W. Va. Code R. § 114-72-5

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

Section 114-72-5 - Withdrawal Plan Submission and Approval Procedures

5.1. An insurer must submit its withdrawal plan to the commissioner at least forty-five (45) days prior to the date the insurer anticipates initiating any type of withdrawal activity.

5.2. If the withdrawal plan relates to personal private passenger automobile policies, the withdrawal plan shall be deemed approved if the commissioner has not held a hearing within forty-five (45) days after a complete withdrawal plan is filed, or if approval has not been denied within forty-five (45) days after the hearing. If the withdrawal plan relates to policies of property insurance, other than policies of inland marine insurance, the commissioner's approval of the plan is not required in order for the insurer to effect its withdrawal, however the plan must be on file with the commissioner for at least forty-five (45) days before the insurer may initiate withdrawal activities.

5.3. No plan shall be considered "filed" until such date as the withdrawing insurer has provided to the commissioner all information and material necessary to constitute a complete withdrawal plan, as required under this rule.

5.4. A withdrawal plan relating to personal private passenger automobile liability or physical damage insurance will not be approved unless the insurer establishes to the satisfaction of the commissioner that allowing it to withdraw would be in the best interest of the insurer, its policyholders and the citizens of this state. To assist in making this determination, the commissioner may consider any or all of the following:

a. Whether the insurer has an agreement with an affiliated or nonaffiliated insurer to transition the affected policies or certificates, the terms and conditions of which provide the policyholders with the same rights that existed under the withdrawing insurer's policies or certificates;

b. The insurer's financial condition;

c. The insurer's A.M. Best rating;

d. Any disciplinary, regulatory, or administrative action taken by another state;

e. The timing of the withdrawal;

f. The effect the withdrawal will have on the insurer's other products, programs, or lines of business in this state;

g. The effect the withdrawal will have on the insurance market in this state; and

h. Any other criteria considered relevant by the commissioner.

W. Va. Code R. § 114-72-5