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2023 West Virginia Code › Chapter 33. Insurance › Article 20D. Tail Insurance › §33-20D-3. Tail Insurance to Be Offered Upon Cancellation; Availability of Amortization; Minimum Premium Rates; Penalties for Noncompliance

(a) Upon cancellation, nonrenewal or termination of any claims made professional malpractice insurance policy, the insurer shall offer to the insured tail insurance coverage.
(b) Upon cancellation, nonrenewal or termination of any claims made professional malpractice insurance policy, the insurer shall offer to any professional licensed and practicing in the State of West Virginia, or who, upon retirement, last practiced in the State of West Virginia, the opportunity to amortize the payment of premiums for tail insurance over a period of not more than thirty-six months, in quarterly payments, at a rate to be established by the Insurance Commissioner: Provided, That quarterly premiums paid pursuant to this subsection shall not be less than $750.
(c) The first quarterly payment shall be payable contemporaneous with the issuance of the tail coverage policy. Subsequent payments shall be due and payable quarterly thereafter. Each licensed malpractice insurer shall submit for approval, by the commissioner, a plan for determination of partial limits in the event of default on amortized payment.
(d) Any insurer who fails to offer tail insurance or in any other way violates the provisions of this article shall be assessed a penalty equal to the amount of the premium due.
(e) The offer of tail insurance coverage required by this section shall expire forty-five days after the cancellation, termination or other expiration of the claims made professional malpractice insurance policy, unless sooner accepted, in writing, by the insured.
2023 West Virginia Code › Chapter 33. Insurance › Article 20D. Tail Insurance › §33-20D-4. Insurance Commissioner to Promulgate Rules; Establish Amortization Rates

(a) Pursuant to article three, chapter twenty-nine-a of this code, the Insurance Commissioner shall promulgate legislative rules establishing procedures necessary to effectuate the provisions of this article. The first set of rules shall be promulgated as emergency rules within forty-five days of the effective date of this article.
(b) The Insurance Commissioner shall promulgate rules and regulations providing for the amortization of premium payments for tail insurance, which rules shall include, but not be limited to:
(1) Amortization schedules for various periods, but not to exceed a period of thirty-six months;
(2) Reasonable annual amortization rates;
(3) Reasonable annual interest rates;
(4) Such other schedules and rates as the commissioner deems necessary to effect the provisions of this article.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-2. Legislative Findings

The Legislature finds and declares:
(a) That recent developments in the voluntary insurance market have made it impossible for certain West Virginia health care providers to obtain professional liability insurance coverage from insurers licensed to transact insurance in this state;
(b) That the unavailability of such insurance will have a deleterious effect on the quality and availability of public health programs and services to the citizens of this state;
(c) That it is in the best interests of the citizens of this state to preserve the quality and availability of public health programs and services; and,
(d) That the establishment and funding of a joint underwriting association will make available medical professional liability insurance to health care providers, thus preserving public health programs and services for the citizens of this state.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-4. Definitions

As used in this article, the following terms have the meanings set forth below:
(a) "Association" means the joint underwriting association created by this article.
(b) "Board" means the board of directors established pursuant to section six of this article.
(c) "Commissioner" means the Insurance Commissioner of West Virginia.
(d) "Health care provider" means a person, partnership, corporation, facility or institution licensed by, or certified in, this state or another state, to provide health care or professional health care services, including, but not limited to, a physician, osteopathic physician, hospital, dentist, registered or licensed practical nurse, optometrist, podiatrist, chiropractor, physical therapist, or psychologist.
(e) "Medical professional liability insurance", commonly known as "medical malpractice insurance", means insurance coverage for any claim for damage or loss against a health care provider arising out of the death or injury of any person proximately caused by negligence in the rendering, or the failure to render, professional services by a health care provider.
(f) "Member insurer" means every insurer authorized to write and engaged in writing, within this state, casualty insurance, as defined in section ten, article one of this chapter.
(g) "Net direct written premiums" means, for purposes of this article, direct gross premiums written in this state on casualty insurance policies, less return premiums thereon, but does not include premiums on contracts between insurers or reinsurers.
(h) "State board" means the state Board of Risk and Insurance Management.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-5. Joint Underwriting Association

