Source: http://www.legis.state.wv.us/Bulletin_Board/2004/rs/House/H_DAILY_JOURNAL/March%2010-part-one.htm
Timestamp: 2015-10-10 07:31:19
Document Index: 126631720

Matched Legal Cases: ['§33', '§33', '§408', '§408', '§31', '§31', '§31', '§31', '§33', '§33', '§33', '§33', '§33', '§33', '§33', '§33', '§33', '§33', '§33', '§33', '§33', '§33', '§33', '§33', '§33']

The Clerk proceeded to read the Journal of Tuesday, March 9, 2004, being the first order of
H. C. R. 65, Urging the United States Corps of Engineers and the West Virginia
prone waterways,
H. C. R. 72, Conducting a study to determine the ability and feasibility of the sheriff's
department to supervise home incarceration of convicted offenders,
H. C. R. 77, Directing the Joint Committee on Government and Finance to make a study on
the instructional term of the school year,
H. C. R. 78, Determining the effects of exempting property belonging to or leased to a
corporation that is used to provide independent, assisted living services and other health related
services for elderly residents,
H. R. 13, Commending and congratulating Ron Batson of Marion County, West Virginia's
Outstanding Tree Farmer for 2004,
S. C. R. 34, Designating Cass Scenic Railroad State Park's Shay No. 5 steam locomotive as
official state steam locomotive and 2005 "Year of the Shay No. 5",
S. C. R. 68, Requesting Joint Committee on Government and Finance study grievance boards
and administrative law judge systems,
provisions of House Rule 70a, the foregoing bill (S. B. 444) will be placed on the Consent Calendar.
advising that on March 9, 2004, he approved H. B. 4011, Com. Sub. for H. B. 4022, H. B. 4132 and
S. B. 524.
by the Hatfield-McCoy regional recreation authority with other law-enforcement agencies.
On page two, section three, line one, by striking out the words "In this article," and inserting
in lieu thereof the words "For purposes of this article only, and".
On the passage of the bill, the yeas and nays were taken (Roll No. 461), and there were--yeas
affirmative, the Speaker declared the bill (Com. Sub. for H. B. 3096) passed.
H. B. 4040, Relating to criteria for making decisions affecting the filling of vacancies if one
or more permanently employed instructional personnel apply for a classroom teaching position.
" ARTICLE 4. SALARIES, WAGES AND OTHER BENEFITS.
(3) The amount of course work and/or degree level course work, degree level or both in the
relevant field and degree level generally;
(7) Other measures or indicators upon which the relative qualifications of the applicant may
fairly be judged.
shall make decisions a decision affecting the filling of such positions the position on the basis of the
(6) Receiving an overall rating of satisfactory in the previous two evaluations over the
previous two years conducted pursuant to section twelve, article two of this chapter; and
(f) With the exception of guidance counselors, the The seniority of classroom teachers, as
defined in section one, article one of this chapter with the exception of guidance counselors shall be
determined on the basis of the length of time the employee has been employed as a regular full-time
certified and/or licensed professional educator by the county board of education and shall be granted
in all areas that the employee is certified and/or licensed certified, licensed or both.
of professional employment on the basis of the length of time the employee has been employed by the county board of education in that area: Provided, That if an employee is certified as a classroom
its employment, the employee with the least amount of seniority shall be properly notified and
released from employment pursuant to the provisions of section two, article two of this chapter. The
where such the employee is certified and was previously employed or to any lateral area for which
such the employee is certified and/or licensed certified, licensed or both, if such the employee's
seniority is greater than the seniority of any other employee in that area of certification and/or licensure certification, licensure or both;
(3) If an employee subject to release holds certification and/or licensure certification,
licensure or both in more than one lateral area and if such the employee's seniority is greater than
the seniority of any other employee in one or more of those areas of certification and/or licensure
certification, licensure or both, the employee subject to release shall be employed in the professional
position held by the employee with the least seniority in any of those areas of certification and/or
licensure certification, licensure or both; and
(4) If, prior to the first day of August of the year a reduction in force is approved, the reason
for any particular reduction in force no longer exists as determined by the county board in its sole
and exclusive judgment, the board shall rescind the reduction in force or transfer and shall notify the
recall list with proper certification and higher seniority, that person shall be placed in the position
restored as a result of the reduction in force being rescinded.
(k) For the purpose of this article, all positions which meet the definition of classroom teacher
as defined in section one, article one of this chapter shall be lateral positions. For all other
professional positions, the county board of education shall adopt a policy by the thirty-first day of
October, one thousand nine hundred ninety-three, and may modify said the policy thereafter as
necessary, which defines which positions shall be lateral positions. The board shall submit a copy
of its policy to the state board within thirty days of adoption or any modification, and the state board shall compile a report and submit same the report to the legislative oversight commission on
education accountability by the thirty-first day of December, one thousand nine hundred ninety-three,
and by such that date in any succeeding year in which any county board submits a modification of
its policy relating to lateral positions. In adopting such a the policy, the board shall give
consideration to the rank of each position in terms of title; nature of responsibilities; salary level;
certification and/or licensure certification, licensure or both; and days in the period of employment.
(l) After the fifth day prior to the beginning of the instructional term, no person employed and
assigned to a professional position may transfer to another professional position in the county during
that instructional term unless the person holding that position does not have valid certification. The
the next instructional term when it is determined to be in the best interest of the students: Provided,
That the county superintendent shall notify the state board of each transfer of a person employed in
a professional position to another professional position after the fifth day prior to the beginning of
the instructional term. The Legislature finds that it is not in the best interest of the students
particularly in the elementary grades to have multiple teachers for any one grade level or course
during the instructional term. It is the intent of the Legislature that the filling of positions through
transfers of personnel from one professional position to another after the fifth day prior to the beginning of the instructional term should be kept to a minimum.
employed or to any lateral area for which they have certification and/or licensure certification,
licensure or both, the employee shall be recalled on the basis of seniority if no regular, full-time
professional personnel, or those returning from leaves of absence with greater seniority, are qualified,
apply for and accept such the position.
change in address or of any change in certification and/or licensure certification, licensure or both.
(4) A position held by a certified and/or licensed teacher who is certified, licensed or both,
who has been issued a permit for full-time employment and is working toward certification in the
permit area shall not be subject to posting if the certificate is awarded within five years; and
certified and/or licensed certified, licensed or both and agrees to the reassignment.
(r) Any board failing to comply with the provisions of this article may be compelled to do so
by mandamus and shall be liable to any party prevailing against the board for court costs and
promotion or employment in violation of this section shall be awarded the job, pay and any
applicable benefits retroactive to the date of the violation and payable entirely from local funds. Further, the board shall be liable to any party prevailing against the board for any court reporter costs
(s) The county board shall compile, update annually on the first day of July and make
available by electronic or other means to all employees a list of all professional personnel employed
by the county, their areas of certification and their seniority."
affirmative, the Speaker declared the bill (H. B. 4040) passed.
On this question, the yeas and nays were taken (Roll No. 463), and there were--yeas 96, nays
affirmative, the Speaker declared the bill (H. B. 4040) takes effect from its passage.
H. B. 4554, Relating to the rights, privileges and benefits of substitute service personnel
employed to fill vacancies created by leaves of absence.
On page two, section fifteen, line sixteen, following the word "employee", by inserting the
words "and is employed in the position for twenty or more working days".
On page three, section fifteen, line twenty-nine, following the word "or", by inserting the
On page six, section fifteen, line eighty-nine, by striking out the word "deemed" and inserting
in lieu thereof the word "considered".
thirty working days; and considering certain bus operators to be employed in the same building or
working station."
affirmative, the Speaker declared the bill (H. B. 4554) passed.
On this question, the yeas and nays were taken (Roll No. 465), and there were--yeas 98, nays
children inconsistent with existing licensing regulations.
the following: "ARTICLE 1. PURPOSES; DEFINITIONS.
Before any child may be directed for placement in a particular facility or for services of a
child welfare agency licensed by the department, a court shall make inquiry into the bed space of the
facility available to accommodate additional children and the ability of the child welfare agency to
meet the particular needs of the child. A court shall not order the placement of a child in a particular
facility if it has reached its licensed capacity or order conditions on the placement of the child which
conflict with licensure regulations applicable to the facility promulgated pursuant to the provisions
of article two-b of this chapter and articles one-a, nine and seventeen, chapter twenty-seven of this
code. Further, a child welfare agency is not required to accept placement of a child at a particular facility if the facility remains at licensed capacity or is unable to meet the particular needs of the
child. A child welfare agency is not required to make special dispensation or accommodation,
reorganize existing child placement, or initiate early release of children in placement to reduce actual
occupancy at the facility."
affirmative, the Speaker declared the bill (H. B. 4598) passed.
Delegates Beane and Browning offered the following resolution, which was read by its title
H. C. R. 79 - "Requesting the Joint Committee on Government and Finance to study the
operation and supervision of community corrections and home incarceration programs within the
various counties throughout the State of West Virginia."
