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2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 109 - Credit Life Insurance and Credit Accident and Health Insurance › § 4112. Existing insurance; choice of insurer

§ 4112. Existing insurance; choice of insurer
When credit life insurance or credit accident and health insurance is required as additional security for any indebtedness, the debtor shall, upon request to the creditor, have the option of furnishing the required amount of insurance through existing policies of insurance owned or controlled by him or of procuring and furnishing the required coverage through any insurer authorized to transact an insurance business within this State. (Added 1959, No. 221, § 11.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 109 - Credit Life Insurance and Credit Accident and Health Insurance › § 4113. Enforcement

§ 4113. Enforcement
The Commissioner may, after notice and hearing, issue such rules and regulations as he or she deems appropriate for the supervision of this chapter. Whenever the Commissioner finds that there has been a violation of this chapter or any rules or regulations issued pursuant thereto, and after written notice thereof and hearing given to the insurer or other person authorized or licensed by the Commissioner, he or she shall set forth the details of his or her findings together with an order for compliance by a specified date. Such order shall be binding on the insurer and other person authorized or licensed by the Commissioner on the date specified unless sooner withdrawn by the Commissioner or a stay thereof has been ordered by a court of competent jurisdiction. (Added 1959, No. 221, § 12.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 109 - Credit Life Insurance and Credit Accident and Health Insurance › § 4114. Judicial review

§ 4114. Judicial review
Any party to the proceeding affected by an order of the Commissioner shall be entitled to judicial review in the Supreme Court. (Added 1959, No. 221, § 13; amended 1995, No. 167 (Adj. Sess.), § 11; 1997, No. 161 (Adj. Sess.), § 6, eff. Jan. 1, 1998.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 109 - Credit Life Insurance and Credit Accident and Health Insurance › § 4115. Penalties

§ 4115. Penalties
In addition to any other penalty provided by law, any person who violates an order of the Commissioner after it has become final, and while such order is in effect, shall forfeit and pay to the State of Vermont an administrative penalty not to exceed $1,000.00, except that if such violation is found to be willful, the amount of such penalty shall be a sum not to exceed $5,000.00. The Commissioner, in his or her discretion, may revoke or suspend the license or certificate of authority of the person guilty of such violation. Such order for suspension or revocation shall be upon notice and hearing and shall be subject to judicial review as provided in section 4114 of this title. (Added 1959, No. 221, § 14; amended 1995, No. 167 (Adj. Sess.), § 10.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 110 - Dental Insurance › § 4121. Definitions

§ 4121. Definitions
As used in this chapter:
(1) “Covered individual” means an individual covered under a dental insurance plan or a health insurance plan.
(2) “Covered service” means a dental service for which reimbursement is available under a covered individual’s dental insurance plan or health insurance plan or for which reimbursement would be available but for the application of contractual limitations such as deductibles, co-payments, coinsurance, waiting periods, annual or lifetime maximums, frequency limitations, alternative benefit payments, or other limitations.
(3) “Dental insurance plan” means a stand-alone dental plan or policy that provides coverage for dental services separately from a health insurance plan.
(4) “Dental insurer” means any health or dental insurance company, including a nonprofit dental service corporation, that offers a dental insurance plan for sale.
(5) “Dentist” means an individual licensed to practice dentistry under 26 V.S.A. chapter 12.
(6) “Health insurance plan” means any individual or group health insurance policy, any hospital or medical service corporation or health maintenance organization subscriber contract, or any other health benefit plan offered, issued, or renewed for any person in this State by a health insurer. The term does not include benefit plans providing coverage for a specific disease or other limited benefit coverage.
(7) “Health insurer” has the same meaning as in 18 V.S.A. § 9402. (Added 2021, No. 25, § 31, eff. Jan. 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 110 - Dental Insurance › § 4122. Fees for covered dental services

§ 4122. Fees for covered dental services
(a) No dental insurer, health insurer, or other similar entity that covers dental services and is subject to regulation by the Department of Financial Regulation, and no contract or participating provider agreement with a dentist, shall require, directly or indirectly, that a dentist who is a participating provider provide dental services to a covered individual at a fee set by, or subject to the approval of, the insurer or other regulated entity unless the dental services are covered services.
(b) No person providing third-party administrator services shall make available to any customers a plan that sets dental fees for providers in its provider network for any dental services other than covered services.
(c) Fees for covered services shall be set in good faith and shall not be nominal.
(d) The Commissioner of Financial Regulation shall enforce the provisions of this section pursuant to the Commissioner’s authority under this title. (Added 2021, No. 25, § 31, eff. Jan. 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 111 - Fidelity, Surety, and Annuity Companies › § 4141. Capital of foreign fidelity and surety companies

