Remedies for Arbitrary Refusal of Motor Vehicle Insurance Claim. House Bill 2418 raises the cap on a claim for arbitrary refusal of a claim made against a motor vehicle insurance policy or DMV-registered uninsured driver from $1,000 to $2,500. If the insurer's denial or refusal of a claim below that amount was not done in good faith, the company can be liable to the insured for double the amount of the claim plus attorney's fees and expenses. For claims above the new $2,500 cap that are found to be arbitrarily denied or refused, the insurer's liability may be double the legal rate of interest, plus attorney's fees and expenses, in addition to the amount of the claim. (HB 2418)
Headlights Necessary When Wipers Are Being Used. The lighting of vehicle headlights is now required when there is precipitation necessitating the use of the vehicle's windshield wipers, except for when the wipers are only used intermittently. A violation of this provision does not constitute negligence per se, however, and such a violation can not be used as a defense to a claim for personal injuries or recovery of medical expenses for injuries sustained in a motor vehicle accident. A driver may not be cited for violating this provision unless the driver has been stopped or arrested for violating a criminal statute or some other Code provision or local ordinance relating to the operation, ownership, or maintenance of the motor vehicle. (HB 1696)
Insurer's Notice of Intention to Rely on Certain Defenses. Forty-five (45) days has been established as the deadline for a liability insurer's notification to the claimant of a breach of the terms or conditions of the policy by the insured. Previously, the insurer had 20 days. Additionally, whenever a non-waiver of rights agreement is executed, the insurer now has 45 days to notify the claimant of such agreement. The statute formerly called for such notice to be sent within 10 days. (HB 1997)
Self-Insured Motor Vehicles and Immunity. Persons having a certificate of self-insurance are immunized from judgments arising out of the use of the motor vehicle covered by that certificate, where such vehicle was used by a person not having the certificate holder's permission. Moreover, the new statute immunizes certificate holders for judgments arising out of the use of the subject vehicle by persons who used it with permission, where the permissive user has "prejudicially failed to cooperate in the defense of the claim which resulted in the judgment." A certificate holder is required to give notice of intention to rely on these new provisions as provided in Virginia Code § 38.2-2226. (HB 2528)
Uninsured Motorist Coverage. The definition of an uninsured motor vehicle has been amended to include a motor vehicle for which the owner or operator is immune from liability for negligence under Virginia law or federal law. The revised statute also states that such immunity from liability for negligence of the owner or operator shall not bar the insured claimant from obtaining an enforceable judgment against the insurer and shall not be a defense available to the insurer in an action brought by the insured. (HB 2501, SB 959)
Philip W. Parker
Mr. Parker is an Associate in the Firm.
E-mail: parker@woodsrogers.com