H. B. 3313
(By Delegates Miley and Rick Thompson)
[Introduced March 25, 2005; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §33-20-4 of the Code of West Virginia,
1931, as amended; and to amend and reenact §33-20B-3
of said
code, all relating to requiring that rate filings, both with
respect to property and casualty insurance generally, and
medical malpractice insurance in particular, contain data for
informational purposes, regarding payments made for bad faith,
unfair claims settlement practices, excess verdicts and other
extra contractual liability, but the same not be contained or
considered, in loss data submitted in support of a rate
filing.
Be it enacted by the Legislature of West Virginia:
That §33-20-4
of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and to amend and reenact §33-20B-3
of
said code, all to read as follows:
ARTICLE 20. RATES AND RATING ORGANIZATIONS.
§33-20-4. Rate filings.
(a) (1) Every insurer shall file with the Commissioner every
manual of classifications, territorial rate areas established
pursuant to subdivision (2), subsection (c), section three of this
article, rules and rates, every rating plan and every modification
of any of the foregoing which it proposes to use for casualty
insurance to which this article applies.
(2) Every insurer shall file with the Commissioner, except as
to inland marine risks which by general custom of the business are
not written according to manual rates or rating plans, every
manual, minimum, class rate, rating schedule or rating plan and
every other rating rule and every modification of any of the
foregoing which it proposes to use for fire and marine insurance to
which this article applies. Specific inland marine rates on risks
specially rated, made by a rating organization, shall be filed with
the Commissioner.
(b) Every filing shall contain, for informational purposes
only, the amounts paid by the filing carrier for bad faith, unfair
claims settlement practices, excess verdict liability or other
extra contractual liability, but the same shall be separate and
apart, and shall not be contained or considered, in the loss data
upon which the filing is predicated.
(b) (c) Every such filing shall state the proposed effective
date thereof and shall indicate the character and extent of the coverage contemplated. When a filing is not accompanied by the
information upon which the insurer supports such filing, and the
Commissioner does not have sufficient information to determine
whether such filing meets the requirements of this article, he or
she shall require such insurer to furnish the information upon
which it supports such filing and in such event the waiting period
shall commence as of the date such information is furnished. The
information furnished in support of a filing may include: (1) The
experience or judgment of the insurer or rating organization making
the filing; (2) the experience or judgment of the insurer or rating
organization in the territorial rate areas established by
subdivision (2), subsection (c), section three of this article; (3)
its interpretation of any statistical data it relies upon; (4) the
experience of other insurers or rating organizations; or (5) any
other relevant factors. A filing and any supporting information
shall be open to public inspection as soon as the filing is
received by the Commissioner. Any interested party may file a
brief with the Commissioner supporting his or her position
concerning the filing. Any person or organization may file with
the Commissioner a signed statement declaring and supporting his or
her
or its position concerning the filing. Upon receipt of such
statement prior to the effective date of the filing, the
Commissioner shall mail or deliver a copy of such statement to the
filer, which may file such reply as it may desire to make. This section shall not be applicable to any memorandum or statement of
any kind by any employee of the Commissioner.
(c) (d) An insurer may satisfy its obligation to make such
filing by becoming a member of, or a subscriber to, a licensed
rating organization which makes such filings, and by authorizing
the Commissioner to accept such filings on its behalf: Provided,
That nothing contained in this article shall be construed as
requiring any insurer to become a member of or a subscriber to any
rating organization.
(d) (e) The Commissioner shall review filings as soon as
reasonably possible after they have been made in order to determine
whether they meet the requirements of this article.
(e) (f) Subject to the exceptions specified in subsections (f)
and (g) of this section, each filing shall be on file for a waiting
period of sixty days before it becomes effective. Upon written
application by such insurer or rating organization, the
Commissioner may authorize a filing which he has reviewed to become
effective before the expiration of the waiting period. A filing
shall be deemed to meet the requirements of this article unless
disapproved by the Commissioner within the waiting period.
(f) (g) Any special filing with respect to a surety bond
required by law or by court or executive order or by order, rule or
regulation of a public body, not covered by a previous filing,
shall become effective when filed and shall be deemed to meet the requirements of this article until such time as the Commissioner
reviews the filing and so long thereafter as the filing remains in
effect.
(g) (h) Specific inland marine rates on risks specially rated
by a rating organization shall become effective when filed and
shall be deemed to meet the requirements of this article until such
time as the Commissioner reviews the filing and so long thereafter
as the filing remains in effect.
