Montpelier, VT (July 6, 2021) — Commissioner of Financial Regulation Michael Pieciak announced today that the Department’s Banking, Insurance, and Captive Insurance Divisions have each received another 5-year accreditation from their national regulatory associations.
“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,” said Commissioner Pieciak. “I am proud of our team for receiving each of these accreditations.”
“Protecting the financial interests of Vermonters is an important job and I appreciate how seriously the DFR team takes this responsibility and how well they accomplish it,” said Governor Phil Scott. “I want to congratulate DFR on receiving this important seal of approval from their fellow regulators.”
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 department met or exceeded the accreditation standards and did not have any recommendations for improvement.
The National Association of Insurance Commissioners (NAIC) renewed the accreditation of department’s Captive Insurance and Insurance Divisions. Accreditation means that the department meets national standards for regulation of the financial condition of insurance companies. The divisions perform in-depth financial analysis of Vermont-domiciled insurers to ensure that these entities are solvent, and regulates insurers’ rates, forms, and market conduct to ensure that Vermonters are provided with the full benefit of their bargain with insurers.
Deputy Commissioner of Insurance Kevin Gaffney explained that maintaining NAIC accreditation is important to all insurance companies domiciled in Vermont, and to Vermont insurance consumers and taxpayers.
“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,” shared Gaffney.
Deputy Commissioner of Captive Insurance Dave Provost stated, “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.”
The Banking Division received accreditations from both the Bank and Mortgage Accreditation Programs of the Conference of State Bank Supervisors (CSBS) and from the National Association of State Credit Union Supervisors (NASCUS). The CSBS and NASCUS accreditation teams determined the Banking Division provides high-quality and effective regulation and supervision of state banking, credit union, and mortgage businesses.
“Re-accreditation demonstrates that our processes and regulatory standards continue to compare with best practices across the country,” said Deputy Commissioner of Banking Molly Dillon. “It is a tribute to the dedication of DFR employees to continue a long history of work that protects consumers and provides high level of balanced support for the financial industry.”
Other states will recognize and rely upon the regulatory work performed by Vermont as an NAIC-, CSBS- and NASCUS-accredited state. Therefore, insurers and financial service providers domiciled in Vermont will not be subject to redundant financial regulation in other states in which they do business. This translates into lower regulatory burdens and expenses for companies operating in our state.
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