Whereas, The Legislature has previously authorized the establishment and operation of local
community corrections programs within the various counties through the passage of the West
Virginia Community Corrections Act; and
Whereas, The operation of the community-based correctional programs are important to our
system of justice within the state and further, the proper supervision of persons sentenced to these
programs is a matter of public interest in those counties having already established these programs;
Whereas, The Legislature has previously authorized the establishment and operation of
home incarceration programs within the various counties through the passage of the Home
Incarceration Act; and
Whereas, At this time there is good reason to believe that there currently exists a wide
variety and diversity of program practices within the various counties through which the actual
operation, management and supervision of these community-based correctional programs are
currently being administered by differing authorities; therefore, be it
current organization and operation of community corrections and home incarceration programs
within the various counties; and, be it
session of the Legislature in 2005 on its findings, conclusions and recommendations, together with
to draft necessary legislation necessary to effectuate its recommendations; and, be it
Delegate Manchin (By Request) offered the following resolution, which was read by its title
H. C. R. 80 - "Requesting the Division of Highways to name the new bridge, on State Route
73 south of Fairmont and just north of Boothsville in Marion County, the 'Andrew G. and Carmen
L. Hauge Bridge'."
Whereas, In 1918, one year old Andrew G. Hauge came to Fairmont, West Virginia with
his parents who started a business that through hard work held together during the depression. Just
prior to the great depression, his parents purchased property on Route 73 from the C. H. Jenkins Coal
Company. When his father passed away while Andrew G. Hauge was a young man, his mother ran
the business out of a building along Fairmont Avenue which even today contains the Hauge's name
on its stained glass front windows; and
Whereas, Andrew G. Hauge graduated from Ohio State University, obtained his pilots
license and in 1941 enlisted in the United States Air Force serving in the 51st fighter squadron in
India. While there, he met and eventually married a nurse named "Petty," who was serving in the
20th General Hospital after having worked as a scrub nurse in the operating room of the Mayo
Clinic. After the war, Lt. Col. Andrew G. Hauge and Carmen L. Hauge returned to Fairmont to the
property along Route 73. They raised twin sons, Allen "Fritz" Hauge and David "Haunz" Hauge. Both sons attended Wooster College. Allen became an international consultant and David who also
attended the West Virginia University School of Medicine became a neurosurgeon; and
Whereas, In 1958, Andrew G. Hauge led the effort to establish the Tri-County Water
Association to help provide clean water to the residents along Route 73. He served as a member and president of the Marion County School Board. He also led an effort to form the Grant Public
Service District to provide a sewage system for Boothville and the surrounding area; and
Whereas, Andrew G. and Carmen L. Hauge have been members of the Grace Lutheran
Church in Fairmont and spent much of their lives operating Hauge's florist and greenhouse in
Fairmont and on Route 73 south of Fairmont; and
Whereas, Andrew G. and Carmen L. Hauge have given of themselves to their country, this
state, Marion County and especially Fairmont and they have persevered through hard work and strength of character through the years setting an example of the highest ideals of family, service to
their community and their country for all West Virginians to appreciate; and
Whereas, It is fitting and just that this bridge beside their homeplace be named for these true
West Virginian's who have served this country in time of war, contributed to their community in
good times and bad times, and have gained the love and respect of all who know them; therefore,
That the Legislature hereby requests the Division of Highways to name the new bridge, on
State Route 73 south of Fairmont and just north of Boothsville in Marion County, the "Andrew G.
and Carmen L. Hauge Bridge"; and, be it
bridge displaying the name "Andrew G. and Carmen L. Hauge Bridge"; and, be it
copy of this resolution to the Secretary of the Department of Transportation and to Andrew G. and
Carmen L. Hauge.
Delegates Armstead, Walters and Webb (By Request) offered the following resolution, which
H. C. R. 81 - "Requesting the Commissioner of the Division of Highways to name the
the 'Shaffer Bridge'."
Whereas, For approximately 70 years, members of the Shaffer family lived in the house
which was taken by construction of the new bridge; and
Whereas, For approximately 100 years, three generations of the Shaffer family have owned
the property adjoining the new bridge; and
Whereas, The late James and Ella Shafer first settled on this property in the early 1900's,
farming the land and raising five siblings; and
Whereas, James and Ella's son, the late Starling Shaffer (who changed the spelling of his
last name,) and his wife Irene, assumed ownership of the property in 1959 after James' death and
continued to live on the land and farm it until Starling's death; and Whereas, Starling's sons, Bob and Larry Shaffer, assumed ownership of the property after
their father's passing in 1996 and both brothers have continued to maintain the land, and Larry and
his wife, Betty, have continued to reside on the land; and
Whereas, The Shaffer family's century of dedicated and loving stewardship of this land
should not go unnoticed and, indeed, should be commended; therefore, be it
recently constructed bridge over Little Sandy Creek on Frame Road near Elkview, Kanawha County, the "Shaffer Bridge"; and, be it
both ends of this bridge which designates the bridge as the "Shaffer Bridge"; and, be it
resolution to the Commissioner of the Division of Highways and to Bob and Larry Shaffer.
Delegate Susman presented a petition, signed by eighty-seven Raleigh County Schools
Transportation Department personnel, opposing any proposal to delay the purchase of new school
Delegate Stemple presented a petition, signed by one hundred twenty-seven residents of
Calhoun County requesting the Department of Highways to upgrade Right Fork Daniels Run Road;
which was referred to the Committee on Roads and Transportation.
Delegate Stemple presented a petition signed by fifty-one residents of Calhoun County
requesting the Department of Highways to upgrade Liberty Hill Road; which was referred to the
Committee on Roads and Transportation.
Delegate Stemple presented a petition signed by twelve residents of Calhoun County
requesting the Department of Highways to upgrade County Route 16/35; which was referred to the
On the passage of the bills, the yeas and nays were taken (Roll No. 467), and there were--yeas
declared the bills (S. B. 100, Com. Sub. for S. B. 181, S. B. 469, S. B. 470, S. B. 506 and S. B. 576)
Delegates on the Consent Calendar bills and request concurrence on those requiring the same.
S. B. 575 and S. B. 578, on second reading, Consent Calendar, to the House Calendar, by
S. B. 160, Extending time to appropriate money from public employees insurance agency
reserve fund to bureau of medical services; on second reading, coming up in regular order, was read a second time and ordered to third reading.
Com. Sub. for S. B. 420, Relating generally to motor fuels excise tax; on second reading,
coming up in regular order, was, at the request of Delegate Staton, and by unanimous consent, laid
S. B. 517, Relating to standard nonforfeiture law for individual deferred annuities; on second
"That §33-7-9 of the code of West Virginia, 1931, as amended, be amended and reenacted;
and §33-13-30a of said code be amended and reenacted, all to read as follows:
ARTICLE 7.ASSETS AND LIABILITIES
(b) Reserve valuation. -- The commissioner shall annually value, or cause to be valued, the
reserve liabilities (hereinafter called reserves) for all outstanding life insurance policies and annuity
and pure endowment contracts of every life insurance company doing business in this state and may
certify the amount of any such the reserves specifying the mortality table or tables, rate or rates of
interest and methods (net level premium method or other) used in the calculation of such the
reserves. In calculating such the reserves, he or she may use group methods and approximate
averages for fractions of a year or otherwise. In lieu of the valuation of the reserves herein required
of any foreign or alien company, he or she may accept any valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when such the valuation
complies with the minimum standard herein provided and if the official of such the state or
jurisdiction accepts as sufficient and for all valid legal purposes the certificate of valuation of the
commissioner when such the certificate states the valuation to have been made in a specified manner
according to which the aggregate reserves would be at least as large as if they had been computed
in the manner prescribed by the law of that state or jurisdiction.
(c) Actuarial opinion of reserves. -- This subsection shall become operative on the first day
of January, one thousand nine hundred ninety-six.
(1) General. -- Every life insurance company doing business in this state shall annually
submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held
in support of the policies and contracts specified by the commissioner by regulation are computed
appropriately, are based on assumptions which satisfy contractual provisions, are consistent with
prior reported amounts and comply with applicable laws of this state. The commissioner by
regulation shall define the specifics of this opinion and add any other item considered to be necessary
(A) Every life insurance company, except as exempted by or pursuant to regulation, shall also
annually include in the opinion required by subdivision (1) of this subsection an opinion of the same
qualified actuary as to whether the reserves and related actuarial items held in support of the policies
and contracts specified by the commissioner by regulation, when considered in light of the assets
held by the company with respect to the reserves and related actuarial items, including, but not
limited to, the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the company's obligations
under the policies and contracts, including, but not limited to, the benefits under and expenses
(B) The commissioner may provide by regulation for a transition period for establishing any
higher reserves which the qualified actuary may consider necessary in order to render the opinion
(3) Requirement for opinion under subdivision (2). -- Each opinion required by subdivision
(2) of this subsection shall be governed by the following provisions:
(A) A memorandum in form and substance acceptable to the commissioner as specified by
regulation shall be prepared to support each actuarial opinion.
(B) If the insurance company fails to provide a supporting memorandum at the request of the
commissioner within a period specified by regulation or the commissioner determines that the
supporting memorandum provided by the insurance company fails to meet the standards prescribed
by the regulations or is otherwise unacceptable to the commissioner, the commissioner may engage
a qualified actuary at the expense of the company to review the opinion and the basis for the opinion
and prepare such supporting memorandum as is required by the commissioner.
(4) Requirement for all opinions. -- Every opinion shall be governed by the following
(A) The opinion shall be submitted with the annual statement reflecting the valuation of such
reserve liabilities for each year ending on or after the thirty-first day of December, one thousand nine
hundred ninety-five.
(B) The opinion shall apply to all business in force, including individual and group health
insurance plans, in form and substance acceptable to the commissioner as specified by regulation.
(C) The opinion shall be based on standards adopted, from time to time, by the actuarial
standards board and on such additional standards as the commissioner may by regulation prescribe.
(D) In the case of an opinion required to be submitted by a foreign or alien company, the
commissioner may accept the opinion filed by that company with the insurance supervisory official
of another state if the commissioner determines that the opinion reasonably meets the requirements
applicable to a company domiciled in this state.
(E) For the purposes of this section, 'qualified actuary' means a member in good standing of
the American academy of actuaries who meets the requirements set forth in such regulations.
(F) Except in cases of fraud or willful misconduct, the qualified actuary shall is not be liable
for damages to any person (other than the insurance company and the commissioner) for any act,
error, omission, decision or conduct with respect to the actuary's opinion.
(G) Disciplinary action by the commissioner against the company or the qualified actuary
shall be defined in regulations by the commissioner.
