ENROLLED
H. B. 2265
(By Delegates Gallagher, Dempsey, Nesbitt and Tillis)
[Passed March 2, 1995; in effect ninety days from passage.]
AN ACT to amend article thirteen, chapter thirty-three of the
code of West Virginia, one thousand nine hundred thirty-one,
as amended, by adding thereto a new section, designated
section fourteen-a; and to amend article fourteen of said
chapter by adding thereto two new sections, designated
sections thirty and thirty-a, all relating to the payment of
claims to beneficiaries of life insurance policies; and
providing for interest on proceeds from the date of death of
the insured.
Be it enacted by the Legislature of West Virginia:
That article thirteen, chapter thirty-three of the code of
West Virginia, one thousand nine hundred thirty-one, as amended,
be amended by adding thereto a new section, designated section
fourteen-a; and that article fourteen of said chapter be amended
by adding thereto two new sections, designated sections thirty and thirty-a, all to read as follows:
ARTICLE 13. LIFE INSURANCE.
§33-13-14a. Payment of interest on death claims.
(a) On and after the effective date of this section, any
life insurance company authorized to do business in this state
shall pay interest, in accordance with subsection (b) of this
section and subject to subsection (c) of this section, on any
proceeds that become due upon the death of the insured pursuant
to the terms of a life insurance policy other than a credit life
insurance policy and that are not paid in accordance with the
terms of the contract, upon the date the proceeds become due.
For purposes of this section, the proceeds of a life insurance
policy become due on the date of death of the insured.
(b) Interest payable pursuant to subsection (a) of this
section shall be computed from the date of death at the current
rate of interest on proceeds left on deposit with the insurer.
(c) Subsection (a) of this section does not require, and
shall not be construed as requiring, the payment of interest
unless the insured was a resident of this state on the date of
his or her death.
ARTICLE 14. GROUP LIFE INSURANCE.
§33-14-30. Payment of claims.
There shall be a provision that when a policy shall become a claim by the death of the insured, settlement shall be made
upon receipt of due proof of death and, at the insurer's option,
surrender of the policy and/or proof of the interest of the
claimant. If an insurer shall specify a particular period prior
to the expiration of which settlement shall be made, such period
shall not exceed two months from the receipt of such proofs.
§33-14-30a. Payment of interest on death claims.
(a) On and after the effective date of this section, any
life insurance company authorized to do business in this state
shall pay interest, in accordance with subsection (b) of this
section and subject to subsection (c) of this section, on any
proceeds that become due upon the death of the insured pursuant
to the terms of a life insurance policy other than a credit life
insurance policy and that are not paid in accordance with the
terms of the contract, upon the date the proceeds become due.
For purposes of this section, the proceeds of a life insurance
policy become due on the date of death of the insured.
(b) Interest payable pursuant to subsection (a) of this
section shall be computed from the date of death at the current
rate of interest on proceeds left on deposit with the insurer.
(c) Subsection (a) of this section does not require, and
shall not be construed as requiring, the payment of interest unless the insured was a resident of this state on the date of
his or her death.