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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).)