West Virginia Legislature
2016 Regular Session
Introduced
House Bill 2063
2015 Carryover
(By Delegate Caputo)
[Introduced January 13, 2016; referred to the
Committee on Banking and Industry then the Judiciary.]
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
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 does not become
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 filing shall be deemed the filing 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 filing shall be deemed state when,
within a reasonable period, the filing 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 A person or organization aggrieved
with respect to any filing which is in effect may demand a
hearing. thereon. 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 filing shall be deemed state when, within a reasonable period, the
filing 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.
(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 be disapproved if the rates thereby produced meet the requirements of this article. None of the foregoing may consider credit scores as a factor.
(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 the 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 the effect of eliminating eliminates 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.