(a) There is hereby created a nonprofit unincorporated legal entity to be known as the West Virginia medical professional liability insurance joint underwriting association composed of member insurers. Every insurer authorized to write and engaged in writing, within this state, casualty insurance, on a direct basis, is and shall remain a member insurer, as a condition of its authority to transact insurance in this state.
(b) Each member insurer shall participate in the association in the proportion that its net direct written premiums during the preceding calendar year, as reported in the annual statements and other reports filed by the member with the commissioner, bear to the aggregate net direct premiums written in this state by all members of the association.
(c) The association shall perform its functions under a plan of operation approved by the commissioner under section nine of this article.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-6. Board of Directors

(a) The administrative powers of the association shall be vested in a board of directors, which shall consist of nine persons serving terms established in the plan of operation. Seven of the board members shall be representatives of the member insurers and shall be appointed by the commissioner, with consideration given to whether all member insurers are fairly represented. One member shall be a health care provider, and another shall be a citizen, both appointed by the Governor with the advice and consent of the Senate.
(b) The citizen and health care provider members of the board shall receive the same compensation authorized by law for members of the Legislature for their interim duties for each day, or portion thereof, the member is engaged in the discharge of official duties. All board members shall be reimbursed for their actual and necessary expenses incurred in the discharge of official duties, except that mileage shall be reimbursed at the same rate as that authorized for members of the Legislature. All payments for compensation and expenses shall be made from the assets of the association.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-7. Association's Powers and Duties

(a) The association has, for purposes of this article and to the extent approved by the commissioner, the general powers and authority granted under the laws of this state to insurers licensed to transact insurance as defined in article one, chapter thirty-three of this code.
(b) The association may take any necessary action to make medical professional liability insurance available including, but not limited to:
(1) Assessing member insurers amounts necessary to pay the obligations of the association, administration expenses, the cost of examinations and other expenses authorized under this article.
(2) Establishing underwriting standards and criteria.
(3) Requiring an eligible health care provider to purchase an extended reporting endorsement, if available, from his or her previous primary medical professional liability carrier with respect to claims arising during previous policy periods.
(4) Entering into such contracts as are necessary or proper to carry out the provisions and purposes of this article, including contracts authorizing competent third parties with experience with joint underwriting associations or the medical professional liability line of insurance to administer the plan of operation, issue policies, oversee risk management, oversee investment management, set rates, underwrite risk or process claims or any combination thereof. Any such third-party contract must be approved by the commissioner. The provisions of article three, chapter five-a of this code, relating to purchasing procedures, do not apply to any contracts or agreements executed by or on behalf of the association under this subsection.
(5) Suing, including taking legal action necessary to recover any assessments for, on behalf of, or against member insurers.
(6) Investigating claims brought against the association and adjusting, compromising, defending, settling, and paying covered claims, to the extent of the association's obligation, and denying all other claims.
(7) Classifying risks as may be applicable and equitable.
(8) Establishing actuarially sound rates, rate classifications and rating adjustments, subject to approval by the commissioner.
(9) Purchasing reinsurance in an amount as it may from time to time consider appropriate.
(10) Issuing and marketing policies of insurance providing coverage required by this article in its own name.
(11) Investing, reinvesting and administering all funds and moneys held by the association.
(12) Establishing accounts and funds, including a reserve fund, to effectuate the purposes of this article.
(13) Developing, effectuating and promulgating any loss prevention programs aimed at the best interests of the association and the insured public.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-8. State Board of Risk and Insurance Management to Exercise Board of Directors' Powers Temporarily; Interim Plan of Operation

