West Virginia Insurance Guaranty Association Act (Property & Casualty)

What this document is

West Virginia Insurance Guaranty Association Act (Property & Casualty) - W. Va. Code Chapter 33, Article 26 is a state statute published by West Virginia Legislature (code.wvlegislature.gov). It is one of the West Virginia documents that insurance license exam questions are written from, including west virginia property & casualty, west virginia personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• W. Va. Code § 33-26-3 (Scope)

  “This article applies to all kinds of direct insurance, but is not applicable to the following: (1) Life, annuity, health or disability insurance; (2) Mortgage guaranty, financial guaranty or other forms of insurance offering protection against investment risks; (3) Fidelity or surety bonds, or any...”

• W. Va. Code § 33-26-6 (Creation of the association)

  “For purposes of administration and assessment, the association shall establish and maintain three separate accounts: (1) The automobile insurance account; (2) The workers' compensation insurance account; and (3) The account for all other insurance to which this article applies.”

• W. Va. Code § 33-26-7(1) (Board of directors)

  “The board of directors of the association shall consist of not less than five nor more than nine persons serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the approval of the commissioner. Vacancies on the board shall be...”

• W. Va. Code § 33-26-8(a)(1) (Powers and duties of the association)

  “Be obligated to pay covered claims existing prior to the final order of liquidation, that arise within thirty days after the final order of liquidation or before the policy expiration date if the expiration date is less than thirty days after the final order of liquidation, or that arise before the...”

• W. Va. Code § 33-26-8(a)(3) (Powers and duties of the association)

  “Each member insurer shall be notified of the assessment not later than thirty days before it is due. No member insurer may be assessed in any one year on any account an amount greater than two percent of that member insurer’s net direct written premiums for the calendar year preceding the...”

• W. Va. Code § 33-26-10(b)(2) (Duties and powers of the commissioner)

  “Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on any member insurer...”

• W. Va. Code § 33-26-12(a) (Exhaustion of other coverage; deductible reimbursement)

  “Any person having a claim under an insurance policy, whether or not it is a policy issued by a member insurer, and the claim under such other policy arises from the same facts, injury, or loss that gave rise to the covered claim against the association, shall first exhaust all coverage provided by...”

• W. Va. Code § 33-26-12(b) (Exhaustion of other coverage; order of recovery among associations)

  “(b) Any person having a claim which may be recovered under more than one Insurance Guaranty Association or its equivalent shall seek recovery first from the association of the place of residence of the insured except that if it is a first party claim for damage to property with a permanent...”

• W. Va. Code § 33-26-11(b)(1) (Effect of paid claims; recovery from insured with large net worth)

  “(1) Any insured whose net worth on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer exceeds $25 million: Provided, That an insured’s net worth on such date shall be considered to include the aggregate net worth of the insured and all of its...”

• W. Va. Code § 33-26-8(a)(1)(B)-(C) (Powers and duties of the association)

  “(B) An amount not exceeding $10,000 per policy for a covered claim for the return of unearned premium. (C) An amount not exceeding $300,000 per claim for all other covered claims: Provided, That for purposes of this limitation, all claims of any kind whatsoever arising out of, or related to, bodily...”

• W. Va. Code § 33-26-5(9)(A) (Definitions)

  ““Covered claim” means an unpaid claim, including one for unearned premiums, submitted by a claimant, which arises out of and is within the coverage and is subject to the applicable limits of an insurance policy to which this article applies issued by an insurer, if the insurer becomes an insolvent...”

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