8 V.S.A. § 4017: Exemption from attachment and trustee process

So much of any benefits under all policies of health insurance as does not exceed $200.00 for each month during any period of disability covered by the policy shall not be liable to attachment, trustee process, or other process, or to be seized, taken, appropriated, or applied by any legal or equitable process or by operation of law, either before or after payment of such benefits, to pay any debt or liabilities of the person insured under the policy. However, this exemption shall not apply where an action is brought to recover for necessaries contracted for during the period of disability and the writ or bill of complaint contains a statement to that effect. When a policy provides for a lump sum payment because of a dismemberment or other loss insured, the payment shall be exempt from execution of the covered individual’s creditors. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)