An insurance company marketing a new health insurance policy in Vermont finds a provision conflicting with state law. What action must the insurer take?

The correct course of action for the insurer is to amend the provision to align with Vermont's minimum statutory requirements. This is important because insurance policies must adhere to state laws, which are designed to protect consumers and ensure that coverage meets certain standards. By amending the provision, the insurer can maintain the policy in compliance with state regulations while potentially retaining its intended benefits.

Eliminating the provision entirely may not be necessary or desirable, as it could strip away important coverage features that benefit policyholders. While withdrawing the policy from the market could be an option if compliance isn't achievable, it is generally preferable to revise the policy to meet legal requirements rather than take such drastic action. Seeking special permission from the state can be an option in certain circumstances, but typically, amending the policy to meet minimum statutory requirements is a more straightforward and effective solution. This approach demonstrates the insurer's commitment to compliance and consumer protection within the framework established by state law.