An act relating to the cancellation of a life or long-term care insurance policy for nonpayment of premium

This bill extends the grace period for paying overdue premiums on life and long-term care insurance policies in Vermont, giving policyholders more time before a policy can be cancelled for nonpayment. Under the new rules, insurers must allow at least 90 days from when a premium is due before cancelling a policy, with some flexibility for industrial life insurance policies. The bill also requires insurers to provide a secondary notice of cancellation at least 60 days after a premium becomes due and unpaid, following a national model rule. These changes apply to all life and long-term care insurance policies issued or renewed after the bill takes effect.