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BILL AS INTRODUCED 2007-2008

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S.65

Introduced by Senator MacDonald of Orange District

Referred to Committee on

Date:

Subject:  Banking and insurance; prohibited trade practices; auto insurance

Statement of purpose:  This bill proposes to require insurers offering auto insurance policies with a temporary replacement vehicle provision to notify the person who should be provided with the benefit under the terms of the policy and provide the monetary value of a temporary replacement vehicle if such a vehicle is unavailable or the person is ineligible for a rental.

AN ACT RELATING TO AUTO INSURANCE POLICY PROVISIONS FOR A REPLACEMENT VEHICLE

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

Sec. 1.  8 V.S.A. § 4724(23) is added to read:

§ 4724.  UNFAIR METHODS OF COMPETITION OR UNFAIR OR

              DECEPTIVE ACTS OR PRACTICES DEFINED

The following are hereby defined as unfair methods of competition or unfair or deceptive acts or practices in the business of insurance:

* * *

(23)  Auto insurance temporary replacement vehicle provisions.  When an auto insurance policy provides a provision for a temporary replacement vehicle, failing by the insurer to notify the person who would be entitled to the benefit under the policy of the benefit and provide a monetary benefit equivalent to the cost of providing such a vehicle, if a suitable temporary replacement vehicle is unavailable or the person is deemed ineligible for a rental.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us