(H) Any memorandum in support of the opinion and any other material provided by the
company to the commissioner in connection therewith shall be kept confidential by the
commissioner and shall not be made public and shall not be subject to subpoena, other than for the
purpose of defending an action seeking damages from any person by reason of any action required
by this section or by regulations promulgated hereunder: Provided, That the memorandum or other
material may otherwise be released by the commissioner: (i) With the written consent of the
company; (ii) to the American academy of actuaries upon request stating that the memorandum or other material is required for the purpose of professional disciplinary proceedings and setting forth
procedures satisfactory to the commissioner for preserving the confidentiality of the memorandum
or other material; or (iii) in accordance with section nineteen, article two of this chapter. Once any
portion of the confidential memorandum is cited by the company in its marketing or is cited by the
company before any governmental agency other than a state insurance department or is released by
the company to the news media, all portions of the confidential memorandum shall be no longer
(d) Computation of minimum standards. -- Except as otherwise provided in subsections (e),
(f) and (m) of this section, the minimum standard for the valuation of all such policies and contracts
issued prior to the effective date of this section shall be that provided by the laws in effect
immediately prior to such the effective date. Except as otherwise provided in subsections (e), (f) and
(m) of this section, the minimum standard for the valuation of all such policies and contracts issued
on or after the effective date of this section shall be the commissioners reserve valuation methods
defined in subsections (g), (h), (k) and (m) of this section, three and one-half percent interest or in
the case of life insurance policies and contracts, other than annuity and pure endowment contracts,
issued on or after the first day of June, one thousand nine hundred seventy-four, four percent interest
for such policies issued prior to the sixth day of April, one thousand nine hundred seventy-seven,
five and one-half percent interest for single premium life insurance policies and four and one-half
percent interest for all other such policies issued on and after the sixth day of April, one thousand
nine hundred seventy-seven, and the following tables:
(1) For all ordinary policies of life insurance issued on the standard basis, excluding any
disability and accidental death benefits in such policies: (A) The commissioners 1941 standard ordinary mortality table for such policies issued prior
to the operative date of subsection (4a), section thirty, article thirteen of this chapter; (B) The commissioners 1958 standard ordinary mortality table for such policies issued on or
after the operative date of said subsection (4a),section thirty, article thirteen of this chapter, and prior
to the operative date of subsection (4c) of said section: Provided, That for any category of such
policies issued on female risks, all modified net premiums and present values referred to in this
section may be calculated according to an age not more than six years younger than the actual age
of the insured; and,
(C) for such For policies issued on or after the operative date of subsection (4c), section
thirty, article thirteen of this chapter: (I) The commissioners 1980 standard ordinary mortality table; or,
(ii) at the election of the company for any one or more specified plans of life insurance, the
commissioners 1980 standard ordinary mortality table with ten-year select mortality factors; or,
(iii) any ordinary mortality table adopted after the year one thousand nine hundred eighty by
the national association of insurance commissioners that is approved by regulation rule promulgated
by the commissioner for use in determining the minimum standard of valuation for such the policies.
(2) For all industrial life insurance policies issued on the standard basis, excluding any
disability and accidental death benefits in such the policies: The 1941 standard industrial mortality
table for such policies issued prior to the operative date of subdivision (4), subsection (b), section
thirty, article thirteen of this chapter and for such policies issued on or after such the operative date,
the commissioners 1961 standard industrial mortality table or any industrial mortality table adopted
after the year one thousand nine hundred eighty by the national association of insurance commissioners that is approved by regulation rule promulgated by the commissioner for use in
determining the minimum standard of valuation for such the policies.
(3) For individual annuity and pure endowment contracts, excluding any disability and
accidental death benefits in such policies: The 1937 standard annuity mortality table or, at the option
of the company, the annuity mortality table for 1949, ultimate, or any modification of either of these
tables approved by the commissioner.
(4) For group annuity and pure endowment contracts, excluding any disability and accidental
death benefits in such the policies: The group annuity mortality table for 1951, any modification of
such the table approved by the commissioner, or at the option of the company, any of the tables or
modifications of tables specified for individual annuity and pure endowment contracts.
(5) For total and permanent disability benefits in or supplementary to ordinary policies or
contracts: For policies or contracts issued on or after the first day of January, one thousand nine
hundred sixty-six, the tables of period two disablement rates and the 1930 to 1950 termination rates
of the 1952 disability study of the society of actuaries, with due regard to the type of benefit or any
tables of disablement rates and termination rates adopted after the year one thousand nine hundred
eighty by the national association of insurance commissioners that are approved by regulation rule
promulgated by the commissioner for use in determining the minimum standard of valuation for such
the policies; for policies or contracts issued on or after the first day of January, one thousand nine
hundred sixty-one, and prior to the first day of January, one thousand nine hundred sixty-six, either
such tables or, at the option of the company, the Class (3) disability table (1926); and for policies
issued prior to the first day of January, one thousand nine hundred sixty-one, the Class (3) disability
table (1926).
Any such table shall, for active lives, be combined with a mortality table permitted for
calculating the reserves for life insurance policies.
(6) For accidental death benefits in or supplementary to policies issued on or after the first
day of January, one thousand nine hundred sixty-six, the 1959 accidental death benefits table or any
accidental death benefits table adopted after the year one thousand nine hundred eighty by the
national association of insurance commissioners, that is approved by regulation rules promulgated
by the commissioner for use in determining the minimum standard of valuation for such policies,
for policies issued on or after the first day of January, one thousand nine hundred sixty-one, and prior
to the first day of January, one thousand nine hundred sixty-six, either such table or, at the option
of the company, the intercompany double indemnity mortality table; and for policies issued prior to
the first day of January, one thousand nine hundred sixty-one, the intercompany double indemnity
mortality table. Either table shall be combined with a mortality table for calculating the reserves for
(7) For group life insurance, life insurance issued on the substandard basis and other special
benefits: Such tables Tables as may be approved by the commissioner.
as provided in subsection (f) of this section, the minimum standard for the valuation of all individual
annuity and pure endowment contracts issued on or after the operative date of this subsection, as
defined herein, and for all annuities and pure endowments purchased on or after such the operative
date under group annuity and pure endowment contracts shall be the commissioner's reserve
valuation methods defined in subsections (g) and (h) of this section and the following tables and
(1) For individual annuity and pure endowment contracts issued prior to the sixth day of
April, one thousand nine hundred seventy-seven, excluding any disability and accidental death
benefits in such the contracts: The 1971 individual annuity mortality table or any modification of
this table approved by the commissioner and six percent interest for single premium immediate
annuity contracts and four percent interest for all other individual annuity and pure endowment
(2) For individual single premium immediate annuity contracts issued on or after the sixth
day of April, one thousand nine hundred seventy-seven, excluding any disability and accidental death
benefits in such contracts: The 1971 individual annuity mortality table or any individual annuity
mortality table adopted after the year one thousand nine hundred eighty by the national association
of insurance commissioners that is approved by regulation rule promulgated by the commissioner
for use in determining the minimum standard of valuation for such the contracts or any modification
of these tables approved by the commissioner and seven and one-half percent interest;
(3) For individual annuity and pure endowment contracts issued on or after the sixth day of
April, one thousand nine hundred seventy-seven, other than single premium immediate annuity
contracts, excluding any disability and accidental death benefits in such the contracts: The 1971
individual annuity mortality table or any individual annuity mortality table adopted after the year one
thousand nine hundred eighty by the national association of insurance commissioners that is
approved by regulation promulgated by the commissioner for use in determining the minimum
standard of valuation for such the contracts or any modification of these tables approved by the
commissioner and five and one-half percent interest for single premium deferred annuity and pure
endowment contracts and four and one-half percent interest for all other such individual annuity and pure endowment contracts;
(4) For all annuities and pure endowments purchased prior to the sixth day of April, one
thousand nine hundred seventy-seven, under group annuity and pure endowment contracts, excluding
any disability and accidental death benefits purchased under such the contracts: The 1971 group
annuity mortality table or any modification of this table approved by the commissioner and six
percent interest;
(5) For all annuities and pure endowments purchased on or after the sixth day of April, one
annuity mortality table or any group annuity mortality table adopted after the year one thousand nine
hundred eighty by the national association of insurance commissioners that is approved by regulation
annuities and pure endowments or any modification of these tables approved by the commissioner
and seven and one-half percent interest.
After the third day of June, one thousand nine hundred seventy-four, any company may file
with the commissioner a written notice of its election to comply with the provisions of this
subsection after a specified date before the first day of January, one thousand nine hundred seventy-
nine, which shall be the operative date of this subsection for such the company provided, if a
company makes no such election, the operative date of this section for such the company shall be
the first day of January, one thousand nine hundred seventy-nine.
(f) Computation of minimum standard by calendar year of issue. -- (1) Applicability of this section. -- The interest rates used in determining the minimum standard for the valuation of:
(A) All life insurance policies issued in a particular calendar year, on or after the operative
date of subdivision (4), subsection (c), section thirty, article thirteen of this chapter as amended;
(B) All individual annuity and pure endowment contracts issued in a particular calendar year
on or after the first day of January, one thousand nine hundred eighty-two;
(C) All annuities and pure endowments purchased in a particular calendar year on or after the
first day of January, one thousand nine hundred eighty-two, under group annuity and pure
endowment contracts; and
after the first day of January, one thousand nine hundred eighty-two, in amounts held under
guaranteed interest contracts, shall be the calendar year statutory valuation interest rates as
(A) The calendar year statutory valuation interest rates, I, shall be determined as follows and
the results rounded to the nearer one quarter of one percent:
(ii) For single premium immediate annuities and for annuity benefits involving life
contingencies arising from other annuities with cash settlement options and from guaranteed interest
contracts with cash settlement options, I =.03 + W® -.03) where R1 is the lesser of R and .09, R2
is the greater of R and .09, R is the reference interest rate defined in this subsection and W is the
weighting factor defined in this section;
(iii) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on an issue year basis, except as stated in subparagraph (ii) of this
paragraph, the formula for life insurance stated in subparagraph (i) of this paragraph shall apply to
annuities and guaranteed interest contracts with guarantee durations in excess of ten years and the
formula for single premium immediate annuities stated in subparagraph (ii) of this paragraph shall
apply to annuities and guaranteed interest contracts with guarantee duration of ten years or less;
(iv) For other annuities with no cash settlement options and for guaranteed interest contracts
with no cash settlement options, the formula for single premium immediate annuities stated in
subparagraph (ii) of this paragraph shall apply;
(v) For other annuities with cash settlement options and guaranteed interest contracts with
cash settlement options, valued on a change in fund basis, the formula for single premium immediate
annuities stated in subparagraph (ii) of this paragraph shall apply.