§ 4141. Capital of foreign fidelity and surety companies
A foreign stock fidelity and surety company shall not do business in this State unless it has a paid up and unimpaired capital, exclusive of stockholders’ obligations, of not less than $400,000.00. (Amended 1965, No. 59, § 1, eff. May 12, 1965.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 111 - Fidelity, Surety, and Annuity Companies › § 4143. Law governing foreign fidelity, surety, and annuity companies

§ 4143. Law governing foreign fidelity, surety, and annuity companies
The companies specified in section 4141 of this title are governed by and subject to the laws of this State relating to foreign insurance companies and their admission to do business in this State, as applicable. (Amended 2021, No. 105 (Adj. Sess.), § 157, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 111 - Fidelity, Surety, and Annuity Companies › § 4144a. Powers of fidelity companies; other entities; authority to meet bail and bond requirements

§ 4144a. Powers of fidelity companies; other entities; authority to meet bail and bond requirements
(a) Any entity licensed or authorized to transact fidelity insurance or corporate suretyship business in this State may make bonds or contracts of insurance to guarantee the fidelity of persons holding positions of trust in a private or public capacity.
(b) Such an entity may act as surety upon the official bond, provide recognizance, or guarantee the undertaking of any person or entity to any governmental entity, court, or any other person or entity, if accepted and approved by the court, magistrate, or obligee or person authorized to approve such bond or contract. However, approval of persons or entities to execute a bond or post bail as required as a condition of release shall be pursuant to 13 V.S.A. § 7554a.
(c) When such bond is furnished by a public officer or person and accepted for that purpose, the bond shall be deemed full compliance with any requirement for security or surety required to be given by way of bond, recognizance, or other form, such public officer or other person becoming personally bound in the form prescribed by law.
(d) The entity may act as surety upon a bond or undertaking to any person or entity conditioned upon the performance of any duty or trust, or for the doing or not doing of anything in such bond or undertaking specified; it shall indemnify against loss any persons who are responsible as sureties. (Added 1993, No. 233 (Adj. Sess.), § 81, eff. June 21, 1994.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 111 - Fidelity, Surety, and Annuity Companies › § 4145. Fidelity companies may act as sole surety

§ 4145. Fidelity companies may act as sole surety
Where by law two or more sureties are required upon an obligation that a fidelity insurance company is authorized to insure, the fidelity insurance company may act as sole surety upon the obligation and may be accepted as such by the court or other person authorized to approve the sufficiency of the bond or undertaking. Any State law requiring sureties on bonds to be residents of this State shall not be construed to forbid the acceptance of a qualified foreign company as joint and sole surety upon any such bond. (Amended 2021, No. 105 (Adj. Sess.), § 158, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 111 - Fidelity, Surety, and Annuity Companies › § 4146. Limit of liability

§ 4146. Limit of liability
A foreign fidelity and surety company shall not incur in behalf or on account of any one person, partnership, association, or corporation a liability for an amount larger than one-tenth of its total admitted assets, after deducting from such liability amounts reinsured in other companies authorized to do business in this State, unless it shall be secured from loss thereon beyond that amount by suitable and sufficient collateral agreements of indemnity, by deposits with it in pledge, or conveyance to it in trust for its protection, of property equal in value to the excess of its liability over such limit, or, in case such liability is incurred in behalf or on account of a fiduciary holding property in a trust capacity, by such deposit or other disposition of a suitable and sufficient portion of the estate so held, that no further sale, mortgage, pledge, or other disposition can be made thereof without such company’s approval except by the decree of a court having proper jurisdiction.
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 111 - Fidelity, Surety, and Annuity Companies › § 4147. Fiduciaries may secure surety from loss

