V.S.A. Title 8, § 4711. Cancellation of commercial risk insurance.

(a)  A notice of cancellation of a policy of commercial risk insurance as defined in this chapter but excluding farm risks, issued under this chapter shall be effective only if it is based on: 

(1) nonpayment of premium; 

(2) fraud or material misrepresentation affecting the policy or in the presentation of a claim thereunder, or violation of any of the terms or conditions of the policy; or 

(3) substantial increase in hazard provided that cancellation for this reason shall be effective only after prior approval of the commissioner. 

(b)  This section shall not apply to any policy or coverage which has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy. 

(c)  This section shall not apply to nonrenewal. 

Added 1985, No. 265 (Adj. Sess.), § 3.

V.S.A. Title 8, § 4712. Notice of cancellation.

(a)  No notice of cancellation of a policy to which section 4711 of this title applies shall be effective unless mailed or delivered by the insurer to the named insured at least 45 days prior to the effective date of cancellation, provided, that where cancellation is for nonpayment of premium at least 15 days' notice of cancellation shall be given. 

(b)  In all instances, the reason or reasons for cancellation shall accompany or be included in the notice of cancellation.  An insurer shall not be held liable in any claim or suit for damages arising solely from the insurer's compliance with the requirement that the reason for cancellation be specified. 

(c)  The commissioner shall have the authority to waive any provision of subsection (a) or (b) of this section upon the written request of an insurer specifying the reasons therefor. 

(d)  This section shall not apply to nonrenewal.

Added 1985, No. 265 (Adj. Sess.), § 3

V.S.A. Title 8, § 4713. Notice of nonrenewal.

shall refuse to renew a policy of insurance to which section 4711 of this title applies at its expiration or anniversary if written for a term of more than one year, unless such insurer or its agent shall mail or deliver to the named insured, at the address shown in the policy, at least 45 days' advance notice of its intention not to renew.  This section shall not apply if the insurer has manifested its willingness to renew, or in case of nonpayment of premium, or if the insured fails to pay any advance premium required by the insurer for renewal.  However, notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other policy with respect to property designated in both policies.  Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal. 

Added 1985, No. 265 (Adj. Sess.), § 3.

V.S.A. Title 8, § 4714. Notice requirements.

When notice required under section 4712 or section 4713 of this title is provided by mail, such notice shall be by certified mail, except that in the case of cancellation for nonpayment of premium, notice shall be by certified mail or certificate of mailing. 

Added 1985, No. 265 (Adj. Sess.), § 3; amended 1989, No. 171 (Adj. Sess.), § 8, eff. Sept. 1, 1990.

V.S.A. Title 8, § 4715. Renewal policies.

(a)  If the insurer has the necessary information to issue the renewal policy of insurance to which section 4711 of this title applies, 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)  An insurer not complying with 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.  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. 

Added 1985, No. 265 (Adj. Sess.), § 3.