(B) However, if the calendar year statutory valuation interest rate for any life insurance
policies issued in any calendar year determined without reference to this sentence differs from the
corresponding actual rate for similar policies issued in the immediately preceding calendar year by
less than one half of one percent, the calendar year statutory valuation interest rate for such life
insurance policies shall be equal to the corresponding actual rate for the immediately preceding
calendar year. For purposes of applying the immediately preceding sentence, the calendar year
statutory valuation interest rate for life insurance policies issued in a calendar year shall be
determined for the year one thousand nine hundred eighty (using the reference interest rate defined
for the year one thousand nine hundred seventy-nine) and shall be determined for each subsequent
calendar year regardless of when subdivision (4), subsection (c), section thirty, article thirteen of this
chapter, as amended, becomes operative.
(A) The weighting factors referred to in the formulas stated above are given in the following
can remain in force on a basis
guaranteed in the policy or under options to convert to plans of life insurance with premium rates
or nonforfeiture values or both which are guaranteed in the original policy;
(ii) Weighting factor for single premium immediate annuities and for annuity benefits
involving life contingencies arising from other annuities with cash settlement options and guaranteed
interest contracts with cash settlement options: .80;
(iii) Weighting factors for other annuities and for guaranteed interest contracts, except as
stated in subparagraph (ii) of this paragraph, shall be as specified in clauses (I), (II) and (III) of this
subparagraph, according to the rules and definitions in clauses (IV), (V) and (VI) of this
Guarantee Duration (Years)Weighting Factor for Plan Type
(II) For annuities and guaranteed interest contracts valued on a change in fund basis, the
factors shown in subparagraph (i) of this paragraph increased by:
A B C1 ____________________
.15.25.05
(III) For annuities and guaranteed interest contracts valued on an issue year basis (other than
those with no cash settlement options) which do not guarantee interest on considerations received
more than one year after issue or purchase and for annuities and guaranteed interest contracts valued
on a change in fund basis which do not guarantee interest rates on considerations received more than
twelve months beyond the valuation date, the factors shown in clause (I) of this subparagraph or
derived in clause (II) of this subparagraph increased by:
A B C1 .05 .05 .05 (IV) For other annuities with cash settlement options and guaranteed interest contracts with
cash settlement options, the guarantee duration is the number of years for which the contract
guarantees interest rates in excess of the calendar year statutory valuation interest rate for life
insurance policies with guarantee duration in excess of twenty years. For other annuities with no
cash settlement options and for guaranteed interest contracts with no cash settlement options, the
guaranteed duration is the number of years from the date of issue or date of purchase to the date
annuity benefits are scheduled to commence.
At any time policyholder may withdraw funds only: (1) With an adjustment to reflect
changes in interest rates or asset values since receipt of the funds by the insurance company; or (2)
without such adjustment but in installments over five years or more; or (3) as an immediate life
annuity; or (4) no withdrawal permitted;
Before expiration of the interest rate guarantee, policyholder may withdraw funds only: (1)
With an adjustment to reflect changes in interest rates or asset values since receipt of the funds by
the insurance company; or (2) without such adjustment but in installments over five years or more;
or (3) no withdrawal permitted. At the end of interest rate guarantee, funds may be withdrawn
without such adjustment in a single sum or installments over less than five years;
Policyholder may withdraw funds before expiration of interest rate guarantee in a single sum
or installments over less than five years either: (1) Without adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company; or (2) subject only to a
fixed surrender charge stipulated in the contract as a percentage of the fund.
(VI) A company may elect to value guaranteed interest contracts with cash settlement options
and annuities with cash settlement options on either an issue year basis or on a change in fund basis. Guaranteed interest contracts with no cash settlement options and other annuities with no cash
settlement options must be valued on an issue year basis. As used in this section, an issue year basis
of valuation refers to a valuation basis under which the interest rate used to determine the minimum
valuation standard for the entire duration of the annuity or guaranteed interest contract is the calendar
year valuation interest rate for the year of issue or year of purchase of the annuity or guaranteed
interest contract and the change in fund basis of valuation refers to a valuation basis under which the
interest rate used to determine the minimum valuation standard applicable to each change in the fund
held under the annuity or guaranteed interest contract is the calendar year valuation interest rate for
the year of the change in the fund.
(A) Reference interest rate referred to in subparagraph (ii), paragraph (A), subdivision (2) of
this subsection shall be defined as follows:
(i) For all life insurance, the lesser of the average over a period of thirty-six months and the
average over a period of twelve months, ending on the thirtieth day of June of the calendar year next
preceding the year of issue, of the monthly average of the composite yield on seasoned corporate
bonds as published by Moody's investors service, inc.
contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the average over a period of twelve months, ending on the
thirtieth day of June of the calendar year of issue or year of purchase, of the monthly average of the
composite yield on seasoned corporate bonds as published by Moody's investors service, inc.
(iii) For other annuities with cash settlement options and guaranteed interest contracts with
cash settlement options, valued on a year of issue basis, except as stated in subparagraph (ii) of this
paragraph, with guarantee duration in excess of ten years, the lesser of the average over a period of
thirty-six months and the average over a period of twelve months, ending on the thirtieth day of June
of the calendar year of issue or purchase, of the monthly average of the composite yield on seasoned
corporate bonds as published by Moody's investors service, inc.
(iv) For other annuities with cash settlement options and guaranteed interest contracts with
paragraph, with guarantee duration of ten years or less, the average over a period of twelve months,
ending on the thirtieth day of June of the calendar year of issue or purchase, of the monthly average
of the composite yield on seasoned corporate bonds as published by Moody's investors service, inc.
(v) For other annuities with no cash settlement options and for guaranteed interest contracts
with no cash settlement options, the average over a period of twelve months, ending on the thirtieth
day of June of the calendar year of issue or purchase, of the monthly average of the composite yield
on seasoned corporate bonds as published by Moody's investors service, inc.
(vi) For other annuities with cash settlement options and guaranteed interest contracts with
cash settlement options, valued on a change in fund basis, except as stated in subparagraph (ii) of
this paragraph, the average over a period of twelve months, ending on the thirtieth day of June of the
calendar year of the change in the fund, of the monthly average of the composite yield on seasoned corporate bonds as published by Moody's investors service, inc.
(5) Alternative method for determining reference interest rates. -- In the event that the monthly average of the composite yield on seasoned corporate bonds is
no longer published by Moody's investors service, inc., or in the event that the national association
of insurance commissioners determines that the monthly average of the composite yield on seasoned
corporate bonds as published by Moody's investors service, inc., is no longer appropriate for the
determination of the reference interest rate, then an alternative method for determination of the
reference interest rate, which is adopted by the national association of insurance commissioners and
approved by regulation promulgated by the commissioner, may be substituted.
Except as otherwise provided in subsections (h), (k) and (m) of this section, reserves
according to the commissioners reserve valuation method for the life insurance and endowment
benefits of policies providing for a uniform amount of insurance and requiring the payment of
uniform premiums shall be the excess, if any, of the present value, at the date of valuation, of such
the future guaranteed benefits provided for by such the policies, over the then present value of any
future modified net premiums therefor. The modified net premiums for any such policy shall be such
the uniform percentage of the respective contract premiums for such the benefits that the present
value, at the date of issue of the policy, of all such the modified net premiums shall be equal to the
sum of the then present value of such the benefits provided for by the policy and the excess of
subdivision (1) of this subsection over subdivision (2) of this subsection, as follows:
(1) A net level annual premium equal to the present value, at the date of issue, of such
benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per annum payable on the first and each subsequent anniversary of such policy on
which a premium falls due: Provided, That such net level annual premium shall not exceed the net
level annual premium on the nineteen-year premium whole life plan for insurance of the same
amount at an age one year higher than the age at issue of such policy.
(2) A net one-year term premium for such benefits provided for in the first policy year: Provided, That for any life insurance policy issued on or after the first day of January, one thousand
nine hundred eighty-five, for which the contract premium in the first policy year exceeds that of the
second year and for which no comparable additional benefit is provided in the first year for such
excess and which provides an endowment benefit or a cash surrender value or a combination thereof
in an amount greater than such excess premium, the reserve according to the commissioners' reserve
valuation method as of any policy anniversary occurring on or before the assumed ending date
defined herein as the first policy anniversary on which the sum of any endowment benefit and any
cash surrender value then available is greater than such excess premium shall, except as otherwise
provided in subsection (k) of this section, be the greater of the reserve as of such policy anniversary
calculated as described in the preceding paragraph and the reserve as of such the policy anniversary
calculated as described in that paragraph, but with: (i) The value defined in subdivision (1) of that
paragraph being reduced by fifteen percent of the amount of such excess first-year premium; (ii) all
present values of benefits and premiums being determined without reference to premiums or benefits
provided for by the policy after the assumed ending date; (iii) the policy being assumed to mature
on such the date as an endowment; and (iv) the cash surrender value provided on such date being
considered as an endowment benefit. In making the above comparison, the mortality and interest
bases stated in subsections (d) and (f) of this section shall be used.