§ 4147. Fiduciaries may secure surety from loss
A person, partnership, association, or corporation holding property for the benefit of another, except when acting under wills allowed or trusts created before November 27, 1894, may make such covenants with the sureties upon his or her official bond as will enable such fiduciary to secure such sureties from loss in any manner provided by section 4145 of this title. However, if such fiduciary was appointed by the decree of any court within this State, the approval of such court shall first be obtained to such covenant.
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 111 - Fidelity, Surety, and Annuity Companies › § 4148. Copy of agreement to be filed and recorded

§ 4148. Copy of agreement to be filed and recorded
A copy of such covenant, duly acknowledged in the manner required for the acknowledgment of deeds of real estate, may be filed and recorded as follows: in the office of the clerk or register of the court in which such fiduciary obtained his or her appointment; or if not appointed by decree of the court, in the manner provided by law for the record of deeds of real estate, if such covenant concerns real estate, or mortgages of personal property, if such covenant concerns personal property. Such record shall be notice to and binding on all persons.
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 111 - Fidelity, Surety, and Annuity Companies › § 4149. Allowance of premium against estate

§ 4149. Allowance of premium against estate
Money paid to a company duly organized and authorized to act in this State in guaranteeing the fidelity of persons and in acting as surety on bonds, or to a person for acting as surety on an official bond given to the Judge of Probate, may be allowed, in his or her discretion, as a charge against the estate in which such bond is required.
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4172. Purpose

§ 4172. Purpose
The purpose of this chapter is to protect, subject to certain limitations, the persons specified in subsection 4173(a) of this chapter against failure in the performance of contractual obligations under life, health, and annuity policies, plans, and contracts specified in subsection 4173(b) of this chapter, due to the impairment or insolvency of the member insurer that issued such policies, plans, or contracts. To provide this protection:
(1) an association of member insurers is created to enable the guaranty of payment of benefits and of continuation of coverages;
(2) members of the Association are subject to assessment to provide funds to carry out the purpose of this chapter; and
(3) the Association is authorized to assist the Commissioner, in the prescribed manner, in the detection and prevention of insurer impairment or insolvency. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4174. Construction

§ 4174. Construction
This chapter shall be liberally construed to effect the purpose under section 4172 of this chapter, which shall constitute an aid and guide to interpretation. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4176. Creation of the Association

§ 4176. Creation of the Association
(a) There is created a nonprofit legal entity to be known as the Vermont Life and Health Insurance Guaranty Association. All member insurers shall be and remain members of the Association as a condition of their authority to transact insurance or health maintenance organization business in Vermont. The Association shall perform its functions under the plan of operation established and approved under section 4180 of this chapter and shall exercise its powers through a board of directors established under section 4177 of this chapter. For purposes of administration and assessment, the Association shall maintain two accounts:
(1) The life insurance and annuity account that includes the following subaccounts:
(A) life insurance account;
(B) annuity account, which shall include annuity contracts owned by a governmental retirement plan, or its trustee, established under section 401, 403(b), or 457 of the U.S. Internal Revenue Code, but shall otherwise exclude unallocated annuities; and
(C) unallocated annuity account, which shall exclude contracts owned by a governmental retirement plan, or its trustee, established under section 401, 403(b), or 457 of the U.S. Internal Revenue Code.
(2) The health account.
(b) The Association shall come under the immediate supervision of the Commissioner and shall be subject to the applicable provisions of the insurance laws of this State. Meetings and records of the Association may be opened to the public upon majority vote of the Board of Directors of the Association. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4177. Board of Directors

§ 4177. Board of Directors
(a) The Board of Directors of the Association shall consist of not less than seven nor more than 11 member insurers serving terms as established in the plan of operation. Members of the Board shall be selected by member insurers subject to the approval of the Commissioner. A vacancy on the Board shall be filled for the remaining period of the term by a majority vote of the remaining board members, for member insurers subject to the approval of the Commissioner. To select the initial Board of Directors, and initially organize the Association, the Commissioner shall give notice to all member insurers of the time and place of the organizational meeting. In determining voting rights at the organizational meeting, each member insurer shall be entitled to one vote in person or by proxy. If the Board of Directors is not selected within 60 days after notice of the organizational meeting, the Commissioner may appoint the initial insurer members. At least one of the directors shall be a person who is an officer, director, or employee of an insurance company incorporated under the laws of this State; provided, however, this provision shall not apply in the event there is no member insurer incorporated under the laws of this State.
(b) In approving selections or in appointing members to the Board, the Commissioner shall consider, among other things, whether all member insurers are fairly represented.
(c) Members of the Board may be reimbursed from the assets of the Association for expenses incurred by them as members of the Board of Directors, but members of the Board shall not otherwise be compensated by the Association for their services. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4180. Plan of operation

