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TABLE OF CONTENTS

• CITATION
• STATUS
• WHAT'S NEW
• ENACTED TEXT

CITATION
2006 WV S 754


STATUS
This legislation was assigned the status of Enacted
 on 04/04/2006.

Author: Minard
Session: West Virginia Second Session of the 77th Legislature
StateNet Processing Date: 04/05/2006


ENACTED TEXT
                                   ENROLLED

                             COMMITTEE SUBSTITUTE

                                     FOR

                             Senate Bill No. 754

    (Senator Minard, original sponsor)

         [Passed March 11, 2006; in effect ninety days from passage.]
AN ACT to amend and reenact Section 33-22-7 and Section 33-22-8 of the Code of
West Virginia, 1931, as amended, all relating to farmers' mutual fire
insurance companies; clarifying that certain requirements for the filing of
fire and marine policies apply to farm mutual insurance companies; clarifying
types of policies that all such companies may issue; describing types of
policies of liability insurance for which an extension of a license must be
obtained; permitting commissioner to limit duration of such license
extensions; and establishing criteria by which farm mutual insurance
companies must demonstrate that they serve underserved areas.
Be it enacted by the Legislature of West Virginia:

    That Section 33-22-7 and Section 33-22-8 of the Code of West Virginia,
1931, as amended, be amended and reenacted, all to read as follows:

    ARTICLE 22. FARMERS' MUTUAL FIRE INSURANCE COMPANIES.

    Section 33-22-7. Filing and approval of policy; setting out terms and
conditions; limiting liability; standard forms or provisions.

    (a) No policy form shall be issued or used by any such company unless such
form has been filed with and approved by the commissioner. The filing,
approval and disapproval of such forms shall be governed by the provisions of
sections eight and nine, article six of this chapter and section eight,
article seventeen of this chapter in the same manner as form filings of other
insurers.

    (b) All terms and conditions of such policies shall be set forth in full
in the policy or endorsements attached thereto including the contingent
liability, if any, of the policyholder and no provision purporting to make
any portion of the charter, bylaws or other documents a part of the policy
shall be valid unless such portion is set forth in full in the policy.

    (c) Policies may limit the liability of the company to a fixed percent of
the value of the property insured.

    (d) Whenever the commissioner believes the public interest requires a
standard form for a particular kind of coverage, the commissioner may
prescribe a standard form of policy for such companies, or a standard
specific provision to be inserted in such policies, and all policies
thereafter issued by such companies shall conform to such standard forms or
provisions.

    Section 33-22-8. Kinds of coverage authorized.

    (a) Any company subject to the provisions of this article may issue the
following types of policies of insurance:

    (1) Fire insurance, which is insurance on real or personal property of
every kind and interest therein, against loss or damage from any or all hazard
or cause and against loss consequential upon such loss or damage, other than
noncontractual liability for the loss or damage;

    (2) Loss or damage by insects or disease to farm crops or products and
loss of rental value of land used in producing those crops or products;

    (3) Loss or damage to domestic farm animals by dogs or wild animals;

    (4) Loss or damage to property by burglary, theft, larceny, robbery,
vandalism, malicious mischief or wrongful conversion, or any attempt at any
of the foregoing;

    (5) Personal property floater insurance, which is insurance upon personal
effects against loss or damage from any cause; and

    (6) Glass insurance, which is insurance against loss or damage to glass,
including its ornamentation and fittings.

    (b) In addition to the policies of insurance permitted by subsection (a)
of this section, a company may apply to the commissioner for an extension of
its license and upon complying with reasonable standards established by the
commissioner to assure the solvency of the company and the protection of its
policyholders, may, in the discretion of the commissioner, be granted an
extension of its license upon such conditions and for such period as the
commissioner may prescribe to permit the company to issue policies of
insurance on risks insuring against one or more of the following:

    Legal liability for the death, injury or disability of any human being, or
for damage to property, excluding liability resulting from the ownership,
maintenance or use of vehicles or aircraft; and provisions for medical,
hospital, surgical and disability benefits to injured persons and funeral and
death benefits to dependents, beneficiaries or personal representatives of
persons killed, irrespective of legal liability of the insured, when issued as
an incidental coverage with or supplemental to the liability coverage. For the
purposes of this subsection, the term "vehicle" does not include a "farm
tractor", "implement of husbandry", as defined in section one, article one,
chapter seventeen-a of this code; a "wheelchair", as defined in section
sixty-five, article one, chapter seventeen-c of this code and any similar
vehicle used by persons with disabilities; a "golf cart" while used for
golfing; or other motorized vehicle used to service the premises.

    (c) The commissioner may, for good cause shown or on application of the
company, limit the license of a company to make insurance to any one or more
of the perils or coverages set forth in subsection (a) or (b) of this
section.

    (d) A farm mutual insurance company insuring property located outside this
state must meet the capital and surplus requirements of section five-b,
article three of this chapter.

    (e) On and after the first day of January, two thousand seven, any company
subject to the provisions of this article must have a majority of its book of
business, as determined by either gross direct premiums or policy count, in
underserved areas of the insurance market in the State of West Virginia. For
purposes of this article, "underserved areas of the insurance market in the
State of West Virginia" means any of the following or any combination thereof:
Persons or property insured that have a public fire protection classification
of five or higher, or the equivalent thereof, according to a rating
organization licensed pursuant to section six, article twenty of this chapter;
residential structures or dwellings insured on an actual cash-value basis;
residential structures or dwellings over forty years of age; vacant or
seasonally occupied residential structures or dwellings; property or persons
who have had insurance canceled or declined by any insurance company licensed
to do business in this state; and farm property or structures. Upon
determination, after notice and hearing, that any farm mutual fire insurance
company has failed to comply with this subsection, the commissioner may
require the company to pay all taxes, additional taxes, surcharges and fees
pursuant to article three of this chapter, require conversion under section
nineteen of this article, or revoke its license under section four of this
article, or any combination thereof.

WHAT'S NEW
Description of Changes
There are no recorded changes for this document.

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