WV| West Virginia Insurance Bulletin No. 26-03, issued October 9, 2026, states that price optimization—varying insurance rates based on a policyholder’s willingness to accept a higher premium or likelihood of shopping for alternative coverage rather than risk-related factors—constitutes unfair discrimination and violates West Virginia law. Although the bulletin identifies concerns involving personal lines insurers, the Offices of the Insurance Commissioner directs all property and casualty insurers operating in the state to avoid this practice and base rating classifications on insurance losses and expenses.
- Rates must comply with W. Va. Code §§ 33-11-4(7)(c) and 33-20-3, including the prohibition against excessive, inadequate, or unfairly discriminatory rates; actuarial judgment cannot justify adjustments based on non-risk-related policyholder characteristics.
- Insurers must fully disclose the loss- and expense-based considerations supporting their rating classifications in rate filings. The bulletin warns that noncompliance may result in enforcement action; it does not establish a separate implementation deadline.