(a) Prior to the commissioner's approval of the final plan of operation in accordance with section nine of this article, the administrative powers of the association will be exercised by the state Board of Risk and Insurance Management.
(b) The state board shall submit to the commissioner an interim plan of operation consistent with the provisions of this article, to become effective and operative upon approval in writing by the commissioner.
(c) If the state board fails to submit a suitable interim plan of operation within thirty days, the commissioner shall adopt an interim plan which shall continue in force until superceded by a final plan of operation, submitted by the board and approved by the commissioner in accordance with section nine of this article.
(d) The interim plan of operation shall provide for economic, fair, and nondiscriminatory administration and for the prompt and efficient provision of professional liability insurance, and shall:
(1) Establish actuarially sound rates and premiums;
(2) Establish procedures for handling assets of the association;
(3) Establish procedures by which claims may be filed with the association and acceptable forms for filing claims;
(4) Establish procedures for records to be kept of all financial transactions of the association;
(5) Establish a procedure by which any member insurer or policyholder aggrieved by a final action or decision of the state board or the board of directors may appeal to the commissioner within thirty days after the action or decision; and,
(6) Contain additional provisions necessary or proper for the execution of the powers and duties of the association.
(e) The interim plan may also provide for:
(1) Assessments of members to defray losses and expenses;
(2) Creation and administration of a reserve fund;
(3) Commission arrangements;
(4) Reasonable and objective underwriting standards; and
(5) Purchase and cession of reinsurance.
(f) A health care provider is not eligible to obtain coverage under the interim plan if he or she refuses, on a regular basis, to accept patients solely because their health care coverage is provided pursuant to the West Virginia public employees insurance act, the West Virginia children's health program, West Virginia Medicaid, or the West Virginia workers' compensation fund.
(g) All member insurers shall comply with the interim plan of operation.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-9. Final Plan of Operation

(a) Once the commissioner has approved the selection of the initial board members, the board shall, within thirty days, submit to the commissioner a final plan of operation consistent with the provisions of this article.
(b) If the board fails to submit a suitable final plan of operation within the time provided in subsection (a) of this section, the commissioner shall adopt a final plan of operation as necessary or advisable to effectuate the provisions of this article.
(c) The board shall not assume administrative control of the association until the commissioner approves the final plan of operation.
(d) In addition to the matters specified in subsection (d) of section eight of this article to be included in the interim plan of operation, the final plan of operation shall:
(1) Establish procedures for the transfer of all assets and liabilities of the association from the state board to the board of directors created by section six of this article.
(2) Establish the terms of office of the board of directors.
(3) Establish regular places and times for meetings of the board of directors.
(4) Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board.
(5) Establish procedures for assessments of member insurers to defray losses and expenses;
(6) Establish reasonable and objective underwriting standards;
(7) Establish actuarially sound rates and premiums;
(8) Contain such additional provisions as are necessary or proper for the execution of the powers and duties of the association.
(d) All member insurers shall comply with the final plan of operation.
(e) Amendments to the plan of operation may be made by the commissioner or by the board of directors with the approval of the commissioner.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-10. Duties and Powers of Commissioner

(a) The commissioner shall, upon request of the board, provide the association with a statement of the net direct written premiums of each member insurer.
(b) The commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to comply with the plan of operation or fails to pay an assessment when due.
(c) Any final order of the commissioner under this article shall be subject to judicial review as provided by section fourteen, article two of this chapter.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-11. Eligibility for Coverage

(a) Only those health care providers who are unable to obtain medical professional liability insurance because it is not available through the voluntary insurance market from insurers licensed to transact insurance in West Virginia at rates approved by the commissioner are eligible to obtain coverage through the association: Provided, That any health care provider who can obtain medical professional liability insurance only pursuant to a "consent to" or "guide A" rate agreement will remain eligible to obtain coverage through the association. Any health care provider who has medical professional liability insurance pursuant to article twelve of chapter twenty-nine of this code is not eligible to obtain insurance through the association.
(b) The commissioner shall designate, based upon market conditions, the categories of health care providers who are eligible to obtain coverage from the association.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-12. Issuance of Policy

