The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 107 : Health Insurance

Subchapter 001 : Generally

• § 4063. Form and contents of policy

  No policy of individual health insurance shall be delivered or issued for delivery to any person in this State unless:

  (1) the entire money and other considerations therefor are expressed therein;

  (2) the time at which the insurance takes effect and terminates is expressed therein;

  (3) it purports to insure only one person, except that a policy may insure, originally or by subsequent amendment, upon the application of an adult member of a family who shall be deemed the policyholder, any two or more eligible members of that family, including husband, wife, dependent children or any children under a specified age which shall not exceed 19 years, and any other person dependent upon the policyholder;

  (4) the style, arrangement, and overall appearance of the policy give no undue prominence to any portion of the text, and unless every printed portion of the text of the policy and of any endorsements or attached papers is plainly printed in light-faced type of a style in general use, the size of which shall be uniform and not less than 10-point with a lower-case unspaced alphabet length not less than 120-point (the “text” shall include all printed matter except the name and address of the insurer, name or title of the policy, the brief description if any, and captions and subcaptions);

  (5) the exceptions and reductions of indemnity are set forth in the policy and, except those which are set forth in sections 4065 and 4066 of this title, are printed, at the insurer’s option, either included with the benefit provision to which they apply, or under an appropriate caption such as “EXCEPTIONS,” or “EXCEPTIONS AND REDUCTIONS,” provided that if an exception or reduction specifically applies only to a particular benefit of the policy, a statement of such exception or reduction shall be included with the benefit provision to which it applies;

  (6) each such form, including riders and endorsements, shall be identified by a form number in the lower left-hand corner of the first page thereof;

  (7) it contains no provision purporting to make any portion of the charter, rules, constitution, or bylaws of the insurer a part of the policy unless such portion is set forth in full in the policy, except in the case of the incorporation, or reference to, a statement of rates or classification of risks, or short-rate table filed with the Commissioner; and

  (8) there is prominently printed on the first page thereof or is attached thereto a notice to the effect that during a period of 30 days from the date the policy is delivered to persons eligible for Medicare by reason of age and 10 days from the date of delivery to all other persons, the policy may be surrendered to insurer together with written request for cancellation of the policy, and in such event the insurer will refund any premium paid therefor including any policy fees or other charges; provided, however, that this subdivision shall not apply to single premium nonrenewable policies insuring against accident only or medical costs or accidental bodily injury only. (Amended 1959, No. 157; 1981, No. 19.)