Industrial Council

The Industrial Council was created within the Offices of the Insurance Commissioner by Senate Bill 1004 (WV Code §23-2C-5). In consultation with the Insurance Commissioner, the Industrial Council has been charged with establishing guidelines and policies designed to ensure the effective administration of the workers’ compensation insurance market in West Virginia.

The Governor, with the advice and consent of the Senate, appoints five voting members to the Industrial Council. In addition to the voting members, the Governor appoints two members of the West Virginia Senate and two members of the West Virginia House of Delegates to serve as advisory nonvoting members of the Board. No more than three of the legislative members may be of the same political party. The Insurance Commissioner shall serve as an advisory nonvoting member of the Board.

Member Qualifications

No appointed member may be a candidate for or hold elected office. Members may be reappointed for no more than two full terms. Each of the appointed voting members shall be appointed based upon his or her demonstrated knowledge and experience and shall have the following qualifications:

1. Each member shall hold a baccalaureate degree from an accredited college or university: Provided that no more than one of the appointed voting members may serve without a baccalaureate degree from an accredited college or university if the member has a minimum of fifteen years experience in his or her field of expertise as required in this subdivision.

2. Each member shall have a minimum of ten years experience in his or her field of expertise. The following guidelines are to be used by the Governor in determining whether potential candidates meet the necessary qualifications:

a. Expertise in insurance claim management;
b. Expertise in insurance underwriting;
c. Expertise in the financial management of pensions or insurance plans;
d. Expertise as a trustee of pension or trust funds of more than two hundred beneficiaries or three hundred million dollars;
e. Expertise in workers’ compensation management;
f. Expertise in loss prevention and rehabilitation;
g. Expertise in occupational medicine demonstrated by licensure as a medical doctor in West Virginia and experience, board certification or university affiliation; or
h. Expertise in similar arrears of endeavor.

3. There should be at least one member from each of the following:

a. a certified public accountant with financial management, pension or insurance audit expertise;
b. an attorney with financial management experience;
c. an academician holding an advanced degree from an accredited college or university in business, finance, insurance or economics; and
d. a representative from organized labor.

Terms of Members

1. Five members shall be appointed by the Governor with the advice and consent of the Senate for terms that begin upon appointment after the effective date of the legislation.

a. One member shall be appointed for a term ending the thirtieth day of June 2007.
b. Two members shall be appointed for a term ending the thirtieth day of June 2009.
c. Except for appointments to fill vacancies, each subsequent appointment shall be for a term ending the thirtieth day of June of the fourth year following the year preceding term expired.

Chairperson/Meetings/Compensation/Insurance

1. The council shall appoint one member to serve as chairperson to serve for a one-year term and may serve more than one consecutive term. The council shall hold meetings at the request of the chairperson or at the request of at least three of the members of the council, but not less than once every three months. The chairperson shall determine the date and time of each meeting. Three members shall constitute a quorum for the conduct of the business of the council. No action shall be taken by the council except the affirmative vote of three members of the council.

2. Each voting member of the council shall receive compensation of not more than three hundred fifty dollars per day for each day during which he or she is required to and does attend a meeting of the board. Each voting member is entitled to be reimbursed for actual and necessary expenses incurred for each day or portion thereof engaged in the discharge of official duties in a manner consistent with guidelines of the travel management office of the Department of Administration.

3. Each member of the council shall be provided appropriate liability insurance, including, but not limited to, errors and omissions coverage, without additional premium, by the State Board of Risk and Insurance Management.

Industrial Council Duties

1. The Industrial Council shall:

a. In consultation with the Insurance Commissioner, establish guidelines and policies designed to ensure the effective administration of the workers’ compensation insurance market in West Virginia;
b. Review and approve, reject or modify rules that are proposed by the Insurance Commissioner for operation and regulation of the workers’ compensation insurance market before the rules are filed  with the Secretary of State. The rules adopted by Industrial Council are not subject to sections nine through sixteen, inclusive chapter twenty-nine-a of the WV Code;
c. In accordance with the laws and rules of West Virginia, establish and monitor performance standards and measurements to ensure the timeliness and accuracy of activities performed under Chapter twenty-three of the WV Code and applicable rules;
d. Submit for approval by the Legislature, as an isolated and early discernable component of the Insurance Commissioner’s budget, a budget for the sufficient administrative resources and funding requirements necessary for their duties.
e. Perform all record and information gathering functions necessary to carry out its duties.
f. Every two years, conduct an overview of the safety initiatives currently being utilized or which could be utilized in the workers’ compensation insurance market and report said finding to the joint committee on government and finance. Each private carrier and self-insurance employee shall provide to the council, upon request, any information, statistics or data in its records requested by the council in performance of these duties.
g. Perform all other duties as specifically provided in this chapter for the Industrial Council and those duties incidental thereto.
h. Establish a method of indexing claims of injured workers that will make information concerning the injured workers of one insurer available to other insurers.