Insurance Division

Crosby L. Sherman
Crosby L. Sherman
Deputy Commissioner

The mission of the Insurance Division is to maintain affordability and availability of insurance for Vermonters, ensure that insurers are able to meet their contractual obligations, to ensure reasonable and orderly competition among insurers, and to protect Vermont consumers against unfair and unlawful business practices. 

Toward this goal, the Vermont Department of Financial Regulation is part of the U.S. insurance regulatory framework which is a highly coordinated state-based national system designed to protect policyholders and to serve the greater public interest through the effective regulation of the U.S. insurance marketplace.  Through the National Association of Insurance Commissioners (NAIC), insurance regulators establish national standards and best practices, conduct peer reviews and coordinate their regulatory oversight to better protect the interests of consumers while ensuring a strong, viable insurance marketplace. U.S. insurance regulators also participate in the International Association of Insurance Supervisors (IAIS) along with the NAIC by participating in all its major standard-setting initiatives, including working with fellow regulators from around the world to better supervise cross-border insurers, identifying systemic risk in the insurance sector, and creating international best practices.

The Insurance Division regulates the insurance industry in Vermont and protects the public in these general areas:

  • Solvency laws require insurance companies to operate in a fiscally responsible manner so that, after taking their customers' money (premiums), they can be counted on to pay claims down the road.
  • Consumer protection laws require companies to sell legal insurance products through licensed producers, treat consumers fairly, and pay claims in a timely manner. 
  • Health insurance laws require that consumers are afforded full disclosure of information, a full and fair review of a grievance and that health plans meet quality and access standards for care.
  • Health insurance plans are audited annually and periodically by the Insurance Division for compliance with Vermont regulations.          
  • All insurance policies sold in Vermont are reviewed and approved by the Insurance Division to ensure that they provide the protections required by Vermont law.