H. B. 4400
(By Mr. Speaker, Mr. Kiss (By Request))
[Introduced February 11, 2004; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §33-6A-4 of the code of West Virginia,
1931, as amended, relating to providing that an insurer may
not fail to renew an outstanding automobile liability or
physical damage insurance policy which has been in existence
for one year, except for certain reasons.
Be it enacted by the Legislature of West Virginia:
That §33-6A-4 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-4. Advance notice of nonrenewal required; assigned risk
policies; reasons for nonrenewal; hearing and review
after nonrenewal.
No insurer shall fail to renew an outstanding automobile
liability or physical damage insurance policy unless such nonrenewal is preceded by at least forty-five days of advance
notice to the named insured of such insurer's election not to renew
such policy: Provided, That subject to this section, nothing
contained in this article shall be construed so as to prevent an
insurer from refusing to issue an automobile liability or physical
damage insurance policy upon application to such insurer, nor shall
any provision of this article be construed to prevent an insurer
from refusing to renew such a policy upon expiration, except as to
the notice requirements of this section, and except further as to
those applicants lawfully submitted pursuant to the West Virginia
assigned risk plan: Provided, however, That an insurer may not
fail to renew an outstanding automobile liability or physical
damage insurance policy which has been in existence for two
consecutive years one year or longer except for the following
reasons:
(a) The named insured fails to make payments of premium for
such 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 such policy:
(1) Has had his or her operator's license suspended or revoked during the policy period; or
(2) Is or becomes subject to epilepsy or heart attacks and
such 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
intoxicating liquor or of any narcotic drug;
(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) Two 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 nonrenewal
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 second moving
traffic violation is recorded by the division of motor vehicles.
(f) The named insured or any other operator has had a second
at-fault motor vehicle accident within a period of twelve months,
whether or not the insurer renewed the policy without knowledge of
all such accidents. Notice of any nonrenewal 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 of the second accident.
Nonrenewal of such policy for any reason is subject to a
hearing and review as provided for in section five of this article.
Cost of the hearing shall be assessed against the losing party but
shall not exceed seventy-five dollars.
Notwithstanding the provisions of subsection (a) of this
section, the insurer shall renew any automobile liability or
physical damage insurance policy that has not been renewed due to
the insured's failure to pay the renewal premium when due if: (1)
None of the other grounds for nonrenewal as set forth in
subsections (b) through (f), inclusive, of this section exist; and
(2) the insured makes an application for renewal within ninety days
of the original expiration date of the policy. If a policy is renewed as provided for in this paragraph, then the coverage
afforded shall not be retroactive to the original expiration date
of the policy, but shall begin on the reinstatement date at the
current premium levels offered by the company.
NOTE: The purpose of this bill is to provide that an insurer
may not fail to renew an outstanding automobile liability or
physical damage insurance policy which has been in existence for
one year, except for certain reasons.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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