H. B. 2021
(By Delegate Caputo)
[Introduced January 13, 2010; referred to the
Committee on Banking and Insurance then Government
Organization.]
A BILL to amend and reenact §33-2-21 of the Code of West Virginia,
1931, as amended, relating to giving the Insurance
Commissioner the power to regulate and penalize self-insured
employers.
Be it enacted by the Legislature of West Virginia:
That §33-2-21 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 2. INSURANCE COMMISSIONER.
§33-2-21. Authority of Insurance Commissioner to regulate Workers'
Compensation industry
and self-insured employers;
authority of Insurance Commissioner to administer
chapter 23 of the Code of West Virginia.
(a) Upon the termination of the Workers' Compensation
Commission pursuant to chapter 23 of this code, the powers and
duties heretofore imposed upon the Workers' Compensation Commission as they relate to general administration of the provisions of said
chapter are hereby transferred to and imposed upon the Insurance
Commissioner.
(b) Unless otherwise specified in chapter 23 of this code,
upon termination of the Workers' Compensation Commission, the
duties imposed upon the Workers' Compensation Commission as they
relate to the award and payment of disability and death benefits
and the review of claims in articles 4 and 5 of said chapter will
be imposed upon the Employers Mutual Insurance Company established
pursuant to article 2C of said chapter, a private carrier offering
Workers' Compensation insurance in this state and self-insured
employers. Whenever reference is made to the Workers' Compensation
Commissioner in those articles, the duty prescribed shall apply to
the Employers Mutual Insurance Company, a private carrier or
self-insured employer, as applicable.
(c) From the effective date of this enactment, the Insurance
Commissioner shall regulate all insurers licensed to transact
workers' compensation insurance in this state and all of the
provisions of this chapter shall apply to such insurers, unless
otherwise exempted by statute.
(d) Notwithstanding any contrary provisions of the code the
Insurance Commissioner shall regulate all self-insured employers in
this state and all of the provisions of this chapter shall apply to
such insurers from the effective date of this enactment. Upon notice of noncompliance with a provision of this chapter by the
Insurance Commissioner, a self-insured employer shall have ninety
days to comply with a provision of this chapter. Thereafter, a
noncompliant self-insured employer shall be subject to the
penalties of section six, article eleven of this chapter.
NOTE: The purpose of this bill is to give the Insurance
Commissioner the power to regulate and penalize self-insured
employers in order to combat the practice of employers neglecting
to pay benefits offered under their self-insured plans, resulting
in unpaid medical bills which negatively impacts employees' credit
ratings.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.