H. B. 2849
(By Delegates Susman, Fleischauer, Houston,
Yeager, Poling, Manual and Crosier)
[Introduced February 3, 2003; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact section four, article six-a, chapter
thirty-three of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to preventing
insurers from failing to renew an automobile liability or
property damage policy for acts of God, excluding property
damage from floods.
Be it enacted by the Legislature of West Virginia:
That section four, 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-4. Advance notice of nonrenewal required; assigned risk
policies; reasons for nonrenewal; hearing and review
after nonrenewal.
No insurer shall fail to renew an outstanding automobile
liability or physical damage insurance policy unless such the
nonrenewal is preceded by at least forty-five days of advance
notice to the named insured of such the insurer's election not to
renew such the policy: Provided, That subject to this section,
nothing contained in this article shall be construed so as to
prevent an insurer from refusing to issue an automobile liability
or physical damage insurance policy upon application to such
the insurer, nor shall any provision of this article be construed
to prevent an insurer from refusing to renew such a policy upon
expiration, except as to the notice requirements of this section,
and except further as to those applicants lawfully submitted
pursuant to the West Virginia assigned risk plan: Provided,
however, That an insurer may not fail to renew an outstanding
automobile liability or physical damage insurance policy which has
been in existence for two consecutive years or longer except for
the following reasons:
(a) The named insured fails to make payments of premium for
such policy or any installment of the premium when due;
(b) The policy is obtained through material misrepresentation;
(c) The insured violates any of the material terms and
conditions of the policy;
(d) The named insured or any other operator, either residing
in the same household or who customarily operates an automobile insured under such policy:
(1) Has had his or her operator's license suspended or revoked
during the policy period; or
(2) Is or becomes subject to epilepsy or heart attacks and
such individual cannot produce a certificate from a physician
testifying to his or her ability to operate a motor vehicle;
(e) The named insured or any other operator, either residing
in the same household or who customarily operates an automobile
insured under such the policy, is convicted of or forfeits bail
during the policy period for any of the following reasons:
(1) Any felony or assault involving the use of a motor
vehicle;
(2) Negligent homicide arising out of the operation of a motor
vehicle;
(3) Operating a motor vehicle while under the influence of
intoxicating liquor or of any narcotic drug;
(4) Leaving the scene of a motor vehicle accident in which the
insured is involved without reporting it as required by law;
(5) Theft of a motor vehicle or the unlawful taking of a motor
vehicle;
(6) Making false statements in an application for a motor
vehicle operator's license;
(7) Two or more moving traffic violations committed within a
period of twelve months, each of which results in three or more points being assessed on the driver's record by the division of
motor vehicles, whether or not the insurer renewed the policy
without knowledge of all such violations. Notice of any nonrenewal
made pursuant to this subsection shall be mailed to the named
insured either during the current policy period or during the first
full policy period following the date that the second moving
traffic violation is recorded by the division of motor vehicles.
(f) The named insured or any other operator has had a second
at-fault motor vehicle accident within a period of twelve months,
whether or not the insurer renewed the policy without knowledge of
all such accidents: Provided, That an insurer cannot consider acts
of God an at-fault accident, except for flood damage. Notice of
any nonrenewal made pursuant to this subsection shall be mailed to
the named insured either during the current policy period or during
the first full policy period following the date of the second
accident.
Nonrenewal of such a policy for any reason is subject to a
hearing and review as provided for in section five of this article.
Cost of the hearing shall be assessed against the losing party but
shall not exceed seventy-five dollars.
Notwithstanding the provisions of subsection (a) of this
section, the insurer shall renew any automobile liability or
physical damage insurance policy that has not been renewed due to
the insured's failure to pay the renewal premium when due if: (1) None of the other grounds for nonrenewal as set forth in
subsections (b) through (f), inclusive, of this section exist; and
(2) the insured makes an application for renewal within ninety days
of the original expiration date of the policy. If a policy is
renewed as provided for in this paragraph, then the coverage
afforded shall may not be retroactive to the original expiration
date of the policy, but shall begin on the reinstatement date at
the current premium levels offered by the company.
NOTE: The purpose of this bill is to
prevent insurers from
failing to renew an automobile liability or property damage policy
for acts of God, excluding property damage from floods.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.