H. B. 2509
(By Delegate Michael)
[Introduced January 13, 2010; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §17D-4-2 and §17D-4-12 of the Code of
West Virginia, 1931, as amended, all relating to proof of
financial responsibility in motor vehicle insurance.
Be it enacted by the Legislature of West Virginia:
That §17D-4-2 and §17D-4-12 of the Code of West Virginia,
1931, as amended, be amended and reenacted, all to read as follows:
ARTICLE 4. PROOF OF FINANCIAL RESPONSIBILITY FOR THE FUTURE.
§17D-4-2. "Proof of financial responsibility" construed.
The term "proof of financial responsibility" as used in this
chapter shall mean: Proof of ability to respond in damages for
liability, on account of accident occurring subsequent to the
effective date of said proof, arising out of the ownership,
operation, maintenance or use of a motor vehicle, trailer or
semitrailer in the amount of $20,000 because of bodily injury to or
death of one person in any one accident, and, subject to said limit for one person, in the amount of $40,000 because of bodily injury
to or death of two or more persons in any one accident, and in the
amount of
ten thousand dollars $50,000 because of injury to or
destruction of property of others in any one accident.
§17D-4-12. "Motor vehicle liability policy" defined; scope and
provisions of policy.
(a) A "motor vehicle liability policy" as said term is used in
this chapter means an "owner's policy" or an "operator's policy" of
liability insurance certified as provided in section ten or section
eleven of this article as proof of financial responsibility, and
issued, except as otherwise provided in section eleven, by an
insurance carrier duly authorized to transact business in this
state, to or for the benefit of the person named therein as
insured.
(b) Such owner's policy of liability insurance:
(1) Shall designate by explicit description or by appropriate
reference all vehicles with respect to which coverage is thereby to
be granted; and
(2) Shall insure the person named therein and any other
person, as insured, using any such vehicle or vehicles with the
express or implied permission of such named insured, against loss
from the liability imposed by law for damages arising out of the
ownership, operation, maintenance or use of such vehicle or
vehicles within the United States of America or the Dominion of Canada, subject to limits exclusive of interest and costs, with
respect to each such vehicle, as follows: $20,000 because of
bodily injury to or death of one person in any one accident and,
subject to said limit for one person, $40,000 because of bodily
injury to or death of two or more persons in any one accident, and
ten thousand dollars $50,000 because of injury to or destruction of
property of others in any one accident.
(c) Such operator's policy of liability insurance shall insure
the person named as insured therein against loss from the liability
imposed upon him
or her by law for damages arising out of the use
by him
or her of any motor vehicle not owned by him
or her, within
the same territorial limits and subject to the same limits of
liability as are set forth above with respect to an owner's policy
of liability insurance.
(d) Such motor vehicle liability policy shall state the name
and address of the named insured, the coverage afforded by the
policy, the premium charged therefor, the policy period, and the
limits of liability, and shall contain an agreement or be endorsed
that insurance is provided thereunder in accordance with the
coverage defined in this chapter as respects bodily injury and
death or property damage, or both, and is subject to
all the
provisions of this chapter.
(e) Such motor vehicle liability policy need not insure any
liability under any workers' compensation law nor any liability on account of bodily injury to or death of an employee of the insured
while engaged in the employment, other than domestic, of the
insured, or while engaged in the operation, maintenance or repair
of any such vehicle nor any liability for damage to property owned
by, rented to, in charge of or transported by the insured.
(f) Every motor vehicle liability policy shall be subject to
the following provisions which need not be contained therein:
(1) The liability of the insurance carrier with respect to the
insurance required by this chapter shall become absolute whenever
injury or damage covered by said motor vehicle liability policy
occurs; said policy may not be canceled or annulled as to such
liability by an agreement between the insurance carrier and the
insured after the occurrence of the injury or damage; no statement
made by the insured or on his
or her behalf and no violation of
said policy shall defeat or void said policy.
(2) The satisfaction by the insured of a judgment for such
injury or damage shall not be a condition precedent to the right or
duty of the insurance carrier to make payment on account of such
injury or damage.
(3) The insurance carrier shall have the right to settle any
claim covered by the policy, and if such settlement is made in good
faith, the amount thereof shall be deductible from the limits of
liability specified in subdivision (2), subsection (b) of this
section.
(4) The policy, the written application therefor, if any, and
any rider or endorsement which does not conflict with
the
provisions of this chapter shall constitute the entire contract
between parties.
(g) Any policy which grants the coverage required for a motor
vehicle liability policy may also grant any lawful coverage in
excess of or in addition to the coverage specified for a motor
vehicle liability policy and such excess or additional coverage
shall not be subject to
the provisions of this chapter. With
respect to a policy which grants such excess or additional
coverage, the term "motor vehicle liability policy" applies only to
that part of the coverage which is required by this section.
(h) Any motor vehicle liability policy may provide that the
insured shall reimburse the insurance carrier for any payment the
insurance carrier would not have been obligated to make under the
terms of the policy except for
the provisions of this chapter.
(i) Any motor vehicle liability policy may provide for the
prorating of the insurance thereunder with other valid and
collectible insurance.
(j) The requirements for a motor vehicle liability policy may
be fulfilled by the policies of one or more insurance carriers
which policies together meet such requirements.
(k) Any binder issued pending the issuance of a motor vehicle
policy shall be deemed to fulfill the requirements for such a policy.
NOTE: The purpose of this bill is to increase the property
damage liability limit for motor vehicle insurance to $50,000.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.