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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

107

:
HEALTH INSURANCE






Subchapter

003
:
GROUP HEALTH INSURANCE TERMINATION AND REPLACEMENT










 

§

4091c. Termination for nonpayment of premium or subscription charges

(a) If a group

health insurance policy or subscriber contract provides for automatic

termination of the policy or contract after a premium or subscription charge

has remained unpaid through the grace period allowed for such payment, the

carrier shall be liable for valid claims for covered losses incurred prior to

the end of the grace period.

(b) If the

actions of the carrier after the end of the grace period indicate that it

considers the policy or contract to be continuing in force beyond the end of

the grace period, including actions such as continuing to recognize claims

subsequently incurred, or in some other manner, the carrier shall be liable for

valid claims for losses incurred prior to the effective date of written notice

of termination to the policyholder or other entity responsible for making

payments or submitting subscription charges to the carrier.

(c) The carrier

shall notify a policyholder or other responsible entity of any premium payment

due on a policy at least 21 days before the due date. The effective date of

termination of a policy or contract shall not be prior to midnight at the end

of the 14th day following mailing of notice of termination. (Added 1989, No.

113, § 2; amended 1997, No. 112 (Adj. Sess.), § 2.)