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BILL AS INTRODUCED 2007-2008

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H.704

Introduced by Representatives Clerkin of Hartford, Bissonnette of Winooski, Botzow of Pownal, Consejo of Sheldon, Kitzmiller of Montpelier and Livingston of Manchester

Referred to Committee on

Date:

Subject:  Banking and insurance; notice of transfer of insurance policy from insurer to affiliate

Statement of purpose:  This bill proposes to clarify that insurance carriers will provide notice to policyholders whose policies are transferred from an insurer to an affiliate.

AN ACT RELATING TO NOTICES OF TRANSFER OF POLICIES TO AN AFFILIATE PROVIDED BY AN INSURER

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  8 V.S.A. § 3881a is added to read:

§ 3881a.  NOTICE OF TRANSFER

If an insurer transfers a policy to an affiliate, the insurer shall provide notice to the insured within 45 days of the transfer.


Sec. 2.  8 V.S.A. § 3883 is amended to read:

§ 3883.  NOTICE REQUIREMENTS

When notice required under section 3880 or, 3881, or 3881a of this title is provided by mail, such notice shall be by certified mail, except that in the case of cancellation for nonpayment of premium, notice shall be by certified mail or certificate of mailing.

Sec. 3.  8 V.S.A. § 4225a is added to read:

§ 4225a.  NOTICE OF TRANSFER

If the insurer transfers a policy to an affiliate, the insurer shall provide notice to the insured within 45 days of the transfer.

Sec. 4.  8 V.S.A. § 4226 is amended to read:

§ 4226.  NOTICE REQUIREMENTS

When notice required under section 4224 or section, 4225, or 4225a of this title is provided by mail, such notice shall be by certified mail, except that in the case of cancellation for nonpayment of premium notice shall be by certified mail or certificate of mailing.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us