P&C Personal Umbrella


Filing Review Requirements Regulatory Reference
or Source
No filing requirement for applications (unless made part of the policy) Title 8, §3541 and §4205 Incorrect statements on the application shall not bar the right to recovery unless it was meant to deceive or unless it materially affected either the acceptance of the risk or the hazard assumed by the insurer.
Sexual abuse exclusion permitted Department requirement With regard to Personal Lines policies, we allow the absolute exclusion of sexual abuse. Corporal punishment or physical or mental abuse must be limited on that “inflicted upon an ‘Insured’ by an ‘Insured’.
Limit of liability may be waived Title 8, §4203 The Company has unlimited liability should they appeal a case without the insured's consent.
Cannot be both binding and mandatory Department requirement Binding arbitration is not permitted if the process can be demanded unilaterally, since it may deprive the insured of access to the court system.
May not be excluded Department requirement May be approved by submitting a Individual Risk "Consent to Rate Application" if a known hazard exists. See Bulletin 111..
Bankruptcy Provision
Bankruptcy of the Insured cannot relieve the company of their liability Title 8, §4203  
Cancellation & Non-renewal
Days' Notice and Cancellation/Nonrenewal Reasons Title 8, §4711 - 4715 15 days' notice for cancellation for non-pay.
Policy can be cancelled for any reason within first 59 days - specific reasons required if in force 60 days or more.
45 days' notice of non-renewal required.
Notice Requirements VT Regulation 78-1 (1) Insured must be given written notice when coverage has been modified or eliminated
Exclusion permitted subject to limitations Department requirement Exclusion must be limited to illegal drugs or legal drugs illegally used.
Electromagnetic Radiation
May not be excluded Department requirement No exceptions.
Filing Standards
Prior Approval Regulation I-2010-03 Forms must be submitted at least 30 calendar days prior to their proposed effective date.
Guidelines Title 8, §4205 and §4711

If a policy is obtained through fraud or material misrepresentation, that policy may be voided.

Indemnity not generally permitted Title 8, §4203 Must be "Pay on Behalf of" in Coverage Grant (Indemnity may be permitted on certain specialized coverages.)
Intentional Loss Exclusion
Guidelines Department requirement We require that the interest of any uninvolved insured be protected. We recommend the following language: “We do not provide coverage for an insured who commits or directs an act with intent to cause a loss.”
May not be excluded Department requirement We do not allow any broad intra-insured exclusion in any personal liability lines policy. We will consider an exclusion limited to “bodily injury to an insured, caused by the spouse of that insured.” Bulletin 111.
Lead/Lead Paint
May not be excluded Department requirement May be approved by submitting an Individual Risk "Consent to Rate Application" if a known hazard exists. See Bulletin 111.
Liberalization Clause
Not required    
Loss Settlement
Loss Settlement and Payment Conditions Regulation 79-2; S6 (G)

After settlement has been agreed upon, insurer shall mail payment in amount agreed to claimant and/or loss payee within ten (10) working days, unless a further delay is mandated under an order by a court of competent jurisdiction or required by law. 

May not be excluded except as noted. Bulliten 111

All insurers must provide coverage for pollution by endorsement, with limited exceptions. We will consider a "Consent to Rate" application for companies seeking to attach a pollution exclusion to liability coverage claim. We will approve the use of the exclusion only where there is an identifiable pollution exposure. 

Punitive Damages
May be excluded Bulletin 139  
Guidelines Regulation I-2010-03

Flesh score minimum is 40, not less than 10 point type, one point leaded. 

Racing Exclusions
Limitations Department requirement Exclusions for “racing” or “contests” can apply only to “organized” events of this type.
Uninsured/Underinsured Motorists

UM/UIM is mandatory on all policies providing automobile coverage

Title 23, §800 and §941 Bulletin 118

UM/UIM may only be excluded if the umbrella contains an exclusion of all automobile coverage. Minimum limits for UM/UIM are $50,000 per person, $100,000 per accident, $10,000 per claim property damage. Regardless of Insureds UM/UIM limits choices on the underlying policy, the umbrella must provide either the umbrella policy limit or the $50,000/$100,000 BI limit option, whichever the insured chooses. The “damage to Property Belonging to the Insured” exclusion needs an exception for damage covered under the UM?UIM provisions.

Open Competition, Use and File

Title 8, §4688 Loss Costs bulletin 99

Filing must be received within 15 days of effective date. Rate filing must include verifying material and actuarial backup. Rating guidelins and methodology need to be furnished fo (a)rates. Simply stating that (a) rating applies is not acceptable.
Rating Plan Requirements
None specified