West Virginia Code of State Rules
Agency 114 - Insurance Commission
Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER
Series 114-72 - Personal Private Passenger Automobile Liability Insurance And Property Insurance Withdrawal Plan Procedures
Section 114-72-4 - Contents of a Withdrawal Plan
Universal Citation: 114 WV Code of State Rules 114-72-4
Current through Register Vol. XLI, No. 38, September 20, 2024
4.1. An insurers' withdrawal plan must contain the following:
a. Identification of the line or lines of
insurance being withdrawn;
b.
Identification of the policy forms by number and type affected by the
withdrawal;
c. The dates the insurer
intends to begin and complete its withdrawal;
d. An explanation of the reasons for the
withdrawal;
e. Provisions for notifying
all of the affected policyholders and certificateholders of the dates of the
beginning and completion of the withdrawal and how the withdrawal will affect them,
including, but not limited to:
1. A copy of the
notice and an explanation of the manner in which the notice will be provided to
policyholders and certificateholders; and
2. Either affirmation that such notice will be
provided within thirty (30) days of the approval of the withdrawal plan if approval
is required, or a request that the commissioner allow the notice to be provided at
some other specified date or time;
f. Provisions for meeting all of the insurer's
contractual obligations, including, but not limited to:
1. Notification of all affected agents of the
insurer of the date the insurer intends to begin and complete the withdrawal;
and
2. If applicable, a statement
affirming the insurer's compliance with the provisions of article six-a, chapter
thirty-three of the West Virginia Code relating to cancellation and nonrenewal of
automobile liability or physical damage insurance coverage;
g. Provisions for providing the same level of
services to the insurer's West Virginia policyholders and claimants as set forth in
the insurer's contracts;
h. Information
on the insurer's West Virginia business, including:
1. The total annual premium volume and the number
of policies and certificates and covered persons in West Virginia for each line of
business to be withdrawn;
2. An estimate
of what percentage of the West Virginia market the withdrawal constitutes;
and
3. Any information necessary to
assist the commissioner in determining whether a market availability problem will be
created by the withdrawal, the extent of the problem, and what market assistance may
be needed to alleviate the problem, including, but not limited to, the following:
A. Type of location and geographic area subject to
the withdrawal (identify type of area such as suburban, urban, rural, or list
specific rating territories) and zip codes; and
B. If applicable, types of risks no longer being
covered, for example, if insurer is no longer writing private passenger auto
insurance coverage for single-car families or for persons without supporting
business;
i. If an
insurer is unable to provide the exact number of policies and certificates and
covered persons, the insurer must provide estimates of these numbers and explain how
the estimates were determined;
j. The
number of and estimated amount of all losses outstanding in West Virginia, including
claims incurred but not reported;
k. A
plan to handle the losses specified in subdivision j of this subsection, including,
but not limited to:
1. Identification of what
assets will be available for paying outstanding incurred but not reported claims,
claims in the course of settlement, and associated loss adjustment
expenses;
2. Identification of who
specifically will administer the run-off of the business; and
3. An actuarial opinion certifying that adequate
reserves are available to pay outstanding claims;
l. If West Virginia policyholders or
certificateholders are to be reinsured, then the filing of a reinsurance agreement
meeting all statutory and regulatory requirements and, when applicable, the filing
of an assumption certificate;
m.
Provisions for meeting any applicable statutory obligations, including, but not
limited to:
1. Payment of any guaranty fund
assessments;
2. Participation in any
assigned risk plan, pool, fund, facility, or joint underwriting arrangement;
and
3. Payment of any taxes;
n. A list of any other programs or
products the insurer will continue to offer in West Virginia; and
o. An affirmation that no new business in the same
line as that from which the insurer has withdrawn will be solicited by the insurer
in this state during or within the three years subsequent to the filing of the
withdrawal plan unless the commissioner waives this requirement.
4.2. The filing of a single consolidated withdrawal plan for all withdrawing insurance companies in the same holding company system does not meet the requirements of this section. A separate withdrawal plan must be filed for each insurance company intending to withdraw.
4.3. The withdrawal plan must be signed by at least one officer of the insurer.
Disclaimer: These regulations may not be the most recent version. West Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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