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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.)
