Introduced Version
House Bill 2850 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2850
(By Delegates Boggs, Moore, Hamilton and Azinger)
[Introduced March 6, 2013; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §33-17A-4 of the Code of West Virginia,
1931, as amended, relating to preventing the cancellation and
nonrenewal of property homeowners insurance based upon a
claim arising from natural causes or upon an inquiry that does
not result in a claim.
Be it enacted by the Legislature of West Virginia:
That §33-17A-4 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 17A. PROPERTY INSURANCE DECLINATION, TERMINATION AND
DISCLOSURE.
§33-17A-4. Notification and reasons for a transfer, declination
or termination.
(a) Upon declining to insure any real or personal property,
subject to this article, the insurer making a declination shall provide the insurance applicant with a written explanation of the
specific reason or reasons for the declination at the time of the
declination. The provision of such an insurance application form
by an insurer shall create creates no right to coverage on the
behalf of the insured to which the insured is not otherwise
entitled.
(b) A notice of cancellation of property insurance coverage by
an insurer shall:
(1) Be in writing; shall be
(2) Delivered to the named insured or sent by first class mail
to the named insured at the last known address of the named
insured; shall
(3) State the effective date of the cancellation; and shall be
(4) Be accompanied by a written explanation of the specific
reason or reasons for the cancellation.
(c) At least thirty days before the end of a policy period, as
described in subsection (c), section three of this article, an
insurer shall deliver or send by first class mail to the named
insured at the last known address of the named insured, notice of
its intention regarding the renewal of the property insurance
policy. Notice of an intention not to renew a property insurance
policy shall be accompanied by an explanation of the specific
reasons for the nonrenewal: Provided, That no insurer shall fail
to renew an outstanding property insurance policy which has been in existence for four years or longer except for the reasons as set
forth in section five of this article or for other valid
underwriting reasons which involve a substantial increase in the
risk.
____________________________________________(d) Notwithstanding any other provisions in this article, no
property insurance coverage policy in force for at least three
years may be denied renewal or canceled as a result of a single
claim arising from natural causes within a three year period of
time. For the purposes of this section, "natural causes in a three
year period of time" means an act occasioned exclusively by the
forces of nature in which direct human activity is excluded from
being the primary cause.
____________________________________________(e) Notwithstanding any other provisions of this article, an
insurer may not cancel or fail to renew a property insurance
coverage policy solely because the insured inquires about coverage
for a potentially covered loss.
NOTE: The purpose of this bill is to prevent cancellation or
nonrenewal of homeowners' insurance based upon a claim arising
from natural causes or upon an inquiry that does not result in a
claim.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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