Virginia Insurance Law Update

Under existing law, automobile physical damage disputes between insurers must be submitted to arbitration. The statute has been amended this year, however, to permit insurers to mutually agree to a trial of such disputes in a court of competent jurisdiction instead of arbitration. The amendments also specifically allow an action to be filed in a court of competent jurisdiction if an insurer is unable to furnish proof of its membership in the Nationwide Intercompany Arbitration Agreement (or any successor thereto). (HB1465)

With an amendment to the code provisions pertaining to unfair settlement practices with respect to choice of replacement and repair facilities, and use of products of designated manufacturers, insurance companies are now held responsible for the actions of a third party the insurance company utilizes which violate the proscriptions of that statute. In another addition to the statute, the State Corporation Commission is now required to investigate any written complaints brought pursuant to the statute, with the written authorization of the insured or claimant, and without respect to whether such written complaints are made by an individual or a repair facility. (HB2307).

If an action is filed against an unknown motor vehicle owner or operator as John Doe, a new change to the uninsured motorist provisions provides that the statute of limitations will be tolled for three years (from the date the action against John Doe is commenced), for purposes of bringing an action against the owner or operator who caused the injury or damages if their identify becomes known. (HB1901).

A motor vehicle (and aircraft and watercraft) liability insurer is now permitted to limit its liability for bodily injury and property damage resulting from any one accident or occurrence, to the liability limits for such coverage set forth in the policy for such an accident or occurrence, regardless of the number of insureds under that policy. (SB448).

Finally, the General Assembly passed a "Structured Settlement Protection Act", which conditions the direct or indirect transfer of structured settlement payment rights upon approval of a court or a responsible administrative authority, which must make specific findings as outlined in the new statute. The new Act can be found at Virginia Code §§59.1-475 through 59.1-477. (HB1922).

Philip W. Parker