(h) (i) Under such rules and regulations as he or she shall
adopt the Commissioner may, by written order, suspend or modify the
requirement of filing as to any kind of insurance, subdivision or
combination thereof, or as to classes of risks, the rates for which
cannot practicably be filed before they are used. Such orders,
rules and regulations shall be made known to insurers and rating
organizations affected thereby. The Commissioner may make such
examination as he may deem advisable to ascertain whether any rates
affected by such order meet the standards set forth in subsection
(b), section three of this article.
(i) (j) Upon the written application of the insured, stating
his or her
reasons therefor, filed with and approved by the
Commissioner, a rate in excess of that provided by a filing
otherwise applicable may be used on any specific risks.
(j) (k) No insurer shall make or issue a contract or policy
except in accordance with the filings which are in effect for said insurer as provided in this article or in accordance with
subsection (h) or (i) of this section. This subsection shall not
apply to contracts or policies for inland marine risks as to which
filings are not required.
(k) (l) In instances when an insurer files a request for an
increase of automobile liability insurance rates in the amount of
fifteen percent or more, the Insurance Commissioner shall provide
notice of such increase with the office of the Secretary of State
to be filed in the State Register and shall provide interested
persons the opportunity to comment on such request up to the time
the Commissioner approves or disapproves such rate increase.
ARTICLE 20B. RATES AND MALPRACTICE INSURANCE POLICIES.
§33-20B-3. Rate filings.
(a) On or before the first day of July, two thousand four, and
on the first day of July each year thereafter, or at such other
time specified by the Commissioner, every insurer offering
malpractice insurance in this state shall make a rate filing, in
accordance with the provisions of section four, article twenty of
this chapter, regardless of whether any increase or decrease is
indicated, pursuant to subsection (a), section four, article twenty
of this chapter. The information furnished in support of a filing
shall include: (i) The experience or judgment of the insurer or
rating organization making the filing; (ii) its interpretation of
any statistical data the filing relies upon; (iii) the experience of other insurers or rating organizations; (iv) the character and
extent of the coverage contemplated; (v) the proposed effective
date of any requested change and (vi) any other relevant factors
required by the Commissioner.
(b) Every filing shall contain, for informational purposes
only, the amounts paid by the filing carrier for bad faith, unfair
claims settlement practices, excess verdict liability or other
extra contractual liability, but the same shall be separate and
apart, and shall not be contained or considered, in the loss data
upon which the filing is predicated.
(c) When a filing is not accompanied by the information
required by this section upon which the insurer supports the
filing, the Commissioner shall require the insurer to furnish the
information and, in that event, the waiting period prescribed by
subsection (b) of this section shall commence as of the date the
information is furnished.
A filing and any supporting information shall be open to
public inspection as soon as the filing is received by the
Commissioner. Any interested party may file a brief with the
Commissioner supporting his or her position concerning the filing.
Any person or organization may file with the Commissioner a signed
statement declaring and supporting his or her or its position
concerning the filing. Upon receipt of any such statement prior to
the effective date of the filing, the Commissioner shall mail or deliver a copy of the statement to the filer, which may file a
reply. This section is not applicable to any memorandum or
statement of any kind by any employee of the Commissioner.
(b) (d) Every filing shall be on file for a waiting period of
ninety days before it becomes effective. The Commissioner may
extend the waiting period for an additional period not to exceed
thirty days if he or she gives written notice within the waiting
period to the insurer or rating organization which made the filing
that he or she needs the additional time for the consideration of
the filing. Upon written application by the insurer or rating
organization, the Commissioner may authorize a filing which he or
she has reviewed to become effective before the expiration of the
waiting period or any extension of the waiting period. A filing
shall be deemed to meet the requirements of this article unless
disapproved by the Commissioner within the waiting period or any
extension thereof.
(c) (e) No insurer shall make or issue a contract or policy of
malpractice insurance except in accordance with the filings which
are in effect for the insurer as provided in this article.
NOTE: The purpose of this bill is to require that rate
filings, both with respect to property and casualty insurance
generally, and medical malpractice insurance in particular, contain
data, for informational purposes, regarding payments made for bad
faith, unfair claims settlement practices, excess verdicts and
other extra contractual liability, but the same not be contained or
considered, in loss data submitted in support of a rate filing.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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