COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 702
(By Senators McCabe, Hall, Minard, Jenkins, Caruth and Kessler)
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[Originating in the Committee on Government Organization;
reported March 26, 2009.]
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A BILL to amend and reenact §23-2C-15 of the Code of West Virginia,
1931, as amended, relating to workers' compensation insurance;
changing the date state and local governmental entities are
required to purchase workers' compensation insurance through
West Virginia Mutual Insurance Company; and exception.
Be it enacted by the Legislature of West Virginia:
That §23-2C-15 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 2C. EMPLOYERS' MUTUAL INSURANCE COMPANY.
§23-2C-15. Mandatory coverage; changing of coverage.
(a) Effective upon termination of the commission, all
subscriber policies with the commission shall novate to the company
and all employers shall purchase workers' compensation insurance
from the company unless permitted to self-insure their obligations.
The company shall assume responsibility for all new fund obligations of the subscriber policies which novate to the company
or which are issued thereafter. Each subscriber whose policy
novates to the company shall also have its advanced deposit
credited to its account with the company. Each employer purchasing
workers' compensation insurance from the company have the right to
designate a representative or agent to act on its behalf in any and
all matters relevant to coverage and claims administered by the
company.
(b) Effective July 1, 2008, an employer may elect to: (1)
Continue to purchase workers' compensation insurance from the
company; (2) purchase workers' compensation insurance from another
private carrier licensed and otherwise authorized to transact
workers' compensation insurance in this state; or (3) self-insure
its obligations if it satisfies all requirements of this code to so
self-insure and is permitted to do so:
Provided, That all state
and local governmental bodies, including, but not limited to, all
counties and municipalities and their subdivisions and including
all boards, colleges, universities and schools, shall continue to
purchase workers' compensation insurance from the company through
the thirtieth day of June, two thousand twelve June 30, 2010:
Provided, however, That the company may not cancel or refuse to
renew a policy of a state or local governmental body prior to July
1, 2011, except for failure of consideration to be paid by the
policyholder or for refusal to comply with a premium audit. The
company and other private carriers are permitted to sell workers'
compensation insurance through licensed agents in the state. To the extent that a private carrier markets workers' compensation
insurance through a licensed agent, it is subject to all applicable
provisions of chapter thirty-three of this code.
(c) Every employer shall post a notice upon its premises in a
conspicuous place identifying its workers' compensation insurer.
The notice must include the name, business address and telephone
number of the insurer and of the person to contact with questions
about a claim. The employer shall at all times maintain the notice
provided for the information of his or her employees. Release of
employer policy information and status by the Industrial Council
and the Insurance Commissioner shall be governed by section four,
article one of this chapter.
(d) Any rule promulgated by the Board of Managers or
Industrial Council empowering agencies of this state to revoke or
refuse to grant, issue or renew any contract, license, permit,
certificate or other authority to conduct a trade, profession or
business to or with any employer whose account is in default with
regard to any liability under this chapter shall be fully
enforceable by the Insurance Commissioner against the employer.
(e) Effective January 1, 2009, the company may decline to
offer coverage to any applicant. Private carriers and, effective
January 1, 2009, the company, may cancel a policy upon the issuance
of thirty days' written advance notice to the policyholder and may
refuse to renew a policy upon the issuance of sixty days' written
advance notice to the policyholder:
Provided, That cancellation of
the policy by the carrier for failure of consideration to be paid by the policyholder or for refusal to comply with a premium audit
is effective after ten days advance written notice of cancellation
to the policyholder.
(f) Every private carrier shall notify the Insurance
Commissioner as follows: (1) Of the issuance or renewal of
insurance coverage, within thirty days of: (A) The effective date
of coverage; or (B) the private carrier's receipt of notice of the
employer's operations in this state, whichever is later; (2) of a
termination of coverage by the private carrier due to refusal to
renew or cancellation, at least ten days prior to the effective
date of the termination; and (3) of a termination of coverage by an
employer, within ten days of the private carrier's receipt of the
employer's request for such termination; the notifications shall be
on forms developed or in a manner prescribed by the Insurance
Commissioner.
(g) For the purposes of subsections (e) and (f) of this
section, the transfer of a policyholder between insurance companies
within the same group is not considered a cancellation or refusal
to renew a workers' compensation insurance policy.