Code of Vermont Rules › Agency 21 - DEPARTMENT OF FINANCIAL REGULATION › Sub-Agency 020 - INSURANCE DIVISION › Chapter 008 - FAIR CLAIMS PRACTICES REGULATION › Section 21 020 008 - FAIR CLAIMS PRACTICES REGULATION

Current through June,
				2024
Section 1 Purpose
8
				  V.S.A. §
											4724(9) of the
				  Insurance Trade Practices Act ( 8 V.S.A. §§ 4721-4726 ) prohibits
				  insurers doing business in Vermont from engaging in unfair claims settlement
				  practices and provides that if any insurer performs any of the acts or
				  practices prescribed by that subsection with such frequency as to indicate a
				  general business practice, such acts or practices shall constitute an unfair or
				  deceptive act or practice in the business of insurance. This Regulation is
				  intended to supplement
				  8
				  V.S.A. §
											4724(9) for
				  the purpose of protecting the interests of the public and to insure prompt and
				  equitable claim handling by establishing minimum standards for all types of
				  claim settlements.
Section 2
				Authority
This regulation is issued pursuant to the authority granted
				  to the Commissioner under
				  8 V.S.A. §§
											10,
				  11,
				  15
				  and
				  4724.
Section 3 Scope
This Regulation defines certain minimum standards which, if
				  violated with such frequency as to indicate a general business practice, will
				  be deemed to constitute an unfair claim settlement practice. This Regulation
				  applies to all persons and all insurance policies and contracts except policies
				  of Workers' Compensation, Title insurance and Surety. This Regulation is not
				  exclusive, and any other acts, not herein specified, may also be deemed a
				  violation of
				  8
				  V.S.A §
											4724 of the Insurance Trade
				  Practices Act.
Section 4
				Definitions
The definitions "insurance policy" and "insurance contract"
				  contained in
				  8 V.S.A. §
											4722
				  of the Insurance Trade Practices Act shall apply to this Regulation and, in
				  addition, where used in this Regulation:
A. "Agent" means any person authorized to
				represent an insurer with respect to a claim;
B. "Claimant" means either a first party
				claimant, a third party claimant, or both and includes such claimant's
				designated legal representative and any member of the claimant's immediate
				family designated by the claimant;
C. "First Party Claimant" means any person
				asserting a right to payment under an insurance policy or insurance contract
				arising out of the occurrence of the contingency or loss covered by such policy
				or contract;
D. "Third Party
				Claimant" means any person asserting a claim against any other person or the
				interests insured under an insurance policy or insurance contract;
E. "Insurer" means a person who issues any
				insurance policy or insurance contract in this State;
F. "Investigation" means all activities of an
				insurer directly or indirectly related to the determination of liabilities
				under coverages afforded by an insurance policy or insurance contract;
				and
G. "Person" means any
				individual, association, organization, partnership, business, trust,
				corporation or other entity.