§ 4180. Plan of operation
(a)(1) The Association shall submit to the Commissioner a plan of operation and any amendments to the plan necessary or suitable to ensure the fair, reasonable, and equitable administration of the Association. The plan of operation and any amendments to the plan shall become effective upon approval in writing by the Commissioner.
(2) If the Association fails to submit a suitable plan of operation within 120 days following the effective date of this chapter or if at any time thereafter the Association fails to submit suitable amendments to the plan, the Commissioner shall, after notice and hearing, adopt such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. Such rules shall continue in force until modified by the Commissioner or superseded by a plan submitted by the Association and approved by the Commissioner.
(b) All member insurers shall comply with the plan of operation.
(c) The plan of operation shall, in addition to requirements enumerated elsewhere in this chapter:
(1) establish procedures for handling the assets of the Association;
(2) establish the amount and method of reimbursing members of the Board of Directors under section 4177 of this chapter;
(3) establish regular places and times including virtual conference calls for meetings of the Board of Directors;
(4) establish procedures for records to be kept of all financial transactions of the Association, its agents, and the Board of Directors;
(5) establish the procedures whereby selections for the Board of Directors will be made and submitted to the Commissioner;
(6) establish any additional procedures for assessments under section 4179 of this chapter;
(7) contain additional provisions necessary or proper for the execution of the powers and duties of the Association;
(8) establish procedures whereby a Director may be removed for cause, including in the case where a member insurer Director becomes an impaired or insolvent insurer; and
(9) require the Board of Directors to establish a policy and procedures for addressing conflicts of interests.
(d) The plan of operation may provide that any or all powers and duties of the Association, except those under subdivision 4178(l)(3) and section 4179 of this chapter, are delegated to a corporation, association, or other organization that performs or will perform functions similar to those of this Association, or its equivalent in two or more states. Such a corporation, association, or organization shall be reimbursed for any payments made on behalf of the Association and shall be paid for its performance of any function of the Association. A delegation under this subsection shall take effect only with the approval of both the Board of Directors and the Commissioner, and may be made only to a corporation, association, or organization that extends protection not substantially less favorable and effective than that provided by this chapter. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4181. Duties and powers of the Commissioner

§ 4181. Duties and powers of the Commissioner
(a) In addition to the duties and powers enumerated elsewhere in this chapter, the Commissioner shall:
(1) Upon the request of the Board of Directors, provide the Association with a statement of the premiums in Vermont and in any other appropriate states for each member insurer.
(2) Notify the Board of Directors of the existence of an impaired or insolvent insurer not later than three days after a determination of impairment or insolvency is made or the Commissioner receives notice of impairment or insolvency.
(3) When an impairment is declared and the amount of the impairment is determined, serve a demand upon the impaired insurer to make good the impairment within a reasonable time. Notice to the impaired insurer shall constitute notice to its shareholders, if any. The failure of the impaired insurer to promptly comply with such demand shall not excuse the Association from the performance of its powers and duties under this chapter.
(4) In any liquidation or rehabilitation proceeding involving a domestic insurer, be appointed as the liquidator or rehabilitator. If a foreign or alien member insurer is subject to a liquidation proceeding in its domiciliary jurisdiction or state of entry, the Commissioner shall be appointed conservator.
(b) The Commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact business in Vermont of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the Commissioner may levy a forfeiture on any member insurer that fails to pay an assessment when due. Such forfeiture shall not exceed five percent of the unpaid assessment per month, but no forfeiture shall be less than $500.00 per month.
(c) A final action of the Board of Directors or the Association may be appealed to the Commissioner by a member insurer if such appeal is taken within 60 days following its receipt of notice of the final action being appealed. A final action or order of the Commissioner shall be subject to judicial review in the Vermont Supreme Court.
(d) The liquidator, rehabilitator, or conservator of any impaired or insolvent insurer may notify all interested persons of the effect of this chapter. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4183. Credits for assessments paid

