Vermont Life Insurance (VT)

Insurance laws in Vermont are in place to protect both insurers and insurance customers.

Life Insurance Laws in Vermont (VT)

Title 8 of the Vermont Statutes is the regulating force behind the insurance industry in the state. Within these laws, both policy requirements and claims procedures are overseen by the state to protect insurance consumers of the state.

• The 10-day “free look” provision allows all new life insurance policyholders a minimum of ten days after the policy becomes effective to change their mind for any reason and decline the coverage. All premiums paid must be refunded.

• All life insurance companies in Vermont are legally required to offer a 30-day grace period for all late payments. During this time, an insurer cannot cancel a policy for non payment as long as the adequate payment is made by the insured.

• All claims on a life insurance policy must be settled within 30-days of receiving proper proof of death. Interest will begin to accrue after this one month time frame has ended.

• Information requested by the insured to their insurance company must be honored.

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Vermont Life Insurance Regulations Protecting Insurers (VT)

Protections are also put in place for the life insurance companies.

• Any fraudulent findings or misstatements found on a policy or application for coverage within the first two years of a policy’s life can result in policy cancellation. The insurer is not obligated to honor any claims.

• Age misstatements can be found at any time during the life of the policy and will result in a simple recalculation of death benefits, reflecting the actual age of the insured.

• If suicide is the cause of death, Vermont insurers are exempt from claims payment, but all premiums will be refunded.

Additional Vermont Life Insurance Regulations (VT)

Viatical settlements are legal in the state of Vermont. A Viatical settlement is an arrangement made between an insured individual and a third party. The third party purchases a life insurance policy from the insured, making all premium payments and then becomes the policy’s uncontestable beneficiary.

Insurance illustrations are financial projections made by an insurance company. These are regulated in Vermont.

As long as your life insurance company is licensed in Vermont and your policy premiums are current, if your insurance company were to become bankrupt, you would be compensated by the Vermont Life & Health Insurance Guaranty Association. There are, however, restrictions set at $300,000 per lost death benefit and $100,000 per lost cash surrender.

Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.