Insurance policies.

WORKING DRAFT
2014
STATE OF
WYOMING
14LSO-0077

SENATE FILE
NO.

SF0022

Insurance policies.

Sponsored by:
Joint Corporations, Elections and Political Subdivisions Interim Committee

A BILL

for

AN ACT relating to
insurance;
providing the insurance policy with specified modifications thereto is the insurance contract between the insurer and the insured; providing other statements including advertising and certificates of insurance do not modify the insurance contract;
providing for disclosures in certificates of insurance; providing for clarification of contract provisions; providing penalties for false statements concerning insurance coverage as specified; providing for civil actions;
and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.
W.S. 26
‑
1
‑
109 is created to read:

26
‑
1
‑
109.

False statements concerning insurance coverage; penalties.

(a)

Any person who violates W.S. 26
‑
11
‑
108(
g
), 26
‑
15
‑
110(f) or 26
‑
15
‑
111(
c
)
or who knowing
ly
makes a false advertisement or other
materially false
statement concerning the insurance coverage provided by a specific policy, including any amendments, riders or endorsements thereto, violates this act and may be punished as provided in W.S. 26
‑
1
‑
107.

(b)

Actual damages may be recovered in a civil action against any insurer, agent, producer, broker
,
insured
, including other named
insureds
, or third parties requesting a certificate of insurance,
who knowingly issues or causes to be issued a certificate of insurance or similar document that contains a materially false statement that misrepresents the contents of an insurance policy
with the intent to deceive
the insured or a third party. A certificate of insurance is not materially false if the certificate states that there is coverage for a particular kind of risk without reciting the exceptions and limitations to that coverage in the insurance policy, providing the certificate contains the disclaimer required
by W.S.
26
‑
11
‑
108(
g),
26
‑
15
‑
110(f) or a similar disclaimer that clearly states the policy is the contract of insurance and should be examined to determine the specifics of coverage.

Section 2.
W.S. 26
‑
11
‑
108 by creating a new subsection (g), 26
‑
15
‑
110 by creating a new subsection (f) and 2
6
‑
15
‑
111 by creating a new subsection (c)
are
amended to read:

26
‑
11
‑
108.

Evidence of surplus lines insurance.

(
g
)

After the policy is delivered to the insured in replacement of the certificate as provided by subsection (d) of this section, the policy shall serve as the insurance contract between the insurer and the insured and the certificate shall have no further effect. The policy and any printed rider, endorsement form
and
form of renewal
notice
delivered to the insured is the insurance contract between the insurer and the insured. The contract shall not be modified, or deemed to be modified, by any other oral or written statement, advertisement, certificate of insurance or other communication from any insurer, broker, producer, agent or insured except that to the extent
written application is not required
,
the persons, organizations and premises insured may be changed by agreement between the insurer and insured or as otherwise provided by this act. Any insurer, producer, broker or agent issuing any other written description of the coverage contained in the policy, including a certificate of insurance, shall include the following disclaimer: "This is a general description of the insurance coverage. The policy and any amendments, riders and endorsements thereto are the actual insurance contract, are not modified by this document and should be examined to determine the specif
ics of the insurance coverage."

26
‑
15
‑
110.

Filing and approval of application forms.

(f)

The basic insurance policy or annuity contract form, and application form if written application is required and is to be made a part of the policy or co
ntract, and any printed rider, endorsement form or form
of renewal
notice
, issued or delivered for issue in this state and filed pursuant to subsection (a) of this section and approved pursuant to W.S. 26
‑
15
‑
111 or 26
‑
15
‑
201, is the entire insurance contract between the insurer and the insured. The contract shall not be modified, or deemed to
be modified, by any other oral or written statement, advertisement, certificate of insurance or other communication from any insurer, broker, producer, agent or insured except that to the extent written application is not required
,
the persons, organizations and premises insured may be changed by agreement between the insurer and insured or as otherwise provided by this act. Any insurer, producer, broker or agent issuing any other written description of the coverage contained in the policy, including a certificate of insurance, shall include the following disclaimer: "This is a general description of the insurance coverage. The policy and any amendments, riders and endorsements thereto are the actual insurance contract, are not modified by this document and should be examined to determine the specif
ics of the insurance coverage."

26
‑
15
‑
111.

Filing and approval of application forms; grounds for disapproval.

(c)

The commissioner may, in his discretion, if during the in
i
tial review, or subsequently based on experience
within this state or without
, he determines that a particular clause or section of a document approved under
this
section
does not violate this
code
but causes confusion
, or is likely to cause confusion,
on the part of the insured, producers, agents or brokers, and causes
, or is likely to cause,
material misunderstandings of what is covered:

(
i
)

Require the particular clause or section be identified on the face of the contract in a manner specified by the commissioner;

(ii)

Require the insured sign a statement that he is aware of the clause or section; or

(iii)

Require both.

Section 3.
This act is effective July 1, 2014.

(END)

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SF0022