Senate Bill No. 107
(By Senators Kessler, White, Bowman and Hunter)
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[Introduced January 9, 2008; referred to the Committee on Banking
and Insurance.]
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A BILL to amend and reenact §33-20-5 of the Code of West Virginia,
1931, as amended, relating to insurance generally; and
prohibiting the use of a credit score in casualty insurance
rate filings.
Be it enacted by the Legislature of West Virginia:
That §33-20-5 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 20. RATES AND RATING ORGANIZATIONS.
§33-20-5. Disapproval of filings.
(a) If within the waiting period or any extension thereof of
the period, as provided in subsection (e) of section four of this
article, the commissioner finds that a filing does not meet the
requirements of this article, he or she shall send to the insurer
or rating organization which made such the filing, written notice
of disapproval of such the filing specifying therein in what respects he or she finds such the filing fails to meet the
requirements of this article and stating that such the filing shall
not become is not effective.
(b) If within thirty days after a special surety filing
subject to subsection (f) of section four of this article or if
within thirty days after a specific inland marine rate on a risk
specially rated by a rating organization subject to subsection (g)
of section four of this article has become effective, the
commissioner finds that such the filing does not meet the
requirements of this article, he or she shall send to the rating
organization which made such the filing written notice of
disapproval of such the filing specifying therein in what respects
he or she finds that such the filing fails to meet the requirements
of this article and stating when, within a reasonable period
thereafter, such after the notice the filing shall be deemed is no
longer effective. Said The disapproval shall does not affect any
contract made or issued prior to the expiration of the period set
forth in said the notice.
(c) If at any time subsequent to the applicable review period
provided for in subsection (a) or (b) of this section, the
commissioner finds that a filing does not meet the requirements of
this article, he or she shall, after notice and hearing to every
insurer and rating organization which made such the filing, issue
an order specifying in what respects he or she finds that such the filing fails to meet the requirements of this article, and stating
when, within a reasonable period thereafter, such after the notice,
the filing shall be deemed is no longer effective. Copies of said
the order shall be sent to every such insurer and rating
organization. Said The order shall does not affect any contract or
policy made or issued prior to the expiration of the period set
forth in said the order.
(d) Any person or organization aggrieved with respect to any
filing which is in effect may demand a hearing thereon on the
filing. If, after such the hearing, the commissioner finds that
the filing does not meet the requirements of this article, he or
she shall issue an order specifying in what respects he or she
finds that such the filing fails to meet the requirements of this
article, and stating when, within a reasonable period thereafter,
such after the order, the filing shall be deemed is no longer
effective. Said The order shall does not affect any contract or
policy made or issued prior to the expiration of the period set
forth in said the order.
(e) Any insurer or rating organization, in respect to any
filing made by it which is not approved by the commissioner, may
demand a hearing thereon on the filing.
(f) No manual of classifications, rules, rating plans, or any
modification of any of the foregoing which establishes standards
for measuring variations in hazards or expense provisions, or both, in the case of casualty insurance to which this article applies and
no manual, minimum, class rate, rating schedule, rating plan,
rating rule, or any modification of any of the foregoing, in the
case of fire insurance to which this article applies, and which has
been filed pursuant to the requirements of section four of this
article, shall may be disapproved if the rates thereby produced
they produce meet the requirements of this article: Provided, That
none of the foregoing consider as a factor a credit score.
(g) If, in the opinion of the commissioner, the rate or form
filing made by an insurer is of such import that it will affect the
public he or she may, at his or her discretion, issue notice to
such the insurer of a public hearing. The notice of public hearing
to the insurer making such the form or rate filing shall be made by
United States mail at least fifteen days prior to hearing date.
Notice to the public shall be given by appropriate publication in
a newspaper in the form and manner prescribed by chapter twenty-
nine-a of this code. The holding of a public hearing as outlined
in this subsection shall have has the effect of eliminating the
right of the party making such the filing to demand a hearing as
stated in subsections (d) and (e) of this section.
NOTE: The purpose of this bill is to prohibit the use of a
credit score in casualty insurance rate filings.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.