Reserves according to the commissioners' reserve valuation method for: (i) Life insurance
policies providing for a varying amount of insurance or requiring the payment of varying premiums;
(ii) group annuity and pure endowment contracts purchased under a retirement plan or plan of
deferred compensation, established or maintained by an employer (including a partnership or sole
proprietorship) or by an employee organization, or by both, other than a plan providing individual
retirement accounts or individual retirement annuities under section 408 of the Internal Revenue
Code (26 U.S.C. §408) as now or hereafter amended; (iii) disability and accidental death benefits
in all policies and contracts; and (iv) all other benefits, except life insurance and endowment benefits
in life insurance policies and benefits provided by all other annuity and pure endowment contracts,
shall be calculated by a method consistent with the principles of the preceding paragraphs of this
(h) Reserve valuation method. -- Annuity and pure endowment benefits. This subsection
shall apply to all annuity and pure endowment contracts other than group annuity and pure
endowment contracts purchased under a retirement plan or plan of deferred compensation established
or maintained by an employer (including a partnership or sole proprietorship) or by an employee
organization, or by both, other than a plan providing individual retirement accounts or individual
retirement annuities under section 408 of the Internal Revenue Code (26 U.S.C. §408) as now or
Reserves according to the commissioners' annuity reserve method for benefits under annuity
or pure endowment contracts, excluding any disability and accidental death benefits in such
contracts, shall be the greatest of the respective excesses of the present values, at the date of
valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by such contracts at the end of each respective contract year over the present value, at the date
of valuation, of any future valuation considerations derived from future gross considerations,
required by the terms of such contract, that become payable prior to the end of such respective
The future guaranteed benefits shall be determined by using the mortality table, if any, and
the interest rate, or rates, specified in such the contracts for determining guaranteed benefits. The
valuation considerations are the portions of the respective gross considerations applied under the
terms of such contracts to determine nonforfeiture values.
(1) In no event shall a company's aggregate reserves for all life insurance policies, excluding
disability and accidental death benefits, issued on or after the effective date of this section be less
than the aggregate reserves calculated in accordance with the methods set forth in subsections (g),
(h), (k) and (l) of this section and the mortality table or tables and rate or rates of interest used in
calculating nonforfeiture benefits for such policies.
(2) In no event shall the aggregate reserves for all policies, contracts and benefits be less than
the aggregate reserves determined by the qualified actuary to be necessary to render the opinion
Reserves for all policies and contracts issued prior to the effective date of this section may
be calculated, at the option of the company, according to any standards which produce greater
aggregate reserves for all such policies and contracts than the minimum reserves required by the laws
in effect immediately prior to such date.
Reserves for any category of policies, contracts or benefits as established by the
commissioner issued on or after the effective date of this section may be calculated, at the option of
the company, according to any standards which produce greater aggregate reserves for such category
than those calculated according to the minimum standard herein provided, but the rate or rates of
interest used for policies and contracts, other than annuity and pure endowment contracts, shall not
be higher than the corresponding rate or rates of interest used in calculating any nonforfeiture
benefits provided therein.
Any such company which at any time shall have adopted any standard of valuation producing
greater aggregate reserves than those calculated according to the minimum standard herein provided
may, with the approval of the commissioner, adopt any lower standard of valuation, but not lower
than the minimum herein provided: Provided, That for the purposes of this section, the holding of
additional reserves previously determined by a qualified actuary to be necessary to render the opinion
required by subsection (c) of this section shall not be considered to be the adoption of a higher
standard of valuation.
If in any contract year the gross premium charged by any life insurance company on any
policy or contract is less than the valuation net premium for the policy or contract calculated by the
method used in calculating the reserve thereon but using the minimum valuation standards of
mortality and rate of interest, the minimum reserve required for such policy or contract shall be the
greater of either the reserve calculated according to the mortality table, rate of interest and method
actually used for such policy or contract or the reserve calculated by the method actually used for
such policy or contract but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium by the actual gross premium in each contract year for which
the valuation net premium exceeds the actual gross premium. The minimum valuation standards of
mortality and rate of interest referred to in this section are those standards stated in subsections (d)
and (f) of this section: Provided, That for any life insurance policy issued on or after the first day
of January, one thousand nine hundred eighty-five, for which the gross premium in the first policy
year exceeds that of the second year and for which no comparable additional benefit is provided in
the first year for such excess and which provides an endowment benefit or a cash surrender value
or a combination thereof in an amount greater than such excess premium, the foregoing provisions
of this subsection shall be applied as if the method actually used in calculating the reserve for such
policy were the method described in subsection (g) of this section, ignoring the second paragraph
of said subsection.
The minimum reserve at each policy anniversary of such a policy shall be the greater of the
minimum reserve calculated in accordance with said subsection, including the second paragraph of
that section, and the minimum reserve calculated in accordance with this subsection.
future premium determination, the amounts of which are to be determined by the insurance company
based on then estimates of future experience, or in the case of any plan of life insurance or annuity
which is of such a nature that the minimum reserves cannot be determined by the methods described
in subsections (g), (h) and (k) of this section, the reserves which are held under any such plan must:
The commissioner shall promulgate a regulation rule containing the minimum standards
applicable to the valuation of health (disability, sickness and accident) plans.
(n) The commissioner shall promulgate a rule on or before the first day of November, one
thousand nine hundred ninety-five, prescribing the guidelines and standards for statements of
actuarial opinion which are to be submitted in accordance with subsection (c) of this section and for
memoranda in support thereof; guidelines and standards for statements of actuarial opinion which
are to be submitted when a company is exempt from subdivision (2) of said subsection of the
standard valuation law; and rules applicable to the appointment of an appointed actuary.
(o) Effective date. - All acts and parts of acts inconsistent with the provision of this section
are hereby repealed as of the effective date of this section. This section shall take effect the first day
(p) Modification of the standard valuation law for certain types of contracts. -- (1) The commissioner may, by rule, establish alternative methods of calculating reserve
liabilities, which methods shall be used to calculate reserve liabilities for the types of policies,
annuities or other contracts identified in the rule: Provided, That the method specified in the rule
shall be one which, in the opinion of the commissioner and in light of the methods applied to such
the contracts by the insurance regulators of other states, is appropriate to such the contracts. This
power shall be in addition to, and in no way diminish, rule-making power granted to the
commissioner elsewhere in this code.
(2) The legislative rule filed in the state register on the twentieth day of August, one thousand nine hundred ninety-six, (valuation of life insurance policies, 114 CSR 49) is hereby disapproved
and is not authorized for promulgation: Provided, That for purposes of determining the legal effects
of the aforementioned rule, this provision shall be considered to have taken effect on the thirty-first
day of December, one thousand nine hundred ninety-seven. This disapproval shall in no way limit
the commissioner's power to promulgate in the future a rule similar or identical to the rule here
(a) This section shall be known as the 'Standard Nonforfeiture Law for Individual Deferred
Annuities'.
(b) This section may not apply to any reinsurance, group annuity purchased under a
retirement plan or plan of deferred compensation established or maintained by an employer
(including a partnership or sole proprietorship) or by an employee organization, or by both, other
than a plan providing individual retirement accounts or individual retirement annuities under Section
408 of the Internal Revenue Code, as now or hereafter amended, premium deposit fund, variable
annuity, investment annuity, immediate annuity, any deferred annuity contract after annuity payments
have commenced or reversionary annuity, nor to any contract which shall be delivered outside this
state through an agent or other representative of the company issuing the contract.
(c) In the case of contracts issued on or after the operative date of this section as defined in
subsection (l) of this section, no contract of annuity, except as stated in subsection (b) of this section,
shall be delivered or issued for delivery in this state unless it contains in substance the following
provisions or corresponding provisions which, in the opinion of the commissioner, are at least as favorable to the contract holder, upon cessation of payment of considerations under the contract:
(1) That upon cessation of payment of considerations under a contract, the company will
grant a paid-up annuity benefit on a plan stipulated in the contract of the value as is specified in
subsections (e), (f), (g), (h) and (j) of this section;
(2) If a contract provides for a lump sum settlement at maturity or at any other time, that,
upon surrender of the contract at or prior to the commencement of any annuity payments, the
company will pay in lieu of any paid-up annuity benefit a cash surrender benefit of the amount as
is specified in subsections (e), (f), (h) and (j) of this section. The company shall reserve the right to
defer the payment of the cash surrender benefit for a period of six months after demand therefor with
surrender of the contract;
(3) A statement of the mortality table, if any, and interest rates used in calculating any
minimum paid-up annuity, cash surrender or death benefits that are guaranteed under the contract,
together with sufficient information to determine the amounts of the benefits; and
(4) A statement that any paid-up annuity, cash surrender or death benefits that may be
available under the contract are not less than the minimum benefits required by any statute of the
state in which the contract is delivered and an explanation of the manner in which the benefits are
altered by the existence of any additional amounts credited by the company to the contract, any
indebtedness to the company on the contract or any prior withdrawals from or partial surrenders of
Notwithstanding the requirements of this subsection, any deferred annuity contract may
provide that if no considerations have been received under a contract for a period of two full years
and the portion of the paid-up annuity benefit at maturity on the plan stipulated in the contract arising from considerations paid prior to the period would be less than twenty dollars monthly, the company
may at its option terminate the contract by payment in cash of the then present value of the portion
of the paid-up annuity benefit, calculated on the basis of the mortality table, if any, and interest rate
specified in the contract for determining the paid-up annuity benefit and by the payment shall be
relieved of any further obligation under the contract.
