Vermont § 4048b - Termination for nonpayment of premium or subscription charges

§ 4048b. Termination for nonpayment of premium or subscription charges

• (a) If a group health insurance policy or subscriber contract provides for automatic termination
  of the policy or contract after a premium or subscription charge has remained unpaid
  through the grace period allowed for such payment, the health insurer shall be liable
  for valid claims for covered losses incurred prior to the end of the grace period. (b) If the actions of the health insurer after the end of the grace period indicate that
  it considers the policy or contract to be continuing in force beyond the end of the
  grace period, including actions such as continuing to recognize claims subsequently
  incurred, the health insurer shall be liable for valid claims for losses incurred
  prior to the effective date of written notice of termination to the policyholder or
  other entity responsible for making payments or submitting subscription charges to
  the health insurer. (c) The health insurer shall notify a policyholder or other responsible entity of any
  premium payment due on a policy at least 21 days before the due date. The effective
  date of termination of a policy or contract shall not be prior to midnight at the
  end of the 14th day following mailing of notice of termination. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)