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Cancellations of Policies

V.S.A. tit. 8, ch. 128, subch. 3
in effect

8 V.S.A. § 4711 Cancellation of commercial risk insurance

4711. Cancellation of commercial risk insurance (a) A notice of cancellation of a policy of commercial risk insurance as defined in this chapter but excluding farm risks, issued under this chapter shall be effective only if it is based on: (1) nonpayment of premium; (2) fraud or material misrepresentation affecting the policy or in the presentation of a claim under the policy, or violation of any of the terms or conditions of the policy; or (3) substantial increase in hazard, provided that cancellation for this reason shall be effective only after prior approval of the Commissioner. (b) This section shall not apply to any policy or coverage that has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy. (c) This section shall not apply to nonrenewal. Added 1985, No. 265 (Adj. Sess.), § 3; amended 2021, No. 105 (Adj. Sess.), § 224, eff. July 1, 2022.

8 V.S.A. § 4712 Notice of cancellation

4712. Notice of cancellation (a) No notice of cancellation of a policy to which section 4711 of this title applies shall be effective unless mailed or delivered by the insurer to the named insured at least 45 days prior to the effective date of cancellation, provided, that where cancellation is for nonpayment of premium, at least 15 days’ notice of cancellation shall be given. (b) In all instances, the reason or reasons for cancellation shall accompany or be included in the notice of cancellation. An insurer shall not be held liable in any claim or suit for damages arising solely from the insurer’s compliance with the requirement that the reason for cancellation be specified. (c) The Commissioner shall have the authority to waive any provision of subsection (a) or (b) of this section upon the written request of an insurer specifying the reasons therefor. (d) This section shall not apply to nonrenewal. Added 1985, No. 265 (Adj. Sess.), § 3.

8 V.S.A. § 4713 Notice of nonrenewal

4713. Notice of nonrenewal No insurer shall refuse to renew a policy of insurance to which section 4711 of this title applies at its expiration or anniversary if written for a term of more than one year, unless such insurer or its agent shall mail or deliver to the named insured, at the address shown in the policy, at least 45 days’ advance notice of its intention not to renew. This section shall not apply if the insurer has manifested its willingness to renew, or in case of nonpayment of premium, or if the insured fails to pay any advance premium required by the insurer for renewal. However, notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other policy with respect to property designated in both policies. Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation that existed before the effective date of such renewal. Added 1985, No. 265 (Adj. Sess.), § 3.

8 V.S.A. § 4714 Notice requirements

4714. Notice requirements When notice required under section 4712 or section 4713 of this title is provided by mail, such notice shall be by certified mail, except that in the case of cancellation for nonpayment of premium, notice shall be by certified mail, certificate of mailing, or any similar first-class mail tracking method used or approved by the U.S. Postal Service, including Intelligent Mail barcode Tracing (IMb Tracing). A certificate of mailing from the U.S. Postal Service does not include a certificate of bulk mailing. Added 1985, No. 265 (Adj. Sess.), § 3; amended 1989, No. 171 (Adj. Sess.), § 8, eff. Sept. 1, 1990; 2023, No. 110 (Adj. Sess.), § 23, eff. July 1, 2024.

8 V.S.A. § 4715 Renewal policies

4715. Renewal policies (a) If the insurer has the necessary information to issue the renewal policy of insurance to which section 4711 of this title applies, the insurer shall confirm in writing at least 45 days prior to expiration its intention to renew the policy and the premium at which the policy is to be renewed. The insured shall have the right to renew the policy at this premium. (b) An insurer not complying with subsection (a) of this section shall grant its insured renewal coverage at the rate or premium in effect under the expiring or expired policy or at rates lawfully in effect on the expiration date. This shall be done on a pro rata basis and shall continue for 45 days after the insurer confirms renewal coverage and premium. This subsection shall not apply if the insured accepts the renewal policy. (c) An insurer may transfer a policy to an affiliate, as defined by subdivision 3681(1) of this title, upon expiration of the policy without providing notice of nonrenewal, provided that: (1) the rating by A. M. Best or a similarly qualified rating service of the affiliate is equal to or better than the transferring insurer; (2) there is no diminution in the terms and conditions of coverage; and (3) notice of the transfer is provided to the insured at least 45 days prior to the transfer by first-class mail, and in connection with such notice the insurer: (A) complies with any requirements of federal law relating to notice of adverse credit determination; (B) includes in the notice of transfer a telephone number of the insurer, or the producer, if any, and a toll-free telephone number of the insurer in the case of personal lines policies, where the insured can learn additional information concerning the transfer and the reasons for the transfer; (C) complies with the other provisions of this section relating to renewal policies. Added 1985, No. 265 (Adj. Sess.), § 3; amended 2007, No. 135 (Adj. Sess.), § 3.

8 V.S.A. § 4716 Penalties

4716. Penalties A person who violates a provision of this subchapter may be subject to an administrative penalty of $2,000.00 for each violation. Added 1995, No. 167 (Adj. Sess.), § 18a.
Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/08/128Fetched: 10/21/2026

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