WEST virginia Legislature
2016 regular session
Introduced
Senate Bill 330
By Senators Gaunch and Boso
[Introduced January 20, 2016;
Referred to the Committee on Banking and Insurance; and then to the Committee
on the Judiciary.]
A BILL to amend and reenact §33-6A-1 of the Code of West Virginia, 1931, as amended, relating to automobile liability insurers’ duty to provide a policyholder seven days’ notice of an insurer’s intent to cancel an automobile liability insurance policy where the reason for cancellation is nonpayment of a premium.
Be it enacted by the Legislature of West Virginia:
That §33-6A-1 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 6A. CANCELLATION OR NONRENEWAL OF AUTOMOBILE LIABILITY POLICIES
§33-6A-1. Cancellation prohibited except for specified reasons; notice.
(a) No insurer once having issued or delivered a policy providing automobile liability insurance for a private passenger automobile may, after the policy has been in effect for sixty days, or in case of renewal effective immediately, issue or cause to issue a notice of cancellation during the term of the policy except for one or more of the reasons specified in this section:
(a) (1) The named insured fails to make payments of
premium for the policy or any installment of the premium when due;
(b) (2) The policy is obtained through material
misrepresentation;
(c) (3) The insured violates any of the material
terms and conditions of the policy;
(d) (4) The named insured or any other operator,
either residing in the same household or who customarily operates an automobile
insured under the policy:
(1) (A) Has had his or her operator's license
suspended or revoked during the policy period including suspension or
revocation for failure to comply with the provisions of article five-a, chapter
seventeen-c of this code, regarding consent for a chemical test for
intoxication: Provided, That when a license is suspended for sixty days
by the Commissioner of the Division of Motor Vehicles because a person drove a
motor vehicle while under the age of twenty-one years with an alcohol
concentration in his or her blood of two hundredths of one percent or more, by
weight, but less than eight hundredths of one percent, by weight, pursuant to
subsection (l), section two of said article, the suspension may not be grounds
for cancellation; or
(2) (B) Is or becomes subject to epilepsy or heart
attacks and the individual cannot produce a certificate from a physician
testifying to his or her ability to operate a motor vehicle;
(e) (5) The named insured or any other operator,
either residing in the same household or who customarily operates an automobile
insured under such policy, is convicted of or forfeits bail during the policy
period for any of the following reasons:
(1) (A) Any felony or assault involving the use of a
motor vehicle;
(2) (B) Negligent homicide arising out of the
operation of a motor vehicle;
(3) (C) Operating a motor vehicle while under the
influence of alcohol or of any controlled substance or while having an alcohol
concentration in his or her blood of eight hundredths of one percent or more,
by weight;
(4) (D) Leaving the scene of a motor vehicle
accident in which the insured is involved without reporting it as required by
law;
(5) (E) Theft of a motor vehicle or the unlawful
taking of a motor vehicle;
(6) (F) Making false statements in an application
for a motor vehicle operator's license;
(7) (G) Three or more moving traffic violations
committed within a period of twelve months, each of which results in three or
more points being assessed on the driver's record by the Division of Motor
Vehicles, whether or not the insurer renewed the policy without knowledge of
all such violations. Notice of any cancellation made pursuant to this
subsection shall be mailed to the named insured either during the current
policy period or during the first full policy period following the date that
the third moving traffic violation is recorded by the Division of Motor
Vehicles.
(b) Notwithstanding any of the provisions of this section
to the contrary, no insurer may cancel a policy of automobile liability
insurance without first giving the insured thirty days' notice of its intention
to cancel, except that if the reason for cancellation is that the named
insured fails to make payments of premium for the policy or any installment of
the premium when due, pursuant to subsection (a) of this section, then the
insurer shall first give the insured seven days’ notice of its intention to
cancel. Provided, That However, the insurance
policy is voidable from the effective date and time of the policy issued by the
insurer if the insurer cancels the policy for failure of consideration to be
paid by the insured upon initial issuance of the insurance policy and provides
written notice to the insured of the cancellation within fifteen days of
receipt of notice of the failure of consideration and consideration has not
otherwise been provided within ten days of the notice of cancellation. Notice
of cancellation for nonpayment of consideration shall be delivered to the named
insured or sent by first class mail to the named insured at the address
supplied on the application for insurance and shall state the effective date of
the cancellation and shall be accompanied by a written explanation of the
specific reason for the cancellation. If the insurer fails to provide such
written notice to the insured, then the cancellation of the policy for failure
of consideration is effective upon the expiration of ten days' notice of
cancellation to the insured.
NOTE: The purpose of this bill is to require automobile liability insurers to provide a policyholder seven days’ notice of an insurer’s intent to cancel an automobile liability insurance policy where the reason for cancellation is nonpayment of a premium.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.