exchange program is currently known as the Vermont Health Benefit Exchange. The exchange is overseen, in part, by the Vermont Insurance Division, which is tasked with examining the various capabilities of the exchange system. The primary governance of the system is handled by the Department of Vermont Health Access.

Vermont Insurance Resources:

Vermont Insurance Commissioner: Susan L. Donegan

Vermont Department of Insurance Website: http://www.dfr.vermont.gov/insurance/home

Vermont Insurance Agent Licensing Info:

http://www.dfr.vermont.gov/insurance/producer-licensing/producer-individual-licensing

File Insurance Complaint:http://www.dfr.vermont.gov/sites/default/files/form-consumer-complaint.pdf

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