H. B. 4159
(By Delegate Beane)
[Introduced January 26, 2000; referred to the
Committee on Banking and Insurance then Finance.]
A BILL to amend and reenact section two, article six-a, chapter
thirty-three of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to the cancellation
of automobile liability insurance policies; and permitting
movement of policies between companies within the same
insurance group.
Be it enacted by the Legislature of West Virginia:
That section two, 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-2. Cancellation for other reasons void.
Any purported cancellation by an insurer of a policy of
automobile liability insurance which has been in effect for sixty
days and which has been renewed shall be void if such the
purported cancellation is contrary to section one of this
article.
For purposes of this article, the transfer of a policyholder
between companies within the same insurance group is not
considered a cancellation or nonrenewal if the transfer is based
upon any valid underwriting reason which involves a substantial
increase in the risk.
NOTE: The purpose of this bill is to permit automobile
insurance companies to transfer policyholders to other companies
within the same insurance group without the transfer being
considered a cancellation of the underlying policy.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.