Policies

V.S.A. tit. 8, ch. 113, subch. 1

in effect

8 V.S.A. § 4201 Filing and approval of policies; review

4201. Filing and approval of policies; review A policy of insurance covering against loss or damage resulting from accident to, or injury suffered by an employee or other person, and for which the insured is liable, shall not be issued or delivered to a person, firm, or corporation resident of, or doing business in this State, until a copy of the form of the policy has been filed with the Commissioner; and it shall not be issued or delivered unless approved by the Commissioner. If the Commissioner determines that the form does not comply with the requirements of law, the Commissioner shall immediately give written notice to the insurer who filed the form, specifying the reasons for the Commissioner’s determination, and it shall then be unlawful for the insurer to issue a policy in such form. The Commissioner’s determination is subject to review pursuant to Rule 75 of the Vermont Rules of Civil Procedure. Amended 2021, No. 105 (Adj. Sess.), § 164, eff. July 1, 2022.

8 V.S.A. § 4201a Filing fees

4201a. Filing fees Each filing of a policy or contract form or document, submitted pursuant to section 4201 of this title, shall be accompanied by payment to the Commissioner of a nonrefundable fee of $50.00 per filing submission. Added 1985, No. 236 (Adj. Sess.), § 9; amended 1991, No. 166 (Adj. Sess.), § 5.

8 V.S.A. § 4202 Form and contents of policy

4202. Form and contents of policy A policy shall not be issued or delivered under this chapter unless: (1) every printed portion of the policy and any endorsement or attached papers are plainly printed; (2) a brief description of the policy is plainly printed on the first page; and (3) the exceptions of the policy are printed with the same prominence as the benefits to which they apply. Amended 2021, No. 105 (Adj. Sess.), § 165, eff. July 1, 2022.

8 V.S.A. § 4203 Required conditions

4203. Required conditions Each policy issued and delivered under this chapter shall contain in substance the following conditions: (1) The company shall pay and satisfy any judgment that may be recovered against the insured upon any claim covered by this policy to the extent and within the limits of liability assumed thereby and shall protect the insured against the levy of any execution issued upon any such judicial judgment or claim against the insured. No limitation of liability in the policy shall be valid if, after a judgment has been rendered against the insured in respect to his or her legal liability for damages in a particular instance, the company continues the litigation by an appeal or otherwise, unless the insured stipulates with the company, agreeing to continue such litigation. (2) No action shall lie against the company to recover for any loss under this policy, unless brought within one year after the amount of such loss is made certain either by judgment against the insured after final determination of the litigation or by agreement between the parties with the written consent of the company. (3) The insolvency or bankruptcy of the insured shall not release the company from the payment of damages for injury sustained or loss occasioned during the life of the policy, and in case of such insolvency or bankruptcy an action may be maintained by the injured person or claimant against the company under the terms of the policy, for the amount of any judgment obtained against the insured not exceeding the limits of the policy. (4) Payment of any judicial judgment or claim by the insured for any of the company’s liability under the policy shall not bar the insured from any action or right of action against the company. In case of payment of loss or expense under the policy, the company shall be subrogated to all rights of the insured against any party, as respects such loss or expense, to the amount of such payment, and the insured shall execute all papers required and shall cooperate with the company to secure to the company such rights. (5) Policies of motor vehicle insurance shall not provide for any adjustment of rates, the application of any merit rating surcharge plan, nor any similar adjustment or surcharge for any payments made to or on behalf of an insured for damages not attributable to any fault of the insured. (6) Policies of motor vehicle insurance shall not provide for any adjustment of rates, the application of any merits surcharge rating plan, nor any similar adjustment or surcharge for the first violation of 23 V.S.A. § 800. Amended 1985, No. 77, § 4; 2021, No. 105 (Adj. Sess.), § 166, eff. July 1, 2022.

