Current through Register Vol. XLI, No. 50, December 13, 2024
Section 114-2-3 - Requirements for Licensing Insurance Agencies3.1. Each agency, as defined in W. Va. Code § 33-12-2(e), shall file an application with the Commissioner for an agency insurance producer license on a form provided by this office. This requirement applies to each corporation, partnership, limited liability company, or other business entity in which more than one person has an interest or which operates under a corporate or trade name. The requirement for an agency insurance producer license does not apply to sole proprietors or partnerships in which there is only one licensed individual producer, so long as no other individual or agency insurance producer has any interest in, or affiliation with, the business of the individual insurance producer or his or her agency.3.2. The Insurance Commissioner may refuse to grant a license to act as an agency insurance producer proposing to do business under a name which is likely to deceive or mislead the public in this state.3.3. No agency insurance producer may be licensed in West Virginia which has or uses a name so similar to that of any agency insurance producer already so licensed as to cause uncertainty or confusion; except that in case of conflict of names between two agency insurance producers, the Commissioner may permit or require the newly licensed agency insurance producer to use in West Virginia a trade name that is reasonably necessary to avoid such conflict.3.4. No license may be issued in a trade name except upon proof satisfactory to the Commissioner that the trade name has been lawfully registered.3.5. Foreign corporations, limited partnerships and any other entities required by law to be registered with the Secretary of State must be so registered before a license will be issued.3.6. Each application shall be accompanied by the fee required by W. Va. Code § 33-12-10. Each insurer is required to notify every agency affiliated with the insurer of its responsibility to file an agency insurance producer application and to pay the required fee. No agency is required to obtain more than one agency insurance producer license regardless of the number of insurers it represents. When an agency ceases to have a stockholder, officer, director, member, employee or associate possessing a current individual insurance producer's license, the agency insurance producer license shall be considered terminated. The agency insurance producer shall surrender the terminated agency insurance producer license for cancellation not more than thirty (30) days after the last person to hold the individual insurance producer license ceased affiliation with the agency or was no longer so licensed.3.7. A domestic insurance agency must be organized pursuant to the laws of this state and must maintain its principal place of business in this state.3.8. Every business entity transacting insurance must be licensed as an agency insurance producer. For purposes of this section:3.8.a. "Insurance" means all products defined or regulated by the State of West Virginia except: (i) limited lines insurance as defined in W. Va. Code § 33-12-2(i) and (k); (ii) insurance placed by a lender in connection with collateral pledged for a loan when the debtor breaches the contractual obligation to provide this insurance; and (iii) private mortgage insurance.3.8.b. "Transaction of insurance" means any of the following acts in this state effected by mail or otherwise considered to constitute the transaction of an insurance business in or from this state: 3.8.b.1. The making of or proposing to make an insurance contract;3.8.b.2. The making of or proposing to make, as guarantor or surety, any contract of guaranty or suretyship as a vocation and not merely incidental to any other legitimate business or activity of the guarantor or surety;3.8.b.3. The taking or receiving of an application for insurance;3.8.b.4. The receiving or collection of any premium, commission, membership fees, assessments, dues or other consideration required for obtaining or renewing insurance;3.8.b.5. The issuance or delivery in this state of certificates or contacts of insurance to residents of this state or to persons authorized to do business in this state;3.8.b.6. The solicitation, negotiation, procurement or effectuation of insurance or renewals thereof;3.8.b.7. The dissemination of information as to coverage or rates, or forwarding of applications, or delivery of policies or contracts, or inspection of risks, the fixing of rates or investigation or adjustment of claims or losses or the transaction of matters subsequent to effectuation of the contract and arising out of it, or any other manner of representing or assisting a person or insurer in the transaction of insurance with respect to any risk or exposure located or to be performed in this state;3.8.b.8. The transaction of any kind of insurance business specifically recognized as transacting an insurance business within the meaning of the statutes relating to insurance;3.8.b.9. The offering of insurance or the transacting of insurance business; or3.8.b.10. Offering an agreement or contract which purports to alter, amend or void coverage of an insurance contract.3.9. The licensee shall notify the Commissioner of all changes in status among its members, directors, and officers, and all other individuals designated in the application within ten (10) days after the change. 3.10. No individual whose individual insurance producer license has been revoked by order of the Commissioner or whose application for a license may be denied pursuant to W. Va. Code § 33-12-24, nor any business entity in which such individual has a majority ownership interest, whether direct or indirect, may own any interest in any agency licensed under this section.3.11. No individual insurance producer whose license has been revoked by order of the Commissioner or whose application for a license may be denied pursuant to W. Va. Code § 33-12-24, may be employed by an insurance agency in any position that involves the transaction of insurance.3.12. An agency insurance producer which allows its license to lapse may reinstate the same license by filing its application for renewal of its license within twelve (12) months from the due date of the renewal fee and paying a penalty in the amount of twenty-five dollars ($25) in addition to the unpaid renewal fee.