§4225a. Renewal policies

Link to law: http://legislature.vermont.gov/statutes/section/08/113/04225a
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

113

:
LIABILITY INSURANCE






Subchapter

002
:
CANCELLATION OF 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.)
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