Senate Bill No. 182
(By Senators Love, Kessler and Sharpe)
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[Introduced January 20, 1998; referred to the Committee
on Banking and Insurance.]
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A BILL to amend and reenact section four, article six-a, chapter
thirty-three of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to insurance;
nonrenewal of outstanding automobile liability or physical
damage insurance policy; providing that said policies may
not be nonrenewed for having a second at-fault accident
within a twelve-month period unless aggregated cost of
damage to persons other than the insured in both accidents
exceeds five thousand dollars; and providing that aggregated
cost of such damage must exceed five thousand dollars before
insurer may raise the insured's premium or designate the
insured as an at-risk driver.
Be it enacted by the Legislature of West Virginia:
That section four, article six-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 6A. CANCELLATION OR NONRENEWAL OF AUTOMOBILE LIABILITY
POLICIES.
§33-6A-4. Advance notice of nonrenewal required; assigned risk
policies; reasons for nonrenewal; hearing and
review after nonrenewal.
No insurer shall may fail to renew an outstanding automobile
liability or physical damage insurance policy unless such the
nonrenewal is preceded by at least forty-five days of advance
notice to the named insured of such the insurer's election not to
renew such the policy: Provided, That subject to this section,
nothing contained in this article shall may be construed so as to
prevent an insurer from refusing to issue an automobile liability
or physical damage insurance policy upon application to such
insurer it, nor shall may any provision of this article be
construed to prevent an insurer from refusing to renew such a
policy upon expiration, except as to the notice requirements of
this section, and except further as to those applicants lawfully
submitted pursuant to the West Virginia assigned risk plan:
Provided, however, That an insurer may not fail to renew an
outstanding automobile liability or physical damage insurance
policy which has been in existence for two consecutive years or longer except for the following reasons:
(a) The named insured fails to discharge when due any of his
or her obligations in connection with the payment of premium for
such the policy or any installment thereof;
(b) The policy was obtained through material
misrepresentation;
(c) The insured violates any of the material terms and
conditions of the policy;
(d) The named insured or any other operator, either resident
in the same household or who customarily operates an automobile
insured under such the policy:
(1) Has had his or her operator's license suspended or
revoked during the policy period; or
(2) Is or becomes subject to epilepsy or heart attacks, and
such the individual cannot produce a certificate from a physician
testifying to his or her ability to operate a motor vehicle;
(e) The named insured or any other operator, either resident
in the same household or who customarily operates an automobile
insured under such the policy is convicted of or forfeits bail
during the policy period for any of the following:
(1) Any felony or assault involving the use of a motor
vehicle;
(2) Negligent homicide arising out of the operation of a motor vehicle;
(3) Operating a motor vehicle while under the influence of
intoxicating liquor or of any narcotic drug;
(4) Leaving the scene of a motor vehicle accident in which
the insured is involved without reporting as required by law;
(5) Theft of a motor vehicle or the unlawful taking of a
motor vehicle;
(6) Making false statements in an application for a motor
vehicle operator's license;
(7) A second violation, committed within a period of twelve
months, of any moving traffic violation which constitutes a
misdemeanor, whether or not the violations were repetitions of
the same offense or were different offenses;
(f) The named insured or any other operator has had a second
at-fault motor vehicle accident within a period of twelve months:
Provided, That the aggregated cost of damages sustained by
persons other than the insured in both at-fault motor vehicle
accidents exceeds five thousand dollars: Provided, however, That
unless the total cost of damages sustained by persons other than
the insured in the two at-fault motor vehicle accidents exceeds
five thousand dollars, the insurer may not increase the insured's
premium nor designate him or her as an at-risk driver.
Nonrenewal of such a policy pursuant to this section for any reason is subject to hearing and review as provided in section
five of this article. Cost of the hearing shall be assessed
against the losing party but shall may not exceed seventy-five
dollars.
Notwithstanding the provisions of subsection (a) of this
section, the insurer shall renew any automobile liability or
physical damage insurance policy that has not been renewed due to
the insured's failure to pay the renewal premium when due, if
none of the other grounds for nonrenewal as set forth in
subsections (b) through (f) of this section exist and the insured
makes application for renewal within ninety days of the original
expiration date of the policy. If a policy be is renewed as
provided in this paragraph, the coverage afforded shall is not
be retroactive to the original expiration date of the policy, but
shall resume resumes upon the renewal date at the current premium
levels offered by the company.
NOTE: The purpose of this bill is to provide that an
outstanding auto liability or physical damage insurance policy
may not be nonrenewed because the insured has two at-fault
accidents within a twelve-month period unless the aggregate cost
of damage to persons other than the insured exceeds $5,000.00 and
to provide that the insurer may not raise the insured's premiums
or designate the insured as an at-risk driver unless the
aggregate cost of damage to persons other than the insured in the
two at-fault accidents exceeds $5,000.00.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.