(d) (1) The minimum values as specified in subsections (e), (f), (g), (h) and (j) of this section
of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall be
based upon minimum nonforfeiture amounts as defined in this section subdivision:
(1) (A) With respect to contracts providing for flexible considerations, the minimum
nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be
equal to an accumulation up to the time at a rate of interest of three percent per annum of percentages
of the net considerations (as hereinafter defined) paid prior to the time, decreased by the sum of:
(A) (i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate
of interest of three percent per annum; and
(B) (ii) The amount of any indebtedness to the company on the contract, including interest
due and accrued; and increased by any existing additional amounts credited by the company to the
The net considerations for a given contract year used to define the minimum nonforfeiture
amount shall be an amount not less than zero and shall be equal to the corresponding gross
considerations credited to the contract during that contract year less than an annual contract charge
of thirty dollars and less a collection charge of one dollar and twenty-five cents per consideration
credited to the contract during that contract year. The percentages of net considerations shall be sixty-five percent of the net consideration for the first contract year and eighty-seven and one-half
percent of the net considerations for the second and later contract years. Notwithstanding the
provisions of the preceding sentence, the percentage shall be sixty-five percent of the portion of the
total net consideration for any renewal contract year which exceeds by not more than two times the
sum of those portions of the net considerations in all prior contract years for which the percentage
was sixty-five percent;
Notwithstanding any other provision of this section, any contract issued on or after the first
day of July, two thousand three, and before the first day of July, two thousand five six, the interest
rate at which net considerations, prior withdrawals and partial surrenders shall be accumulated for
the purpose of determining nonforfeiture amounts may not be less than one and one-half percent per
(2) (B) With respect to contracts providing for fixed scheduled considerations, minimum
nonforfeiture amounts shall be calculated on the assumption that considerations are paid annually
in advance and shall be defined as for contracts with flexible considerations which are paid annually
(A) (i) The portion of the net consideration for the first contract year to be accumulated shall
be the sum of sixty-five percent of the net consideration for the first contract year plus twenty-two
and one-half percent of the excess of the net consideration for the first contract year over the lesser
of the net considerations for the second and third contract years;
(B) (ii) The annual contract charge shall be the lesser of: (i) (1) Thirty dollars; or (ii) (2) ten
percent of the gross annual consideration;
(3) (C) With respect to contracts providing for a single consideration, minimum nonforfeiture amounts shall be defined as for contracts with flexible considerations except that the percentage of
net consideration used to determine the minimum nonforfeiture amount shall be equal to ninety
percent and the net consideration shall be the gross consideration less a contract charge of seventy-
(D) This subdivision applies to contracts issued before the first day of July, two thousand
four, and may be applied by a company on a contract-by-contract basis to contracts issued on or after
the first day of July, two thousand four, and before the first day of July, two thousand six;
(2) The minimum values as specified in subsections (e), (f), (g), (h) and (j) of any paid-up
annuity, cash surrender or death benefits available under an annuity contract shall be based upon
minimum nonforfeiture amounts as defined in this subdivision;
(A) (i) The minimum nonforfeiture amount at any time at or prior to the commencement of
any annuity payments shall be equal to an accumulation up to such time at rates of interest as
indicated in paragraph (B) of this subdivision of the net considerations (as hereinafter defined) paid
prior to such time, decreased by the sum of subparagraphs (I) through (IV) below:
(I) Any prior withdrawals from or partial surrenders of the contract accumulated at rates of
interest as indicated in paragraph (B);
(II) An annual contract charge of fifty dollars, accumulated at rates of interest as indicated
in paragraph (B) of this subdivision;
(III) Any premium tax paid by the company for the contract, accumulated at rates of interest
as indicated in subparagraph (ii), paragraph (B) of this subdivision; and
(IV) The amount of any indebtedness to the company on the contract, including interest due
and accrued;
(ii) The net considerations for a given contract year used to define the minimum nonforfeiture
amount shall be an amount equal to eighty-seven and one-half percent of the gross considerations
credited to the contract during that contract year;
(B) The interest rate used in determining minimum nonforfeiture amounts shall be an annual
rate of interest determined as the lesser of three percent per annum and the following, which shall
be specified in the contract if the interest rate will be reset:
(i) The five-year constant maturity treasury rate reported by the federal reserve as of a date,
or average over a period, rounded to the nearest 1/20th of one percent, specified in the contract no
longer than fifteen months prior to the contract issue date or redetermination date under
subparagraph (iv) of this paragraph;
(iv) The interest rate shall apply for an initial period and may be redetermined for additional
periods. The redetermination date, basis and period, if any, shall be stated in the contract. The basis
is the date or average over a specified period that produces the value of the five-year constant
maturity treasury rate to be used at each redetermination date;
(C) During the period or term that a contract provides substantive participation in an equity
indexed benefit, it may increase the reduction described in subparagraph (ii), paragraph (B) of this
subdivision by up to an additional one hundred basis points to reflect the value of the equity index
benefit. The present value at the contract issue date, and at each redetermination date thereafter, of
the additional reduction may not exceed the market value of the benefit. The commissioner may
require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. Lacking a determination that is acceptable to the commissioner, the
commissioner may disallow or limit the additional reduction;
(D) The commissioner may adopt rules to implement the provisions of this subsection and
to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts
that provide substantive participation in an equity index benefit and for other contracts that the
commissioner determines their adjustments are justified;
(E) This subdivision shall apply to contracts outstanding on the first day of July, two
thousand four, and may be applied by a company on a contract-by-contract basis to any contract
issued after the first day of July, two thousand four, and before the first day of July, two thousand
(e) Any paid-up annuity benefit available under a contract shall be such that its present value
on the date annuity payments are to commence is at least equal to the minimum nonforfeiture amount
on that date. The present value shall be computed using the mortality table, if any, and the interest
rate specified in the contract for determining the minimum paid-up annuity benefits guaranteed in
(f) For contracts which provide cash surrender benefits, the cash surrender benefits available
prior to maturity shall may not be less than the present value as of the date of surrender of that
portion of the maturity value of the paid-up annuity benefit which would be provided under the
contract at maturity arising from consideration paid prior to the time of cash surrender reduced by
the amount appropriate to reflect any prior withdrawals from or partial surrenders of the contract,
the present value being calculated on the basis of an interest rate not more than one percent higher
than the interest rate specified in the contract for accumulating the net considerations to determine the maturity value, decreased by the amount of any indebtedness to the company on the contract,
including interest due and accrued, and increased by any existing additional amounts credited by the
company to the contract. In no event shall any cash surrender benefit be less than the minimum
nonforfeiture amount at that time. The death benefit under the contracts shall be at least equal to the
cash surrender benefit.
(g) For contracts which do not provide cash surrender benefits, the present value of any paid-
up annuity benefit available as a nonforfeiture option at any time prior to maturity shall may not be
less than the present value of that portion of the maturity value of the paid-up annuity benefit
provided under the contract arising from considerations paid prior to the time the contract is
surrendered in exchange for, or changed to, a deferred paid-up annuity, the present value being
calculated for the period prior to the maturity date on the basis of the interest rate specified in the
contract for accumulating the net considerations to determine the maturity value and increased by
any existing additional amounts credited by the company to the contract. For contracts which do not
provide any death benefits prior to the commencement of any annuity payments, the present values
shall be calculated on a basis of the interest rate and the mortality table specified in the contract for
determining the maturity value of the paid-up annuity benefit. However, in no event shall the present
value of a paid-up annuity benefit be less than the minimum nonforfeiture amount at that time.
(h) For the purpose of determining the benefits calculated under subsections (f) and (g) of
this section, in the case of annuity contracts under which an election may be made to have annuity
payments commence at optional maturity dates, the maturity date shall be deemed is considered to
be the latest date for which election shall be is permitted by the contract, but shall is not be deemed
considered to be later than the anniversary of the contract next following the annuitant's seventieth birthday or the tenth anniversary of the contract, whichever is later.
(i) Any contract which does not provide cash surrender benefits or does not provide death
benefits at least equal to the minimum nonforfeiture amount prior to the commencement of any
annuity payments shall include a statement in a prominent place in the contract that the benefits are
(j) Any paid-up annuity, cash surrender or death benefits available at any time, other than on
the contract anniversary under any contract with fixed scheduled considerations, shall be calculated
with allowance for the lapse of time and the payment of any scheduled considerations beyond the
beginning of the contract year in which cessation of payment of considerations under the contract
(k) For any contract which provides, within the same contract by rider or supplemental
contract provision, both annuity benefits and life insurance benefits that are in excess of the greater
of cash surrender benefits or a return of the gross considerations with interest, the minimum
nonforfeiture benefits shall be equal to the sum of the minimum nonforfeiture benefits for the
annuity portion and the minimum nonforfeiture benefits, if any, for the life insurance portion
computed as if each portion were a separate contract. Notwithstanding the provisions of subsections
(e), (f), (g), (h) and (j) of this section, additional benefits payable: (1) In the event of total and
permanent disability; (2) as reversionary annuity or deferred reversionary annuity benefits; or (3) as
other policy benefits additional to life insurance, endowment and annuity benefits and considerations
for all the additional benefits shall be disregarded in ascertaining the minimum nonforfeiture
amounts, paid-up annuity, cash surrender and death benefits that may be required by this section. The inclusion of the additional benefits shall may not be required in any paid-up benefits unless the additional benefits separately would require minimum nonforfeiture amounts, paid-up annuity, cash
surrender and death benefits.
(l) After the effective date of this section, any company may file with the commissioner a
written notice of its election to comply with the provisions of this section after a specified date
before the second anniversary of the effective date of this section. After the filing of the notice, then
upon the specified date which shall be the operative date of this section for the company, this section
shall become operative with respect to annuity contracts thereafter issued by the company. If a
company makes no election, the operative date of this section for the company shall be is the second
anniversary of the effective date of this section.
