Title 08, Title 08: Banking and Insurance

§ 3791n. Valuation manual for policies issued on or after the operative date of the valuation manual (a) For policies issued on or after the operative date of the Valuation Manual, the standard prescribed in the Valuation Manual is the minimum standard of valuation required under…

§ 3791o. Requirements of a principle-based valuation (a) A company must establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the Valuation Manual: (1) Quantify the benefits and guarantees, and the fundi…

§ 3791p. Experience reporting for policies in force on or after the operative date of the valuation manual A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the Valuation Manual. (Added 2015, No. 63, § 1.)

§ 3791q. Confidentiality (a) As used in this subchapter, “confidential information” means: (1) a memorandum in support of an opinion submitted under section 3791c of this subchapter and any other documents, materials, and information, including all working papers and copies there…

§ 3791r. Single state exemption (a) The Commissioner may exempt specific product forms or product lines of a domestic company that is licensed and doing business only in Vermont from the requirements of section 3791n of this subchapter provided: (1) the Commissioner has issued an…

§ 3801. Scope of subchapter—Short title This subchapter applies only to group life insurance and may be known and cited as the “Group Life Insurance Law.” (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 6, § 1).)

§ 3802. Group contracts must meet group requirements (a) No life insurance policy shall be delivered or issued for delivery in this State insuring the lives of more than one individual unless to one of the groups as provided for in sections 3803-3810a of this title, and unless in…

§ 3803. Employee groups The lives of a group of individuals may be insured under a policy issued to an employer, or to the trustees of a fund established by an employer, which employer or trustees shall be deemed the policyholder, to insure employees of the employer for the benef…

§ 3804. Labor union groups The lives of a group of individuals may be insured under a policy issued to a labor union, which shall be deemed the policyholder, to insure members of such union for the benefit of persons other than the union or any of its officials, representatives, …

§ 3805. Debtor groups The lives of a group of individuals may be insured under a policy issued to a creditor or to the trustees of a fund established by one or more creditors, which creditor or trustees shall be deemed the policyholder, to insure debtors of the creditor or credit…

§ 3806. Licensed lenders; charges for insurance In the case of a debtor under section 2201 et seq. of this title, the collection of identifiable charges by the lender shall not be deemed a violation of said chapter if: (1) The identifiable charge to the debtor is consistent with …

§ 3807. Public employee groups The lives of a group of individuals may be insured under a policy issued to the departmental head of any department or agency of the State of Vermont, its political subdivisions, or to an association of public employees formed for purposes other tha…

§ 3808. Trustee groups The lives of a group of individuals may be insured under a policy issued to the trustees of a fund established by, adopted by, or participated in by two or more employers, or by one or more labor unions, or by one or more employers and one or more labor uni…

§ 3809. Association of employers groups The lives of a group of individuals may be insured under a policy issued to an association of two or more employers, which association shall be deemed the policyholder, to insure employees of such employers for the benefits of persons other…

§ 3810. Credit union groups The lives of a group of individuals may be insured under a policy issued to a credit union or to the trustees of a fund established by one or more credit unions, which credit union or trustees shall be deemed the policyholder to insure members of such …

§ 3810a. Associations and discretionary groups (a) The lives of a group of individuals may be insured under a policy issued to an association, or to the trustees of a fund established or maintained for the benefit of members of an association, which association or trustees shall …

§ 3811. Dependents’ coverage Any group life policy issued under section 3803 (employee groups) or 3804 (labor union groups) or 3807 (public employee groups) or 3808 (trustee groups) or 3809 (employer association groups) or 3810a (associations and discretionary groups) of this tit…

§ 3812. Provisions required in group contracts No policy of group life insurance shall be delivered in this State unless it contains in substance the provisions set forth in sections 3813 through 3822 of this title or provisions that in the opinion of the Commissioner are more fa…

§ 3813. Grace period The group life insurance policy shall contain a provision that the policyholder is entitled to a grace period of 31 days for the payment of any premium due except the first, during which grace period the death benefit coverage shall continue in force, unless …

§ 3814. Incontestability The group life insurance policy shall contain a provision that the validity of the policy shall not be contested, except for nonpayment of premium, after it has been in force for two years from its date of issue; and that no statement made by any person i…

§ 3815. Application; statements deemed representations The group life insurance policy shall contain a provision that a copy of the application, if any, of the policyholder shall be attached to the policy when issued and become a part of the contract; that all statements made by …

§ 3816. Insurability The group life insurance policy shall contain a provision setting forth the conditions, if any, under which the insurer reserves the right to require a person eligible for insurance to furnish evidence of individual insurability satisfactory to the insurer as…

§ 3817. Misstatement of age The group life insurance policy shall contain a provision specifying an equitable adjustment of premiums or of benefits, or of both, to be made in the event the age of a person insured has been misstated, such provision to contain a clear statement of …

