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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
107
:
HEALTH INSURANCE
Subchapter
001
:
GENERALLY
§
4080. Required policy provisions
No such policy
shall contain any provision relative to notice of claim, proofs of loss, time
of payment of claims, or time within which legal action must be brought upon
the policy which, in the opinion of the commissioner, is less favorable to the
persons insured than would be permitted by the provisions set forth in section
4065 of this title. In addition each such policy shall contain in substance the
following provisions:
(1) A provision
that the policy, the application of the policyholder, if such application or
copy thereof is attached to such policy, and the individual applications, if
any, submitted in connection with such policy by the employees or members,
shall constitute the entire contract between the parties, and that all
statements, in the absence of fraud, made by any applicant or applicants shall
be deemed representations and not warranties, and that no such statement shall
avoid the insurance or reduce benefits thereunder unless contained in a written
application of which a copy is attached to the policy.
(2) A provision
that the insurer will furnish to the policyholder, for delivery to each
employee or member of the insured group, an individual certificate setting
forth in summary form a statement of the essential features of the insurance
coverage of such employee or member and to whom benefits thereunder are
payable. If dependents are included in the coverage, only one certificate need
be issued for each family unit.
(3) A provision
that to the group originally insured may be added from time to time eligible
new employees or members or dependents, as the case may be, in accordance with
the terms of the policy.
(4) In the case
of an approved employer-sponsored plan under section 1974 of Title 33, a provision
that defines as a qualifying event a finding by the agency of human services
that an eligible employee, member, or dependent qualifies for premium
assistance or is required to participate in the group in accordance with the
provisions of section 1974 of Title 33 (employer-sponsored insurance; premium
assistance), and that entitles the employee, member, or dependent to a special
enrollment period of 30 days from the date of notice of the agency finding.
(5) A provision
that the insurer shall not exclude part-time employees and shall offer the same
group health benefits to part-time employees as it offers to the employee
groups of which the part-time employees would be members if they were full-time
employees. The insurer shall offer to include the part-time employees as part
of the employer's employee group, at the full rate to be paid by the employer
and the employee, at a rate prorated between the employer and the employee or
at the employee's expense. "Part-time employee" means any employee
who works a minimum of at least 17 1/2 hours per week. (Amended 1989, No. 34, §
1; 2007, No. 70, § 20.)