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Introduced Version House Bill 4359 History

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H. B. 4359

 

         (By Delegate Guthrie)

         (By Request of the Division of Insurance)

         [Introduced January 28, 2014; referred to the

         Committee on Banking and Insurance then the Judiciary.]

 

 

 

A BILL to amend and reenact §33-37-2 of the Code of West Virginia, 1931, as amended, relating to licensure of managing general agents of insurers; removing unnecessary language; providing for retroactive renewal of lapsed licenses; establishing license application and renewal fees; extending period of some initial licenses; and clarifying that the appointment of the Secretary of State to receive process applies to administrative actions and actions involving license applications.

Be it enacted by the Legislature of West Virginia:

    That §33-37-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 37. MANAGING GENERAL AGENTS.

§33-37-2. Licensure.

    (a) No domestic, foreign or alien insurer may permit a person to act, and no person may act, in the capacity of a managing general agent for an insurer domiciled in this state unless such the person is licensed in this state to act as a managing general agent.

    (b) No foreign or alien insurer may permit a person to act, and no person may act, in the capacity of a managing general agent representing an insurer unless the person is licensed in this state to act as a managing general agent.

    (c) (b) No person may act in the capacity of a managing general agent with respect to risks located in this state for an insurer licensed in this state unless the person is a licensed insurance producer in this state.

    (d) (c) The commissioner may license as a managing general agent any individual or business entity that has complied with the requirements of this article and any regulations concerning licensure that may be promulgated by the commissioner related rules. The commissioner may refuse to issue a license subject to the right of the applicant to demand a hearing on the application, if the commissioner he or she believes the applicant, any person named on the application, or any member, principal, officer or director of the applicant is not trustworthy or competent to act as a managing general agent, or that any of the foregoing persons has given cause for revocation or suspension of such the license or has failed to comply with any prerequisite for issuance of such the license.

    (e) (d) Any person seeking a license pursuant to subsection (d) of this section shall apply for the license in a form acceptable to prescribed by the commissioner and shall pay to the commissioner a nonrefundable application fee in an amount prescribed by the commissioner of $500. The application fee shall be not less than five hundred dollars nor more than one thousand dollars. Every licensed managing general agent shall pay to the commissioner a nonrefundable annual renewal fee in an amount prescribed by the commissioner. The renewal fee shall be not less than two hundred dollars nor more than one thousand dollars. Each license issued pursuant to this section expires on June 30 following issuance, except that a license initially issued in May or June expires on June 30 of the following year. Between the first day of May and the first day of June of the renewal year, each In order to renew a license, a licensed managing general agent shall submit to the commissioner the renewal fee and at least one month prior to expiration a renewal application in a form as prescribed by the commissioner and a renewal fee of $200: Provided, That a managing general agent that fails to timely renew a license may reinstate the license, retroactive to its expiration date, upon submission of the renewal application form prior to June 1 following the expiration date and payment of a renewal fee of $400. All fees shall be collected by the commissioner paid into the State Treasury and placed to the credit of the special revenue account provided for created in subsection (b), section thirteen, article three of this chapter. Each license issued pursuant to this article expires at midnight on the thirtieth day of June next following the day of issuance.

    (f) (e) The commissioner may require a bond in an amount acceptable to him or her for the protection of the insurer.

    (g) (f) The commissioner may require a managing general agent to maintain an errors and omissions policy that is acceptable to the commissioner.

    (h) (g) Except where prohibited by state or federal law, by submitting The submission of an application for license the applicant shall be deemed to have appointed pursuant to this section constitutes an appointment by the applicant of the Secretary of State as the agent for service of process on the applicant in any action or proceeding, including administrative actions instituted by the commissioner, arising in this state out of or in connection with the application for or exercise of the license. The appointment of the Secretary of State as agent for service of process shall be irrevocable during the period within which a cause of action against the applicant may arise out of transactions with respect to subjects of insurance in this state. Service of process on the Secretary of State shall conform to the provisions of section twelve, article four of this chapter.

    (i) (h) A person seeking licensure shall provide evidence, in a form acceptable to the commissioner, of its appointments or contracts as a managing general agent. The commissioner may refuse to renew the license of a person that has not been appointed by, or otherwise authorized to act for, an insurer as a managing general agent.



    NOTE: This bill provides for the renewal of lapsed managing general agent licenses and sets specific application and renewal fees.


    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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