Senate Bill No. 380
(By Senator Wagner)
____________
[Introduced February 18, 1994; referred to the Committee
on Banking and Insurance.]
____________
A BILL to amend and reenact section thirty-one-c, article six,
chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
substandard risk motor vehicle insurance; and diversifying
the way in which a warning notice must appear in
applications and policies for such insurance.
Be it enacted by the Legislature of West Virginia:
That section thirty-one-c, article six, chapter thirty-three
of the code of West Virginia, one thousand nine hundred thirty-
one, as amended, be amended and reenacted to read as follows:
ARTICLE 6. THE INSURANCE POLICY.
§33-6-31c. Substandard risk motor vehicle insurance policies;
definitions; required notices and provisions; promulgation
of rules; effective date.
(a) For purposes of this section, the following definitions
shall apply:
(1) A "substandard risk" means an applicant for insurancewho presents a greater exposure to loss than that contemplated by
commonly used rate classifications, as evidenced by one or more
of the following conditions:
(A) Record of traffic accidents;
(B) Record of traffic law violations;
(C) Undesirable occupational circumstances;
(D) Undesirable moral characteristics.
(2) "Substandard risk rate" means a rate or premium charge
that reflects the greater than normal exposure to loss which is
assumed by an insurer writing insurance for a substandard risk.
(b) Every application for a motor vehicle insurance policy
to be issued in this state and written on the basis of a
substandard risk rate schedule shall have printed thereon, in
bold-faced type in a contrasting color, in reverse print or in
capital letters and underlined, a statement reading substantially
as follows: THE POLICY FOR WHICH YOU ARE APPLYING HAS BEEN RATED
IN ACCORDANCE WITH A SPECIAL RATING SCHEDULE FILED WITH THE
COMMISSIONER OF INSURANCE PROVIDING FOR HIGHER PREMIUM CHARGES
THAN THOSE GENERALLY APPLICABLE FOR AVERAGE RISKS. IF THE
COVERAGE OR PREMIUM IS NOT SATISFACTORY, YOU MAY BE ELIGIBLE FOR
OTHER INSURANCE.
(c) Every motor vehicle insurance policy issued in this
state and written on the basis of a substandard risk rate
schedule shall have printed thereon, in bold-faced type in a
contrasting color, in reverse print or in capital letters and
underlined, a statement reading substantially as follows: THISPOLICY HAS BEEN RATED IN ACCORDANCE WITH A SPECIAL RATING
SCHEDULE FILED WITH THE COMMISSIONER OF INSURANCE PROVIDING FOR
HIGHER PREMIUM CHARGES THAN THOSE GENERALLY APPLICABLE FOR
AVERAGE RISKS. IF THE COVERAGE OR PREMIUM IS NOT SATISFACTORY,
YOU MAY BE ELIGIBLE FOR OTHER INSURANCE.
(d) On or before the first day of July, one thousand nine
hundred ninety-three, all insurers licensed or registered in this
state to market or sell substandard risk motor vehicle insurance
policies shall submit all applications and policies for
substandard risk insurance to the commissioner of insurance for
approval prior to being used by the insurer.
(e) The commissioner shall promulgate rules in accordance
with the provisions of chapter twenty-nine-a of this code
regarding the format, style, design and approval of substandard
risk insurance applications and policies and such other
procedures as may be required by this section.
(f) The effective date of this section shall be the first
day of July, one thousand nine hundred ninety-three.
_________
(NOTE: The purpose of this bill is to diversify how a
warning notice of substandard risk motor vehicle insurance must
appear on applications and policies.)