§ 4183. Credits for assessments paid
(a) A member insurer may offset against its premium tax liability to Vermont an assessment described in subsection 4179(h) of this chapter to the extent of 20 percent of the amount of the assessment for each of the five calendar years following the year in which the assessment was paid. In the event a member insurer should cease doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business.
(b) A member insurer that is exempt from taxes referenced in subsection (a) of this section may recoup its assessments by a surcharge on its premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the Commissioner. Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the medical loss ratio, or agent commission. If a member insurer collects excess surcharges, the insurer shall remit the excess amount to the Association, and the excess amount shall be applied to reduce future assessments in the appropriate account.
(c) Any sums acquired by refund, pursuant to subsection 4179(f) of this chapter, from the Association that have been written off by contributing insurers and offset against premium taxes as provided in subsection (a) of this section, and are not then needed for purposes of this chapter, shall be paid by the insurer to the Commissioner, who shall deposit them with the State Treasurer for credit to the General Fund. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4185. Examination; annual report

§ 4185. Examination; annual report
The Association shall be subject to examination and regulation by the Commissioner. The Board of Directors shall submit to the Commissioner, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved by the Commissioner and a report of its activities during the preceding calendar year. Upon request of a member insurer, the Association shall provide the member insurer with a copy of the report. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4186. Tax exemptions

§ 4186. Tax exemptions
The Association shall be exempt from payment of all fees and all taxes levied by Vermont or any of its subdivisions, except taxes levied on real property. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4187. Immunity

§ 4187. Immunity
There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer or its agents or employees, the Association or its agents or employees, members of the Board of Directors, or the Commissioner or the Commissioner’s representatives for any action or omission by them in the performance of their powers and duties under this chapter. This immunity shall extend to the participation in any organization of one or more other state associations of similar purposes and to any such organization and its agents or employees. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4188. Stay of proceedings; reopening default judgments

§ 4188. Stay of proceedings; reopening default judgments
All proceedings in which the insolvent insurer is a party in any court in Vermont shall be stayed 180 days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the Association on any matters germane to its powers or duties. As to a judgment under any decision, order, verdict, or finding based on the default, the Association may apply to have such judgment set aside by the same court that made such judgment and shall be permitted to defend against such suit on the merits. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 112 - Life and Health Insurance Guaranty Association › § 4190. Prospective application

§ 4190. Prospective application
(a) This chapter shall apply to all matters relating to any impaired or insolvent insurer for which the Association first became obligated on or after July 1, 2023.
(b) Matters relating to any impaired or insolvent insurer for which the Association first became obligated prior to July 1, 2023, shall be governed by the provisions of this chapter in effect at the time the Association first became obligated for such matters. (Added 2023, No. 32, § 9, eff. July 1, 2023.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4201. Filing and approval of policies; review

§ 4201. Filing and approval of policies; review
A policy of insurance covering against loss or damage resulting from accident to, or injury suffered by an employee or other person, and for which the insured is liable, shall not be issued or delivered to a person, firm, or corporation resident of, or doing business in this State, until a copy of the form of the policy has been filed with the Commissioner; and it shall not be issued or delivered unless approved by the Commissioner. If the Commissioner determines that the form does not comply with the requirements of law, the Commissioner shall immediately give written notice to the insurer who filed the form, specifying the reasons for the Commissioner’s determination, and it shall then be unlawful for the insurer to issue a policy in such form. The Commissioner’s determination is subject to review pursuant to Rule 75 of the Vermont Rules of Civil Procedure. (Amended 2021, No. 105 (Adj. Sess.), § 164, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4201a. Filing fees

§ 4201a. Filing fees
Each filing of a policy or contract form or document, submitted pursuant to section 4201 of this title, shall be accompanied by payment to the Commissioner of a nonrefundable fee of $50.00 per filing submission. (Added 1985, No. 236 (Adj. Sess.), § 9; amended 1991, No. 166 (Adj. Sess.), § 5.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4202. Form and contents of policy

§ 4202. Form and contents of policy
A policy shall not be issued or delivered under this chapter unless:
(1) every printed portion of the policy and any endorsement or attached papers are plainly printed;
(2) a brief description of the policy is plainly printed on the first page; and
(3) the exceptions of the policy are printed with the same prominence as the benefits to which they apply. (Amended 2021, No. 105 (Adj. Sess.), § 165, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4203. Required conditions

