COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 297
(By Senator Walker)
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[Originating in the Committee on Banking and Insurance;
reported March 3, 1994.]
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A BILL to amend article six, 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-one-e; and to amend and reenact section four, article
twenty of said chapter, all relating to insurance;
permitting an automobile insurer to offer optional
nonstackable underinsured motorist coverage with a mandated
premium discount of at least twenty percent; and requiring
insurers to file an annual rate report by territory.
Be it enacted by the Legislature of West Virginia:
That article six, 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-one-e; and that section four, article twenty of said
chapter be amended and reenacted, all to read as follows:
ARTICLE 6. THE INSURANCE POLICY.
§33-6-31e. Optional nonstackable underinsured motorist coverage.
Insurers using a policy providing coverage to no more than
one vehicle may offer optional underinsured motorist coverage
containing policy provisions, in language approved by the
department, establishing that if any named insured accepts this
offer:
(a) The coverage provided as to two or more motor vehicles
shall not be added together to determine the limit of insurance
coverage available to an injured person for any one accident.
(b) If at the time of the accident the injured person is
occupying a motor vehicle owned by him or by a family member
residing with him, the only underinsured motorist coverage
available to him is the coverage available as to that motor
vehicle.
In connection with the offer authorized by this subsection,
insurers shall inform the named insured, applicant or lessee, on
a form approved by the department, of the limitations imposed
under this subsection and that such coverage is an alternative to
coverage without such limitations. If this form is signed by a
named insured, applicant or lessee, it shall be conclusively
presumed that there was an informed, knowing acceptance of such
limitations. When the named insured, applicant or lessee has
initially accepted such limitations, such acceptance shall apply
to any policy which renews, extends changes, supersedes or
replaces an existing policy unless the named insured requests
deletion of such limitations and pays the appropriate premium for
such coverage. If the form is not signed by any named insured,
applicant or lessee, it shall be conclusively presumed that such
coverage is selection coverage without such limitations. Anyinsurer who provides coverage which includes the limitations
provided in this subsection shall file revised premium rates with
the department for such underinsured motorist coverage to take
effect prior to initially providing such coverage. The revised
rates shall reflect the anticipated reduction in loss costs
attributable to such limitations but shall in any event reflect
a difference in the underinsured motorist coverage premium of at
least twenty percent for policies with such limitations compared
to policies with the same limits of liability which do not
contain such limitations.
ARTICLE 20. RATES AND RATING ORGANIZATIONS.
§33-20-4. Rate filings.
(a) (1) Every insurer shall file with the commissioner every
manual of classifications, territorial rate areas established
pursuant to subdivision (2), subsection (c), section three of
this article, rules and rates, every rating plan and every
modification of any of the foregoing which it proposes to use for
casualty insurance to which this article applies.
(2) Every insurer shall file with the commissioner, except
as to inland marine risks which by general custom of the business
are not written according to manual rates or rating plans, every
manual, minimum, class rate, rating schedule or rating plan and
every other rating rule and every modification of any of the
foregoing which it proposes to use for fire and marine insurance
to which this article applies. Specific inland marine rates on
risks specially rated, made by a rating organization, shall be
filed with the commissioner.
(b) Every such filing shall state the proposed effectivedate thereof and shall indicate the character and extent of the
coverage contemplated. When a filing is not accompanied by the
information upon which the insurer supports such filing, and the
commissioner does not have sufficient information to determine
whether such filing meets the requirements of this article, he
shall require such insurer to furnish the information upon which
it supports such filing and in such event the waiting period
shall commence as of the date such information is furnished. The
information furnished in support of a filing may include: (1)
The experience or judgment of the insurer or rating organization
making the filing; (2) the experience or judgment of the insurer
or rating organization in the territorial rate areas established
by subdivision (2), subsection (c), section three of this
article; (3) its interpretation of any statistical data it relies
upon; (4) the experience of other insurers or rating
organizations; or (5) any other relevant factors. A filing and
any supporting information shall be open to public inspection as
soon as the filing is received by the commissioner. Any
interested party may file a brief with the commissioner
supporting his position concerning the filing. Any person or
organization may file with the commissioner a signed statement
declaring and supporting his or its position concerning the
filing. Upon receipt of such statement prior to the effective
date of the filing, the commissioner shall mail or deliver a copy
of such statement to the filer, which may file such reply as it
may desire to make. This section shall not be applicable to any
memorandum or statement of any kind by any employee of the
commissioner.
(c) An insurer may satisfy its obligation to make such
filing by becoming a member of, or a subscriber to, a licensed
rating organization which makes such filings and by authorizing
the commissioner to accept such filings on its behalf: Provided,
That nothing contained in this article shall be construed as
requiring any insurer to become a member of or a subscriber to
any rating organization.
(d) The commissioner shall review filings as soon as
reasonably possible after they have been made in order to
determine whether they meet the requirements of this article.
(e) Subject to the exceptions specified in subdivisions (f)
and (g) of this section, each filing shall be on file for a
waiting period of sixty days before it becomes effective. Upon
written application by such insurer or rating organization, the
commissioner may authorize a filing which he has reviewed to
become effective before the expiration of the waiting period. A
filing shall be deemed to meet the requirements of this article
unless disapproved by the commissioner within the waiting period.
(f) Any special filing with respect to a surety bond
required by law or by court or executive order or by order, rule
or regulation of a public body, not covered by a previous filing,
shall become effective when filed and shall be deemed to meet the
requirements of this article until such time as the commissioner
reviews the filing and so long thereafter as the filing remains
in effect.
(g) Specific inland marine rates on risks specially rated by
a rating organization shall become effective when filed and shall
be deemed to meet the requirements of this article until suchtime as the commissioner reviews the filing and so long
thereafter as the filing remains in effect.
(h) Under such rules and regulations as he shall adopt the
commissioner may, by written order, suspend or modify the
requirement of filing as to any kind of insurance, subdivision or
combination thereof, or as to classes of risks, the rates for
which cannot practicably be filed before they are used. Such
orders, rules and regulations shall be made known to insurers and
rating organizations affected thereby. The commissioner may make
such examination as he may deem advisable to ascertain whether
any rates affected by such order meet the standards set forth in
subsection (b), section three of this article.
(i) Upon the written application of the insured, stating his
reasons therefor, filed with and approved by the commissioner, a
rate in excess of that provided by a filing otherwise applicable
may be used on any specific risks.
(j) No insurer shall make or issue a contract or policy
except in accordance with the filings which are in effect for
said insurer as provided in this article or in accordance with
subdivision (h) or (i) of this section. This subsection shall
not apply to contracts or policies for inland marine risks as to
which filings are not required.
(k) In instances when an insurer files a request for an
increase of automobile liability insurance rates in the amount of
fifteen percent or more, the insurance commissioner shall provide
notice of such increase with the office of the secretary of state
to be filed in the state register and shall provide interested
persons the opportunity to comment on such request up to the timethe commissioner approves or disapproves such rate increase.
(l) Every insurer must file an annual report with the
commissioner which states the rates by territory charged by the
insurer for the preceding year.