H. B. 3056
(By Delegates Proudfoot and H. White)
[Introduced
March 16, 2005
; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §33-6-37; and to
amend said code by adding thereto a new section, designated
§33-6A-1b, all relating to insurance policies; requiring
insurers to provide their policy governing premium rate
increases to their insureds when a policy is issued or
rewritten; to allow the Commissioner of Insurance to
promulgate rules for implementation; and to prohibit insurers
from raising automobile liability premiums when an insured
intentionally allows a policy to lapse.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §33-6-37; and that said
code be amended by adding thereto a new section, designated §33-6A-
1b, all to read as follows:
ARTICLE 6. THE INSURANCE POLICY.
§33-6-37. Insurer to provide insured with policy governing premium
rate increases; promulgation of rules.
Notwithstanding any provision of this code to the contrary,
any time an insurance policy is issued or rewritten for any reason,
the insurer shall provide the insured with a copy of the current
insurer's policy or statement governing premium rate increases.
This policy or statement shall include: (1) When an insurer can
raise premiums; (2) how much of a premium increase can be charged
by an insurer for each occurrence or nonoccurrence that raises
premiums, including, but not limited to, what and when claim raise
premiums; and (3) when and why an insurer may cancel an insured's
insurance policy.
The Commissioner of Insurance may promulgate rules to
implement and enforce this section pursuant to chapter twenty-nine-
a of this code.
ARTICLE 6A. CANCELLATION OR NONRENEWAL OF AUTOMOBILE LIABILITY
POLICIES.
§33-6A-1b. Intentional lapse of coverage not cause for premium
rate increases.
An insurer may not consider an insured a substandard insured
and raise the insured's automobile liability premiums because the
insured intentionally allowed his or her insurance coverage to
lapse.
NOTE: The purpose of this bill is to
require insurers to
provide their policy governing premium rate increases to their
insureds when a policy is issued or rewritten; allowing the
Commissioner of Insurance to promulgate rules for implementation;
and prohibiting insurers from raising automobile liability premiums
when an insured intentionally allows a policy to lapse.
§§33-6-37 and 33-6A-1b are new; therefore, strike-throughs and
underscoring have been omitted.
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