Senate Bill No. 224
(By Senators Minard and Kessler)
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[Introduced January 20, 2006; referred to the Committee
on Banking and Insurance.]
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A BILL to amend and reenact §33-17A-4b of the Code of West
Virginia, 1931, as amended, relating to insurance law reforms
and modifications generally; and narrowing the grounds for
nonrenewal of property insurance policies.
Be it enacted by the Legislature of West Virginia:
That §33-17A-4b of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 17A. PROPERTY INSURANCE DECLINATION, TERMINATION AND
DISCLOSURE.
§33-17A-4b. Manner of making election relating to nonrenewals.
(a) Each insurer licensed to write property insurance policies
in this state as of the first day of July, two thousand five, may
elect to issue all nonrenewal notices either pursuant to
subsection (c), section four of this article or section four-a of
this article. Each insurer must shall notify the commissioner of its election on or before the first day of July, two thousand five,
and shall remain remains bound by the election for a period of five
years. For each subsequent five-year period, each insurer shall
notify the commissioner of its election to issue all nonrenewal
notices either pursuant to subsection (c), section four of this
article or section four-a of this article. The failure of an
insurer to notify the commissioner of its election by the first day
of July, two thousand five, will be considered to be an election by
the insurer to issue all nonrenewal notices pursuant to
subsection (c), section four of this article and the insurer will
be is bound by the election for a period of five years.
(b) An insurer that is not licensed to write property
insurance policies in this state as of the first day of July, two
thousand five, but which becomes licensed to write property
insurance policies after that date shall, no later than four years
after the date the insurer becomes licensed to write the policies,
make an election to issue all nonrenewal notices either pursuant to
subsection (c), section four of this article or section four-a of
this article and shall notify the commissioner of its election. If
the insurer elects to issue all nonrenewal notices pursuant to
section four-a of this article, the total number of nonrenewals may
not exceed the percentage limitations set forth in that section.
An insurer first becoming licensed to issue property insurance
policies in this state after the first day of July, two thousand five, shall be is bound by its election for a period of five years
and for each subsequent five-year period shall notify the
commissioner of its election to issue all nonrenewal notices either
pursuant to subsection (c), section four of this article or section
four-a of this article.
(c) An insurer that elects to issue nonrenewals pursuant to
subsection (c), section four of this article may include as a
permitted reason for nonrenewal of a policy, in addition to the
reasons enumerated in section five of this article, two or more
paid claims under a policy within a period of thirty-six months,
each of which occurs after the first day of July, two thousand
five. A "paid claim" as used in this section is limited to a paid
claim the sole cause of which is the result of a negligent,
affirmative act by the insured. A paid claim does not include any
claim the cause of which is a natural occurrence or an act of God.
NOTE: The purpose of this bill is to narrow the grounds for
nonrenewal of property insurance policies by limiting the
definition of a paid claim to one which is the result of a
negligent, affirmative act by the insured. It also provides that
a paid claim does not include any claim the cause of which is a
natural occurrence or an act of God.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.