Senate Bill No. 494
(By Senator Minard)
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[Introduced March 6, 2009; 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 §33-2-11 of the Code of West Virginia,
1931, as amended, relating to authorizing the Insurance
Commissioner to order restitution in certain cases.
Be it enacted by the Legislature of West Virginia:
That §33-2-11 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 2. INSURANCE COMMISSIONER.
§33-2-11. Enforcement of orders; revocation of licenses; court
action.
In addition to examinations and investigations expressly
authorized by this chapter, the commissioner may conduct such
examinations and investigation of insurance matters as he or she
may deem considers proper to determine whether any person has
violated any provision of this chapter or to secure information
useful in the lawful administration of his or her duties. If the
commissioner determines, after notice and hearing, that any person is transacting insurance in an illegal, improper or unjust manner
or is failing to pay losses and obligations when they become due,
excepting claims to which there is a substantial defense, he or she
may order such the person to discontinue such the illegal, improper
or unjust manner of transacting insurance, or may order such person
to adjust and pay his or her obligations as they become due, and to
pay restitution to any person who has suffered damages as a result
of the illegal, improper or unjust manner of transacting business.
If any a person shall fail or refuse fails or refuses within twenty
days after notice to obey such the order, the commissioner may
revoke any license issued by him the commissioner and held by such
the person. and In addition, the commissioner may apply to the
circuit court, or the judge thereof in vacation, having
jurisdiction for an injunction or the appointment of a receiver, or
for both. and such The court or judge may enforce such the order of
the commissioner by injunction or by appointment of a receiver to
take charge of the affairs and property of such the person, or
both, and may make such further orders as may be necessary and
proper to effectuate such the injunction or receivership.
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(NOTE: The purpose of this bill is to clarify that the
Insurance Commissioner may order restitution to persons injured by
violations of the insurance code.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.)
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BANKING AND INSURANCE COMMITTEE AMENDMENT
On page two, section eleven, line seven, after the word "due"
by changing the comma to a colon, striking out the words "and to
pay restitution to any person who has suffered damages as a result
of the illegal, improper or unjust manner of transacting business"
and inserting the following proviso: Provided, That in any order
issued pursuant to subsection (j), section nine of this article or
entered as a result of a regulatory enforcement action initiated
and prosecuted by the commissioner pursuant to this section or
section eleven, article three of this chapter, the commissioner
may, in addition to or in lieu of any other penalties or remedies
provided therein, order an insurer to pay restitution to affected
persons.