H. B. 4488
(By Delegate Caputo)
[Introduced February 16, 2004; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §33-20-5 of the code of West Virginia,
1931, as amended, relating to insurance generally; and
prohibiting the use of a credit score in casualty insurance
rate filings.
Be it enacted by the Legislature of West Virginia:
That §33-20-5 of the code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 20. RATES AND RATING ORGANIZATIONS.
§33-20-5. Disapproval of filings.
(a) If within the waiting period or any extension thereof of
it as provided in subsection (e) of section four of this article,
the commissioner finds that a filing does not meet the requirements
of this article, he or she shall send to the insurer or rating
organization which made such the filing, written notice of
disapproval of such filing specifying therein in what respects he
or she finds such filing fails to meet the requirements of this
article and stating that such filing shall not become effective.
(b) If within thirty days after a special surety filing
subject to subsection (f) of section four of this article or if
within thirty days after a specific inland marine rate on a risk
specially rated by a rating organization subject to subsection (g)
of section four of this article has become effective, the
commissioner finds that such the filing does not meet the
requirements of this article, he or she shall send to the rating
organization which made such filing written notice of disapproval
of such filing specifying therein in what respects he or she finds
that such filing fails to meet the requirements of this article and
stating when, within a reasonable period thereafter, such filing
shall be deemed no longer effective. Said disapproval shall not
affect any contract made or issued prior to the expiration of the
period set forth in said notice.
(c) If at any time subsequent to the applicable review period
provided for in subsection (a) or (b) of this section, the
commissioner finds that a filing does not meet the requirements of
this article, he or she shall, after notice and hearing to every
insurer and rating organization which made such filing, issue an
order specifying in what respects he or she finds that such filing
fails to meet the requirements of this article, and stating when,
within a reasonable period thereafter, such filing shall be deemed
no longer effective. Copies of said order shall be sent to every
such insurer and rating organization. Said order shall not affect
any contract or policy made or issued prior to the expiration of
the period set forth in said order.
(d) Any person or organization aggrieved with respect to any
filing which is in effect may demand a hearing thereon. If, after
such hearing, the commissioner finds that the filing does not meet
the requirements of this article, he or she shall issue an order
specifying in what respects he or she finds that such filing fails
to meet the requirements of this article, and stating when, within
a reasonable period thereafter, such filing shall be deemed no
longer effective. Said order shall not affect any contract or
policy made or issued prior to the expiration of the period set
forth in said order.
(e) Any insurer or rating organization, in respect to any
filing made by it which is not approved by the commissioner, may
demand a hearing thereon.
(f) No manual of classifications, rules, rating plans, or any
modification of any of the foregoing which establishes standards
for measuring variations in hazards or expense provisions, or both,
in the case of casualty insurance to which this article applies and
no manual, minimum, class rate, rating schedule, rating plan,
rating rule, or any modification of any of the foregoing, in the
case of fire insurance to which this article applies, and which has
been filed pursuant to the requirements of section four of this
article, shall be disapproved if the rates thereby produced meet
the requirements of this article: Provided, That none of the
foregoing consider as a factor a credit score.
(g) If, in the opinion of the commissioner, the rate or form
filing made by an insurer is of such import that it will affect the public he or she may, at his or her discretion, issue notice to
such insurer of a public hearing. The notice of public hearing to
the insurer making such form or rate filing shall be made by United
States mail at least fifteen days prior to hearing date. Notice to
the public shall be given by appropriate publication in a newspaper
in the form and manner prescribed by chapter twenty- nine-a of this
code. The holding of a public hearing as outlined in this
subsection shall have the effect of eliminating the right of the
party making such filing to demand a hearing as stated in
subsections (d) and (e) of this section.
NOTE: The purpose of this bill is to prohibit the use of a
credit score in casualty insurance rate filings.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.