The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
005
:
GROUP LIFE INSURANCE
(Cite as: 8 V.S.A. § 3820)
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§ 3820. Conversion on termination of eligibility
There shall be a provision that if the insurance, or any portion of it, on a person
covered under the policy ceases because of termination of employment or of membership
in the class or classes eligible for coverage under the policy, such person shall
be entitled to have issued to him or her by the insurer, without evidence of insurability,
an individual policy of life insurance without disability or other supplementary benefits,
provided application for the individual policy shall be made, and the first premium
paid to the insurer, within 31 days after such termination, and provided further that:
(1) The individual policy shall, at the option of such person, be on any one of the forms,
except term insurance, then customarily issued by the insurer at the age and for the
amount applied for.
(2) The individual policy shall be in an amount not in excess of the amount of life insurance
that ceases because of such termination less the amount of any life insurance for
which such person is or becomes eligible under the same or any other group policy
within 31 days after such termination, provided that any amount of insurance that
shall have matured on or before the date of such termination as an endowment payable
to the person insured, whether in one sum or in installments or in the form of an
annuity, shall not, for the purposes of this provision, be included in the amount
that is considered to cease because of such termination.
(3) The premium on the individual policy shall be at the insurer’s then customary rate
applicable to the form and amount of the individual policy, to the class of risk to
which such person then belongs, and to his or her age attained on the effective date
of the individual policy. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 6, § 20).)