The national guides cover the specialty coverages in this area: inland marine, crime, surety, professional liability, umbrellas and flood. This guide covers West Virginia's special markets and programs:

• the Essential Property Insurance Association
• mine subsidence insurance
• medical malpractice cancellation rules
• risk retention groups
• surplus lines

West Virginia Essential Property Insurance Association (Article 20A; CSR 114-21)

Created under the West Virginia Essential Insurance Coverage Act, the Association covers habitational or commercial property for people who can't get coverage in the voluntary market.

• All insurers writing the covered kinds of insurance in West Virginia must participate.
• Limits: reasonable insurable value, up to $200,000 per habitational risk and $500,000 per commercial risk.
• Perils: fire, lightning, riot, explosion, vehicle, smoke, hail, aircraft and wind.
• Eligibility:
  • The applicant must show they tried and failed to get coverage voluntarily.
  • The Association may decline an applicant who owes premium for earlier coverage.
• Inspection: free to the applicant, who gets a copy of the report.
• Policies run one year. The valued policy law doesn't apply to them.
• Producers earn a 10% commission on new business.
• Appeals: to the board within 15 days, then to the Commissioner within 10 days.

Mine subsidence insurance (Article 30)

• The Mine Subsidence Insurance Fund is run by the state Board of Risk and Insurance Management. The board sets premiums, and insurers can't deviate from them.
• Mine subsidence means ground movement from the collapse of man-made underground coal mines. It doesn't include earthquake, landslide, volcanic eruption or collapse of drains and tunnels.
• Covered: the structure, including basements, footings, foundations, septic systems and service pipes. Not covered: driveways, sidewalks, parking lots, land, trees and crops.
• Adding it: in most counties, a policy insuring a structure includes the coverage at a separately stated premium unless the insured waives it. In certain listed counties, such as Berkeley and Jefferson, it is provided only on request.
• Start date: a new policy or endorsement takes effect on the 30th day after application.
• Deductible: $250 to $500.
• Limit: reinsurance is capped at $200,000, and never more than the fire insurance on the structure.
• Refusal: insurers may refuse a structure with unrepaired subsidence damage, and must refuse one with damage in progress.
• Claims are paid within 120 days after proof of loss. Accepting payment waives the insured's claim against others to that extent.

Medical malpractice policies (Article 20C)

These rules apply to malpractice policies in force at least 60 days or renewed at least once.

• Cancellation is allowed only for listed reasons, such as reinsurance that the insurer proves to the Commissioner is unavailable.
• Nonrenewal needs at least 90 days' notice by certified mail.
• Cancellation notice goes out within 30 days after the reason arises, and at least 30 days before the cancellation date.
• The insured may ask for a hearing within 30 days. The policy stays in force until the Commissioner rules.

Risk retention groups (Article 32)

• A risk retention group assumes and spreads the liability exposure of its members. That means business, product, service or premises liability, not personal liability.
• RRG policies carry a 10-point notice that the group may not be subject to all state laws and that guaranty funds aren't available.
• Selling RRG coverage requires an Article 12 producer license.

Surplus lines (Article 12C)

• Surplus lines applies when West Virginia is the insured's home state, meaning its principal place of business or residence.
• A licensee may place coverage with a nonadmitted insurer only after a diligent search among admitted insurers that write that kind of insurance. No search is needed for an exempt commercial purchaser who asks in writing after disclosure.
• Eligible insurers need capital and surplus of the greater of West Virginia's minimum or $15 million.
• The tax is 4.55% of gross premiums and fees. The producer may not pay or rebate it.
• A surplus lines license goes only to holders of a current P&C producer license.
• No agent or broker may knowingly place coverage with an insolvent insurer (33-12-21). An agent who places coverage with an unlicensed insurer is personally liable on it (33-12-20).

Common exam traps

• Essential Property Insurance Association limits are $200,000 habitational and $500,000 commercial, on named perils.
• Mine subsidence covers coal mine collapse only, with a $250 to $500 deductible and a $200,000 cap. It starts 30 days after application.
• Malpractice nonrenewal needs 90 days' notice.
• RRGs cover business liability only and have no guaranty fund protection.
• The surplus lines tax is 4.55%.