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 HEALTH INSURANCE TERMINATION AND REPLACEMENT
(Cite as: 8 V.S.A. § 4048b)
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§ 4048b. Termination for nonpayment of premium or subscription charges
(a) If a group health insurance policy or subscriber contract provides for automatic termination
of the policy or contract after a premium or subscription charge has remained unpaid
through the grace period allowed for such payment, the health insurer shall be liable
for valid claims for covered losses incurred prior to the end of the grace period.
(b) If the actions of the health insurer after the end of the grace period indicate that
it considers the policy or contract to be continuing in force beyond the end of the
grace period, including actions such as continuing to recognize claims subsequently
incurred, the health insurer shall be liable for valid claims for losses incurred
prior to the effective date of written notice of termination to the policyholder or
other entity responsible for making payments or submitting subscription charges to
the health insurer.
(c) The health insurer shall notify a policyholder or other responsible entity of any
premium payment due on a policy at least 21 days before the due date. The effective
date of termination of a policy or contract shall not be prior to midnight at the
end of the 14th day following mailing of notice of termination. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)