H. B. 4742
(By Delegates Beane, Facemyer, L. White and Stalnaker)
[Introduced February 25, 2000; referred to the
Committee on Banking and Insurance then Finance.]
A BILL to amend and reenact section ten, article twenty-four,
chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
investment of funds by hospital service, medical service,
dental service and health service corporations; approving
repurchase agreements allowable investments.
Be it enacted by the Legislature of West Virginia:
That section ten, article twenty-four, chapter thirty-three of
the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 24. HOSPITAL SERVICE CORPORATIONS, MEDICAL SERVICE
CORPORATIONS, DENTAL SERVICE CORPORATIONS AND
HEALTH SERVICE CORPORATIONS.
§33-24-10. Investments; bonds of corporate officers and employees, minimum statutory surplus.
(a) The funds of any such corporation shall be invested only
as follows:
(1) Fifty percent of such funds shall be in cash or government
securities of the type described in section seven of article eight
of this chapter.
(2) The balance of such funds may be in cash or invested in
the classes of investments described in the following sections of
article eight of this chapter: Section nine (certificates of
deposit of federally insured institutions), section eleven
(corporate obligations), section twelve (building and savings and
loan shares, international bank), section thirteen (preferred or
guaranteed stock), section fourteen (common stock), section sixteen
(real property), and section eighteen (revenue bonds), and section
twenty-three (repurchase agreements). All such investments shall
be subject to all the restrictions and conditions contained in said
article eight as applying to similar investments of insurers
generally.
(b) Every officer or employee of any such corporation, who is
entrusted with the handling of its funds, shall furnish, in such
amount as may with the approval of the commissioner be fixed by the
board of directors of the corporation, a bond with corporate
surety, conditioned upon the faithful performance of all his or her
duties.
(c) A corporation shall have and maintain statutory surplus
funds of at least two million dollars: Provided, That any such
corporation duly licensed under this article in West Virginia prior
to the effective date of this section whose surplus requirements
are increased by virtue of this section shall be required to
maintain statutory surplus funds of at least five hundred thousand
dollars after the effective date of this section, and any such
corporation shall then be subject to the full two million dollar
statutory surplus requirement after the first day of October, one
thousand nine hundred ninety-one.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.