H. B. 2661
(By Delegates Clements, Walters, Anderson, Jenkins and Thompson)
[Introduced March 21, 1997; referred to the
Committee on Banking and Insurance.]
A BILL to amend article four, 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
twenty, relating to secondary notification by an insurer
providing life, health, auto, home owners, medicare
supplement and long-term care coverage in the event of
nonpayment of premium; requiring said notification in cases
of insureds who are sixty-two years of age or older, if a
secondary addressee has been designated by the insured;
prohibiting termination of coverage in the absence of
secondary notification in such cases; and permitting
insurers to establish similar procedures for secondary
notification of nonpayment of premium in cases of insureds
who are under sixty-two years of age.
Be it enacted by the Legislature of West Virginia:
That article four, 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
twenty, to read as follows:
ARTICLE 4. GENERAL PROVISIONS.
§33-4-20. Secondary notification of nonpayment of premium.
(a) Notwithstanding any other provision of this code to the
contrary, and in addition to all other requirements that are or
may be imposed, on and after the effective date of this section,
an insurer that issues, delivers or issues for delivery in this
state, policies of insurance providing coverage for life, health,
auto, home owners, medicare supplement or long-term care shall,
upon the nonpayment of any premium by an insured who is sixty-two
years of age or older, provide notification of the nonpayment to
a secondary addressee, if any has been designated by the insured
upon request by the insurer, by first class mail, at the address
provided by the insured. No policy of insurance of a type of
coverage enumerated in this subsection may be terminated by an
insurer for nonpayment of premium unless notification as required
herein has been provided to a secondary addressee, if one has
been designated by the insured.
(b) Any insurer which issues, delivers or issues for delivery
policies of insurance providing coverage for life, health, auto, home owners, medicare supplement or long-term care may establish
procedures whereby insureds under its policies who are under the
age of sixty-two years may designate a secondary addressee for
receipt of notification in the event of nonpayment of premium:
Provided, That failure of an insurer to provide secondary
notification of nonpayment of premium pursuant to this subsection
may not be construed to prevent or prohibit termination of
coverage on the basis of nonpayment.
NOTE: The purpose of this bill is to require secondary notice
of nonpayment of certain insurance premiums before termination in
the case of persons who are 62 years of age or older and to
permit such notification in the case of persons who are under the
age of 62 years.
This section is new; therefore, strike-throughs and
underscoring have been omitted.