H. B. 2440
(By Delegates Phillips, Farris, Louisos,
L. White and Beane)
[Introduced March 2, 1993; referred to the
Committee on Banking and Insurance.]
A BILL to amend article twelve, chapter thirty-three of the code
of West Virginia, one thousand nine hundred
thirty-one, as amended, by adding thereto a new
section, designated section thirty; and to amend
article twelve-b of said chapter by adding thereto a new
section, designated section fourteen, all relating to the
requirement of agents, solicitors, excess line brokers,
service representatives and adjusters to keep current
addresses on file with the insurance commissioner so that
proper notices of hearing can be served.
Be it enacted by the Legislature of West Virginia:
That article twelve, chapter thirty-three of the code of
West Virginia, one thousand nine hundred thirty-one, as amended,
be amended by adding thereto a new section, designated section
thirty; and that article twelve-b of said chapter be amended by
adding thereto a new section, designated section fourteen, all to
read as follows:
ARTICLE 12. AGENTS, BROKERS, SOLICITORS AND EXCESS LINE.
§33-12-30. Notice of and appearance at hearing before the
commissioner.
When conducting any hearing authorized by section thirteen,
article two, chapter thirty-three of the code of West Virginia,
which hearing concerns any agent, solicitor, excess line broker
or service representative the commissioner may give notice of
such hearing and the matters to be determined therein to such
agent, solicitor, excess line broker or service representative by
certified mail, return receipt requested, sent to the last
address filed by such person or entity pursuant to West Virginia
code, section twenty-nine, article twelve, chapter thirty-three
and such notice shall be deemed adequate notice such that upon
failure to appear at such hearing orders adverse to the interests
of such agent, solicitor, excess line broker or service
representative may be entered by the commissioner based upon the
allegations against such agent, solicitor, excess line broker or
service representative which were set forth in the notice of
hearing.
Provided,
That an agent, solicitor, excess line broker
or service representative who fails to appear at a hearing of
which notice has been provided pursuant to this section, and
which agent, solicitor, excess line broker or service
representative has an adverse order entered by the commissioner
against them as a result of their failure to so appear, then and
in that circumstance only such agent, solicitor, excess line
broker or service representative may within thirty calendar daysof the entry of such adverse order file with the commissioner a
written verified appeal with any relevant documents attached
thereto, which demonstrates good and reasonable cause for the
agent's failure to appear and which requests that the matter be
reconsidered and a new hearing set. The commissioner in his
discretion, and upon a finding that the agent, solicitor, excess
line broker or service representative has shown good and
reasonable cause for their failure to appear shall issue an order
that the previous order be rescinded, that the matter be
reconsidered, and that a new hearing be set. Orders entered
pursuant to this section are subject to the judicial review
provisions of West Virginia code, section fourteen, article two,
chapter thirty-three.
ARTICLE 12B. ADJUSTERS.
§33-12B-14. Current address of adjusters to be filed;
effective notice of appearance at hearing
before commissioner.
Each adjuster shall file with the commissioner the complete
address of his principal place of business and the complete
address of his residence including the name and number of the
street, or if the street where the business is located is not
numbered, the number of the post office box. Within thirty days
of a change of business or residence address by an adjuster the
adjuster must file with the commissioner the current version of
such information.
When conducting any hearing authorized by section thirteen,article two, chapter thirty-three of the code of West Virginia,
which hearing concerns any adjuster the commissioner may give
notice of such hearing and the matters to be determined therein
to such adjuster by certified mail, return receipt requested,
sent to the last business and residence addresses filed by such
person or entity pursuant to the requirements of this section and
such notice shall be deemed adequate notice such that upon
failure to appear at such hearing orders adverse to the interests
of such adjuster may be entered by the commissioner based upon
the allegations against such adjuster which were set forth in the
notice of hearing.
Provided,
That an adjuster who fails to
appear at a hearing of which notice has been provided pursuant to
this section, and which adjuster has an adverse order entered by
the commissioner against them as a result of their failure to so
appear, then and in that circumstance only such adjuster may
within thirty calendar days of the entry of such adverse order
file with the commissioner a written verified appeal, with any
relevant documents attached thereto, which demonstrates good and
reasonable cause for the adjuster's failure to appear and which
requests that the matter be reconsidered and a new hearing set.
The commissioner in his discretion, and upon a finding that the
adjuster has shown good and reasonable cause for their failure to
appear shall issue an order that the previous order be rescinded,
that the matter be reconsidered, and that a new hearing be set.
Orders entered pursuant to this section are subject to the
judicial review provisions of section thirteen, article two,chapter thirty-three of the code of West Virginia.
NOTE: The purpose of this bill is to clarify that licensees
of the Insurance Commissioner including agents, solicitors,
excess line brokers, service representatives, and adjusters must
keep current address information on file with the commissioner
and that notices of hearing sent by the commissioner to such
address on file is considered effective notice to such licensees
of such hearing and of any allegations against such licensee
which are contained in such notice of hearing. Failure of the
licensee to appear and to defend after such notice will not
prevent the hearing from going forward to conclusion and possibly
adverse action against the licensee.
These sections are new; therefore, strike-throughs and
underscoring have been omitted.