COMMITTEE SUBSTITUTE
FOR
H. B. 4333
(By Delegates Morgan, Stephens, Craig, Reynolds,
Higgins, Klempa and Hutchins)
(Originating in the House Committee on Banking and Insurance)
[February, 15, 2008]
A BILL to amend and reenact §33-17-9b of the Code of West Virginia,
1931, as amended, relating to disbursement of fire insurance
proceeds; authorizing the Insurance Commissioner to promulgate
a rule providing for an insurance company to escrow a portion
of the proceeds for fire cleanup costs; limiting application
of provisions to municipalities which have adopted and filed
an ordinance or other valid regulation; and limiting
application of provisions to certain circumstances."
Be it enacted by the Legislature of West Virginia:
That §33-17-9b of the Code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted to read as
follows:
§33-17-9b. Disbursement of insurance proceeds; rulemaking
authority for transfer of portion of proceeds to municipalities for fire cleanup.
(a) No proceeds
shall may be paid by an insurance company
which has issued a policy which provides coverage for debris
removal for cleanup, removal of refuse, debris, remnants, or
remains of a dwelling or structure upon a claim of total loss
unless and until the insurance company receives certification that
the refuse, debris, remnants, or remains of the dwelling or
structure have been cleaned up, removed or otherwise disposed of.
(1) In the event the insurance company receives, within six
months of the date of loss, certification that such cleanup,
removal or disposal costs have been incurred by a municipality,
county or other governmental entity, rather than the policyholder,
such the insurance company shall pay the debris removal and cleanup
proceeds
shall be paid to the municipality, county or other
government entity which has incurred
such the costs.
No (2) An insurance company subject to this
section subsection
which complies with this
section subsection may
not be held liable
for any claim that may arise out of the cleanup, removal or
disposal of debris pursuant to this
section subsection.
(3) An insurance company subject to this
section subsection
which complies with this
section subsection shall
be deemed to have
fully satisfied all contractual obligations to the policyholder
regarding debris removal.
In no event shall (4) An insurance company
be is not required to pay moneys in excess of policy limits for debris removal.
(b) The Insurance Commissioner may propose rules for
legislative approval in accordance with the provisions of article
three, chapter twenty-nine-a, to provide that an insurance company
escrow a percentage of fire insurance proceeds for costs of
repairs, removal or securing of a building or other structure, when
the loss agreed to between a named insured and the company for fire
damage to a structure located within a municipality equals or
exceeds sixty per cent of the aggregate limits of liability on all
fire policies covering the building or structure: Provided, That
the rule applies only to policies issued upon property within a
municipality which has adopted an ordinance or other valid
regulation authorizing the procedure established by the rule and
has filed a certified copy of the ordinance or other valid
regulation for public record with the Insurance Commissioner.
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