Introduced Version
Senate Bill 55 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 55
(By Senator Minard)
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[Introduced February 9, 2005; referred to the Committee
on Banking and Insurance.]
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A BILL to amend and reenact §33-6A-4 of the Code of West Virginia,
1931, as amended, relating to
deleting the ninety-day
mandatory reinstatement period existing under current law for
persons who allow their automobile insurance policies to lapse
due to nonpayment of the premium.
Be it enacted by the Legislature of West Virginia:
That §33-6A-4
of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 6A. CANCELLATION OR NONRENEWAL OF AUTOMOBILE LIABILITY
POLICIES.
§33-6A-4. Advance notice of nonrenewal required; assigned risk
policies; reasons for nonrenewal; hearing and review
after nonrenewal.
(a) No insurer shall fail to renew an outstanding automobile
liability or physical damage insurance policy unless the nonrenewal is preceded by at least forty-five days advance notice to the named
insured of the insurer's election not to renew the policy:
Provided, That subject to this section, nothing contained in this
article shall be construed to prevent an insurer from refusing to
issue an automobile liability or physical damage insurance policy
upon application to the insurer, nor shall any provision of this
article be construed to prevent an insurer from refusing to renew
a policy upon expiration, except as to the notice requirements of
this section, and except further as to those applicants lawfully
submitted pursuant to the West Virginia assigned risk plan.
(b) An insurer may not fail to renew an outstanding automobile
liability or physical damage insurance policy which has been in
existence for two consecutive years or longer except for the
following reasons:
(1) The named insured fails to make payments of premium for
the policy or any installment of the premium when due;
(2) The policy is obtained through material misrepresentation;
(3) The insured violates any of the material terms and
conditions of the policy;
(4) The named insured or any other operator, either residing
in the same household or who customarily operates an automobile
insured under the policy:
(A) Has had his or her operator's license suspended or revoked
during the policy period; or
(B) Is or becomes subject to a physical or mental condition
that prevents the insured from operating a motor vehicle, and the
individual cannot produce a certificate from a physician testifying
to his or her ability to operate a motor vehicle;
(5) The named insured or any other operator, either residing
in the same household or who customarily operates an automobile
insured under the policy, is convicted of or forfeits bail during
the policy period for any of the following reasons:
(A) Any felony or assault involving the use of a motor
vehicle;
(B) Negligent homicide arising out of the operation of a motor
vehicle;
(C) Operating a motor vehicle while under the influence of
intoxicating liquor or of any narcotic drug;
(D) Leaving the scene of a motor vehicle accident in which the
insured is involved without reporting it as required by law;
(E) Theft of a motor vehicle or the unlawful taking of a motor
vehicle; or
(F) Making false statements in an application for a motor
vehicle operator's license;
(6) The named insured or any other operator, either residing
in the same household or who customarily operates an automobile
insured under the policy, is convicted of or forfeits bail during
the policy period for two 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 of the violations: Provided,
That an insurer that makes an election pursuant to section four-b
of this article to issue all nonrenewal notices pursuant to this
section, may nonrenew an automobile liability or physical damage
insurance policy if the named insured, or any other operator,
either residing in the same household or who customarily operates
an automobile insured under the policy is convicted of or forfeits
bail during the policy period for two or more moving traffic
violations committed within a period of twenty-four months, each of
which occurs on or after the first day of July, two thousand four,
and after the date that the insurer makes an election pursuant to
section four-b of this article, and 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 of the violations. Notice of any nonrenewal made
pursuant to this subdivision 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 second moving traffic
violation is recorded by the Division of Motor Vehicles;
(7) The named insured or any other operator either residing in
the same household or who customarily operates an automobile insured under the policy has had a second at-fault motor vehicle
accident within a period of twelve months, whether or not the
insurer renewed the policy without knowledge of all of the
accidents: Provided, That an insurer that makes an election
pursuant to section four-b of this article to issue all nonrenewal
notices pursuant to this section, may nonrenew an automobile
liability or physical damage insurance policy under this subsection
if the named insured or any other operator either residing in the
same household or who customarily operates an automobile insured
under such policy has had two at-fault motor vehicle accidents
within a period of thirty-six months, each of which occurs after
the first day of July, two thousand four, and after the date that
the insurer makes an election pursuant to section four-b of this
article, and results in a claim paid by the insurer for each
accident, whether or not the insurer renewed the policy without
knowledge of all of the accidents. Notice of any nonrenewal 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 of the second accident; or
(8) The insurer ceases writing automobile liability or
physical damage insurance policies throughout the State after
submission to and approval by the commissioner of a withdrawal plan
or discontinues operations within the State pursuant to a
withdrawal plan approved by the Commissioner.
(c) An insurer that makes an election pursuant to section
four-b of this article to issue all nonrenewal notices pursuant to
this section shall not fail to renew an automobile liability or
physical damage insurance policy when an operator other than the
named insured has violated the provisions of subdivision (6) or
(7), subsection (b) of this section, if the named insured, by
restrictive endorsement, specifically excludes the operator who
violated the provision. An insurer issuing a nonrenewal notice
informing the named insured that the policy will be nonrenewed for
the reason that an operator has violated the provisions of
subdivision (6) or (7), subsection (b) of this section, shall at
that time inform the named insured of his or her option to
specifically exclude the operator by restrictive endorsement and
shall further inform the named insured that upon obtaining the
restrictive endorsement, the insurer will renew the policy or
rescind the nonrenewal absent the existence of any other basis for
nonrenewal set forth in this section.
(d) A notice provided under this section shall state the
specific reason or reasons for nonrenewal and shall advise the
named insured that nonrenewal of the policy for any reason is
subject to a hearing and review as provided for in section five of
this article. Cost of the hearing shall be assessed against the
losing party but shall not exceed seventy-five dollars. The notice
must also advise the insured of possible eligibility for insurance through the West Virginia assigned risk plan.
(e) Notwithstanding the provisions of subsection (a) of this
section, the insurer shall reinstate any automobile liability or
physical damage insurance policy that has not been renewed due to
the insured's failure to pay the renewal premium when due if:
(1) None of the other grounds for nonrenewal as set forth in
this section exist; and
(2) The insured makes an application for reinstatement within
forty-five days of the original expiration date of the policy. If
a policy is reinstated as provided for in this paragraph, then the
coverage afforded shall not be retroactive to the original
expiration date of the policy: Provided, That such policy shall be
effective on the reinstatement date at the current premium levels
offered by the company and shall not be afforded the protections of
this section relating to renewal of an outstanding automobile
liability or physical damage insurance policy that has been in
existence for at least two consecutive years.
NOTE: The purpose of this bill is to delete the ninety-day
mandatory reinstatement period existing under current law for
persons who allow their automobile insurance policies to lapse due
to nonpayment of the premium.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.