H. B. 2410
(By Delegates Boggs and Moore)
[Introduced February 13, 2013; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact §33-6A-1 of the Code of West Virginia,
1931, as amended; and to amend and reenact §33-17A-5 of said
code, all relating to insurance; property insurance
declination; cancellation or nonrenewal of automobile
liability policies; prohibiting declination, cancellation or
nonrenewal of a property insurance policy, based upon
information that an insured had a loss or damage to insured
property when the insured does not file an insurance claim;
and prohibiting cancellation or nonrenewal of an automobile
liability policy based upon information that an insured was
involved in a motor vehicle accident with another motor
vehicle when neither the insured or other person files an
insurance claim.
Be it enacted by the Legislature of West Virginia:
That §33-6A-1 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 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 for a private passenger automobile
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 make payments of premium for
the policy or any installment of the premium when due;
(b) The policy is 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 residing
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 the Division of Motor Vehicles because
a person drove 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 eight
hundredths of one percent, by weight, pursuant to subsection (l),
section two of said article, the suspension may 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 residing
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 reasons:
(1) Any A 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 a controlled substance or while having an alcohol
concentration in his or her blood of eight 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 it 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) Three or more moving traffic violations committed within
a period of twelve months, each of which results in three or more
points being assessed on the driver's record by the Division of
Motor Vehicles, whether or not the insurer renewed the policy
without knowledge of all such violations. Notice of any
cancellation made pursuant to this subsection shall be mailed to
the named insured either during the current policy period or during
the first full policy period following the date that the third
moving traffic violation is recorded by the Division of Motor
Vehicles.
Notwithstanding any of the provisions of this section to the
contrary, no insurer may cancel a policy of automobile liability
insurance without first giving the insured thirty days' notice of
its intention to cancel: Provided, That the insurance policy is
voidable from the effective date and time of the policy issued by
the insurer if the insurer cancels the policy for failure of
consideration to be paid by the insured upon initial issuance of
the insurance policy and provides written notice to the insured of the cancellation within fifteen days of receipt of notice of the
failure of consideration and consideration has not otherwise been
provided within ten days of the notice of cancellation. Notice of
cancellation for nonpayment of consideration shall be delivered to
the named insured or sent by first class mail to the named insured
at the address supplied on the application for insurance and shall
state the effective date of the cancellation and shall be
accompanied by a written explanation of the specific reason for the
cancellation. If the insurer fails to provide such written notice
to the insured, then the cancellation of the policy for failure of
consideration is effective upon the expiration of ten days' notice
of cancellation to the insured.
(f) Notwithstanding any other provision of this article or
code to the contrary, an insurer may not use information obtained
from an insured or other means concerning an accident involving the
insured and another motor vehicle for the purpose of cancelling or
nonrenewal of a policy if the insured or other person involved in
the incident does not file a claim relating to the incident.
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 a 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 the policy of insurance
ceases writing the particular type or line of insurance coverage
contained in said the policy throughout the state or should such
insurer discontinue operations within the state; or
(j) Substantial breach of the provisions of the policy.
(k) Notwithstanding any other provision of this article or
code to the contrary, an insurer may not use information obtained
from an insured or other means concerning a loss or damage to
insured property for the purpose of declining, cancelling or
nonrenewal of a policy if the insured does not file a claim
relating to the loss or damage to insured property.
NOTE: The purpose of this bill is to prohibit declination,
cancellation or nonrenewal of a property insurance policy if the
insured does not file a claim relating to the loss or damage to
insured property. It also prohibits cancellation or nonrenewal of
an automobile liability policy based upon information that an
insured was involved in a motor vehicle accident with another motor
vehicle when neither the insured nor other person files an
insurance claim.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.