H. B. 3316
(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 §33-17-9 of the Code of West Virginia,
1931, as amended; and to amend and reenact §33-17A-5, all
relating to total fire loss; and to cancellation due to
substantial change in value.
Be it enacted by the Legislature of West Virginia:
That §33-17-9 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and that §33-17A-5 of said code be
amended and reenacted, all to read as follows:
ARTICLE 17. FIRE AND MARINE INSURANCE.
§33-17-9. Total or partial fire loss.
(a) All insurers issuing policies providing fire insurance
on real property situate in West Virginia, shall be liable, in
case of total loss by fire or otherwise, as stated in the policy,
for the whole amount of insurance stated in the policy, upon such
real property; and in case of partial loss by fire or otherwise, as aforesaid, of the real property insured, the liability shall
be for the total amount of such partial loss, not to exceed the
whole amount of insurance upon such real property as stated in
the policy. This section shall not apply where such insurance
has been procured from two or more insurers covering the same
interest in such real property.
(b) Any insurer may, at its option, reinspect real property
and reunderwrite any policy providing fire insurance ninety days or
more before any renewal and, if the reinspection or reunderwriting
results in substantial change with respect to the insured value of
the real property, then the substantial change with respect to the
insured value of the real property
shall constitute a permissible
cancellation under subsection (k), section five, article seventeen-
a of this chapter, and shall be subject to the notification
requirements under subsection (b), section four, article seventeen-
a of this chapter.
ARTICLE 17A. PROPERTY INSURANCE DECLINATION, TERMINATION AND
DISCLOSURE.
§33-17A-5. Permissible cancellations.
After coverage has been in effect for more than sixty days or
after the effective date of a renewal policy, a notice of
cancellation may not be issued unless it is based on at least one
of the following reasons:
(a) Nonpayment of premium;
(b) Conviction of the insured of any crime having as one of
its necessary elements an act increasing any hazard insured
against;
(c) Discovery of fraud or material misrepresentation made by
or with the knowledge of the named insured in obtaining the policy,
continuing the policy or in presenting a claim under the policy;
(d) Discovery of willful or reckless acts or omissions on the
part of the named insured which increase any hazard insured
against;
(e) The occurrence of a change in the risk which substantially
increases any hazard insured against after insurance coverage has
been issued or renewed;
(f) A violation of any local fire, health, safety, building or
construction regulation or ordinance with respect to any insured
property or the occupancy thereof which substantially increases any
hazard insured against;
(g) A determination by the Commissioner that the continuation
of the policy would place the insurer in violation of the insurance
laws of this state;
(h) Real property taxes owing on the insured property have
been delinquent for two or more years and continue delinquent at
the time notice of cancellation is issued;
(i) The insurer which issues said policy of insurance ceases
writing the particular type or line of insurance coverage contained in said policy throughout the state or should such insurer
discontinue operations within the state; or
(j) Substantial breach of the provisions of the policy; or
(k) Substantial change in the value of the real estate
pursuant to reinspection or reunderwriting in connection with a
renewal, pursuant to section nine, article seventeen, chapter
thirty-three of this code.
NOTE: The purpose of this bill is to ameliorate industry
concerns with respect to change in value but still maintain the
value policy law.
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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