§ 4203. Required conditions
Each policy issued and delivered under this chapter shall contain in substance the following conditions:
(1) The company shall pay and satisfy any judgment that may be recovered against the insured upon any claim covered by this policy to the extent and within the limits of liability assumed thereby and shall protect the insured against the levy of any execution issued upon any such judicial judgment or claim against the insured. No limitation of liability in the policy shall be valid if, after a judgment has been rendered against the insured in respect to his or her legal liability for damages in a particular instance, the company continues the litigation by an appeal or otherwise, unless the insured stipulates with the company, agreeing to continue such litigation.
(2) No action shall lie against the company to recover for any loss under this policy, unless brought within one year after the amount of such loss is made certain either by judgment against the insured after final determination of the litigation or by agreement between the parties with the written consent of the company.
(3) The insolvency or bankruptcy of the insured shall not release the company from the payment of damages for injury sustained or loss occasioned during the life of the policy, and in case of such insolvency or bankruptcy an action may be maintained by the injured person or claimant against the company under the terms of the policy, for the amount of any judgment obtained against the insured not exceeding the limits of the policy.
(4) Payment of any judicial judgment or claim by the insured for any of the company’s liability under the policy shall not bar the insured from any action or right of action against the company. In case of payment of loss or expense under the policy, the company shall be subrogated to all rights of the insured against any party, as respects such loss or expense, to the amount of such payment, and the insured shall execute all papers required and shall cooperate with the company to secure to the company such rights.
(5) Policies of motor vehicle insurance shall not provide for any adjustment of rates, the application of any merit rating surcharge plan, nor any similar adjustment or surcharge for any payments made to or on behalf of an insured for damages not attributable to any fault of the insured.
(6) Policies of motor vehicle insurance shall not provide for any adjustment of rates, the application of any merits surcharge rating plan, nor any similar adjustment or surcharge for the first violation of 23 V.S.A. § 800. (Amended 1985, No. 77, § 4; 2021, No. 105 (Adj. Sess.), § 166, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4204. Illegal provisions

§ 4204. Illegal provisions
A policy shall not be issued or delivered under this chapter if it contains a provision contradictory, in whole or in part, to any of the provisions of sections 4201–4203 and 4205–4209 of this title; nor shall any endorsements or attached papers vary, alter, extend, be used as a substitute for, or in any way conflict with such provisions. A policy shall not be issued or delivered under this chapter if it contains any provision purporting to make any portion of the charter, articles of association, Constitution, or bylaws of the insurer a part of the policy unless such portion of the charter, articles, Constitution, or bylaws is set forth in full in the policy. (Amended 2021, No. 105 (Adj. Sess.), § 167, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4205. Effect of false statement in application

§ 4205. Effect of false statement in application
The falsity of a statement in the application for a policy covered by the provisions of this chapter shall not bar the right to recovery under the policy unless such false statement was made with actual intent to deceive or unless it materially affected either the acceptance of the risk or the hazard assumed by insurer. (Amended 2021, No. 105 (Adj. Sess.), § 168, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4206. Acts not constituting waivers

§ 4206. Acts not constituting waivers
The acknowledgment by an insurer of the receipt of notice given under a policy covered by the provisions of this chapter, or the furnishing of forms for filing proofs of loss, or the acceptance of such proofs, or the investigation of a claim under the policy shall not operate as a waiver of any of the rights of the insurer in defense of a claim arising under the policy. (Amended 2021, No. 105 (Adj. Sess.), § 169, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4207. Penalty for unauthorized alterations

§ 4207. Penalty for unauthorized alterations
An alteration of a written application for insurance by erasure, insertion, or otherwise shall not be made by a person other than the applicant without his or her written consent, and a person making such alteration without the consent of the applicant shall pay an administrative penalty of not more than $2,000.00. If such alteration is made by an officer of the insurer, or by an employee of the insurer with the insurer’s knowledge or consent, such act shall be deemed to have been performed by the insurer thereafter issuing the policy upon such altered application. (Amended 1995, No. 167 (Adj. Sess.), § 13.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4208. Construction of illegal policies

