H. B. 2845
(By Delegates Thompson, H. White, Romine,
Angotti and L. white)
[Introduced February 19, 1999; referred to the
Committee on Banking and Insurance then Government Organization.]
A BILL to repeal sections seven and seven-a, article twelve,
chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended; and to amend
and reenact sections eight, eight-a and twenty-four of said
article, all relating to the repeal of the countersignature
requirement and to the payment of commissions to agents.
Be it enacted by the Legislature of West Virginia:
That sections seven and seven-a, article twelve, chapter
thirty-three of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be repealed; and that sections
eight, eight-a and twenty-four of said article be amended and
reenacted, all to read as follows:
ARTICLE 12. AGENTS, BROKERS, SOLICITORS AND EXCESS LINE.
§33-12-8. Licensing of nonresident life and accident and
sickness agents.
(a) Nonresidents otherwise complying with the provisions of this chapter may be licensed as life agents. but all policies
issued as a result of solicitation on the part of such
nonresidents, in the state, shall be reported, placed,
countersigned, and consummated by and through a duly licensed
resident agent of the issuing insurer.
(b) An individual otherwise complying with the provisions of
this chapter, who is a resident of another state and who is a
licensed accident and sickness agent of such state, may be
licensed as a nonresident accident and sickness agent in this
state, if the state of residence of such nonresident has
established, by law or regulation like requirements for the
licensing of a resident of this state as a nonresident accident
and sickness agent. All policies issued as a result of
solicitation by such nonresident accident and sickness agents
shall be reported, placed, countersigned and consummated by and
through a duly licensed resident agent of the issuing insurer.
§33-12-8a. Licensing of nonresident property casualty agents.
(a) Nonresidents otherwise complying with the provisions of
this chapter may be licensed as a property casualty agent. but
all policies issued as a result of solicitation on the part of
such nonresident in this state shall be reported, placed,
countersigned, and consummated by and through a duly licensed
resident agent of the issuing insurer.
(b) An individual otherwise complying with the provisions of this chapter, who is a resident of another state and who is a
licensed property casualty agent of such state, may be licensed
as a nonresident property casualty agent in this state, if the
state of residence of such nonresident has established, by law or
regulation, like requirements for the licensing of a resident of
this state as a nonresident property casualty agent. All
policies issued as a result of solicitation by such nonresident
property casualty agents shall be reported, placed, countersigned
and consummated by and through a duly licensed resident agent of
the issuing insurer.
§33-12-24. Payment of commissions.
(a) The entire commission payable by any insurer licensed to
transact insurance in this state on any insurance policy shall be
paid directly to the licensed resident agent who countersigns
signs the policy. The countersigning agent shall not pay any
part of such commission to any person other than a licensed agent
or broker. Provided, That the portion of such commission
retained by the countersigning resident agent shall not be less
than ten percent of the gross policy premium or fifty percent of
the commission payable by the insurer as provided herein,
whichever is the lesser amount. The term "commission" as used
herein shall include engineering fees, service fees or any other
compensation incident to the issuance of a policy payable by or
to any insurer, agent or broker.
(b) It shall be unlawful for any insurer or agent to pay,
and any person to accept, directly or indirectly, any commission
except as provided in this section: Provided, That any licensed
resident agent may pay his or her commissions, or direct that his
or her commissions be paid, to a partnership of which he or she
is a member, employee or agent, or to a corporation of which he
or she is an officer, employee or agent, if:
(1) The commissioner finds that such partnership or
corporation is engaged, through its licensed resident agents, in
conducting an insurance agency business with respect to the
general public.
(2) If a partnership, each partner satisfies the
commissioner that he or she meets the licensing qualifications as
set forth in sections two, four, eight or eight-a of this
article.
(3) If a corporation, each officer, employee or any one or
more stockholders owning, directly or indirectly, the controlling
interest in such corporation satisfies the commissioner that he
or she meets the licensing qualifications as set forth in
sections two, four, eight, or eight-a of this article. The
requirements set forth in this subdivision shall not apply to
clerical employees, or other employees not directly engaged in
the selling or servicing of insurance.
(c) This section shall not apply to reinsurance, life insurance or accident or health insurance; nor to excess line
insurance procured in accordance with the provisions of this
article relating thereto; nor to credit insurance, any contract
of insurance covering the rolling stock of any railroad or
covering any vessel, aircraft or motor carrier used in interstate
or foreign commerce, any liability or other risks incident to the
ownership, maintenance or operation thereof, any contract of
insurance covering any property in interstate or foreign
commerce, or any liability or risks incident thereto.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.