(a) If an eligible applicant meets the underwriting standards and other requirements and conditions of the association as set forth in the approved plan of operation and there is no unpaid, uncontested premium, charge or assessment due from the applicant for any prior insurance of the same kind, the association, upon receipt of the premium, charge or assessment or a portion thereof as prescribed by the plan of operation, shall cause to be issued a policy of medical professional liability insurance.
(b) The policy may not require as a condition precedent to settlement or compromise of any claim the consent or acquiescence of the policyholder.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-13. Rates; Initial Filing; Basis for Rates and Premiums

(a) The rates, rating plans, rating rules and rating classifications applicable to insurance written by the association are subject to the provisions of article twenty-b of this chapter. Policy forms applicable to insurance written by the association must conform to the requirements of the provisions of section eight, article six of this chapter.
(b) Within such time as the commissioner shall direct, the association shall submit an initial filing, in proper form, of policy forms, classifications, rates, rating plans, and rating rules applicable to medical professional liability insurance. Rates approved by the state board pursuant to section eight of this article shall remain in effect until the association's initial filing is approved.
(c) In the event the commissioner disapproves the initial filing, in whole or in part, the association shall amend the filing, in whole or in part, in accordance with the direction of the commissioner.
(d) Initial rates and premiums are to be set in consideration of the past and prospective loss and expense experience for insurers writing medical professional liability insurance within this state.
(e) After the initial year of operation, the board shall obtain and implement, at least annually, from an independent outside source, such as a medical liability actuary or a rating organization experienced with the medical liability line of insurance, written rating plans upon which premiums shall be based. The resultant premium rates must be arrived at on an actuarially sound basis and must be calculated to be self-supporting.
(f) The rates and premiums charged for insurance policies issued pursuant to this article shall not be deemed excessive because they contain an amount reasonably calculated to recoup a deficit of the association pursuant to section sixteen of this article.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-14. The Medical Professional Liability Insurance Fund; Capitalization; Transfer of Assets and Liabilities to Board of Directors

(a) There is hereby established a special revenue fund, to be known as the "medical professional liability insurance fund," into which any initial capital, surplus or premiums or assessments charged and collected by the state board under the provisions of the interim plan shall be deposited.
(b) A portion of the association's initial capital and surplus may be provided by the Legislature, in an amount, upon terms and conditions, and from sources as may be determined by the Legislature in its sole discretion.
(c) Upon approval of the final plan of operation by the commissioner, the state board shall transfer the assets and liabilities of the association to the board of directors.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-15. Deposit of Funds; Investments; Premium Tax Liability; State Not Responsible for Liabilities or Expenses of Association

(a) The board shall deposit all sums transferred from the state board into an account of the association as specified in the final plan of operation.
(b) The board may invest sums from the association's account. Any interest earned on investments or any profit generated by collection of premiums or other means shall be returned to the association's account for the purpose of implementing this article.
(c) The association is liable for premium taxes to the same extent and in the same manner as a licensed insurer engaged in transacting insurance in this state.
(d) The state is not responsible for any costs, expenses, liabilities, judgments, or other obligations of the association.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-16. Deficit; Recoupment; Assessments; Reimbursement of Members

(a) A deficit sustained by the association in any one calendar year may be recouped, pursuant to the plan of operation then in effect, by one or more of the following procedures:
(1) A contribution from a reserve fund, if any, until the same is exhausted;
(2) An assessment upon the member insurers;
(3) A prospective rate increase.
(b) In the event the board opts to assess the member insurers, each member shall be responsible for the proportion of the deficit its net direct written premiums for the preceding year bear to the aggregate net direct premiums written by all members in the preceding calendar year. Net direct written premiums subject to the provisions of article twenty-a of this chapter shall not be considered in determining a member insurer's proportional share of the deficit. A member insurer may not be assessed in any year an amount greater than two percent of its net direct written premiums for the preceding calendar year.
(c) The assessment of a member insurer may be ordered deferred, in whole or in part, upon application by the insurer if the commissioner determines that payment of the assessment may render the insurer insolvent or in danger of insolvency or otherwise seriously impair the financial stability of the member insurer.
(d) After the deficit which necessitated the assessment has been recouped, each member insurer shall be entitled to reimbursement of any assessment through a credit against the premium taxes imposed by sections fourteen and fourteen-a, article three of this chapter, in equal amounts per year for three successive years following the assessment. At the option of the member insurer, the premium tax credit may be taken over an additional number of years. The tax credit established under this subsection shall be applicable only to General Revenue Funds.
(e) A member insurer may not impose a policy surcharge on any policyholder of the member insurer for any assessment paid by the member insurer pursuant to subsection (b) of this section or otherwise refer to the assessment paid by the member insurer in any billing statement or notice provided to any policyholder of the member insurer. Nothing in this section shall prohibit a member insurer from treating any assessment payments as an expense of the member insurer for all purposes.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-19. Annual Statements

