ENGROSSED
Senate Bill No. 494
(By Senators Minard and Kessler)
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[Introduced March 15, 2001; referred to the
Committee on Banking and Insurance.]
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A BILL to amend article one, 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-two, relating to associations; and providing that all
associations be bona fide.
Be it enacted by the Legislature of West Virginia:
That article one, 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-two, to read as follows:
ARTICLE 1. DEFINITIONS.
§33-1-22. Association.
"Association" means, as used in this chapter and corresponding
rules, a bona fide association which has been actively in existence
for at least five years; has been formed and maintained in good
faith for purposes other than obtaining insurance; does not
condition membership in the association on any health
status-related factor relating to an individual; makes accident and
sickness insurance offered through the association available to all
members regardless of any health status-related factor relating to
members or individuals eligible for coverage through a member; does
not make accident and sickness insurance coverage offered through
the association available other than in connection with a member of
the association; and meets any additional requirements as may be
set forth in this chapter or by rule.
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(NOTE: The purpose of this bill is to clarify and require
that associations to which life and health insurance can be sold,
be bona fide.
This section is new; therefore, strike-throughs and
underscoring have been omitted.)