Senate Bill No. 505
(By Senators Wills, Snyder, Tucker, Yost, D. Facemire and Kessler (Mr. President))
[Introduced February 2, 2012; referred to the Committee on Banking and Insurance; and then to the Committee on the Judiciary.]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §33-11-11, relating to unfair trading practices by insurance companies; providing a third-party claimant may collect damages from an insurance company that has intentionally engaged in an unfair trade practice; and setting forth the requirements that must be met before damages may be awarded.
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 §33-11-11, to read as follows:
ARTICLE 11. UNFAIR TRADE PRACTICES.
§33-11-11. Willful or intentional violations; cause of action; elements; damages; procedure.
Notwithstanding any provision of this chapter to the contrary, a third-party claimant who sustains damages as a consequence of the willful or intentional violation of this article, may bring an action against the person or entity committing the willful or intentional violation and may recover all damages and pursue all legal and equitable remedies available under the law. The individual or entity shall bring the action in a court of competent jurisdiction and shall be required, in order to recover any of the damages and remedies provided by this section, to establish by competent proof by clear and convincing evidence: (1) That the violation did in fact occur; (2) the violation was willful or intentional; and (3) that damages resulted from the violation.
NOTE: The purpose of this bill is to permit a third-party claimant to collect damages from an insurance company that has intentionally engaged in an unfair trade practice. The bill sets forth the requirements that must be met in order that damages may be awarded.
This section is new; therefore, strike-throughs and underscoring have been omitted.