Senate Bill 330, which was introduced on January 20, 2016, would amend W.Va. Code § 33-6A-1, governing the cancellation of automobile liability policies. Under the current statute, an insurer may cancel an individual's automobile liability insurance policy upon thirty (30) days written notice to the insured. Cancellations may be triggered if the insured violates a material term of the policy, has his or her license suspended or revoked, the insured receives certain types of medical diagnoses, or if the insured faces criminal charges arising out of the use of a motor vehicle. An insurer may also cancel an automobile policy if the insured fails to pay premiums.
Senate Bill 330 will change the time period for notice of cancellation where an insured fails to pay his or her premium. If enacted, Senate Bill 330 will allow an insurer to cancel an automobile policy for non-payment of premiums upon seven (7) days' notice to the insured of its intention to cancel instead of thirty (30) days as the statute currently provides. Notice of cancellation is proper upon delivery to the name insured or by first class mail to the name insured at the address supplied on the application for insurance. The notice must state the effective date of cancellation and include a written explanation of the reason for cancellation.