VA SB256 | 2024 | Regular Session
Status
Completed Legislative Action
Spectrum: Partisan Bill (Democrat 2-0)
Status: Passed on April 17 2024 - 100% progression
Action: 2024-04-17 - Enacted, Chapter 781 (effective 7/1/24)
Text: Latest bill text (Enrolled) [HTML]
Spectrum: Partisan Bill (Democrat 2-0)
Status: Passed on April 17 2024 - 100% progression
Action: 2024-04-17 - Enacted, Chapter 781 (effective 7/1/24)
Text: Latest bill text (Enrolled) [HTML]
Summary
Motor vehicle insurance claims; bad faith. Provides that if an insurance company licensed in the Commonwealth to write motor vehicle insurance (i) denies, refuses, fails to pay, or fails to make a timely and reasonable settlement offer to its insured under the provisions of any uninsured or underinsured motorist benefits coverage in a policy of motor vehicle insurance applicable to the insured after the insured has become legally entitled to recover or (ii) after all applicable liability policy limits and underlying uninsured and underinsured motorists benefits have been tendered or paid, rejects a reasonable settlement demand made by the insured within the policy's coverage limits for uninsured or underinsured motorist benefits or fails to respond within a reasonable time after being presented with such demand after the insured has become legally entitled to recover, and it is subsequently found by a court of proper jurisdiction that such denial, refusal, or failure to timely pay or failure to make a timely and reasonable settlement offer, rejection of a reasonable settlement demand, or failure to timely accept a reasonable settlement demand was not made in good faith, in addition to the amount due and owing by the insurance company to its insured on the judgment against the tortfeasor, the insurance company shall also be liable to the insured in an amount up to double the amount of the judgment obtained against the underinsured motorist, uninsured motorist, immune motorist, unknown owner or operator, or released defendant in the underlying personal injury or wrongful death action, not to exceed $500,000, together with reasonable attorney fees for bringing the claim, and all costs and expenses incurred by the insured to secure a judgment against the tortfeasor, and interest from 30 days after the date of such denial or failure or the date the reasonable settlement demand. Under the bill, the insured or the insured's representative may seek adjudication of a claim that the insurance company did not act in good faith as a posttrial motion before the court in which the underlying personal injury or wrongful death judgment was obtained or as a separate action against the company. If the insured or the insured's representative seeks adjudication as a separate action and the underlying judgment is appealed, any action filed under this subsection shall be stayed by the court pending final resolution of the appeal of the underlying judgment. Motor vehicle insurance claims; bad faith. Provides that if an insurance company licensed in the Commonwealth to write motor vehicle insurance (i) denies, refuses, fails to pay, or fails to make a timely and reasonable settlement offer to its insured under the provisions of any uninsured or underinsured motorist benefits coverage in a policy of motor vehicle insurance applicable to the insured after the insured has become legally entitled to recover or (ii) after all applicable liability policy limits and underlying uninsured and underinsured motorists benefits have been tendered or paid, rejects a reasonable settlement demand made by the insured within the policy's coverage limits for uninsured or underinsured motorist benefits or fails to respond within a reasonable time after being presented with such demand after the insured has become legally entitled to recover, and it is subsequently found by a court of proper jurisdiction that such denial, refusal, or failure to timely pay or failure to make a timely and reasonable settlement offer, rejection of a reasonable settlement demand, or failure to timely accept a reasonable settlement demand was not made in good faith, in addition to the amount due and owing by the insurance company to its insured on the judgment against the tortfeasor, the insurance company shall also be liable to the insured in an amount up to double the amount of the judgment obtained against the underinsured motorist, uninsured motorist, immune motorist, unknown owner or operator, or released defendant in the underlying personal injury or wrongful death action, not to exceed $500,000, together with reasonable attorney fees for bringing the claim, and all costs and expenses incurred by the insured to secure a judgment against the tortfeasor, and interest from 30 days after the date of such denial or failure or the date the reasonable settlement demand. Under the bill, the insured or the insured's representative may seek adjudication of a claim that the insurance company did not act in good faith as a posttrial motion before the court in which the underlying personal injury or wrongful death judgment was obtained or as a separate action against the company. If the insured or the insured's representative seeks adjudication as a separate action and the underlying judgment is appealed, any action filed under this subsection shall be stayed by the court pending final resolution of the appeal of the underlying judgment.
Title
Motor vehicle insurance; remedies for bad faith for refusal of claims.
