Senate Bill No. 40
(By Senator Whitlow)
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[Introduced February 10, 1993; referred
to the Committee on Banking and Insurance.]
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A BILL to amend article seventeen, 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 two-a, relating to fire and marine insurance; and
providing optional coverage at lower rates for homeowners
who purchase policies which do not include cost of
replacement when a total loss occurs.
Be it enacted by the Legislature of West Virginia:
That article seventeen, 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
two-a, to read as follows:
ARTICLE 17. FIRE AND MARINE INSURANCE.
§33-17-2a. Option to be included.
No policy of fire insurance covering property in West
Virginia may be made, issued or delivered unless it provides the
insured the option, in the case of residential property, toselect coverage that (a) includes cost of replacement when a
total loss occurs at existing rates for that coverage, or (b)
does not include cost of replacement when a total loss occurs at
rates lower than the existing rates for "cost of replacement"
coverage.
NOTE: The purpose of this bill is to require fire insurance
policies to contain an option for homeowners to buy a policy with
or without "replacement cost" when a total loss occurs. If the
option is made to buy the policy without "replacement cost," the
premium is less than that for a policy issued "with replacement
cost."
This section is new; therefore, strike-throughs and
underscoring have been omitted.