The Vermont Department of Financial Regulation’s captive insurance division has received another five-year accreditation from the National Association of Insurance Commissioners (NAIC).
Michael Pieciak, Vermont’s Commissioner of Financial Regulation, said the insurance and banking divisions have also received the accreditations from the relevant bodies.
The captive division performs in-depth financial analysis of Vermont-domiciled insurers to ensure they are solvent. It also regulates insurers’ rates, forms, and market conduct to ensure that Vermonters are provided with the full benefit of their bargain with insurers.
Each accreditation team included experienced former state regulators who conducted in-depth reviews of each division’s policies, procedures, and operations to ensure they met best standards established by fellow regulators across the country. The accreditation teams found the departments met or exceeded the accreditation standards and did not have any recommendations for improvement.
Pieciak explained: “Our department routinely examines the financial firms operating in Vermont to ensure their compliance with our laws; accordingly, it is important for independent experts to examine our department’s operations to ensure we are following best practices and providing the highest-level of service to Vermonters.”
Vermont Governor Phil Scott emphasised the importance of protecting the financial interests of Vermonters. “I appreciate how seriously the DFR team takes this responsibility and how well they accomplish it,” he said.
Deputy Commissioner of Insurance Kevin Gaffney said: “As a practical matter, accreditation is good news because it means the department is doing a good job of regulating the financial condition of its domestic insurance companies. Consumers who purchase insurance products from licensed insurance companies in Vermont can feel confident the companies are financially sound and solvent.”
Dave Provost, the Deputy Commissioner of Captive Insurance, said: “The accreditation reflects the hard work our team puts into professional regulation of the companies under our watch and is a critical element to maintain Vermont’s gold standard regulatory approach within the captive insurance industry.”
Other states will recognize and rely upon the regulatory work performed by Vermont as an NAIC-, CSBS- and NASCUS-accredited state. It means insurers and financial service providers domiciled in Vermont will not be subject to redundant financial regulation in other states in which they do business, which means lower regulatory burdens and expenses for companies operating in Vermont.
Vermont, Department of Financial Regulation, Michael Pieciak, Phil Scott, Kevin Gaffney, Dave Provost