8 V.S.A. § 4204 Illegal provisions

4204. Illegal provisions A policy shall not be issued or delivered under this chapter if it contains a provision contradictory, in whole or in part, to any of the provisions of sections 4201–4203 and 4205–4209 of this title; nor shall any endorsements or attached papers vary, alter, extend, be used as a substitute for, or in any way conflict with such provisions. A policy shall not be issued or delivered under this chapter if it contains any provision purporting to make any portion of the charter, articles of association, Constitution, or bylaws of the insurer a part of the policy unless such portion of the charter, articles, Constitution, or bylaws is set forth in full in the policy. Amended 2021, No. 105 (Adj. Sess.), § 167, eff. July 1, 2022.

8 V.S.A. § 4205 Effect of false statement in application

4205. Effect of false statement in application The falsity of a statement in the application for a policy covered by the provisions of this chapter shall not bar the right to recovery under the policy unless such false statement was made with actual intent to deceive or unless it materially affected either the acceptance of the risk or the hazard assumed by insurer. Amended 2021, No. 105 (Adj. Sess.), § 168, eff. July 1, 2022.

8 V.S.A. § 4206 Acts not constituting waivers

4206. Acts not constituting waivers The acknowledgment by an insurer of the receipt of notice given under a policy covered by the provisions of this chapter, or the furnishing of forms for filing proofs of loss, or the acceptance of such proofs, or the investigation of a claim under the policy shall not operate as a waiver of any of the rights of the insurer in defense of a claim arising under the policy. Amended 2021, No. 105 (Adj. Sess.), § 169, eff. July 1, 2022.

8 V.S.A. § 4207 Penalty for unauthorized alterations

4207. Penalty for unauthorized alterations An alteration of a written application for insurance by erasure, insertion, or otherwise shall not be made by a person other than the applicant without his or her written consent, and a person making such alteration without the consent of the applicant shall pay an administrative penalty of not more than $2,000.00. If such alteration is made by an officer of the insurer, or by an employee of the insurer with the insurer’s knowledge or consent, such act shall be deemed to have been performed by the insurer thereafter issuing the policy upon such altered application. Amended 1995, No. 167 (Adj. Sess.), § 13.

8 V.S.A. § 4208 Construction of illegal policies

4208. Construction of illegal policies A policy issued in violation of the provisions of this chapter shall be held valid but shall be construed as provided in the provisions of this chapter. When a provision in a policy is in conflict with the provisions of this chapter, the rights, duties, and obligations of the insurer, the policyholder, and the beneficiary shall be governed by the provisions of this chapter. Amended 2021, No. 105 (Adj. Sess.), § 170, eff. July 1, 2022.

8 V.S.A. § 4209 Penalties

4209. Penalties A company, corporation, association, society, or other insurer or any officer or agent thereof that issues or delivers to a person in this State a policy in willful violation of the provisions of this chapter shall pay an administrative penalty of not more than $2,000.00 for each offense. The Commissioner may revoke the license of a company, corporation, association, society, or other insurer of another state or country, or of the agent thereof, that willfully violates such provisions. Amended 1995, No. 167 (Adj. Sess.), § 14; 2021, No. 105 (Adj. Sess.), § 171, eff. July 1, 2022.

8 V.S.A. § 4210 Cost of examinations

4210. Cost of examinations The insurer under any motor vehicle liability insurance policy shall bear the cost of all physical examinations imposed on the insured or proposed insured as a condition for issuance or renewal of the policy. Added 1971, No. 108.

8 V.S.A. § 4211 Volunteer drivers

4211. Volunteer drivers (a) An insurer may not refuse to issue motor vehicle liability insurance to an applicant solely because the applicant is a volunteer driver. An insurer may not impose a surcharge or otherwise increase the rate for a motor vehicle policy solely on the basis that the named insured, a member of the insured’s household, or a person who customarily operates the insured’s vehicle is a volunteer driver. (b) As used in this section, “volunteer driver” means a person who provides services, including transporting individuals or goods, without compensation above mileage expenses to a charitable organization or nonprofit corporation established under Title 11B, pursuant to a written agreement. (c) This section does not prohibit an insurer from refusing to renew, imposing a surcharge on, or otherwise raising the rate for a motor vehicle liability insurance policy based upon factors other than the volunteer status of the insured driver. Added 2009, No. 80 (Adj. Sess.), § 1.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/08/113Fetched: 10/21/2026