|BILL AS INTRODUCED||2007-2008|
Introduced by Senator Illuzzi of Essex-Orleans District
Subject: Banking and insurance; fire and casualty insurance; renewal of policies
Statement of purpose: This bill proposes to require insurers to fully disclose the terms and obtain policyholder acknowledgement when raising the replacement value of the policy.
AN ACT RELATING TO RAISING THE HOME REPLACEMENT VALUE OF INSURANCE POLICIES
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 8 V.S.A. § 3882 is amended to read:
§ 3882. RENEWAL POLICIES
(a) If the insurer has the necessary information to issue the renewal policy, the insurer shall confirm in writing at least 45 days prior to expiration its intention to renew the policy and the premium at which the policy is to be renewed. The insured shall have the right to renew the policy at this premium.
(b) When an insurer intends to raise the replacement value of a renewal policy, the change must be fully disclosed, orally and in writing, to the insured, and the insurer must obtain written acknowledgement of the change by the insured before the change may go into effect.
(c) An insurer not
subsection (a) of this section shall grant its insured
renewal coverage at the rate or premium in effect under the expiring or expired
policy or at rates lawfully in effect on the expiration date, which have been
approved by the commissioner. This shall be done on a pro rata basis and shall
continue for 45 days after the insurer confirms renewal coverage and premium. This
subsection shall not apply if the insured accepts the renewal policy.
The Vermont General Assembly
115 State Street