§3821. Conversion on termination of policy

Link to law: http://legislature.vermont.gov/statutes/section/08/103/03821
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

103

:
LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS






Subchapter

005
:
GROUP LIFE INSURANCE










 

§

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 termination whose insurance

terminates and who has been so insured for at least five years prior to such

termination date shall be entitled to have issued to him or her by the insurer

an individual policy of life insurance, subject to the same conditions and

limitations as are provided by section 3820 of this title except that the group

policy may provide that the amount of such individual policy shall not exceed

the smaller of:

(1) The amount

of the person's life insurance protection ceasing because of the termination or

amendment of the group policy, less the amount of any life insurance for which

he is or becomes eligible under any group policy issued or reinstated by the

same or another insurer within 31 days after such termination; and

(2)

$2,000.00  (1967, No. 344 (Adj. Sess.), §

1 (ch. 2, subch. 6, § 21).)
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