Title 08, Title 08: Banking and Insurance

§ 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, a…

§ 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 …

§ 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 …

§ 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…

§ 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 r…

§ 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 …

§ 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.)

§ 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 bas…

§ 4222. Definitions The following definitions, unless otherwise specified or qualified, shall be applicable to this subchapter: (1) “Policy” means an automobile liability policy providing bodily injury liability, property damage liability, medical payments, and uninsured motorist…

§ 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 …

§ 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…

§ 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 …

§ 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 sh…

§ 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, certificate of mailing, or …

§ 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…

§ 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 r…

§ 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.)

§ 4241. Vermont Automobile Insurance Plan All insurers licensed to transact business in this State, for the issuance of automobile insurance against bodily injury, property damage, medical payments, or other loss, including what are commonly known as “liability,” “collision,” “co…

§ 4242. General provisions of Plan The Plan shall provide: (1) reasonable rules for the distribution of risks on an equitable basis under either a pooled or assigned plan; (2) rates applicable to, and based upon, that class of risks as described in section 4241 of this title to w…

§ 4243. Submission and approval of Plan (a) A plan conforming to the standards of section 4242 of this title shall be submitted to the Commissioner within 90 days of July 1, 1969. Each insurer and advisory or service organization described in section 4241 of this title shall file…

§ 4244. Commissioner to formulate Plan (a) If no Plan conforming to the standards of section 4242 of this title is submitted to the Commissioner within 90 days of July 1, 1969 or within the time provided for in any order of disapproval, the Commissioner shall prepare and promulga…

§ 4245. Insurers to participate in Plan After approval of or preparation and promulgation of the Plan, every insurer licensed to transact business in this State shall participate in the Plan according to its provisions as described in section 4241 of this title. (1969, No. 63, § …

§ 4246. Insurer or rating organization; conduct of If the Commissioner finds that the conduct of any insurer or advisory or service organization is not in conformity with the Plan, he or she may, after hearing, order the cessation of the conduct complained of. Further conduct in …

§ 4247. Definitions As used in this subchapter: (1) “Commissioner” means the Commissioner of Financial Regulation. (2) “Consumer” means a natural person who buys other than for purposes of resale any tangible personal property that is distributed in commerce and that is normally …

§ 4248. Registration required (a) All providers of service contracts issued, sold, or covering property located in this State shall file a registration with the Commissioner on a form prescribed by the Commissioner. Such registrations shall be renewed every three years. Providers…

§ 4249. Proof of financial stability (a) In order to ensure the performance of a provider’s obligations to its contract holders, each provider shall continue to possess and provide the Commissioner the following documents as proof of financial stability: (1)(A) a surety bond, sec…

§ 4250. Examinations For the purpose of determining the provider’s financial stability and protecting consumer interests, the Commissioner may conduct an examination of a provider concerning service contracts sold in this State to enable the Commissioner to determine compliance o…

§ 4251. Consumer disclosure requirements (a) Each service contract subject to this subchapter shall be written in clear, understandable language and easily read type and disclose the following: (1) the identity of the provider and the service contract seller; (2) the total purcha…

§ 4252. Obligations of providers and insurers (a) A provider is considered to be the agent of an insurer that issued a service contract reimbursement insurance policy and therefore is required to act as a fiduciary in regard to premiums, return of premiums, or other sums of money…

§ 4253. Prohibited acts (a) A provider shall not use in its name, contracts or literature: (1) the words “insurance,” “casualty,” “surety,” “mutual”; or (2) a name deceptively similar to the name or description of any insurance or surety corporation or any other provider licensed…

§ 4254. Prohibited terms No service contract issued, sold, or covering property located in this State shall provide: (1) that the consumer is not a party to the contract; (2) that the provider has no liability to the consumer; (3) that the consumer does not have the right to brin…

§ 4255. Penalties; enforcement (a) The Commissioner, after proper notice and opportunity for hearing in accordance with this State’s Administrative Procedure Act, may take action to enforce the provisions of this subchapter and may: (1) revoke or suspend the registration of the s…

§ 4256. Exemption for certain delivery service maintenance and repair contracts The provisions of this subchapter shall not apply to service contracts with a duration of one year or less where the provider also has an existing agreement to supply liquid fuel used in the course of…