(m) (1) During the period from the first day of July, two thousand four, through the first day
of July, two thousand six, an insurer may elect on a contract-by-contract basis to apply the provisions
of either subdivision (1) or (2), subsection (d) of this section to any annuity contract issued during
that period of time;
(2) The provisions of subdivision (1), subsection (d) of this section expires the first day of
July, two thousand six."
S. B. 577, Continuing board of registration for foresters; on second reading, coming up in
S. B. 671, Clarifying appeal bond procedures relating to master tobacco settlement on second
S. B. 316, S. B. 319, Com. Sub. for S. B. 327, Com. Sub. for S. B. 350, Com. Sub. for S.
B. 399, Com. Sub. for S. B. 456, Com. Sub. for S. B. 508, S. B. 558, Com. Sub. for S. B. 637 and
S. B. 719 on first reading, Consent Calendar, to the House Calendar, by Delegate Trump.
S. B. 536, on first reading, Consent Calendar, to the House Calendar, by Delegate
Fleischauer.
Com. Sub. for S. B. 404, Clarifying term "behavioral health services"; removing
"community care services",
S. C. R. 48, Requesting Joint Committee on Government and Finance study training and
educational needs related to Alzheimer's disease and related dementias; coming up in regular order,
S. C. R. 57, Requesting Joint Committee on Government and Finance study need for adult
day care, congregate respite and in-home services for persons with Alzheimer's
H. C. R. 53, Requesting a conduct a study on fraudulent sales of durable medical equipment
to West Virginia's seniors; coming up in regular order, as unfinished business, was reported by the
Clerk and adopted.
H. C. R. 56, Requesting a study on the current problems associated with the delivery of water
and sewer services; coming up in regular order, as unfinished business, was, at the request of
Delegate Staton, and by unanimous consent, laid over one day.
H. C. R. 74, Naming the bridge on Route 54, in Wyoming County, the "Charles S. 'Charlie
Boy' Stump, Jr. Memorial Bridge"
H. C. R. 75, Requesting the Governor to take suitable public notice each year of the month
of June as "Mountain Bike Month"; coming up in regular order, as unfinished business, was reported
commission - refundable credit; on third reading, coming up in regular order, was read a third time.
On the passage of the bill, the yeas and nays were taken (Roll No. 474), and there were--yeas
affirmative, the Speaker declared the bill (H. B. 4748) passed.
On this question, the yeas and nays were taken (Roll No. 475), and there were--yeas 99, nays
affirmative, the Speaker declared the bill (H. B. 4748) takes effect from its passage.
H. B. 4749, Supplementing, amending and increasing items of the existing appropriations
from the state road fund to the department of transportation, division of highways; on third reading,
Delegate Browning requested to be excused from voting on the passage of H. B. 4749 under
On the passage of the bill, the yeas and nays were taken (Roll No. 476), and there were--yeas
affirmative, the Speaker declared the bill (H. B. 4749) passed.
On this question, the yeas and nays were taken (Roll No. 477), and there were--yeas 99, nays
of moneys remaining unappropriated to the department of education - state department of education;
On the passage of the bill, the yeas and nays were taken (Roll No. 478), and there were--yeas
affirmative, the Speaker declared the bill (H. B. 4750) passed.
On this question, the yeas and nays were taken (Roll No. 479), and there were--yeas 99, nays
affirmative, the Speaker declared the bill (H. B. 4750) takes effect from its passage.
safety - adjutant general - state militia; on third reading, coming up in regular order, was read a third
On the passage of the bill, the yeas and nays were taken (Roll No. 480), and there were--yeas
On this question, the yeas and nays were taken (Roll No. 481), and there were--yeas 99, nays
Com. Sub. for S. B. 208, Allowing state police to engage in certain political activities while
off duty and out of uniform; on second reading, coming up in regular order, was read a second time
S. B. 286, Relating to assessment of regulated consumer lenders; on second reading, coming
An amendment, recommended by the Committee on Finance, was reported by the Clerk on
page one, line seventeen, after the article heading, by inserting the following:
"§31A-2-2. Commissioner's appointment, term, qualifications, salary, oath and bond. The commissioner of banking shall be appointed by the governor, by and with the advice and
consent of the Senate. He shall serve at the will and pleasure of the governor for the term for which
the governor was elected and until his successor is appointed and qualified, unless earlier removed
from office for cause as provided by law. Notwithstanding any other provisions in the code to the
contrary, the commissioner shall receive an annual salary of seventy-five thousand dollars and actual
expenses incurred in the performance of official business, which compensation shall be in full for
all services. Any person appointed as commissioner shall have a college degree from an accredited
institution, be of good moral character, have knowledge of the theory and practice of banking and
be at least twenty-five years of age. Before entering upon the discharge of his duties as commissioner, he shall take and subscribe
to the oath of office prescribed in section five, article four of the constitution of West Virginia and
shall enter into a bond in the penal sum of one hundred thousand dollars, with a corporate surety
authorized to engage in business in this state, conditioned upon the faithful discharge and
performance of the duties of his office. The premium of such bond shall be payable from the state
treasury out of funds allocated to the department of banking. The executed oath and bond shall be
filed in the office of the secretary of state." And,
"That §31A-2-2 and §31A-2-8 of the code of West Virginia, 1931, as amended, be amended
and reenacted to read as follows" followed by a colon.
On page one, section two, line thirteen, following the word "his", by inserting the words "or
On page two, section two, line seven, following the word "his", by inserting the words "or
"§31A-2-4. Jurisdiction of commissioner; powers, etc., of division transferred to
commissioner; powers and duties of commissioner.
(a) Subject to the powers vested in the board by article three of this chapter, the
commissioner has supervision and jurisdiction over state banks, regulated consumer lenders,
residential mortgage lenders and brokers licensed pursuant to article seventeen, chapter thirty-one
of this code, credit unions and all other persons now or hereafter made subject to his or her
supervision or jurisdiction. All powers, duties, rights and privileges vested in the division are hereby
vested in the commissioner. He or she shall be the chief executive officer of the division of banking
and is responsible for the division's organization, services and personnel and for the orderly and
efficient administration, enforcement and execution of the provisions of this chapter and all laws
vesting authority or powers in or prescribing duties or functions for the division or the commissioner.
(1) Maintain an office for the division and there keep a complete record of all the division's transactions, of the financial conditions of all financial institutions and records of the activities of
other persons as the commissioner considers important. Notwithstanding any other provision of this
code, heretofore or hereafter enacted, the records relating to the financial condition of any financial
institution and any information contained in the records shall be confidential for the use of the
commissioner and authorized personnel of the division of banking. No person shall divulge any
information contained in any records except as authorized in this subdivision in response to a valid
subpoena or subpoena duces tecum issued pursuant to law in a criminal proceeding or in a civil
enforcement action brought by the state or federal regulatory authorities. Subpoenas shall first be
directed to the commissioner, who shall authorize disclosure of relevant records and information
from the records for good cause, upon imposing terms and conditions considered necessary to protect
the confidential nature of the records, the financial integrity of the financial institution or the person
to which the records relate, and the legitimate privacy interests of any individual named in the
records. Conformity with federal procedures shall be sought where the institution maintains federal
deposit insurance. The commissioner has and may exercise reasonable discretion as to the time,
manner and extent the other records in his or her office and the information contained in the records
are available for public examination;
(2) Require all financial institutions to comply with all the provisions of this chapter and
other applicable laws, or any rule promulgated or order issued thereunder;
(3) Investigate all alleged violations of this chapter and all other laws which he or she is
required to enforce and of any rule promulgated or order issued thereunder; and
(4) Require a criminal background investigation, including fingerprint checks, of each: (A)
Applicant seeking approval to charter and/or control a state bank, state credit union, or a foreign bank state agency or representative office; (B) applicant seeking a license to engage in the business
of money transmission, currency exchange, or other activity regulated under article two, chapter
thirty-two-a of this code; (C) applicant subject to the commissioner's supervision seeking a license
to engage in the business of regulated consumer lending, mortgage lending or brokering; and (D)
division of banking financial institutions regulatory employee applicant, to be made through the
West Virginia state police and the federal bureau of investigation: Provided, That where the
applicant is a company or entity already subject to supervision and regulation by the federal reserve
board or other federal bank, thrift or credit union regulator, or is a direct or indirect subsidiary of a
company or entity subject to the supervision and regulation, or where the applicant is a company
subject to the supervision and regulation of the federal securities and exchange commission whose
stock is publicly traded on a registered exchange or through the national association of securities
dealers automated quotation system, or the applicant is a direct or indirect subsidiary of such a
company, the investigation into criminal background is not required. The provisions of this
subdivision are not applicable to applicants seeking interim bank charters organized solely for the
purpose of facilitating the acquisition of another bank pursuant to section five, article four of this
chapter: Provided, however, That where a nonexempt applicant under this subdivision is not a
natural person, the principals of the applicant are subject to the requirements of this subdivision. As
used in this subdivision, the term 'principals' means the chief executive officer, regardless of title,
managing partner if a partnership, members of the organizing group if no chief executive officer has
yet been appointed, trustee or other person controlling the conduct of the affairs of a licensee. A
person controlling ten percent or more of the stock of any corporate applicant shall be considered
to be a principal under this provision.
