COMMITTEE SUBSTITUTE
FOR
H. B. 4157
(By Delegates Kominar, Ashley, Barker,
Perry, Moore, Walters and Schoen)
(Originating in the Committee on the Judiciary)
[February 13, 2008]
A BILL to amend and reenact §33-3-1 of the Code of West Virginia,
1931, as amended, relating to allowing an insurer to collect
premiums and otherwise service certain policies after its
license is no longer in effect.
Be it enacted by the Legislature of West Virginia:
That §33-3-1 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.
§33-3-1. License required.
(a) No person may act as an insurer and no insurer may
transact insurance in West Virginia except as authorized by a valid
license issued by the commissioner, except as to the transactions
as are expressly otherwise provided for in this chapter.
(b) No license
may be is required for an insurer, formerly
holding a valid license, to enable it to investigate and settle losses under its policies lawfully written in West Virginia while
the license was in effect,
to collect premiums, pay applicable
servicing commissions to agents of record and otherwise service
such policies, or to liquidate the assets and liabilities of the
insurer as may have resulted from its former authorized operations
in West Virginia:
Provided, That nothing
herein in this section
allows an insurer to issue new policies or renew policies of
insurance or collect premiums on those policies unless the insurer
is authorized by a valid license issued by the commissioner, except
as to the transactions that are otherwise
provided for allowed in
this chapter.
(c) An insurer not transacting new insurance business in West
Virginia but collecting premiums on and servicing of policies in
force as to residents of or risks located in West Virginia, and
where the policies were originally issued on nonresidents of or
risks located outside of this state, is transacting insurance in
West Virginia for the purpose of premium and annuity tax
requirements but is not required to have a license therefor.
(d) A domestic insurer or a foreign insurer from offices or by
personnel or facilities located in this state may not solicit
insurance applications or otherwise transact insurance in another
state or country unless it holds a subsisting license granted to it
by the commissioner authorizing it to transact the same kind or
kinds of insurance in this state.
(e) Any officer, director, agent, representative or employee
of any insurer who willfully authorizes, negotiates, makes or
issues any insurance contract in violation of this section
shall be
is subject to the provisions set forth in article
forty-three
forty-four of this chapter.