West Virginia Offices of the Insurance Commissioner 2009 Annual ...

Financial Conditions Division
The primary responsibility of the Financial Conditions Division (“Division”) is to monitor the financial
stability and solvency of insurance companies admitted to do business in West Virginia. This includes
traditional Life & Health and Property & Casualty companies as well as health care corporations such
as Blue Cross/Blue Shield Plans and Health Maintenance Organizations. The Financial Conditions
Division is also responsible for registering, licensing and/or monitoring Risk Retention Groups, Risk
Purchasing Groups, Managing General Agents, Third Party Administrators, Reinsurance
Intermediaries, Viatical Settlement Providers, Discount Medical Plans, Professional Employer
Organizations, Charitable Gift Annuities and Surplus Lines Insurers planning to do business in the
State of West Virginia. The Division also has the responsibility to financially monitor employers who
chose to self-insure their workers compensation risks in West Virginia.
Prior to being admitted, companies must file an application with the Offices of the West Virginia
Insurance Commissioner. The applications of these companies, either foreign or domestic, are
reviewed by the Division to ensure that the appropriate statutes have been satisfied in regard to the
companies’ general corporate organization and financial strength. Recommendations are then made to
the Commissioner and/or the Deputy Commissioner as to the admissibility of these applicant
companies.
Companies admitted by the Offices of the West Virginia Insurance Commissioner are then monitored
by the Division to ensure that they maintain their financial stability and solvency necessary for the
protection of West Virginia policyholders. Monitoring of the insurance industry is effectuated through
complex financial examinations and analysis performed by financial analysts and certified financial
examiners.
This Division is responsible for ensuring that insurance companies operating in this State report and
pay the appropriate taxes levied by West Virginia statutes. This process involves the reconciliation of
companies’ quarterly reports and payments to their yearend tax returns. This function also includes the
tracking and collection of taxes generated by the excess lines market. Excess lines or surplus lines
refer to business placed with companies that are not admitted in West Virginia. This occurs when
certain lines of insurance are not readily available with companies licensed in West Virginia.
Coverage is written with these surplus lines insurers by licensed insurance agents that have obtained an
excess lines broker’s license from the Agents Licensing and Education Division. The surplus lines
licensee must provide reports to the Financial Conditions Division on individual policies written and
remit the appropriate tax payment as detailed by the West Virginia Code.
The tabular information contained in this Report is a condensed statement of the annual reports filed by
insurers doing business in West Virginia and an indication of their financial condition as compiled by
the Financial Conditions Division.
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