ENROLLED

COMMITTEE SUBSTITUTE

FOR

H. B. 4384

(By Delegates S. Williams, Staton, Beane,

Farris and Flanigan)



[Passed March 12, 1994; 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-two, relating to requiring insurance companies withdrawing from writing private passenger automobile insurance within the state to continue to appoint and pay agents who service surviving policies for a period of two years from the date of termination of the contractual relationship for those renewal policies which the agent continues to service; and limitations.
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-two, to read as follows:
ARTICLE 12. AGENTS, BROKERS, SOLICITORS AND EXCESS LINE.

§ 33-12-32. Termination of contractual relationship; continuation of certain commissions; exceptions.

(a) In the event of a termination of a contractual relationship between a duly licensed insurance agent and an automobile insurer of private passenger automobiles who is withdrawing from writing private passenger automobile insurance within the state, the insurer shall pay the agent a commission, equal to the commission the agent would have otherwise been entitled to under his or her contract with the insurer, for a period of two years from the date of termination of the contractual relationship for those renewal policies that cannot otherwise be canceled or nonrenewed pursuant to law, which policies the agent continues to service. The insurer must continue the appointment of the agent for the duration of time the agent continues to service the business: Provided, That this requirement shall not obligate the withdrawing insurer to accept any new private passenger automobile insurance within the state.

(b) Subsection (a) of this section does not apply to an agent who is an employee of the insurer, or an agent as defined by article twelve-a of this chapter, or an agent, who by contractual agreement either represents only one insurer or group of affiliated insurers or who is required by contract to submit risks to a specified insurer or group of affiliated insurers prior to submitting them to others.