The association shall file in the office of the commissioner, on or before March 30 of each year, a statement containing information with respect to its transactions, condition, operations, and affairs during the preceding calendar year. The commissioner shall prescribe the matters and information to be contained in and the form of the annual statement. The commissioner may, at any time, require the association to furnish additional information with respect to its transactions, condition, or any matter connected therewith considered to be material and of assistance in evaluating the scope, operation, and experience of the association.
2023 West Virginia Code › Chapter 33. Insurance › Article 20E. West Virginia Medical Professional Liability Insurance Joint Underwriting Association Act › §33-20E-20. Immunity

There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the association, the board, the commissioner or their agents or employees for any action taken by them in the exercise and performance of their powers and duties under this article or for any statements made in good faith by them in any reports or communications, concerning risks insured or to be insured by the association, or at any administrative hearings conducted in connection therewith.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-1. Scope of Article

This article applies to reciprocal insurers and reciprocal insurance. Foreign and alien reciprocal insurers shall be governed by all provisions of this article not expressly made applicable only to domestic reciprocal insurers, and domestic reciprocal insurers shall be governed by all the provisions of this article.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-2. General Laws Applicable

Except as otherwise provided, and except where the context clearly requires otherwise, all the provisions of this chapter relating to insurers generally, and all the provisions of this chapter relating to insurers transacting the same kinds of insurance which reciprocal insurers are permitted to transact, are applicable to reciprocal insurers, except that article twelve of this chapter shall not apply to reciprocal insurers.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-3. Kinds of Insurance

A reciprocal insurer, upon being licensed therefor as provided in this article, when possessed of and maintaining on deposit surplus funds equal to the minimum capital required of a stock insurer to transact like kinds of insurance, may transact fire, marine, casualty or surety insurance, and may purchase reinsurance upon the risk of any subscriber, and may grant reinsurance as to any kind of insurance it is licensed to transact direct. No reciprocal insurer shall be licensed to transact, nor shall any reciprocal insurer transact, life or accident and sickness insurance.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-6. Application for License

A reciprocal insurer desiring to transact insurance may apply to the commissioner for a license. The attorney shall execute under his oath and file with the commissioner such application setting forth:
(a) The name of the insurer;
(b) The location of the insurer's principal office, which shall be the same as that of the attorney, and in the case of a domestic reciprocal insurer shall be maintained within this state;
(c) The kinds of insurance proposed to be transacted;
(d) The designation and appointment of the proposed attorney and a copy of the power of attorney;
(e) The names and addresses of the officers and directors of the attorney, if a corporation, or its members, if a firm;
(f) In the case of a domestic reciprocal insurer, the powers of the subscribers' advisory committee, and in the case of domestic, foreign or alien reciprocal insurers, the names and terms of office of the members thereof;
(g) In the case of a domestic reciprocal insurer that all moneys paid to the reciprocal shall, after deducting therefrom any sum payable to the attorney, be held in the name of the insurer and for the purposes specified in the subscribers' agreement;
(h) A copy of the subscribers' agreement;
(i) A statement of the financial condition of the insurer, a schedule of its assets, and a statement that the surplus as required by section three of this article is on hand;
(j) A copy of each policy, endorsement, and application form it then proposes to issue or use;
(k) In the case of a foreign or alien reciprocal insurer a statement from the insurance supervisory official of its state of domicile or entry that it is licensed in such state to transact the kinds of insurance it proposes to transact in West Virginia;
(l) In the case of a domestic reciprocal insurer, the names and addresses of the original subscribers who must number at least twenty-five;
(m) In the case of a domestic reciprocal insurer, a statement that each of the original subscribers has in good faith applied for insurance of a kind proposed to be transacted, and that the insurer has received from each such subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than six months at an adequate rate theretofore filed with and approved by the commissioner;
(n) Such other information as the commissioner deems necessary.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-8. Power of Attorney

