H. B. 2460
(By Delegate Doyle)
[Introduced January 10, 1996; referred to the
Committee on Banking and Insurance then Finance.]
A BILL to amend article twelve, chapter twenty-nine of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
five-d, relating to authorizing the state board of risk and
insurance management to establish and provide group
insurance plans for small businesses.
Be it enacted by the Legislature of West Virginia:
That article twelve, chapter twenty-nine of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section five-
d, to read as follows:
ARTICLE 12. STATE INSURANCE.
§29-12-5d. Authorization to establish group hospital and
surgical insurance plan, group major medical
insurance plan, group prescription drug plan and
group life and accidental death insurance plan
for small businesses.
In accordance with the provisions of this article, the state
board of risk and insurance management shall establish and
provide a group hospital and surgical insurance plan or plans, a
group prescription drug insurance plan or plans, a group major
medical insurance plan or plans, and a group life and accidental
death insurance plan or plans for small businesses, as defined in
section seven-a, article thirteen-c, chapter eleven of this code,
and their employees. For the purposes of this section "small
business" includes sole proprietors and officers and employees of
any small business. These plans may also include, among other
things, medicines, medical equipment, prosthetic appliances and
any other inpatient and outpatient services and expenses. The
plans may also include dental insurance, optical insurance, out-
patient mental health counseling insurance, disability insurance
and prepaid retirement insurance.
All actuarial and administrative costs of each plan shall be
totally borne by the premium payments of the small businesses or
their officers or employees electing to participate in that plan.
The board of risk and insurance management shall make available
to each employee herein made eligible, at full cost to the
employee, the opportunity to purchase optional group life and
accidental death insurance in an amount not to exceed fifty
thousand dollars for life insurance and fifty thousand dollars
for accidental death insurance as established under the rules of
the agency. In addition, each employee is entitled to have his
spouse and dependents, as defined by the rules of the board of risk and insurance management, included in any optional coverage,
at full cost to the employee, in an amount not to exceed five
thousand dollars for life insurance and five thousand dollars for
accidental death insurance for the spouse and not to exceed two
thousand dollars in life insurance and two thousand dollars in
accidental death insurance for each eligible dependent; and with
full authorization hereby to the board to make that insurance
available and provide the opportunity of purchase to each
employee.
The board of risk and insurance management shall establish
the criteria for the program for the approval of the insurance
commissioner on or before the fifteenth day of June, one thousand
nine hundred ninety-five.
Any premiums assessed and collected under the provisions of
this section, or rules promulgated pursuant to the provisions of
this section, shall be placed in a separate insurance pool known
as the small business insurance pool. This pool is to be
administered and maintained by the board of risk and insurance
management.
The board of risk and insurance management, with approval of
the insurance commissioner, has the authority to make needful
rules for the administration of this section, as provided in the
State Administrative Procedures Act in chapter twenty-nine-a of
this code:
Provided,
That the board of risk and insurance
management, with approval of the insurance commissioner, has the
authority to promulgate rules regarding the discontinuance of the program if participation in the program is insufficient to make
said program economically feasible.
NOTE: The purpose of this bill is to authorize the State
Board of Risk and Insurance Management to establish and provide
to small businesses group hospital and major medical insurance.
This section is new; therefore, strike-throughs and
underscoring have been omitted.