§ 4208. Construction of illegal policies
A policy issued in violation of the provisions of this chapter shall be held valid but shall be construed as provided in the provisions of this chapter. When a provision in a policy is in conflict with the provisions of this chapter, the rights, duties, and obligations of the insurer, the policyholder, and the beneficiary shall be governed by the provisions of this chapter. (Amended 2021, No. 105 (Adj. Sess.), § 170, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4209. Penalties

§ 4209. Penalties
A company, corporation, association, society, or other insurer or any officer or agent thereof that issues or delivers to a person in this State a policy in willful violation of the provisions of this chapter shall pay an administrative penalty of not more than $2,000.00 for each offense. The Commissioner may revoke the license of a company, corporation, association, society, or other insurer of another state or country, or of the agent thereof, that willfully violates such provisions. (Amended 1995, No. 167 (Adj. Sess.), § 14; 2021, No. 105 (Adj. Sess.), § 171, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4210. Cost of examinations

§ 4210. Cost of examinations
The insurer under any motor vehicle liability insurance policy shall bear the cost of all physical examinations imposed on the insured or proposed insured as a condition for issuance or renewal of the policy. (Added 1971, No. 108.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4211. Volunteer drivers

§ 4211. Volunteer drivers
(a) An insurer may not refuse to issue motor vehicle liability insurance to an applicant solely because the applicant is a volunteer driver. An insurer may not impose a surcharge or otherwise increase the rate for a motor vehicle policy solely on the basis that the named insured, a member of the insured’s household, or a person who customarily operates the insured’s vehicle is a volunteer driver.
(b) As used in this section, “volunteer driver” means a person who provides services, including transporting individuals or goods, without compensation above mileage expenses to a charitable organization or nonprofit corporation established under Title 11B, pursuant to a written agreement.
(c) This section does not prohibit an insurer from refusing to renew, imposing a surcharge on, or otherwise raising the rate for a motor vehicle liability insurance policy based upon factors other than the volunteer status of the insured driver. (Added 2009, No. 80 (Adj. Sess.), § 1.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4223. Cancellation of automobile insurance

§ 4223. Cancellation of automobile insurance
(a) A notice of cancellation of a policy shall be effective only if it is based on one or more of the following reasons:
(1) nonpayment of premium;
(2) fraud or material misrepresentation affecting the policy or in the presentation of a claim under the policy, or violation of any of the terms or conditions of the policy; or
(3) the driver’s license of the named insured or of any operator either resident in the same household or who customarily operates an automobile insured under the policy has been suspended or revoked pursuant to law during the policy period or, if the policy is a renewal, during its policy period or the 180 days immediately preceding its effective date.
(b) This section shall not apply to any policy or coverage that has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy.
(c) This section shall not apply to nonrenewal. (Added 1971, No. 195 (Adj. Sess.), § 2; amended 2021, No. 105 (Adj. Sess.), § 173, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4224. Notice of cancellation

§ 4224. Notice of cancellation
(a) No notice of cancellation of a policy of insurance to which section 4223 of this title applies or of a policy issued under the Vermont Automobile Insurance Plan shall be effective unless mailed or delivered by the insurer to the named insured at least 45 days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium, at least 15 days’ notice of cancellation shall be given.
(b) In all instances, the reason or reasons for cancellation shall accompany or be included in the notice of cancellation. An insurer shall not be held liable in any claim or suit for damages arising solely from the insurer’s compliance with the requirement that the reason for cancellation be specified.
(c) This section shall not apply to nonrenewal. (Added 1971, No. 195 (Adj. Sess.), § 3, amended 1977, No. 223 (Adj. Sess.),§§ 2, 3; 1989, No. 171 (Adj. Sess.), § 6, eff. Sept. 1, 1990.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4225. Notice of nonrenewal

§ 4225. Notice of nonrenewal
No insurer shall refuse to renew a policy of insurance unless such insurer or its agent shall mail or deliver to the named insured, at the address shown in the policy, at least 45 days’ advance notice of its intention not to renew. This section shall not apply if the insurer has manifested its willingness to renew, or in case of nonpayment of premium, or if the insured fails to pay any advance premium required by the insurer for renewal. Notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other insurance policy with respect to any automobile designated in both policies. Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation that existed before the effective date of such renewal. (Added 1971, No. 195 (Adj. Sess.), § 4; amended 1977, No. 223 (Adj. Sess.), § 8; 1989, No. 171 (Adj. Sess.), § 7, eff. Sept. 1, 1990.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4225a. Renewal policies

