W. Va. Code R. § 114-30-5

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 114-30-5 - Premium Payment Amortization

5.1. Upon cancellation, nonrenewal or termination of any "claims made" professional malpractice insurance policy to which this rule is applicable, the insurer shall offer to any eligible professional who is licensed and practicing in the state of West Virginia, or who, prior to retirement, last practiced in the state of West Virginia, the opportunity to amortize the payment of quarterly premiums for "tail" insurance over twelve (12), twenty-four (24) or thirty-six (36) months.

5.2. Such quarterly premium payments for "tail" insurance shall be amortized at a per annum rate of interest equal to two (2) percentage points above the prime interest rate reported in the Wall Street Journal on the date when the insurer or its agent receives the insured's written request to purchase "tail" insurance, or on the next publication date of the Wall Street Journal following the effective date of the "tail" insurance policy if the Wall Street Journal is not published on the date when the insurer or its agent receives the insured's written request to purchase "tail" insurance.

5.3. The insured shall not be entitled to pay amortized premiums pursuant to this rule unless each quarterly premium payment, as computed applying the amortization rate set forth in subsection 5.2, equals at least seven hundred fifty dollars ($750.00).

W. Va. Code R. § 114-30-5