HOUSE CONCURRENT RESOLUTION NO. 153

(By Delegates Westfall and Rowe)

Requesting the Joint Committee on Government and Finance to study the methods of handling "zero dollar claims" in regard to property and casualty insurance and the impacts of such methods upon consumers of commercial and domestic property and casualty insurance.

            Whereas, Comprehensive policies for property and casualty insurance may not cover all types of hazards or risks that, nevertheless, occur within our area and purchasers of property and casualty insurance in West Virginia may experience uncovered losses arising from such hazards; and

            Whereas, Consumers of commercial and domestic property and casualty insurance may be obliged for various, legitimate reasons to report these losses or to report the occurrences of incidents that are later determined not to be compensable under the terms of the insurance policies; and

            Whereas, These claims for loss or damage, which are not compensable under policies for property and casualty insurance, are commonly known as "zero dollar claims"; and

            Whereas, An occurrence of a "zero dollar claim" may be used by an insurer to increase a property owner's rate for insurance coverage or may be used to deny coverage entirely even though the insurer was not required to make any payout for the claim; and

            Whereas, The impact of "zero dollar claims" and their handling by providers of property and casualty insurance has adversely and unreasonably affected owners of commercial and domestic property within this state; therefore, be it

            Resolved by the Legislature of West Virginia:

            That the Joint Committee on Government and Finance is hereby requested to study the methods of handling "zero dollar claims" in regard to property and casualty insurance and the impacts of such methods upon consumers of commercial and domestic property and casualty insurance; and, be it

            Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2016, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it

            Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.