Bill Text: WV HB2942 | 2018 | Regular Session | Introduced
Bill Title: Prohibiting insurers from cancelling or failing to renew insurance policies do to the mere filing of a claim that was later denied
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2018-01-10 - To House Banking and Insurance [HB2942 Detail]
Download: West_Virginia-2018-HB2942-Introduced.html
WEST virginia Legislature
2017 regular session
By
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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
prohibiting insurers from cancelling or failing to renew insurance policies do
to the mere filing of a claim that was later denied or making an inquiry about
whether a loss was potentially covered by a policy; and permitting insurers to
cancel or not renew policies for filing numerous frivolous or unfounded claims.
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; prohibitions.
(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 insurance application form by an
insurer shall create 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 be in writing,
shall be 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 state the
effective date of the cancellation and shall 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: Provided, however,
That notwithstanding any other provision of this article, no property insurance
coverage policy in force for at least four years, may be denied renewal or
canceled solely as a result of:
(1) A single first party property
damage claim within the previous thirty-six months and that arose from wind,
hail, lightning, wildfire, snow or ice, unless the insurer has evidence that
the insured unreasonably failed to maintain the property and that failure to
maintain the property contributed to the loss, or
(2) Two first party
property damage claims within the previous twelve months, both of which arose
from claims solely due to an event for which a state of emergency is declared
for the county in which the insured property is located, unless the insurer has
evidence that the insured unreasonably failed to maintain the property and that
failure to maintain the property contributed to the loss. "State
of emergency"
means the situation existing after the occurrence of a disaster in which a
state of emergency has been declared by the Governor or by the Legislature
pursuant to the provisions of section six, article five, chapter fifteen of
this code or in which a major disaster declaration or emergency declaration has
been issued by the President of the United States pursuant to the provisions of
42 U. S. C. §5122.
(d) Notwithstanding any
other provisions in this article, no property insurance coverage policy subject
to this article may be canceled or denied renewal as a result of filing a claim
that was later denied.
(e) Notwithstanding any
other provisions in this article, an insurer may not cancel or fail to renew a
property insurance coverage policy solely because the insured has inquired
about coverage or requested a coverage determination about a potentially
covered loss or event.
(f) Notwithstanding the
provisions of subsections (d) and (e) of this section, an insurer may cancel or
decline to renew a policy if the policy holder has filed numerous frivolous or
unfounded claims.
NOTE: The purpose of this bill is
to prohibit insurers from cancelling insurance policies doe to the mere filing
of a claim that was later denied or to the policy holders inquiry about whether
a loss is covered under the policy. The
bill permits the cancellation of policies for numerous frivolous or unfounded
claims.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.