§ 3818. Payment of benefits The group life insurance policy shall contain a provision that any sum becoming due by reason of the death of the person insured shall be payable to the beneficiary designated by the person insured, subject to the provisions of the policy in the event …

§ 3819. Certificate The group life insurance policy shall contain a provision that the insurer will issue to the policyholder for delivery to each person insured an individual certificate setting forth a statement as to the insurance protection to which he or she is entitled, to …

§ 3820. Conversion on termination of eligibility There shall be a provision that if the insurance, or any portion of it, on a person covered under the policy ceases because of termination of employment or of membership in the class or classes eligible for coverage under the polic…

§ 3821. Conversion on termination of policy The group life insurance policy shall contain a provision that if the group policy terminates or is amended so as to terminate the insurance of any class of insured persons, every person insured thereunder at the date of such terminatio…

§ 3822. Death pending conversion The group life insurance policy shall contain a provision that if a person insured under the policy dies during the period within which he or she would have been entitled to have an individual policy issued to him or her in accordance with section…

§ 3823. Notice as to conversion right If any individual insured under a group life insurance policy hereafter delivered in this State becomes entitled under the terms of such policy to have an individual policy of life insurance issued to him or her without evidence of insurabili…

§ 3824. Readjustment of premium Any group life insurance contract may provide for a readjustment of the premium rate based upon the experience thereunder. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 6, § 24).)

§ 3825. Application of dividends, rate reductions If a policy dividend is hereafter declared or a reduction in rate is hereafter made or continued for the first or any subsequent year of insurance under any policy of group life insurance heretofore or hereafter issued to any poli…

§ 3835. Definitions As used in this subchapter: (1) “Advertising” means any written, electronic, or printed communication or any communication by means of recorded telephone messages or that is transmitted on radio, television, the internet, or similar communications media, inclu…

§ 3836. License and bond requirements (a) Life settlement providers. (1) No person shall operate as a life settlement provider without first obtaining a license from the Commissioner. (2) Application for a life settlement provider license shall be made to the Commissioner by the …

§ 3837. License revocation and denial (a) Life settlement providers. The Commissioner may suspend or revoke and may refuse to issue or renew the license of a life settlement provider if the Commissioner finds that: (1) there was any material misrepresentation in the application f…

§ 3838. Approval of life settlement contracts, disclosure statements, and related forms (a) A person shall not use a life settlement contract form or related form or provide to a policy owner in this State any of the disclosure statement forms required by subsections 3841(a), (b)…

§ 3839. Reporting requirements and privacy (a) Each life settlement provider shall file with the Commissioner on or before March 1 of each year an annual statement containing such information as the Commissioner may prescribe by rule or order. Information relating to life settlem…

§ 3840. Investigations and examinations (a) The Commissioner, in addition to all powers granted pursuant to chapter 1 of this title, may examine the business and affairs of any licensee or applicant for a license whenever he or she deems it to be prudent for the protection of pol…

§ 3842. Disclosure to insurer Thirty days prior to the execution of a life settlement contract or the execution or other affirmation of an agreement or arrangement to enter into a life settlement contract, a life settlement provider shall provide notice to the insurer that issued…

§ 3843. General rules (a)(1) A life settlement provider entering into a life settlement contract shall first obtain: (A) if the policy owner is the insured, a written statement from a licensed attending physician that the policy owner is of sound mind and under no constraint or u…

§ 3844. Prohibited practices (a) It is a violation of this subchapter for any person to: (1) Commit any fraudulent life settlement acts. (2) Enter into any practice, agreement, arrangement, or transaction that results in or is intended to result in the issuance of stranger-origin…

§ 3845. Prohibited practices and conflicts of interest (a) With respect to any life settlement contract or insurance policy, no life settlement broker shall solicit an offer from, effectuate a life settlement with, or make a sale to any life settlement provider, financing entity,…

§ 3846. Advertising for life settlements (a) No person engaged in the business of life settlements shall make, issue, circulate, or cause to be made, issued, or circulated, or placed before the public, in a newspaper, magazine, or other publication, in the form of a notice, circu…

§ 3847. Fraud prevention and control (a)(1) A person shall not commit a fraudulent life settlement act. (2) A person shall not knowingly or with reason to know interfere with the enforcement of the provisions of this subchapter or investigations of suspected or actual violations …

§ 3848. Civil remedies, penalties, and enforcement In addition to any other civil and administrative remedies, penalties, and enforcement authority provided for by law: (1) A violation of this subchapter or of a rule or order adopted or issued under this subchapter, including the…

§ 3849. Adoption of rules The Commissioner may: (1) Adopt rules necessary to carry out the purposes of this subchapter. (2) Establish standards for evaluating reasonableness of payments under life settlement contracts for persons who are terminally or chronically ill. This author…

§ 3855. Establishment of accounts (a) A domestic life insurer may establish one or more separate accounts and may allocate thereto amounts, including proceeds applied under optional modes of settlement or under dividend options, to provide for life insurance or annuities, and ben…