COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 631
(By Senators Minard and Plymale)
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[Originating in the Committee on the Judiciary;
reported March 30, 2009.]
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A BILL to amend and reenact §33-6A-1 of the Code of West Virginia,
1931, as amended, relating to the cancellation of an insurance
policy for failure of consideration to be paid by the insured
upon initial issuance of the insurance policy; requiring
written notice to insured; and exceptions.
Be it enacted by the Legislature of West Virginia:
That §33-6A-1 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-1. Cancellation prohibited except for specified reasons;
notice.
(a) No insurer once having issued or delivered a policy
providing automobile liability insurance for a private passenger
automobile may, after the policy has been in effect for sixty days,
or in case of renewal effective immediately, issue or cause to issue a notice of cancellation during the term of the policy except
for one or more of the reasons specified in this section:
(a)(1) The named insured fails to make payments of premium for
the policy or any installment of the premium when due;
(b)(2) The policy is obtained through material
misrepresentation;
(c)(3) The insured violates any of the material terms and
conditions of the policy;
(d)(4) The named insured or any other operator, either
residing in the same household or who customarily operates an
automobile insured under the policy:
(1)(A) Has had his or her operator's license suspended or
revoked during the policy period including suspension or revocation
for failure to comply with the provisions of article five-a,
chapter seventeen-c of this code regarding consent for a chemical
test for intoxication:
Provided, That when a license is suspended
for sixty days by the Commissioner of the Division of Motor
Vehicles because a person drove a motor vehicle while under the age
of twenty-one years with an alcohol concentration in his or her
blood of two hundredths of one percent or more, by weight, but less
than eight hundredths of one percent, by weight, pursuant to
subsection (l), section two of said article, the suspension
shall
may not be grounds for cancellation; or
(2)(B) Is or becomes subject to epilepsy or heart attacks and
the individual cannot produce a certificate from a physician
testifying to his or her ability to operate a motor vehicle;
(e)(5) 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)(A) Any felony or assault involving the use of a motor
vehicle;
(2)(B) Negligent homicide arising out of the operation of a
motor vehicle;
(3)(C) Operating a motor vehicle while under the influence of
alcohol or of any controlled substance or while having an alcohol
concentration in his or her blood of eight hundredths of one
percent or more, by weight;
(4)(D) Leaving the scene of a motor vehicle accident in which
the insured is involved without reporting it as required by law;
(5)(E) Theft of a motor vehicle or the unlawful taking of a
motor vehicle;
(6)(F) Making false statements in an application for a motor
vehicle operator's license;
(7)(G) Three 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
cancellation 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 third moving traffic violation is recorded by the Division of Motor
Vehicles.
(b) Notwithstanding any of Except as provided for in the
provisions of
subsection (c) of this section to the contrary, no
insurer may cancel a policy of automobile liability insurance
without first giving the insured thirty days' notice of its
intention to cancel
: Provided, That cancellation of the insurance
policy by the insurer for failure of consideration to be paid by
the insured upon initial issuance of the insurance policy is
effective upon the expiration of ten days' notice of cancellation
to the insured.
(c) Where there is a failure of consideration to be paid by an
insured upon the initial issuance of a policy of automobile
liability insurance the policy shall be deemed voidable from the
effective date and time of issuance if the insurer provides written
notice to the insured at the address supplied on the application
within fifteen days of receipt of notice of the failure of
consideration and consideration has not been otherwise paid within
said fifteen days. Should the insurer fail to provide written
notice of cancellation within fifteen days of the receipt of notice
of the failure of consideration, cancellation shall be effective
upon the expiration of ten days after written notice of
cancellation to the insured.