These documents are not legal documents but are placed here for reference purposes only. For a legal copy please contact the department.

Group Conversion Policy Premium

Tuesday, May 21, 1991
Insurance Bulletin #100

Bulletin 100


May 21, 1991

Some insurers are not aware of the requirements of Section 4090e(c) of Title 8. Paragraph (c) was amended by adding the third sentence effective July 1, 1986.

Section 4090e(b) states the premium for converted policies, is determined on a nongroup basis. The exception for ‘qualified dependents’ (widows and orphans) is mentioned in paragraph (c). In that instance, the premium is limited to 102 percent of the group rate. [The reference to 102 percent for qualified beneficiaries was inadvertently omitted by the National Insurance Law Service (NILS) in its Vermont Insurance Laws edition.]1

The second sentence of paragraph (c) gives the insurer the option of covering dependents under one policy or separate policies. This does not allow the insurer to refuse to provide coverage requested by a dependent.

The last sentence used the words ‘qualified beneficiaries.’ This is intended to apply to spouses and their dependents who were covered under the group policy.

Please review your rating manuals and submit a copy of the page relating to these rates to the attention of Lyle Moulton, Health Analyst.

Jeffrey P. Johnson


1 Since corrected.