Vermont § 8205 - Policyholder rights

§ 8205. Policyholder rights

• (a) Policyholders shall have the right to accept or reject the transfer and novation of
  their contracts of insurance. Policyholders electing to reject the assumption transaction
  shall return to the transferring insurer the pre-addressed, postage-paid response
  card or other written notice and indicate thereon that the assumption is rejected
  (collectively referred to as the “Response Card”). (b) Payment of any premium to the assuming company during the 12-month period after notice
  is received shall be deemed to indicate the policyholder’s consent to the transfer
  to the assuming insurer and a novation shall be deemed to have been effected, provided
  that the premium notice states in a manner calculated to give the policyholder notice
  that payment of the premium to the assuming insurer shall constitute acceptance of
  the transfer, unless the policyholder reserves the right to reject the transfer. The
  premium notice shall also provide a method for the policyholder to pay the premium
  while reserving the right to reject the transfer. With respect to any home service
  business or any other business not using premium notices, the Commissioner must approve
  the disclosures and procedures used to inform policyholders of the proposed assumption
  or transfer, which notice, at a minimum, must meet the requirements set forth in section 8204 of this title. (c) After no fewer than 12 months from the mailing of the initial notice of transfer required
  under subsection 8204(a) of this title, if positive consent to, or rejection of, the transfer and assumption has not been
  received as provided in subsection (a) of this section or consent has not been deemed
  to have occurred under subsection (b) of this section, the transferring company shall
  send to the policyholder a second and final notice of transfer as provided in section 8204 of this title. If the policyholder does not accept or reject the transfer during the two-month
  period immediately following the date on which the transferring insurer mails the
  second and final notice of transfer, the policyholder’s consent will be deemed to
  have occurred and novation of the contract will be effected. With respect to the home
  service business or any other business not using premium notices, the 12- and two-month
  periods shall be measured from the date of delivery of the notice of transfer pursuant
  to section 8204 of this title. (d) The transferring insurer will be deemed to have received the response card on the
  date it is postmarked. A policyholder may also send his or her response card by facsimile
  or other electronic transmission or by registered mail, express delivery or courier
  service, in which case the response card shall be deemed to have been received by
  the assuming insurer on the date of actual receipt by the transferring insurer. (Added 1993, No. 235 (Adj. Sess.), § 7.)