§ 4053. Short-term, limited-duration health insurance
(a) As used in this section, “short-term, limited-duration health insurance” means health
insurance that provides medical, hospital, or major medical expense benefits coverage
pursuant to a policy or contract with a health insurer and that has an expiration
date specified in the policy or contract that is three months or less after the original
effective date of the policy or contract.
(b) No person shall provide short-term, limited-duration health insurance coverage without
a certificate of authority from the Commissioner to offer health insurance in this
State unless the person is exempted by subdivision 3368(a)(4) of this title.
(c) A short-term, limited-duration health insurance policy or contract shall be nonrenewable,
and a health insurer shall not issue a short-term, limited-duration health insurance
policy or contract to any person if the issuance would result in the person being
covered by short-term, limited-duration health insurance coverage for more than three
months in any 12-month period.
(d) A policy or contract for short-term, limited-duration health insurance coverage shall
display prominently in the policy or contract and in any application materials provided
in connection with enrollment in that coverage, in at least 14-point type, certain
disclosures regarding the scope of short-term, limited-duration health insurance coverage,
including the types of benefits and consumer protections that are and are not included.
The Commissioner shall determine the specific disclosure language that shall be used
in all short-term, limited-duration health insurance policies, contracts, and application
materials and shall provide the language to the health insurers offering that coverage.
(e) The Commissioner shall adopt rules pursuant to 3 V.S.A. chapter 25:
(1) establishing the minimum financial, marketing, service, and other requirements for
registration of a health insurer to provide short-term, limited-duration health insurance
coverage to individuals in this State;
(2) requiring a health insurer seeking to provide short-term, limited-duration health
insurance coverage to individuals in this State to file its rates and forms with the
Commissioner for the Commissioner’s approval;
(3) requiring a health insurer seeking to provide short-term, limited-duration health
insurance coverage to individuals in this State to file its advertising materials
with the Commissioner for the Commissioner’s approval; and
(4) establishing such other requirements as the Commissioner deems necessary to protect
Vermont consumers and promote the stability of Vermont’s health insurance markets.
(f) The provisions of section 4063 of this title, and any rules adopted under that section, shall apply to short-term, limited-duration
health insurance coverage. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)