|BILL AS INTRODUCED||2007-2008|
Introduced by Senator MacDonald of Orange District
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.
The Vermont General Assembly
115 State Street