H. B. 3271
(By Delegates Blair, Boggs, Brown,
Morgan, Duke and Walters)
[Introduced March 25, 2005; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to repeal §33-22-2a of the Code of West Virginia, 1931, as
amended; to amend said code by adding thereto a new section,
designated §33-17-6a; and to amend and reenact §33-22-2 of
said code, all relating to flood insurance; requiring that
certain insurance documents include a notice regarding the
absence of flood insurance and the possible availability of
such insurance from other sources; requiring that farmer's
mutual insurance companies include the notice; and clarifying
that the insurance fraud prevention act applies to farmer's
mutual insurance companies.
Be it enacted by the Legislature of West Virginia:
That §33-22-2a of the Code of West Virginia, 1931, as amended,
be repealed; that said code be amended by adding thereto a new
section, designated §33-17-6a; and that §33-22-2 of said code be
amended and reenacted, all to read as follows:
ARTICLE 17. FIRE AND MARINE INSURANCE.
§33-17-6a. Notice of noncoverage of flood damages and the
availability of flood insurance.
Every insurer issuing or renewing a policy that provides fire
insurance, as that term is defined in subsection (c), section ten,
article one of this chapter, but which does not cover damages from
flood, shall include in every such policy delivered in this state
a notice that provides as follows: THIS POLICY DOES NOT COVER
DAMAGE FROM FLOOD. FOR INFORMATION ABOUT FLOOD INSURANCE, CONTACT
THE NATIONAL FLOOD PROTECTION PROGRAM OR YOUR INSURANCE AGENT.
ARTICLE 22. FARMERS' MUTUAL FIRE INSURANCE COMPANIES.
§33-22-2. Applicability of other provisions.
Each company to the same extent that provisions are applicable
to domestic mutual insurers shall be governed by and be subject to
the following
articles provisions of this chapter,
but only to the
extent these provisions are not inconsistent with the provisions of
this article: Article one (definitions); article two (insurance
commissioner); article four (general provisions) except that
section sixteen of said article may not be applicable thereto;
article seven (assets and liabilities); article eight-a (use of
clearing corporations and federal reserve book-entry system);
article ten (rehabilitation and liquidation) except that under the
provisions of section thirty-two of said article assessments may
not be levied against any former member of a farmers' mutual fire
insurance company who is no longer a member of the company at the time the order to show cause was issued; article eleven (unfair
trade practices); article twelve
(agents, brokers and solicitors
(insurance producers and solicitors) except that the agent's
license fee shall be five dollars;
section six-a, article seventeen
(notice of noncoverage of flood damages and the availability of
flood insurance); article twenty-six (West Virginia insurance
guaranty association act); article twenty-seven (insurance holding
company systems); article thirty (mine subsidence insurance) except
that under the provisions of section six of said article, a
farmers' mutual insurance company shall have the option of offering
mine subsidence coverage to all of its policyholders but may not be
required to do so; article thirty-three (annual audited financial
report); article thirty-four (administrative supervision); article
thirty-four-a (standards and commissioner's authority for companies
considered to be in hazardous financial condition); article
thirty-five (criminal sanctions for failure to report impairment);
article thirty-six (business transacted with producer-controlled
property-casualty insurer
act); article thirty-seven (managing
general agents); article thirty-nine (disclosure of material
transactions); article forty (risk-based capital for insurers); and
article forty-one (
privileges and immunity insurance fraud
prevention act). ; but only to the extent these provisions are not
inconsistent with the provisions of this article.
Note: The purpose of this bill is to require insurance
companies to inform policyholders if their polices do not cover flood damages and that policyholders may wish to contact their
agents or the National Flood Protection Program administered by
FEMA about how to obtain coverage.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§33-17-6a is new; therefore, underscoring and strike-throughs
have been omitted.
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