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
17 provisions identified: 8 benefits, 2 costs, 7 mixed.
Insurance protections for affordable housing residents
Beginning July 1, 2025, insurers cannot use listed affordable-housing conditions to deny, cancel, or refuse to renew residential property or liability insurance. They also cannot raise premiums or reduce coverage for those reasons. Protected conditions include affordable-housing requirements, government rental assistance, resident income or income source, and specified cooperative or public-housing ownership. Insurers can still make decisions based on other legally allowed factors.
Licensing relief for qualifying payroll providers
Beginning July 1, 2025, small payroll processors can avoid chapter 53 licensing with no more than 25 Vermont-based employers. They must also serve no more than 500 employers overall and fewer than 300 Vermont-resident employees. Providers, key people, and controlling people must have no felony convictions or pleas and no financial or professional license revocations unless formally vacated. Customer money must stay in specified segregated trust or customer-benefit accounts at federally insured institutions; providers cannot conduct other activities requiring that license. Separate exemptions cover providers doing neither payroll processing nor Vermont money transmission, and processors serving no Vermont-based employers, without other license-requiring activity.
Higher allowed fees at virtual-currency kiosks
Beginning July 1, 2025, the percentage ceiling on virtual-currency kiosk charges rises from 3% to 15%. Total charges cannot exceed the greater of $5 or 15% of the virtual currency's U.S. dollar value. The cap covers a single transaction or related transactions together. Charges include the difference between the customer's price and the prevailing market value.
Temporary operating ban for most currency kiosks
From July 1, 2025, until July 1, 2026, virtual-currency kiosks generally cannot operate in Vermont. The ban does not cover kiosks that were both duly licensed and operating in Vermont by June 30, 2024.
Kiosk customers face identity and fraud checks
Beginning July 1, 2025, kiosk operators must verify identity before payment and collect government ID, a retainable photo, and contact details. Required details include name, birth date, phone number, address, and email; customers cannot use another person's identity. Operators are strictly liable for violations of these identity rules. Before a first transaction, operators must phone-screen new customers over age 60. Screening also applies to anyone attempting more than $5,000 in transactions during any consecutive 10-day period; operators record and retain the screening and decide whether to approve.
Clearer terms for virtual-currency customers
Licensed virtual-currency businesses must provide clear, separate information customers can keep before doing business, beginning July 1, 2025. Applicable disclosures cover fees, guarantees, transfer rules, errors, liability, timing, stop-payment rights, records, and notice of changes. They must also explain that virtual currency is not money; the Commissioner can approve equivalent disclosures. Immediately before kiosk purchases or sales, or deals where the business or an affiliate is the buyer or seller, customers must confirm terms and charges. Receipts must show business contact details, U.S. dollar amounts, and charges; one daily confirmation is allowed when disclosed in advance.
Fraud refunds for currency kiosk customers
Beginning July 1, 2025, new kiosk customers receive full refunds, including fees, for transactions they were tricked into making. They must report fraud within 90 days after their last transaction with that operator. Existing customers receive all fees back, not the transaction amount, and must report within 90 days after their last fraud-related transaction. Both groups must report to the operator and a law enforcement or government agency.
Kiosk customers get warnings and live help
Beginning July 1, 2025, new kiosk accounts require disclosures about risks, unauthorized-transaction liability, information sharing, records, policy changes, and regulator contacts. Before transactions, operators must explain refund policies and daily limits and warn about scams, irreversible transactions, and destination-wallet control. Customers must have an easy way to cancel before completion. Every completed kiosk transaction requires both paper and electronic receipts showing wallet and account-owner details, transaction IDs, refund duties, delivery liability, and regulator contacts. Operators must display a live, toll-free support number and offer help throughout kiosk operating hours.
Broader privacy for financial investigation records
Beginning July 1, 2025, investigation and examination confidentiality rules cover anyone licensed, authorized, or registered by Vermont's financial regulator. They also cover anyone required to hold that status. This replaces the earlier coverage based on specified insurance and financial statutes.
Insurers must file rates before use
Beginning July 1, 2025, insurers in competitive markets must file rates and supporting information at least 30 days before use. This replaces the deadline of within 15 days after rates took effect. The rule excludes filings under 8 V.S.A. § 4687, specifically rated inland marine risks, and risks exempted by regulation.
Captive insurers gain broader business options
Beginning July 1, 2025, captive insurers can seek licenses for the full range of insurance business listed in state law. Their organizational documents must allow that business, and existing limits on each captive type's insured risks remain. Captives can reinsure approved policies covering parent, affiliate, and controlled unaffiliated business risks ceded by another insurer. They can also reinsure annuity contracts issued by another insurer.
Borrowers can pay points for lower rates
Beginning July 1, 2025, lenders can charge discount points only when borrowers request them to reduce the loan's rate or financing charge. The points must produce a genuine reduction. Borrowers pay an upfront charge in exchange for that reduction; the law does not set the charge or total savings.
Higher new-customer limit, existing-customer cash cap
Beginning July 1, 2025, a kiosk operator's daily cash limit for a new customer rises from $1,000 to $2,000. The operator cannot accept or dispense more than $5,000 in cash daily for an existing customer. Transactions through one or more Vermont kiosks count together, including related transactions.
Medicare supplement notices expand, oversight narrows
Beginning January 1, 2026, Vermont's financial regulator must post Medicare supplement premium-increase requests within five business days of receiving them. Posts must show requested increases, proposed start dates, filing access, and public comment instructions and deadlines. For carriers covering at least 5,000 Vermont lives, the average increase triggering notice to aging officials and health advocates rises from 3% to over 10%. Coverage changes with comparable cost or access effects also trigger notice, and aging officials must alert their advisory board within five business days. The law also repeals the separate independent-analysis requirement.
Kiosk operators face stronger fraud-control duties
Beginning July 1, 2025, kiosk operators must follow licensing rules and ensure other businesses using their kiosks are licensed and compliant. They must use blockchain fraud-checking software and retain a specialist service to help block known fraud-linked wallets. Written antifraud policies must cover risk controls, monitoring, wallet safeguards, and regular reviews. Board-approved compliance and enhanced-review policies must be followed, including checks for vulnerability based on age or mental capacity. Operators must employ qualified, full-time compliance and consumer-protection officers, neither owning more than 20%; full-time employees must perform required compliance work.
Captive insurers get updated governance rules
Beginning July 1, 2025, mutual captive insurers must follow specified insurance governance rules; the captive-insurance chapter controls conflicts. Captives formed as limited liability companies or reciprocal insurers can use board-authorized signers for specified certifications, reports, and merger documents. Covered financial reports must follow the reporting provision in 8 V.S.A. § 6002(c)(3), except risk retention group reports. Risk retention group presidents or chief executives must promptly report known material governance violations in writing. For groups formed as limited liability companies or reciprocal insurers, a board-authorized person can provide that notice.
Mutual banks gain depositor-focused governance limits
Beginning July 1, 2025, mutual financial institutions' governing representatives, called corporators, must live in or near the institution's service area. They cannot continue serving after losing that residency status. More than 50% must be depositors, and at least two-thirds must be independent of the institution and related companies. Employees, directors, and officers do not count as independent. Corporators must act with care and loyalty in depositors' best interests while considering borrowers, other customers, communities, and institutional safety and needs.
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
5/20/2025HouseSigned by Governor on May 19, 2025
5/20/2025HouseDelivered to Governor on May 13, 2025
5/13/2025HouseHouse message: House concurred in Senate proposal of amendment
5/9/2025HouseSenate 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
5/6/2025SenateRead 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)Opens in a new window
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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