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Bill

Bill

HB 4247

Relating to authorizing the Insurance Commission to promulgate a legislative rule relating to credit for reinsurance.

2026 Regular Session Introduced by Doug Smith

Bill grants West Virginia Insurance Commission authority to establish regulatory rules for how insurers receive credit for reinsurance agreements in financial calculations.

To House Finance
#legislature--rulemaking
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WeVote Research Nonpartisan
Bill Summary · HB 4247

Legislative bill overview

HB 4247 authorizes West Virginia's Insurance Commission to create administrative rules governing how insurance companies can receive credit for reinsurance arrangements. The bill essentially grants the Insurance Commission regulatory authority to establish standards and procedures for recognizing reinsurance agreements in insurance company financial reporting and solvency calculations.

Why is this important

Reinsurance is a critical mechanism where insurance companies transfer risk to other insurers, helping them manage large claims and maintain financial stability. Clear regulatory rules about reinsurance credit directly affect insurance company solvency requirements, premium pricing, and ultimately the protection available to policyholders. Without proper oversight, inadequate reinsurance credit could mask financial weakness in insurers or create unfair competitive advantages.

Potential points of contention

  • Regulatory authority scope: Whether delegating rule-making power to an agency (rather than the legislature defining standards) provides sufficient democratic oversight and predictability for the insurance industry
  • Competitive impact: Concerns that rules could inadvertently favor larger insurers with more sophisticated reinsurance programs over smaller carriers
  • Consumer protection balance: Determining whether credit rules adequately protect policyholders' claims while remaining flexible enough for market innovation in reinsurance structures

Compiled from official sources — confirm details with the bill’s official record.

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