H. B. 3088
(By Delegate H. White)
[Introduced February 20, 2003
; referred to the
Committee on Banking and Insurance then Finance.]
A BILL to amend and reenact section thirty-three, article three,
chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to the
collection and remittance of certain policy surcharges by
excess line brokers.
Be it enacted by the Legislature of West Virginia:
That section thirty-three, article three, 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 3. LICENSING, FEES AND TAXATION OF INSURERS.
§33-3-33. Surcharge on fire and casualty insurance policies to
benefit volunteer and part volunteer fire
departments; special fund created; allocation of
proceeds; effective date.
(a) For the purpose of providing additional revenue for
volunteer fire departments, part-volunteer fire departments,
certain retired teachers and the teachers retirement reserve fund,
there is hereby authorized and imposed on and after the first day
of July, one thousand nine hundred ninety-two, on the policyholder
of any fire insurance policy or casualty insurance policy issued by
any insurer, authorized or unauthorized, or by any risk retention
group, a policy surcharge equal to one percent of the taxable
premium for each such policy. For purposes of this section,
casualty insurance may not include insurance on the life of a
debtor pursuant to or in connection with a specific loan or other
credit transaction or insurance on a debtor to provide indemnity
for payments becoming due on a specific loan or other credit
transaction while the debtor is disabled as defined in the policy.
The policy surcharge may not be subject to premium taxes, agent
commissions or any other assessment against premiums.
(b) The policy surcharge shall be collected and remitted to
the commissioner by the insurer or in the case of excess lines
coverage, by the
resident excess lines broker, or if the policy is
issued by a risk retention group, by the risk retention group. The
amount required to be collected under this section shall be
remitted to the commissioner on a quarterly basis on or before the
twenty-fifth day of the month succeeding the end of the quarter in which they are collected, except for the fourth quarter for which
the surcharge shall be remitted on or before the first day of March
of the succeeding year.
(c) Any person failing or refusing to collect and remit to the
commissioner any policy surcharge and whose surcharge payments are
not postmarked by the due dates for quarterly filing is liable for
a civil penalty of up to one hundred dollars for each day of
delinquency, to be assessed by the commissioner. The commissioner
may suspend the insurer, broker or risk retention group until all
surcharge payments and penalties are remitted in full to the
(d) One half of all money from the policy surcharge shall be
collected by the commissioner who shall disburse the money received
from the surcharge into a special account in the state treasury,
designated the "fire protection fund." The net proceeds of this
portion of the tax, and the interest thereon after appropriation by
the Legislature shall be distributed quarterly on the first day of
the months of January, April, July and October to each volunteer
fire company or department on an equal share basis by the state
(1) Before each distribution date, the state fire marshal
shall report to the state treasurer the names and addresses of all
volunteer and part volunteer fire companies and departments within the state which meet the eligibility requirements established in
section eight-a, article fifteen, chapter eight of this code.
(2) The remaining fifty percent of the moneys collected shall
be transferred to the teachers retirement system to be disbursed
according to the provisions of sections twenty-six-j, twenty-six-k
and twenty-six-l, article seven-a, chapter eighteen of this code.
Any balance remaining after the disbursements authorized by this
subdivision have been paid shall be paid by the teachers retirement
system into the teachers retirement system reserve fund.
(e) The allocation, distribution and use of revenues provided
in the fire protection fund are subject to the provisions of
sections eight-a and eight-b, article fifteen, chapter eight of