Punitive Damage Exclusions Permitted; Bulletin 46 Prohibiting Punitive Damage Exclusions Withdrawn

Vermont Department of Banking, Insurance, Securities and Health Care Administration Insurance Division Bulletin # 139 Punitive damage exclusions permitted; Bulletin 46 prohibiting punitive damage exclusions withdrawn March 14, 2002 As a part of our continuing efforts to maintain a dynamic marketplace for insurance in this state, the Commissioner has determined to withdraw Bulletin 46 and accept for review and approval filings that contain punitive damage exclusions on liability policies. Punitive damage exclusions are not required by this Bulletin, and companies wishing to exclude this coverage must obtain the Department’s approval of any form used for this purpose as provided by law. Because the Department will permit the exclusion of punitive damages, Bulletin 46 is hereby withdrawn. Filing submissions for punitive damage exclusions should be filed with the Department using current procedures (as described on the Department’s website at www.bishca.state.vt.us). Elizabeth R.Costle Commissioner, Department of Banking, Insurance, Securities and Health Care Administration