(a) The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers, which power of attorney must set forth:
(1) The powers of the attorney;
(2) That the attorney is empowered to accept service of process on behalf of the insurer;
(3) The general services to be performed by the attorney;
(4) The maximum amount to be deducted from advance premiums or deposits to be paid to the attorney and the general items of expense in addition to losses, to be paid by the insurer;
(5) Except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount, which amount shall be not less than one nor more than ten times the annual premium or premium deposit stated in the policy.
(b) The power of attorney may:
(1) Provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder;
(2) Impose such restrictions upon the exercise of the power as are agreed upon by the subscribers;
(3) Provide for the exercise of any right reserved to the subscribers directly or through their advisory committee;
(4) Contain other lawful provisions deemed advisable.
(c) The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-9. Modification of Subscribers' Agreement or Power of Attorney

Modification of the terms of the subscribers' agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers' advisory committee. No modification of a domestic, foreign or alien reciprocal insurer's power of attorney or subscribers' agreement shall be effective retroactively, nor as to any insurance contract issued prior thereto, and such modification shall be reasonable and equitable, and shall be filed with the commissioner.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-10. Attorney's Bond

(a) Concurrently with the filing of the application provided for in section six of this article, the attorney of a domestic reciprocal insurer shall file with the commissioner a bond in favor of the State of West Virginia for the benefit of all persons damaged as a result of breach by the attorney of the conditions of his bond as set forth in paragraph (b) of this section. The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the commissioner's approval.
(b) The bond shall be in the penal sum of $25,000, aggregate in form, conditioned that the attorney will faithfully account for all moneys and other property of the insurer coming into his hands, and that he will not withdraw or appropriate to his own use from the funds of the insurer, any moneys or property to which he is not entitled under the power of attorney.
(c) The bond shall provide that it is not subject to cancellation unless thirty days' advance notice in writing of cancellation is given both the attorney and the commissioner.
(d) In lieu of such bond, the attorney may maintain on deposit with the State Treasurer through the office of the commissioner a like amount in cash or in value of securities qualified under this chapter as insurers' deposit investments, and subject to the same conditions as the bond.
(e) Action on the attorney's bond or to recover against any such deposit made in lieu thereof may be brought at any time by one or more subscribers suffering loss through a violation of its conditions, or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall be deposited in and become part of the insurer's funds. The total aggregate liability of the surety shall be limited to the amount of the penalty of such bond.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-11. Annual Report

(a) The annual report of a reciprocal insurer shall be made and filed by its attorney.
(b) The report shall be supplemented by such information as may be required by the commissioner relative to the affairs and transactions of the attorney insofar as they pertain to the reciprocal insurer.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-12. Process and Venue; Annual Fee

