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Vermont Insurance Fraud Laws

Life can be crazy. Insurance is our safety net. However, when an insurance company uses deception in issuing their plans, premium holders are often left holding the bag when their lives need the insurance the most. Vermont insurance fraud laws protect consumers from these fraudulent sellers by hitting violators with strong prison sentences and fines. This is a quick summary of the insurance fraud laws in Vermont.

Check Licenses To Avoid Being a Victim of Vermont Insurance Fraud

Fraudulent insurance sellers attack the uninformed through layers of deception. They try to trick the buyer into believing that their insurance deals really aren't too good to be true. Buyers can avoid these fraudulent deals by verifying that the seller is actively licensed to do business by the Vermont Department of Financial Regulation before signing any agreement. If a seller is not on the state's list, it may be a warning flag worth investigating.

The following table outlines the specifics of Vermont insurance fraud laws.

Code Sections

13 V.S.A §2031: Insurance Fraud

What's Prohibited?

Vermont insurance fraud laws state that no person shall, with intent to defraud:

  • Present a claim for payment or benefit to any insurance policy, that contains false representations as to any material fact; or

  • Present information containing false representations as to any material fact concerning the sale of any insurance policy or purported insurance policy, an application for certificate of authority, or the financial condition of any insurer.


If the benefit wrongfully obtained or the loss suffered by the victim has a value of:

  • less than $900.00: A punishment of up to six months in prison, a fine of up to $5,000, or both.

  • more than $900.00: A punishment of up to five years in prison, a fine of up to $10,000, or both.

If you are a victim of insurance fraud, contact the Vermont Insurance Division's consumer services section by calling 1-800-964-1784 or by filing a complaint online. If you have been accused of violating an insurance fraud law and would like legal assistance, you can contact a Vermont criminal defense lawyer through FindLaw. Visit FindLaw's sections on insurance fraud and other fraud and financial crimes for more articles and information on this topic.

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