An act relating to the regulation of insurance products and services
Sponsored By: Michael J Marcotte (Republican)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
13 provisions identified: 7 benefits, 3 costs, 3 mixed.
Stronger protections and refunds at crypto kiosks
The law adds strong safeguards for people using crypto kiosks. New customers who were tricked get a full refund, including fees, if they report it to the operator and law enforcement within 90 days. Existing customers who were tricked get their fees back if they report within 90 days. Before you buy or sell, the kiosk must show clear terms, all fees, a risk warning, and give a paper and electronic receipt with wallet and contact details. Operators must check your ID, collect contact info, take a photo each time, run blockchain analytics, and offer live toll‑free help. They must phone‑screen new customers age 60+ before the first trade and anyone trying more than $5,000 in any 10‑day period. Operators are also responsible for any third party using their kiosks and must keep written antifraud policies and qualified compliance staff. Many of these duties apply starting July 1, 2025.
Protects affordable housing from insurance bias
Insurers cannot cancel, refuse, raise the premium, or limit property coverage just because a building has affordable units. They also cannot act based on tenants getting rental help, tenants’ income, or ownership by certain housing co‑ops or public housing agencies. This protects owners and renters in affordable housing from losing coverage or paying more for these reasons.
Crypto kiosks: higher limits and fees
New customers can convert up to $2,000 per day across one or more virtual‑currency kiosks. Kiosk fees for a single transaction (or linked series) are capped at the greater of $5 or 15% of the U.S. dollar amount. This raises the daily limit for new users but also allows higher fees on some transactions.
Stronger Medigap rate reviews for seniors
Starting January 1, 2026, the Department holds a public hearing if rate recommendations differ by 2 percentage points or more. For requests over a 10% average increase, the Department must ask for public comment and hold a hearing if certain advocates or 25 policyholders ask. Intervenors may have to pay up to $2,500 in costs unless the Commissioner waives it. Most of the law takes effect July 1, 2025; these Medicare supplement rules start January 1, 2026.
Payroll services get money-transmitter exemptions
Some payroll providers are exempt from money‑transmitter rules if they meet size limits and keep client funds in segregated trust or titled deposit accounts. Examples include serving 25 or fewer Vermont employers in‑state, 500 or fewer employers overall, or making pay to fewer than 300 Vermont employees. Providers that only do payroll calculations (not processing money) are also exempt.
Studies on fraud, coerced debt, genetic privacy
The Commissioner will study ways banks can hold transactions to stop fraud (status by Nov 15, 2025; final draft by Jan 15, 2026). The Commissioner will also study protections for victims of coerced debt (draft by Jan 15, 2026). By Nov 15, 2025, the Commissioner recommends whether insurers should be barred from using non‑medical genetic reports or need consumer consent.
Insurers must file rates 30 days early
Insurers must submit proposed rates and support at least 30 days before they take effect in competitive markets. This gives regulators time to review changes.
Insurance exam and investigation records private
Regulatory exam and investigation records are confidential and cannot be used in private lawsuits. The Commissioner may share them only for official legal, regulatory, or law‑enforcement needs, including with other supervisory agencies.
More lender fees allowed on loans
Lenders may charge the reasonable cost of private mortgage guaranty insurance, subject to limits set by the state. They may also charge agreed credit‑card‑style fees, like late or over‑limit charges. Borrower‑requested discount points are allowed only if they truly lower the interest or time‑price cost.
Pause on new crypto kiosks until 2026
New virtual‑currency kiosks cannot operate in Vermont before July 1, 2026. Kiosks that were licensed and running on or before June 30, 2024 can keep operating.
Tougher governance for mutuals and risk groups
Mutual insurers must spell out board elections and policyholder meetings in bylaws. Risk retention groups face stricter independence rules: a director has a material relationship if pay is 5%+ of gross written premium or 2%+ of surplus; the CEO must report material noncompliance. Mutual financial institutions must have corporators who live in the service area, with over half as depositors and at least two‑thirds independent, and act as fiduciaries. These corporator rules start July 1, 2025.
More Medigap transparency, but one review repealed
Beginning Jan 1, 2026, the state posts Medigap rate increase filings within five business days and shows plan‑by‑plan increases and how to comment. For large filings (over 10% composite) by carriers with 5,000+ Vermont lives, the Commissioner notifies disability and consumer advocates. Insurers must file rate requests earlier: by July 1 for Jan 1 effective dates, or at least six months before other start dates. At the same time, the law repeals the required independent analysis for Medigap rate reviews.
New rules and fees for captive insurers
Captive insurers can use parametric contracts and may reinsure approved policies and annuities, subject to limits and approval. New compliance steps apply: a sworn capital statement within 30 days of starting, annual financial reports (by Mar 1 or Mar 15), and branch filings by Mar 15 (or within 75 days with approval). Dormant captives must keep at least $25,000 in capital, file by Mar 15, and pay a $500 yearly dormancy fee. Rules also clarify which corporate laws apply and set merger‑approval and special‑purpose affidavit standards.
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Sponsors & Cosponsors
Sponsor
Michael J Marcotte
Republican • House
Cosponsors
Abbey Duke
Democratic • House
Anthony "Tony" Micklus
Republican • House
David "Dave" Bosch
Republican • House
Edye Graning
Democratic • House
Emily Carris Duncan
Democratic • House
Herb Olson
Democratic • House
Jonathan Cooper
Democratic • House
Kirk White
Democratic • House
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
House message: Governor approved bill on May 19, 2025
5/20/2025SenateSigned by Governor on May 19, 2025
5/20/2025HouseDelivered to the Governor on May 13, 2025
5/13/2025HouseHouse message: House concurred in Senate proposal of amendment
5/9/2025SenateSenate proposal of amendment concurred in
5/8/2025HouseAction Calendar: Senate Proposal of Amendment
5/8/2025HouseNotice Calendar: Senate Proposal of Amendment
5/7/2025HouseSenate Message: Passed in concurrence with proposal of amendment
5/6/2025HouseRead 3rd time & passed in concurrence with proposal of amendment
5/2/2025SenateNew Business/Third Reading
5/2/2025Senate3rd reading ordered
5/1/2025SenateProposal of amendment by Committee on Finance agreed to
5/1/2025SenateRead 2nd time, reported favorably with proposal of amendment by Senator Cummings for Committee on Finance
5/1/2025SenateFavorable report with proposal of amendment by Committee on Finance
5/1/2025SenateNew Business/Second Reading
5/1/2025SenateFavorable report with proposal of amendment by Committee on Finance
4/30/2025SenateSecond Reading
4/30/2025SenateEntered on Notice Calendar
4/30/2025SenateRead 1st time & referred to Committee on Finance
3/20/2025SenateRead third time and passed
3/18/2025HouseAction Calendar: Third Reading
3/18/2025HouseThird Reading ordered
3/14/2025HouseReport of Committee on Commerce and Economic Development agreed to
3/14/2025HouseRep. Burkhardt of South Burlington recommended for the Committee on Ways and Means
3/14/2025HouseRep. White of Bethel reported for the Committee on Commerce and Economic Development
3/14/2025House
Bill Text
As Enacted (ACT 23)
5/28/2025
As Passed by Both Chambers
5/12/2025
As Passed by Both Chambers (Unofficial)
5/12/2025
Senate Proposal of Amendment
5/7/2025
Senate Proposal of Amendment (Unofficial)
5/7/2025
As Passed by the House
3/20/2025
As Passed by the House (Unofficial)
3/20/2025
As Introduced
2/3/2025
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