(a) Concurrently with the filing of the application provided for by the terms of section six of this article, the attorney shall file with the commissioner an instrument in writing, executed by him for said subscribers, conditioned that upon the issuance of the license provided for in section seven of this article any action, suit or other proceeding arising out of any insurance contract or policy issued under such license, may be brought in the county of this state wherein the property insured was situated either at the date of the policy or at the time when the right of action accrued, or in the county of this state wherein the person insured had a legal residence at the date of his death or at the time the right of action accrued, and that service of any process or notice may be had upon the Secretary of State in all actions, suits or other proceedings in this state arising out of such policies, contracts, agreements or other business of insurance transacted under such license, and that said Secretary of State may accept service of any such process or notice.
(b) Such service or acceptance of service shall be valid and binding upon the attorney and upon all subscribers exchanging at any time reciprocal or interinsurance contracts through the attorney. Two copies of such process or notice, in addition to the original, shall be furnished the Secretary of State, and he shall file one copy, forward one copy to the attorney and return the original with his acceptance of service or for return of service. But no process or notice shall be served on the Secretary of State or accepted by him less than ten days before the return day thereof. Where the principal office of the attorney is located in this state, service of process may be had upon all subscribers by serving same upon the attorney at said office. Service of process shall not be had upon said subscribers or any of them in any suit or other proceeding in this state except in the manner provided in this section, and any action, suit, or other proceeding may be begun and prosecuted against or defended by them under the name or designation adopted by them.
(c) The attorney shall pay to the Secretary of State an annual fee of $20.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-13. Fees and Taxes

(a) The attorney for each reciprocal insurer shall pay on behalf of such insurer all fees and taxes prescribed by this chapter for other insurers transacting like kinds of insurance, except that the amount of the premium tax shall be computed upon the gross premiums on business transacted in this state less premiums returnable because of cancellation and less amounts returned to subscribers or credited to their accounts as savings.
(b) In addition such attorney shall pay annually on behalf of such reciprocal insurer the fire marshal's tax provided by section twenty-four, article three, chapter twenty-nine of this code, to the extent such tax is applicable to the kinds of insurance transacted in this state by such reciprocal insurer.
(c) No reciprocal insurer shall be liable for any taxes except those described in this section and property taxes upon real and personal property, unless reciprocal insurers be specifically mentioned in the law imposing such taxes.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-14. Who May Be Subscribers

Individuals, partnerships, and corporations of this state may make application, enter into agreement for and hold policies or contracts in or with and be a subscriber of any domestic, foreign, or alien reciprocal insurer. Any public or private corporation now or hereafter created by or organized under the laws of this state shall, in addition to the rights, powers, and franchises specified in its articles of incorporation, have full power and authority as a subscriber to exchange insurance contracts through such reciprocal insurance. The right to exchange such contracts is hereby declared to be incidental to the purposes for which such corporations are organized and to be as fully granted as the rights and powers expressly conferred upon such corporations. Any officer, representative, trustee, receiver, or legal representative of any such subscriber shall be recognized as acting for or on its behalf for the purpose of such contract but shall not be personally liable upon such contract by reason of acting in such representative capacity.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-15. Subscribers' Advisory Committee

(a) The advisory committee of a domestic reciprocal insurer exercising the subscribers' rights shall be selected under such rules as the subscribers adopt.
(b) Not less than two thirds of such committee shall be subscribers other than the attorney, or any person employed by, representing, or having a financial interest in the attorney.
(c) The committee shall:
(1) Supervise the finances of the insurer;
(2) Supervise the insurer's operations to such extent as to assure conformity with the subscribers' agreement and power of attorney;
(3) Procure the audit of the accounts and records of the insurer and of the attorney at the expense of the insurer;
(4) Have such additional powers and functions as may be conferred by the subscribers' agreement.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-16. Subscribers' Liability -- Generally

(a) The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several, and proportionate liability, and not joint.
(b) Except as to a nonassessable policy each subscriber shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agreement, for payment of actual losses and expenses incurred while his policy was in force. Such contingent liability may be at the rate of not less than one nor more than ten times the premium or premium deposit stated in the policy, and the maximum aggregate thereof shall be computed in the manner set forth in section twenty of this article.
(c) Each assessable policy issued by the insurer shall contain a statement of the contingent liability, set in type of the same prominence as the insuring clause.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-17. Same -- on Judgments

(a) No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for thirty days.
(b) Any such judgment shall be binding upon each subscriber only in such proportion as his interests may appear and in amount not exceeding his contingent liability, if any.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-18. Assessments -- Generally

