W. Va. Code R. § 114-72-4

Current through Register Vol. XLI, No. 45, November 8, 2024

Section 114-72-4 - Contents of a Withdrawal Plan

4.1. An insurers' withdrawal plan must contain the following:

a. Identification of the line or lines of insurance being withdrawn;

b. Identification of the policy forms by number and type affected by the withdrawal;

c. The dates the insurer intends to begin and complete its withdrawal;

d. An explanation of the reasons for the withdrawal;

e. Provisions for notifying all of the affected policyholders and certificateholders of the dates of the beginning and completion of the withdrawal and how the withdrawal will affect them, including, but not limited to:

1. A copy of the notice and an explanation of the manner in which the notice will be provided to policyholders and certificateholders; and

2. Either affirmation that such notice will be provided within thirty (30) days of the approval of the withdrawal plan if approval is required, or a request that the commissioner allow the notice to be provided at some other specified date or time;

f. Provisions for meeting all of the insurer's contractual obligations, including, but not limited to:

1. Notification of all affected agents of the insurer of the date the insurer intends to begin and complete the withdrawal; and

2. If applicable, a statement affirming the insurer's compliance with the provisions of article six-a, chapter thirty-three of the West Virginia Code relating to cancellation and nonrenewal of automobile liability or physical damage insurance coverage;

g. Provisions for providing the same level of services to the insurer's West Virginia policyholders and claimants as set forth in the insurer's contracts;

h. Information on the insurer's West Virginia business, including:

1. The total annual premium volume and the number of policies and certificates and covered persons in West Virginia for each line of business to be withdrawn;

2. An estimate of what percentage of the West Virginia market the withdrawal constitutes; and

3. Any information necessary to assist the commissioner in determining whether a market availability problem will be created by the withdrawal, the extent of the problem, and what market assistance may be needed to alleviate the problem, including, but not limited to, the following:

A. Type of location and geographic area subject to the withdrawal (identify type of area such as suburban, urban, rural, or list specific rating territories) and zip codes; and

B. If applicable, types of risks no longer being covered, for example, if insurer is no longer writing private passenger auto insurance coverage for single-car families or for persons without supporting business;

i. If an insurer is unable to provide the exact number of policies and certificates and covered persons, the insurer must provide estimates of these numbers and explain how the estimates were determined;

j. The number of and estimated amount of all losses outstanding in West Virginia, including claims incurred but not reported;

k. A plan to handle the losses specified in subdivision j of this subsection, including, but not limited to:

1. Identification of what assets will be available for paying outstanding incurred but not reported claims, claims in the course of settlement, and associated loss adjustment expenses;

2. Identification of who specifically will administer the run-off of the business; and

3. An actuarial opinion certifying that adequate reserves are available to pay outstanding claims;

l. If West Virginia policyholders or certificateholders are to be reinsured, then the filing of a reinsurance agreement meeting all statutory and regulatory requirements and, when applicable, the filing of an assumption certificate;

m. Provisions for meeting any applicable statutory obligations, including, but not limited to:

1. Payment of any guaranty fund assessments;

2. Participation in any assigned risk plan, pool, fund, facility, or joint underwriting arrangement; and

3. Payment of any taxes;

n. A list of any other programs or products the insurer will continue to offer in West Virginia; and

o. An affirmation that no new business in the same line as that from which the insurer has withdrawn will be solicited by the insurer in this state during or within the three years subsequent to the filing of the withdrawal plan unless the commissioner waives this requirement.

4.2. The filing of a single consolidated withdrawal plan for all withdrawing insurance companies in the same holding company system does not meet the requirements of this section. A separate withdrawal plan must be filed for each insurance company intending to withdraw.

4.3. The withdrawal plan must be signed by at least one officer of the insurer.

W. Va. Code R. § 114-72-4