New, ‘Improved’ Landscape For Commercial Insurance

West Virginia has a new, improved landscape for commercial insurance thanks to recent legislative reforms. That is the assessment of Jane L. Cline, West Virginia's Insurance Commissioner. Commissioner Cline noted that several recent changes have altered the climate for commercial insurance in West Virginia. She said three laws enacted in 2005 by the West Virginia Legislature, and signed by Governor Manchin, will have noticeable effects on commercial insurance, either directly or indirectly. These laws are:

• Senate Bill 30. Among other things, this law allows commercial insurers to “file-and-use” rates and forms.
• Senate Bill 418. This law contains new insurance remedies with respect to third-party complaints under West Virginia Unfair Trade Practices Act (UTPA).
• Senate Bill 421. This law changes the nature of liable parties in a lawsuit when more than one defendant is at-fault. Namely, the law changes the apportionment of damages in the system of joint and several liability.

These laws became effective on July 8, 2005. In broad terms, Cline said she "is confident these changes will improve the insurance climate in West Virginia. We anticipate the entry of new insurance carriers, expansion of existing carriers, and development of new insurance products." The commissioner said she anticipates that rates "will accurately reflect the cost of the insurance product and that availability will improve."