(a) Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by the attorney upon approval in advance by the subscribers' advisory committee; or by the receiver, conservator, rehabilitator or liquidator, in liquidation proceedings of the insurer.
(b) Each such subscriber's share of a deficiency for which an assessment is made, but not exceeding in any event his aggregate contingent liability as computed in accordance with section twenty of this article, shall be computed by applying to the premium earned on the subscriber's policy or policies during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned during such period upon all policies subject to the assessment.
(c) In computing the earned premiums for the purposes of this section, the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom only charges not recurring upon the renewal or extension of the policy.
(d) No such subscriber shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or losses payable.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-19. Same -- Time Limit

Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his share of any assessment, as computed and limited in accordance with this article, if,
(a) While his policy is in force or within one year after its termination, he is notified by either the attorney or the receiver, conservator, rehabilitator or liquidator of his intentions to levy such assessment, or
(b) If an order to show cause why a receiver, conservator, rehabilitator, or liquidator of the insurer should not be appointed is issued while his policy is in force or within one year after its termination.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-20. Same -- Maximum Liability

In the case of a domestic reciprocal insurer no one policy or subscriber as to such policy shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by a reciprocal insurer in any one calendar year, in excess of the amount provided for in the power of attorney or in the subscribers' agreement, computed solely upon premium earned on such policy during that year.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-21. Nonassessable Policies

(a) If a reciprocal insurer has a surplus of assets over all liabilities in an amount equal to the minimum capital stock generally required of a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved by the subscribers' advisory committee, the commissioner may issue his certificate authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this state, and to omit provisions imposing contingent liability in all policies delivered or issued for delivery in this state for so long as such surplus funds remain unimpaired.
(b) Upon impairment of such surplus, the commissioner may revoke such certificate. Such revocation shall not render subject to contingent liability any policy then in force and for the remainder of the period for which the premium has theretofore been paid; but after such revocation no policy shall be issued or renewed without providing for contingent assessment liability of the subscriber.
(c) The commissioner shall not authorize a reciprocal insurer so to extinguish the contingent liability of any of its subscribers or in any of its policies to be issued, unless it qualifies to and does extinguish such liability of all its subscribers and in all such policies for all kinds of insurance transacted by it. Except, that if required by the laws of another state in which the insurer is transacting insurance as an authorized insurer, the insurer may issue policies providing for the contingent liability of such of its subscribers as may acquire such policies in such state, and need not extinguish the contingent liability applicable to policies theretofore in force in such state.
(d) No reciprocal insurer shall deliver or issue for delivery in this state assessable policies imposing a contingent liability upon subscribers, if such reciprocal insurer is issuing for delivery to subscribers in this or any other state nonassessable policies insuring risks of substantially the same hazard and class.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-22. Distribution of Unused Premiums, Savings or Credits

A reciprocal insurer may from time to time return to its subscribers any unused premiums, savings, or credits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of risks, or policies, or between subscribers, but such distribution may vary as to classes of subscribers based upon the experience of such subscribers.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-23. Advancement and Repayment of Funds

The attorney or other parties may advance to a reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer, and, except upon liquidation of the insurer, shall not be withdrawn or repaid except out of the insurer's realized earned surplus in excess of its minimum required surplus.
2023 West Virginia Code › Chapter 33. Insurance › Article 21. Reciprocal Insurers › §33-21-24. Rules for Determining Financial Condition of Reciprocal Insurer

In determining the financial condition of a reciprocal insurer the commissioner shall apply the following rules:
(a) He shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis.
(b) The surplus deposits of subscribers shall be allowed as assets, except that any premium deposit delinquent for ninety days shall first be charged against such surplus deposit.
(c) The surplus deposits of subscribers shall not be charged as a liability.
(d) All premium deposits delinquent less than ninety days shall be allowed as assets.
(e) An assessment levied upon subscribers, and not collected, shall not be allowed as an asset.
(f) The contingent liability of subscribers shall not be allowed as an asset.
(g) The computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for the compensation of the attorney.