STATE LAW – VERMONT LIBRARY – GUIDE 06

Vermont Underinsured Motorist Definition, Available Liability, No Liability-Payment Deduction & Insolvency

Vermont defines underinsurance by comparing available liability coverage with the insured’s UM/UIM limits and provides rules governing available liability, insurer insolvency, and the treatment of liability payments when calculating underinsured-motorist benefits. This guide addresses those statutory mechanics, offsets, exhaustion, and settlement preservation.