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.
(Cite as: 8 V.S.A. § 8095)
-
§ 8095. Nonforfeiture benefits
(a) Except as provided in subsection (b) of this section, a long-term care insurance policy
may not be delivered or issued for delivery in this State unless the policyholder
or certificate holder has been offered the option of purchasing a policy or certificate
that includes a nonforfeiture benefit. The offer of a nonforfeiture benefit may be
in the form of a rider that is attached to the policy. In the event the policyholder
or certificate holder declines the nonforfeiture benefit, the insurer shall provide
a contingent benefit upon lapse of the policy that shall be available for a specified
period of time following a substantial increase in premium rates.
(b) When a group long-term care insurance policy is issued, the offer required in subsection
(a) of this section shall be made to the group policyholder. However, if the policy
is issued as group long-term care insurance as defined in subdivision 8082(4)(D) of this title, other than to a continuing care retirement community or other similar entity, the
offering shall be made to each proposed certificate holder.
(c) The Commissioner shall adopt rules specifying the type or types of nonforfeiture benefits
to be offered as part of long-term care insurance policies and certificates, the standards
for nonforfeiture benefits, and the rules regarding contingent benefit upon lapse
of the policy, including a determination of the specified period of time during which
a contingent benefit upon lapse will be available and the substantial premium rate
increase that triggers a contingent benefit upon lapse as described in subsection
(a) of this section. (Added 2003, No. 124 (Adj. Sess.), § 2, eff. Jan. 1, 2005.)