H. B. 3197
(By Delegate McGraw)
[Introduced March 30, 2001; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend article twelve, 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-a, relating to liability of insurance agent or
broker when a malpractice insurer becomes insolvent.
Be it enacted by the Legislature of West Virginia:
That article twelve, 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-a, to read as follows:
ARTICLE 12. AGENTS, BROKERS, SOLICITORS AND EXCESS LINE.
§33-12-22a. Liability for amounts above guaranty account when
malpractice coverage placed in solvent insurer.
An agent, broker or excess line broker is jointly and
severally liable for the excess above the amount covered by the
insurance guaranty association act created by article twenty-six of this chapter for a malpractice claim when the agent, broker or
excess line broker places any malpractice coverage in an insurer
that becomes insolvent.
NOTE: The purpose of this bill is to
make insurance agents or
brokers liable for malpractice claims above the amount paid by the
insurance guaranty association when a malpractice insurer becomes
insolvent.
This section is new; therefore, strike-throughs and
underscoring have been omitted.