ENROLLED

COMMITTEE SUBSTITUTE

FOR

H. B. 2440

(By Delegates Phillips, Farris, Louisos,

L. White and Beane)

[Passed April 8, 1993; in effect ninety days from passage.]


AN ACT to amend article twelve, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section thirty; and to amend article twelve-b of said chapter by adding thereto a new section, designated section fourteen, all relating to the requirement of agents, solicitors, excess line brokers, service representatives and adjusters to keep current addresses on file with the insurance commissioner so that proper notices of hearing can be served; requiring procedures for serving notice of hearing; permitting hearings to proceed if individual fails to appear; requiring evidence at hearings; setting an appeal period for reconsideration and judicial review.

Be it enacted by the Legislature of West Virginia:

That article twelve, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section thirty; and that article twelve-b of said chapter be amended by adding thereto a new section, designated section fourteen, all toread as follows:
ARTICLE 12. AGENTS, BROKERS, SOLICITORS AND EXCESS LINE.
§33-12-30. Notice of hearing before the commissioner; failure to appear; entry of orders; appeal.

(a) When conducting any hearing authorized by section thirteen, article two of this chapter which concerns any agent, solicitor, excess line broker or service representative, the commissioner shall give notice of such hearing and the matters to be determined therein to such agent, solicitor, excess line broker or service representative by certified mail, return receipt requested, sent to the last address filed by such person or entity pursuant to section twenty-nine of this article.
(b) If an agent, solicitor, excess line broker or service representative fails to appear at such hearing, the hearing may proceed, at which time the commissioner shall establish that notice was sent to such person pursuant to this section prior to the entry of any orders adverse to the interests of such agent, solicitor, excess line broker or service representative based upon the allegations against such person which were set forth in the notice of hearing. Certified copies of all orders entered by the commissioner shall be sent to the person affected therein by certified mail, return receipt requested, at the last address filed by such person with the division.
(c) An agent, solicitor, excess line broker or service representative who fails to appear at a hearing of which notice has been provided pursuant to this section, and who has had an adverse order entered by the commissioner against them as a result of their failure to so appear may, within thirty calendardays of the entry of such adverse order, file with the commissioner a written verified appeal with any relevant documents attached thereto, which demonstrates good and reasonable cause for such person's failure to appear, and may request reconsideration of the matter and a new hearing. The commissioner in his discretion, and upon a finding that the agent, solicitor, excess line broker or service representative has shown good and reasonable cause for his failure to appear, shall issue an order that the previous order be rescinded, that the matter be reconsidered, and that a new hearing be set.
(d) Orders entered pursuant to this section are subject to the judicial review provisions of section fourteen, article two of this chapter.
ARTICLE 12B. ADJUSTERS.
§33-12B-14. Current address of adjusters to be filed; effective notice of appearance at hearing before commissioner.

(a) Each adjuster shall file with the commissioner the complete address of his principal place of business and the complete address of his residence including the name and number of the street, or if the street where the business is located is not numbered, the number of the post office box. Within thirty days of a change of business or residence address by an adjuster the adjuster must file with the commissioner notice of such change of address.
(b) When conducting any hearing authorized by section thirteen, article two of this chapter which concerns any adjuster, the commissioner shall give notice of such hearing andthe matters to be determined therein to such adjuster by certified mail, return receipt requested, sent to the last address filed by such person or entity pursuant to this section.
(c) If an adjuster fails to appear at such hearing, the hearing may proceed, at which time the commissioner shall establish that notice was sent to such person pursuant to this section prior to the entry of any orders adverse to the interests of such adjuster based upon the allegations against such person which were set forth in the notice of hearing. Certified copies of all orders entered by the commissioner shall be sent to the person affected therein by certified mail, return receipt requested, at the last address filed by such person with the division.
(d) An adjuster who fails to appear at a hearing of which notice has been provided pursuant to this section, and who has had an adverse order entered by the commissioner against them as a result of their failure to so appear may, within thirty calendar days of the entry of such adverse order, file with the commissioner a written verified appeal with any relevant documents attached thereto, which demonstrates good and reasonable cause for the adjuster's failure to appear, and may request reconsideration of the matter and a new hearing. The commissioner in his discretion, and upon a finding that the adjuster has shown good and reasonable cause for his failure to appear shall issue an order that the previous order be rescinded, that the matter be reconsidered, and that a new hearing be set.
(e) Orders entered pursuant to this section are subject to the judicial review provisions of section fourteen, article twoof this chapter.