Life Insurance in Vermont

Vermont is a small state with a small population; there are little more than 600,000 inhabitants. Only Wyoming has fewer people -- in a far larger geographic area. Vermont residents, like others across the United States, look to life insurance as an important part of personal financial planning.

Captive insurance - in which large corporations or industry associations form standalone insurance companies to insure their own risks, thereby substantially reducing their insurance premiums and gaining a significant measure of control over types of risks to be covered - is a growing Vermont industry with over 700 licenses issued in 2006.

According to the American Council of Life Insurers, 366 traditional life insurers are licensed to do business in Vermont. Two of these are domiciled in the state: Vantislife Insurance Company and the Variable Annuity Life Insurance Company. State residents own 310,000 individual life insurance policies, with coverage averaging $88,000 per policyholder. Group life insurance coverage amounts to $20 billion.

Vermont Office Responsible for Life Insurance

Consumers may visit Vermont's Insurance Division to verify the licenses of any life insurance company they're thinking of doing business with. In addition, the website offers summaries of the various types of insurance, laws and regulations, and a consumer page where one may check to see if any life insurance company has had a complaint filed against it, or to lodge a complaint against a company if necessary. (Note - this division doesn't regulate Captive Insurance.)

If your insurance company has been declared insolvent, you may still be able to get your policies paid by contacting the Vermont Insurance Security Fund which was created by statute. If a member company goes bankrupt, they will meet its liabilities.

The legal statutes that regulate life insurance are defined in Vermont's Title 8, Chapters 101 - 145.

Contacting the Vermont Insurance Division