H. B. 4646
(By Delegate Trump)
[Introduced February 27, 1998; referred to the
Committee on Banking and Insurance.]
A BILL to amend and reenact section two, article twelve-a,
chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
contractual relationships between insurance companies and
insurance agents; including independent insurance agents
within the definition of an insurance agent entitled to
certain rights with regard to termination or cancellation of
a written contractual relationship with an insurance
Be it enacted by the Legislature of West Virginia:
That section two, article twelve-a, 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 12A. CONTRACTUAL RELATIONSHIPS BETWEEN INSURANCE COMPANIES AND AGENTS.
As used in this article:
(a) "Insurance company" means any individual, firm or
corporation engaged in the business of selling insurance in this
state, excepting only: (1) Clubs or associations organized under
the laws of this state which sell insurance to their members; and
(2) companies engaged exclusively in the sale of life or accident
and sickness insurance.
(b) "Insurance agent" means any individual, firm or
corporation appointed by an insurance company, as defined herein,
whose exclusive activity in this field is in behalf of a single
insurance company and who is authorized by that company to
solicit insurance or to negotiate insurance on its behalf, and
who is authorized by the insurance company to effectuate and
countersign insurance contracts on its behalf.
NOTE: The purpose of this bill is to give independent
insurance agents the same rights and protections as agents for a
single insurance company have with regard to termination and
cancellation of agency contracts with an insurance company.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.