2005 West Virginia Code - §23-2C-19. — Special provisions as to private carrier premium collection.

§23-2C-19. Special provisions as to private carrier premium collection.

(a) Each employer who is required to purchase and maintain Workers' Compensation insurance or who elects to purchase Workers' Compensation insurance shall pay a premium to a private carrier. Each carrier shall notify its policy holders of the mandated premium payment methodology and under what circumstances a policy holder will be found to be in policy default.
(b) An employer who is required to purchase and maintain Workers' Compensation insurance but fails to do so or otherwise enters policy default shall be deprived of the benefits and protection afforded by this chapter, including section six, article two of this chapter, and the employer is liable as provided in section eight of said article. The policy defaulted employer's liability under these sections is retroactive to day the policy default occurs. The private carrier shall notify the policy defaulted employer of the method by which the employer may be reinstated with the private carrier.
(c) A private carrier is authorized to commence a civil action against an employer who, after due notice, defaults on any payment. If judgment is against the employer, the employer shall pay the costs of the action. Upon prevailing in a civil action, the private carrier is entitled to recover its attorneys' fees and costs of action from the employer.
(d) In addition to the provisions of subsection (a) of this section, any payment, interest and penalty due and unpaid under this chapter is a personal obligation of the employer, its officers and its directors, immediately due and owing to the private carrier and shall, in addition, be a lien enforceable against all the property of the employer: Provided, That the lien shall not be enforceable as against a purchaser (including a lien creditor) of real estate or personal property for a valuable consideration without notice, unless docketed as provided in section one, article ten-c, chapter thirty-eight of this code: Provided, however, That the lien may be enforced as other judgment liens are enforced through the provisions of said chapter and the same is considered deemed by the circuit court to be a judgment lien for this purpose.
(e) The Secretary of State of this state shall withhold the issuance of any certificate of dissolution or withdrawal in the case of any corporation organized under the laws of this state or organized under the laws of any other state and admitted to do business in this state, until notified by its private carrier that all payments, interest and penalties thereon against the corporation which is an employer under this chapter have been paid or that provision satisfactory to the private carrier has been made for payment.
(f) In addition to any other liabilities provided in this section, the Insurance Commissioner may impose an administrative fine of not more than ten thousand dollars against an employer if the employer fails to provide mandatory coverage required by this chapter. Further, prior to providing an applicant employer with coverage mandated in this chapter, all private carriers shall exercise reasonable due diligence to ensure that an employer applicant has not been in policy default with another carrier or in default with the commission. If it is discovered that the employer applicant remains in policy default with another carrier or the commission, the company or new carrier shall not provide the coverage mandated by this chapter until such time as the preexisting policy default is cured. Any provider violating this provision may be fined not more than ten thousand dollars by the Insurance Commissioner.
(g) The company and the Insurance Commissioner shall be provided extraordinary powers to collect any premium amounts payable to the Workers' Compensation Fund or the new fund and due from first day of July, two thousand five, through the thirtieth day of June, two thousand eight. Those powers shall include: (1) Withholding of coverage effective the first day of January, two thousand six. Employers without coverage shall immediately be deprived of the benefits and protection afforded by this chapter, including section six, article two of this chapter and the employer is liable as provided in section eight of said article; (2) the right to maintain a civil action against all officers and directors of the employer individually for collection of the premium owed; and (3) the right to immediately report the employers' to the State Tax Department and other state agencies to secure suspension of any and all licenses, certificates, permits, registrations and other similar approval documents necessary for the employer to conduct business in this state.