Senate Bill No. 505
(By Senators Kessler, Minard, Bowman, McKenzie, Sprouse and
Snyder)
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[Introduced March 16, 2001; referred to the Committee on Banking
and Insurance; and then to the Committee on Finance.]
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A BILL to amend and reenact section three, article twenty-b,
chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
authorizing medical malpractice insurers to issue contracts or
policies with rates for specific risks in excess of their
filed rates.
Be it enacted by the Legislature of West Virginia:
That section three, article twenty-b, 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 20B. RATES AND MALPRACTICE INSURANCE POLICIES.
§33-20B-3. Rate filings.
(a) Every filing for malpractice insurance made pursuant to
subsection (a), section four, article twenty of this chapter shall
state the proposed effective date thereof, the character and extent
of the coverage contemplated, and supporting information including:
information in support of such filing. The information furnished
in support of a filing shall include (i) The experience or
judgment of the insurer or rating organization making the filing;
(ii) its interpretation of any statistical data the filing relies
upon; (iii) the experience of other insurers or rating
organizations; and (iv) any other relevant factors required by the
commissioner. When a filing is not accompanied by the supporting
information required by this section, upon which the insurer
supports such filing the commissioner shall require such the
insurer to furnish such information and in such event, the waiting
period prescribed by subsection (b) of this section shall commence
as of the date such the information is furnished. A filing and any
supporting information shall be open to public inspection as soon
as the filing is received by the commissioner. Any interested
party may file a brief with the commissioner supporting his
position concerning the filing. Any person or organization may
file with the commissioner prior to the effective date of the filing a brief or signed statement declaring and supporting the
person or organization's his or its position concerning the filing.
Upon receipt of any such brief or statement, prior to the effective
date of the filing the commissioner shall mail or deliver a copy of
such statement to the filer insurer or rating organization, which
may file such a reply. as it may desire to make This section
shall not be applicable to any memorandum or statement of any kind
made by any employee of the commissioner.
(b) Every such filing shall be on file for a waiting period of
sixty days before it becomes effective, which period may be
extended by the commissioner for an additional period not to exceed
thirty days if he the commissioner gives written notice within such
during the waiting period to the insurer or rating organization.
which made the filing that he needs such additional time for the
consideration of such filing Upon written application by such
insurer or rating organization, the commissioner may authorize a
filing which he has reviewed to become effective before the
expiration of the waiting period or any extension thereof. A
filing shall be deemed is considered to meet the requirements of
this article unless disapproved by the commissioner within the
waiting period or any extension thereof.
(c) No insurer shall may make or issue a contract or policy
of malpractice insurance except in accordance with the filings
which are in effect for said the insurer as provided in this
article: Provided, That upon the written application of the
insured, stating his or her reasons therefor, filed and approved
with the commissioner, a rate in excess of that provided by a
filing otherwise applicable may be used on any specific risks.
NOTE: This bill adds a proviso that an insured may apply to
the commissioner to contract with a medical malpractice carrier to
enter into a contract with a rate in excess of the filed rate for
that insurer, for specific risks. The new language in subsection
(c) is identical to that in article 20, section 4(j) which allows
such consent to rate filing for other lines of insurance. The
amendment also makes immaterial stylistic changes.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.