(c) In addition to all other authority and powers vested in the commissioner by provisions of
this chapter and other applicable laws, the commissioner may:
(1) Provide for the organization of the division and the procedures and practices of the
division and implement the procedures and practices by the promulgation of rules and forms as
appropriate and the rules shall be promulgated in accordance with article three, chapter twenty-nine-a
(2) Employ, direct, discipline, discharge and establish qualifications and duties for all
personnel for the division, including, but not limited to, examiners, assistant examiners, conservators
and receivers, establish the amount and condition of bonds for the personnel he or she considers
appropriate and pay the premiums on the bonds and, if he or she elects, have all personnel subject
to and under the classified service of the state personnel division;
(3) Cooperate with organizations, agencies, committees and other representatives of financial
institutions of the state in connection with schools, seminars, conferences and other meetings to
improve the responsibilities, services and stability of the financial institutions;
(4) In addition to the examinations required by section six of this article, inspect, examine
and audit the books, records, accounts and papers of all financial institutions at such times as
circumstances in his or her opinion may warrant;
(5) Call for and require any data, reports and information from financial institutions under
his or her jurisdiction, at such times and in such form, content and detail considered necessary by
him or her in the faithful discharge of his or her duties and responsibilities in the supervision of the
(6) Subject to the powers vested in the board by article three of this chapter, supervise the location, organization, practices and procedures of financial institutions and, without limitation on
the general powers of supervision of financial institutions, require financial institutions to:
(A) Maintain their accounts consistent with rules prescribed by the commissioner and in
accordance with generally accepted accounting practices;
(B) Observe methods and standards which he or she may prescribe for determining the value
of various types of assets;
(C) Charge off the whole or any part of an asset which at the time of his or her action could
not lawfully be acquired;
(G) Obtain insurance against damage and loss to real estate and personal property taken as
(H) Maintain adequate insurance against other risks as he or she may determine to be
necessary and appropriate for the protection of depositors and the public;
(J) Take other action that in his or her judgment is required of the institution in order to
maintain its stability, integrity and security as required by law and all rules promulgated by him or
(7) Subject to the powers vested in the board by article three of this chapter, receive from any
person or persons and consider any request, petition or application relating to the organization, location, conduct, services, policies and procedures of any financial institution and to act on the
request, petition or application in accordance with any provisions of law applicable thereto;
(8) In connection with the investigations required by subdivision (3), subsection (b) of this
section, issue subpoenas and subpoenas duces tecum, administer oaths, examine persons under oath,
and hold and conduct hearings. Any subpoenas or subpoenas duces tecum shall be issued, served
and enforced in the manner provided in section one, article five, chapter twenty-nine-a of this code. Any person appearing and testifying at a hearing may be accompanied by an attorney employed by
(9) Issue declaratory rulings in accordance with the provisions of section one, article four,
(10) Study and survey the location, size and services of financial institutions, the geographic,
industrial, economic and population factors affecting the agricultural, commercial and social life of
the state and the needs for reducing, expanding or otherwise modifying the services and facilities of
financial institutions in the various parts of the state and compile and keep current data thereon to
aid and guide him or her in the administration of the duties of his or her office;
(11) Implement all of the provisions of this chapter, except the provisions of article three of
this chapter, and all other laws which he or she is empowered to administer and enforce by the
promulgation of rules in accordance with the provisions of article three, chapter twenty-nine-a of this
(12) Implement the provisions of chapter forty-six-a of this code applicable to consumer
loans and consumer credit sales by the promulgation of rules in accordance with the provisions of
article three, chapter twenty-nine-a of this code as long as the rules do not conflict with any rules promulgated by the state's attorney general;
(13) Foster and encourage a working relationship between the division of banking and
financial institutions, credit, consumer, mercantile and other commercial and finance groups and
interests in the state in order to make current appraisals of the quality, stability and availability of
the services and facilities of financial institutions;
(14) Provide to financial institutions and the public copies of the West Virginia statutes
relating to financial institutions, suggested drafts of bylaws commonly used by financial institutions
and any other forms and printed materials found by him or her to be helpful to financial institutions,
their shareholders, depositors and patrons and make reasonable charges for the copies;
(15) Delegate the powers and duties of his or her office, other than the powers and duties
excepted in this subdivision, to qualified division personnel who shall act under the direction and
supervision of the commissioner and for whose acts he or she is responsible, but the commissioner
may delegate to the deputy commissioner of banking and to no other division personnel the
following powers, duties and responsibilities, all of which are hereby granted to and vested in the
commissioner and for all of which the commissioner also is responsible. The commissioner shall:
(A) Order any person to cease violating any provision or provisions of this chapter or other
applicable law or any rule promulgated or order issued thereunder;
(B) Order any person to cease engaging in any unsound practice or procedure which may
detrimentally affect any financial institution or depositor of the financial institution; including, but not limited to:
(i) The business of making, arranging, acting as a middleman or brokering a cash advance
or loan to a borrower for a personal, family or household purpose pursuant to an agreement under which (I) a check or share draft is executed; (II) the check, share draft or authorization for debit is
capable of being presented or drawn on the date made or on some future date on a federally insured
financial institution; (III) the check or share draft is used as security or as any direct or indirect part
of the transaction for the advance, loan or extension of credit; and (IV) the payment of the check or
share draft is deferred.
(ii) The provisions do not apply to: (I) a federally insured financial institution using accounts
or funds on deposit in the financial institution as security or collateral for a loan made by the same
institution holding the account or funds; (II) the use of a postdated check as purchase money in a
transaction which has as its primary purpose the bona fide purchase of bona fide goods or services;
(iii) Engaging in this state in the business described in subparagraph (i) of this subdivision
occurs if: (I) a signed writing evidencing the obligation or application of the consumer is received
by the creditor in this state; or (II) the creditor induces the consumer who is a resident of this state
to enter into the transaction by solicitation in this state by any means, including but not limited to: mail, telephone, radio, television, e-mail, pop-up web pages or any other electronic means: Provided,
That a loan that was solicited in this state as described in this paragraph is not a loan made in this
state if the consumer is physically present in another state when the consumer delivers a signed
writing to the creditor at its place of business in that other state;
(C) Revoke the certificate of authority, permit or license of any financial institution except
a banking institution in accordance with the provisions of section thirteen of this article; and
(D) Accept an assurance in writing that the person will not in the future engage in the conduct
alleged by the commissioner to be unlawful, which could be subject to an order under the provisions of this chapter. This assurance of voluntary compliance shall not be considered an admission of
violation for any purpose, except that if a person giving the assurance fails to comply with its terms,
the assurance is prima facie evidence that prior to this assurance the person engaged in conduct
described in the assurance;
(16) Seek and obtain civil administrative penalties against any person who violates this
chapter, the rules issued pursuant to this chapter, or any orders lawfully entered by the commissioner
or board of banking and financial institutions in an amount not more than five thousand dollars per
day for each violation: Provided, That all of the pertinent provisions of article five, chapter twenty-
nine-a of this code shall apply to any assessment of a penalty under this subsection;
(17) Receive from state banking institutions applications to change the locations of their
principal offices and to approve or disapprove these applications;
(18) Expend funds in order to promote consumer awareness and understanding of issues
related to residential mortgage lending; and
(19) Take other action as he or she may consider necessary to enforce and administer the
provisions of this chapter, except the provisions of article three of this chapter, and all other laws
which he or she is empowered to administer and enforce and apply to any court of competent
jurisdiction for appropriate orders, writs, processes and remedies."
Delegate Staton then asked and obtained unanimous consent that the bill (S. B. 286) lie over
Com. Sub. for S. B. 431, Establishing Interstate Insurance Product Regulation Compact; on
An amendment, recommended by the Committee on Banking and Insurance, was reported by the Clerk and adopted, amending the bill on page forty-five, after line forty-seven, by inserting
The insurance commissioner shall, pursuant to the provisions of section four, article three,
chapter twenty-nine-a of this code, file in the state register any rules or uniform standards which
have been adopted by the commission and have become effective in this state." And,
article, designated §33-47-1, §33-47-2, §33-47-3, §33-47-4, §33-47-5, §33-47-6, §33-47-7, §33-47-
8, §33-47-9, §33-47-10, §33-47-11, §33-47-12, §33-47-13, §33-47-14, §33-47-15; §33-47-16 and
§33-47-17, all to read as follows" followed by a colon.
S. B. 631, Relating to state fertilizer law; on second reading, coming up in regular order, was
Com. Sub. for S. B. 694, Establishing Fairness in Competitive Bidding Act; on second
adopted, amending the bill on page four, section one, line thirty-five, following the word "The", by
striking out the words "public contracting entity shall not" and inserting in lieu thereof the words
"contracting public entity may not".
On page four, section one, line forty-six, following the word "the", by striking out the words
"public contracting agency" and inserting in lieu thereof the words "contracting public entity".
On page four, section one, line forty-eight, following the word "inspection" and the period,
by inserting "(e)" and then relettering the remaining subsections.
On page five, section one, line fifty-seven, following the word "code", by inserting the word
The bill was then ordered to third reading. S. B. 697, Delegating motor carrier inspector duties to weight enforcement officers; on
H. B. 4752, Supplemental appropriation to the department of tax and revenue - division of
H. B. 4753, Supplemental appropriation to the department of environmental protection -
division of environmental protection - stream restoration fund,
H. B. 4754, Supplemental appropriation to the department of transportation - division of
H. B. 4755, Supplemental appropriation to a new item of appropriation designated the coal
heritage highway authority,
H. B. 4757, Supplemental appropriation to the department of military affairs and public
safety - division of criminal justice services,
H. B. 4758, Supplemental appropriation to the department of military affairs and public
safety - division of criminal justice services - juvenile accountability incentive.
H. B. 4759, Imposing an alternative minimum personal income tax for each taxable year on
the West Virginia taxable income of every individual meeting certain criteria; on second reading,
Com. Sub. for S. B. 125, Permitting solicitation of certain state employees for contributions
to certain campaigns in local or county elections,
S. B. 200, Requiring state police to annually report to Legislature effectiveness of recruiting
Com. Sub. for S. B. 502, Relating to rights of members of teachers defined contribution
S. B. 722, Repealing section prohibiting giving away or selling liquor in buildings where
boxing is held,
H. B. 4760, Supplemental appropriation to the governor's office - office of economic
H. B. 4762, Supplemental appropriation to the department of military affairs and public
safety - office of emergency services.
were granted Delegate Coleman.
At 12:40 p.m., on motion of Delegate Staton, the House of Delegates recessed until 5:00 p.m.,