H. B. 4310
(By Delegates Kessler, Burdiss, Moye and Staggers)
[Introduced January 29, 2008; referred to the
Committee on Banking and Insurance then Finance.]
A BILL to amend and reenact §33-2-13 of the Code of West Virginia,
1931, as amended, by adding thereto a new section, designated
§33-6-31g, all relating to cutting yearly insurance premiums
on motor vehicles by five percent until the total deduction
reaches twenty percent in the calendar year two thousand ten
and repealing sections of the West Virginia Code that granted
motor vehicle insurers more leverage in dealing with insurers
if this deduction is not met.
Be it enacted by the Legislature of West Virginia:
That §33-2-13 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and that said code be amended by adding
thereto a new section, designated §33-6-31g, all to read as
follows:
ARTICLE 2. INSURANCE COMMISSIONER.
§33-2-13. Hearings.
The commissioner may call and hold hearings for any purpose
deemed necessary by him or her for the performance of his or her
duties. He or she shall hold hearings when required by the
provisions of this chapter, or upon a written demand therefor by a
person aggrieved by any act or failure to act by the commissioner
or by any rule, regulation or order of the commissioner, or by any
person not receiving the reduction to their motor vehicle insurance
premiums under section thirty-one-g, article six of this chapter.
Such demand shall specify the grounds to be relied upon as a basis
for the relief to be requested at such hearing and such hearing
shall be held within forty-five days of receipt by the commissioner
of written demand therefor, unless postponed to a later date by
mutual agreement. The commissioner may in his or her discretion
stay the effect of any order, rule or regulation pending hearing.
The commissioner shall give at least fifteen days' notice of the
time, place and matters to be considered at a hearing to all
persons directly affected by such hearing. The commissioner shall
allow any person directly affected by the hearing to appear in
person and by counsel, to be present during the giving of all
evidence, to have a reasonable opportunity to inspect all
documentary evidence, to examine witnesses and present relevant
evidence, and to have subpoenas issued by the commissioner to
compel attendance of witnesses and production of evidence in his
behalf. Formal rules of pleading or evidence need not be observed at any hearing. Upon written request seasonably made by a person
directly affected by a hearing, and at such person's expense, or
upon his or her own motion and expense, the commissioner shall
cause a full stenographic record of the hearing to be made by a
competent reporter. If further requested in writing by a person
directly affected by such hearing, the commissioner shall cause
such record to be transcribed and made a part of the official
record of the hearing, at the expense of such person or may do so
at his or her own motion and expense, and shall furnish a copy
thereof to any party directly affected by such hearing at the
request and expense of such party. Within forty-five days after
completion of a hearing, unless the time be extended by mutual
consent, the commissioner shall enter an order containing his or
her findings of fact and conclusions upon the subject matter of
such hearing. Such order may affirm, modify or nullify action
theretofore taken or may prescribe new action within the scope of
the notice of hearing, and a copy thereof shall be mailed to all
persons directly affected by such hearing. If the commissioner
submits an order finding that an insurer has not met the
statutorily proscribed premium reductions proscribed in section
thirty-one-g, article six of this chapter, the commissioner shall
cause to be repealed the sections of the code listed in section
thirty-one-g, article six of this chapter. In the discretion of
the commissioner a rehearing may be granted to any party to a hearing upon written request filed with the commissioner within
thirty days of the mailing of such order. Costs of any hearing or
rehearing for the attendance of witnesses, service of subpoenas,
and stenographic record and transcript may be taxed by the
commissioner to any party or parties against whom he or she shall
find and may be recovered in a civil action.
ARTICLE 6. THE INSURANCE POLICY.
§33-6-31g. Reduction in motor vehicle insurance premiums; sections
repealed if reductions are not met.
(a) The Legislature hereby finds that motor vehicle insurance
premiums have not decreased as promised, since the Legislature
passed bills: (1) Abolishing third-party bad faith lawsuits; (2)
allowing insurers to cancel policies without cause; and (3) a tax
funded fraud unit.
(b) As a result, each motor vehicle insurer doing business in
the State of West Virginia shall decrease all insureds yearly motor
vehicle insurance premiums by a total of twenty percent by the
first day of January, two thousand ten. The decrease is to occur
by reducing the yearly motor vehicle insurance premiums by five
percent every six months. Reductions are to begin starting with a
five percent reduction in premiums on the first day of July, two
thousand eight, and continuing thereafter.
(c) On the first day of July, two thousand ten, motor vehicle
insureds may petition the Insurance Commissioner to hold a hearing, in accordance with section thirteen, article two, of this chapter,
as to insurers compliance with the reductions in insurance premiums
proscribed in subsection (b), of this section. If the commissioner
finds any motor vehicle insurer has not met the rate reduction
requirements of subsection (b) of this section, then the code
sections below shall be repealed:
(1) Sections four and four-a, of article six-A, chapter
thirty-three of said code.
(2) Section four-a, article eleven, chapter thirty-three of
said code.
(3) Section two-a, article twenty-two, chapter thirty-three of
said code.
(4) Section two-a, article twenty-three, chapter thirty-three
of said code.
(5) Section two-b, article twenty-four, chapter thirty-three
of said code.
(6) Section six-b, article twenty-five, chapter thirty-three
of said code.
(7) Section twenty-four-b, article twenty-five-a, chapter
thirty-three of said code.
(8) All sections contained under article forty-one, chapter
thirty-three of said code.
NOTE: The purpose of this bill is to give insureds the rate reductions they were promised when the Legislature granted motor
vehicle insurers concessions by enacting legislation.
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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