§ 4225a. Renewal policies
(a) If the insurer has the necessary information to issue the renewal policy, the insurer shall confirm in writing at least 45 days prior to expiration its intention to renew the policy and the premium at which the policy is to be renewed. The insured shall have the right to renew the policy at this premium.
(b) An insurer not complying with subsection (a) of this section shall grant its insured renewal coverage at the rate or premium in effect under the expiring or expired policy or at rates lawfully in effect on the expiration date, which have been approved by the Commissioner. This shall be done on a pro rata basis and shall continue for 45 days after the insurer confirms renewal coverage and premium. This subsection shall not apply if the insured accepts the renewal policy.
(c) An insurer may transfer a policy to an affiliate, as defined by subdivision 3681(1) of this title, upon expiration of the policy without providing notice of nonrenewal, provided that:
(1) the rating by A. M. Best or a similarly qualified rating service of the affiliate is equal to or better than the transferring insurer;
(2) there is no diminution in the terms and conditions of coverage; and
(3) notice of the transfer is provided to the insured at least 45 days prior to the transfer by first-class mail, and in connection with such notice the insurer:
(A) complies with any requirements of federal law relating to notice of adverse credit determination;
(B) includes in the notice of transfer a telephone number of the insurer, or the producer, if any, and a toll free telephone number of the insurer in the case of personal lines policies, where the insured can learn additional information concerning the transfer and the reasons for the transfer; and
(C) complies with the other provisions of this section relating to renewal policies. (Added 2007, No. 135 (Adj. Sess.), § 2.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4226. Notice requirements

§ 4226. Notice requirements
When notice required under section 4224 or 4225 of this title is provided by mail, such notice shall be by certified mail, except that in the case of cancellation for nonpayment of premium notice shall be by certified mail or certificate of mailing. (Added 1971, No. 195 (Adj. Sess.), § 5; amended 1975, No. 53, § 3, eff. April 15, 1975; 1977, No. 223 (Adj. Sess.), § 10.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4227. Notice of eligibility

§ 4227. Notice of eligibility
When automobile bodily injury and property damage liability coverage is cancelled, other than for nonpayment of premium, or in the event of failure to renew automobile bodily injury and property damage liability coverage to which section 4225 of this title applies, the insurer shall notify the named insured of his or her possible eligibility for automobile liability insurance through the Vermont Automobile Insurance Plan. Such notice shall accompany or be included in the notice of cancellation or the notice of intent not to renew. (Added 1971, No. 195 (Adj. Sess.), § 6.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4228. Required renewals; continuation of agents’ contracts and brokers’ accounts

§ 4228. Required renewals; continuation of agents’ contracts and brokers’ accounts
(a) In the event of an insurer’s cancellation of an agent’s contract or a broker’s account placement authority with such insurer, each policyholder of such an agent or broker shall be entitled to renew his or her policy, upon timely payment of premium, for one additional annual policy period commencing at the next annual anniversary date of the policy; except that an insurer shall have the right to cancel such policy pursuant to section 4223 of this title.
(b) The terminated agent or broker shall be entitled to receive commissions on account of all business continued or written pursuant to this section at the insurer’s prevailing commission rate for such line of insurance. However, this subsection shall not apply to an agent who agrees to represent exclusively one insurer or a group of insurers under common management or an agent or broker whose license has been revoked by the Commissioner or whose contract or account has been terminated for insolvency, abandonment, gross and willful misconduct, or failure to pay over to the insurer monies due to the insurer after receipt of a written demand therefor.
(c) If, after hearing, the Commissioner finds that the financial condition of the insurer is insecure to the extent that continuation of agents’ contracts and brokers’ accounts represent a potential hazard to the policyholders in this State, or that any other condition of the insurer represents such a hazard, the Commissioner may issue an order relieving the insurer from its obligation to provide the renewal policies otherwise required by subsection (a) of this section. (Added 1985, No. 230 (Adj. Sess.), § 2.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 113 - Liability Insurance and Service Contract Companies › § 4229. Penalties

§ 4229. Penalties
A person who violates a provision of this subchapter may be subject to an administrative penalty of $2,000.00 for each violation. (Added 1995, No. 167 (Adj. Sess.), § 14a.)