Introduced Version
Senate Bill 541 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 541
(By Senator Jenkins)
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[Introduced February 9, 2006; referred to the Committee
on Banking and Insurance; and then to the Committee on the
Judiciary.]
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A BILL to amend and reenact §33-6A-1
of the Code of West Virginia,
1931, as amended, relating to providing an insurer may void
the issuance of an insurance policy for failure of
consideration by providing written notice to the insured.
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 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 shall 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 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 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 cancellation of 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 voided policy within fifteen days of receipt of
notice of the failure of consideration. In the event the insurer
fails to provide the written notice to the insured, the
cancellation of the policy for failure of consideration is
effective upon the expiration of ten days' notice of cancellation
to the insured.
NOTE: The purpose of this bill is to
provide that an insurer
may void the issuance of an insurance policy for failure of
consideration by providing written notice to the insured.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would
be added.