2026 Vermont Legislative Session:
What Insurance Agents Need to Know
The 2026 Vermont legislative session brought significant policy discussions on consumer privacy, financial regulation, housing, education reform, and more. Throughout the session, the Vermont Insurance Agents Association (VIAA) worked alongside our legislative partners at Downs Rachlin Martin (DRM) to monitor proposals and advocate for the interests of Vermont’s independent insurance agents.
While many bills considered this year had broad impacts across the state, several pieces of legislation were particularly important to the insurance industry. Here’s a look at the key developments and what they mean for agents.
Consumer Data Privacy (S.71) (Enacted)
Vermont enacted a comprehensive consumer data privacy law that establishes new rights for consumers to access, correct, delete, and obtain copies of their personal information, as well as opt out of certain data processing activities.
The legislation generally applies to businesses handling large volumes of consumer data. Importantly for the insurance industry, exemptions for entities regulated under the Gramm-Leach-Bliley Act (GLBA)—including insurers and licensed insurance producers—were preserved. VIAA closely monitored this legislation throughout the process to help ensure these protections remained in place.
Data Brokers (H.211) (Enacted)
H.211 creates Vermont’s first regulatory framework for data brokers, who are companies that collect and sell personal information without having a direct relationship with consumers.
The new law requires covered data brokers to register annually with the Secretary of State and comply with enhanced data security and consumer protection standards. Following extensive negotiations, the final legislation also includes GLBA exemptions, addressing many of the concerns raised by VIAA and the insurance industry.
Uninsured & Underinsured Motorist Coverage (S.7) (Did not Pass House during 2026)
One of the more closely watched bills of the session proposed significant changes to Vermont’s uninsured and underinsured motorist coverage laws.
The legislation could have affected policy administration, underwriting, claims handling, and insurance premiums. Although the bill passed the Vermont Senate, it did not advance in the House and therefore did not become law during the 2026 session.
Financial Services Modernization (H.648) (Enacted)
The Legislature approved a comprehensive Department of Financial Regulation modernization bill that updates Vermont’s banking, securities, and insurance laws.
For the insurance industry, the legislation:
- Aligns annual reporting requirements with National Association of Insurance Commissioners (NAIC) standards.
- Updates provisions governing mutual insurance holding companies.
- Establishes a framework for medical malpractice closed-claim reporting.
- Makes numerous technical updates to keep Vermont insurance statutes current.
While largely administrative, these changes continue Vermont’s effort to modernize financial services regulation and maintain consistency with national standards.
The Legislature also approved updates to Vermont’s workers’ compensation system, including revisions to vocational rehabilitation, utilization review, dispute resolution procedures, and benefit administration.
Although these changes are not expected to significantly impact most insurance agencies, they are relevant to insurers writing workers’ compensation coverage and represent continued modernization of the state’s workers’ compensation framework.
Looking Ahead
Overall, the 2026 legislative session emphasized stronger consumer protections while avoiding significant new regulatory burdens for Vermont’s insurance industry. Several proposals with the potential to substantially impact insurers and independent agents were either improved through the legislative process or ultimately did not become law.
VIAA remains committed to representing the interests of Vermont’s independent insurance agencies throughout the legislative process. We will continue working with our advocacy partners to monitor proposed legislation, engage with policymakers, and keep members informed about developments that affect their businesses.
For a more comprehensive review of the 2026 legislative session, we encourage members to reach out to our Executive Director Mark Male, MLIS.