H. B. 2770
(By Delegates Beane, Trump and Walters)
[Introduced March 27, 1997; referred to the
Committee on Banking and Insurance.]
A BILL to amend article six, 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
ten-a; and to amend and reenact section one, article six-a
of said chapter, all relating to general notice
requirements, cancellation of automobile liability insurance
policies and automobile insurance notice requirements.
Be it enacted by the Legislature of West Virginia:
That article six, 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
ten-a; and that section one, article six-a of said chapter be
amended and reenacted, all to read as follows:
ARTICLE 6. THE INSURANCE POLICY.
§33-6-10a. Standard notice requirements.
Notwithstanding any provisions in this chapter to the
contrary, whenever an insurer is required to give notice to an
insured pursuant to this chapter, the notice is proper and
effective when it is given in the United States mails, postage
prepaid, addressed to the principal place of business or
residence of the insured as last recorded by the insurer. The
verified return of the person depositing the notice in the mails
as to the fact of the mailing shall be conclusive proof of
service.
ARTICLE 6A. CANCELLATION OR NONRENEWAL OF AUTOMOBILE LIABILITY
POLICIES.
§33-6A-1. Cancellation prohibited except for specified
reasons; notice.
No insurer once having issued or delivered a policy
providing automobile liability insurance in this state insuring
a private passenger automobile shall 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) The named insured fails to discharge when due any of his
or her obligations in connection with the payment of premium for the policy or any installment of the premium;
(b) The policy was obtained through material
misrepresentation;
(c) The insured violates any of the material terms and
conditions of the policy;
(d) The named insured or any other operator, either resident
in the same household or who customarily operates an automobile
insured under the policy:
(1) 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 motor vehicles
because a person did drive 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 ten hundredths of one percent, by weight, pursuant to
subsection (l), section two, article five-a, chapter seventeen-c
of this code, the suspension shall is not be grounds for
cancellation; or
(2) 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) The named insured or any other operator, either resident
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:
(1) Any felony or assault involving the use of a motor
vehicle;
(2) Negligent homicide arising out of the operation of a
motor vehicle;
(3) 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 ten hundredths of one
percent or more, by weight;
(4) Leaving the scene of a motor vehicle accident in which
the insured is involved without reporting as required by law;
(5) Theft of a motor vehicle or the unlawful taking of a
motor vehicle;
(6) Making false statements in an application for a motor
vehicle operator's license;
(7) A third violation, committed within a period of twelve
months, of any moving traffic violation which constitutes a
misdemeanor, whether or not the violations were repetitious of
the same offense or were different offenses. Notwithstanding any
of the provisions of this section to the contrary, no insurance company may cancel a policy of automobile liability insurance
without first giving the insured thirty ten days' notice by
registered or certified mail, of its intention to cancel.
Provided, That cancellation of the insurance policy by the
insurance carrier for failure of consideration to be paid by the
insured upon initial issuance of the insurance policy is
effective upon the expiration of ten days' notice of cancellation
to the insured
(f) Whenever an insurer is required to give notice to an
insured pursuant to this section, the notice is proper and
effective when it is given in the United States mails, postage
prepaid, addressed to the principal place of business or
residence of the insured as last recorded by the insurer. A
certification as to the fact of the mailing signed by the person
depositing the notice in the mails is conclusive proof of
service.
NOTE: The purpose of this bill is to provide standard
notice requirements for insurance contracts. The bill also
reduces the notice requirements for the cancellation of
automobile liability insurance policies from thirty days to ten
days and changes notice delivery method from registered or
certified mail to verified postage prepaid to comply with the
uniformity provision.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
§33-6-10a is new; therefore, strike-throughs and
underscoring have been omitted.