WEST virginia Legislature
2019 regular session
Introduced
House Bill 2129
By Delegate Caputo
[ Introduced January
9, 2019; Referred
to the Committee on Banking and Insurance then Judiciary.]
A BILL to amend and reenact §33-20-5 of the Code of West Virginia, 1931, as amended, relating to insurance generally; and prohibiting the use of a credit score in casualty insurance rate filings.
Be it enacted by the Legislature of West Virginia:
ARTICLE 20. RATES AND RATING ORGANIZATIONS.
§33-20-5. Disapproval of filings.
(a) If within the waiting
period or any extension thereof as provided in §33-20-4(e) of this code,
the commissioner finds that a filing does not meet the requirements of this
article, he or she shall send to the insurer or rating organization
which made such the filing, written notice of disapproval of such
the filing specifying therein in what respects he or she
finds such the filing fails to meet the requirements of this
article and stating that such the filing shall does
not become effective.
(b) If within 30 days after
a special surety filing subject to §33-20-4(f) of this code or if within 30 days
after a specific inland marine rate on a risk specially rated by a rating
organization subject to §33-20-4(g) of this code has become effective, the
commissioner finds that such the filing does not meet the
requirements of this article, he or she shall send to the rating
organization which made such the filing written notice of
disapproval of such the filing specifying therein in what
respects he or she finds that such the filing fails to
meet the requirements of this article and stating when, within a reasonable
period, thereafter, such filing shall be deemed the filing is
no longer effective. Said The disapproval shall does
not affect any contract made or issued prior to the expiration of the period
set forth in said the notice.
(c) If at any time
subsequent to the applicable review period provided for in §33-20-5(a)
or §33-20-5 (b) of this code, the commissioner finds that a filing does not
meet the requirements of this article, he or she shall, after notice and
hearing to every insurer and rating organization which made such the
filing, issue an order specifying in what respects he or she finds that such
the filing fails to meet the requirements of this article and stating
when, within a reasonable period thereafter, such filing shall be deemed state
when, within a reasonable period, the filing is no longer effective.
Copies of said the order shall be sent to every such insurer and
rating organization. Said The order shall does not
affect any contract or policy made or issued prior to the expiration of the
period set forth in said the order.
(d) Any A
person or organization aggrieved with respect to any filing which is
in effect may demand a hearing. thereon. If, after such the
hearing, the commissioner finds that the filing does not meet the requirements
of this article, he or she shall issue an order specifying in what
respects he or she finds that such the filing fails to
meet the requirements of this article and stating when, within a reasonable
period thereafter, such filing shall be deemed state when, within a
reasonable period, the filing is no longer effective. Said The
order shall does not affect any contract or policy made or issued
prior to the expiration of the period set forth in said the
order.
(e) Any insurer or rating
organization, in respect to any filing made by it which is not approved by the
commissioner, may demand a hearing. thereon.
(f) No manual of classifications, rules, rating plans or any modification of any of the foregoing which establishes standards for measuring variations in hazards or expense provisions, or both, in the case of casualty insurance to which this article applies and no manual, minimum, class rate, rating schedule, rating plan, rating rule or any modification of any of the foregoing, in the case of fire insurance to which this article applies, and which has been filed pursuant to the requirements of §33-20-4of this code, shall be disapproved if the rates thereby produced meet the requirements of this article. None of the foregoing may consider credit scores as a factor.
(g) If, in the opinion of
the commissioner, the rate or form filing made by an insurer is of such import
that it will affect the public, he or she may, at his or her
discretion, issue notice to such the insurer of a public
hearing. The notice of public hearing to the insurer making such the
form or rate filing shall be made by United States mail at least 15 days prior
to the hearing date. Notice to the public shall be given by appropriate
publication in a newspaper in the form and manner prescribed by chapter 29A of
this code. The holding of a public hearing as outlined in this subsection shall
have the effect of eliminating eliminates the right of the party
making such the filing to demand a hearing as stated in §33-20-5(d) and §33-20-5(e) of this code.
NOTE: The purpose of this bill is to prohibit the use of a credit score in casualty insurance rate filings.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.