Sponsors
Roll Calls
2024-04-17 - House - House: VOTE: Adoption (89-Y 10-N 1-A) (Y: 89 N: 10 NV: 1 Abs: 0) [PASS]
2024-04-17 - Senate - Senate: Senate concurred in Governor's recommendation (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2024-03-08 - Senate - Senate: Conference report agreed to by Senate (30-Y 9-N 1-A) (Y: 30 N: 9 NV: 1 Abs: 0) [PASS]
2024-03-07 - House - House: VOTE: Adoption (65-Y 32-N 1-A) (Y: 65 N: 32 NV: 1 Abs: 2) [PASS]
2024-03-05 - Senate - Senate: Senate acceded to request (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2024-03-01 - Senate - Senate: House substitute rejected by Senate (0-Y 40-N) (Y: 0 N: 40 NV: 0 Abs: 0) [FAIL]
2024-02-28 - House - House: VOTE: Passage (65-Y 33-N 1-A) (Y: 65 N: 33 NV: 1 Abs: 1) [PASS]
2024-02-23 - House - House: Reported from Courts of Justice with substitute (17-Y 2-N) (Y: 17 N: 2 NV: 1 Abs: 2) [PASS]
2024-02-19 - House - House: Subcommittee recommends reporting with amendments (8-Y 0-N) (Y: 8 N: 0 NV: 0 Abs: 1) [PASS]
2024-02-13 - Senate - Senate: Read third time and passed Senate (25-Y 15-N) (Y: 25 N: 15 NV: 0 Abs: 0) [PASS]
2024-02-09 - Senate - Senate: Constitutional reading dispensed (39-Y 0-N) (Y: 39 N: 0 NV: 0 Abs: 1) [PASS]
2024-02-09 - Senate - Senate: Reported from Commerce and Labor with substitute (12-Y 3-N) (Y: 12 N: 3 NV: 0 Abs: 0) [PASS]
2024-04-17 - Senate - Senate: Senate concurred in Governor's recommendation (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2024-03-08 - Senate - Senate: Conference report agreed to by Senate (30-Y 9-N 1-A) (Y: 30 N: 9 NV: 1 Abs: 0) [PASS]
2024-03-07 - House - House: VOTE: Adoption (65-Y 32-N 1-A) (Y: 65 N: 32 NV: 1 Abs: 2) [PASS]
2024-03-05 - Senate - Senate: Senate acceded to request (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2024-03-01 - Senate - Senate: House substitute rejected by Senate (0-Y 40-N) (Y: 0 N: 40 NV: 0 Abs: 0) [FAIL]
2024-02-28 - House - House: VOTE: Passage (65-Y 33-N 1-A) (Y: 65 N: 33 NV: 1 Abs: 1) [PASS]
2024-02-23 - House - House: Reported from Courts of Justice with substitute (17-Y 2-N) (Y: 17 N: 2 NV: 1 Abs: 2) [PASS]
2024-02-19 - House - House: Subcommittee recommends reporting with amendments (8-Y 0-N) (Y: 8 N: 0 NV: 0 Abs: 1) [PASS]
2024-02-13 - Senate - Senate: Read third time and passed Senate (25-Y 15-N) (Y: 25 N: 15 NV: 0 Abs: 0) [PASS]
2024-02-09 - Senate - Senate: Constitutional reading dispensed (39-Y 0-N) (Y: 39 N: 0 NV: 0 Abs: 1) [PASS]
2024-02-09 - Senate - Senate: Reported from Commerce and Labor with substitute (12-Y 3-N) (Y: 12 N: 3 NV: 0 Abs: 0) [PASS]
History
| Date | Chamber | Action |
|---|---|---|
| 2024-04-17 | House | Enacted, Chapter 781 (effective 7/1/24) |
| 2024-04-17 | House | Signed by Speaker as reenrolled |
| 2024-04-17 | Senate | Signed by President as reenrolled |
| 2024-04-17 | Senate | Reenrolled bill text (SB256ER2) |
| 2024-04-17 | Senate | Reenrolled |
| 2024-04-17 | Governor: Governor's recommendation adopted | |
| 2024-04-17 | House | VOTE: Adoption (89-Y 10-N 1-A) |
| 2024-04-17 | House | House concurred in Governor's recommendation (89-Y 10-N 1-A) |
| 2024-04-17 | Senate | Senate concurred in Governor's recommendation (40-Y 0-N) |
| 2024-04-08 | Senate | Governor's recommendation received by Senate |
| 2024-03-27 | Governor: Governor's Action Deadline 11:59 p.m., April 8, 2024 | |
| 2024-03-27 | Senate | Enrolled Bill Communicated to Governor on March 27, 2024 |
| 2024-03-26 | House | Signed by Speaker |
| 2024-03-25 | Senate | Signed by President |
| 2024-03-25 | Senate | Bill text as passed Senate and House (SB256ER) |
| 2024-03-25 | Senate | Enrolled |
| 2024-03-08 | Senate | Conference report agreed to by Senate (30-Y 9-N 1-A) |
| 2024-03-07 | House | VOTE: Adoption (65-Y 32-N 1-A) |
| 2024-03-07 | House | Conference report agreed to by House (65-Y 32-N 1-A) |
| 2024-03-07 | Conference: Amended by conference committee | |
| 2024-03-06 | House | Delegates: Hope, Simon, Ballard |
| 2024-03-06 | House | Conferees appointed by House |
| 2024-03-05 | Senate | Senators: Surovell, Bagby, Obenshain |
| 2024-03-05 | Senate | Conferees appointed by Senate |
| 2024-03-05 | Senate | Senate acceded to request (40-Y 0-N) |
| 2024-03-04 | House | House requested conference committee |
| 2024-03-04 | House | House insisted on substitute |
| 2024-03-01 | Senate | House substitute rejected by Senate (0-Y 40-N) |
| 2024-02-28 | House | VOTE: Passage (65-Y 33-N 1-A) |
| 2024-02-28 | House | Passed House with substitute (65-Y 33-N 1-A) |
| 2024-02-28 | House | Engrossed by House - committee substitute SB256H1 |
| 2024-02-28 | House | Committee substitute agreed to 24107971D-H1 |
| 2024-02-28 | House | Read third time |
| 2024-02-27 | House | Read second time |
| 2024-02-23 | House | Committee substitute printed 24107971D-H1 |
| 2024-02-23 | House | Reported from Courts of Justice with substitute (17-Y 2-N) |
| 2024-02-19 | House | Subcommittee recommends reporting with amendments (8-Y 0-N) |
| 2024-02-16 | House | Assigned Courts sub: Civil |
| 2024-02-15 | House | Referred to Committee for Courts of Justice |
| 2024-02-15 | House | Read first time |
| 2024-02-15 | House | Placed on Calendar |
| 2024-02-13 | Senate | Read third time and passed Senate (25-Y 15-N) |
| 2024-02-12 | Senate | Engrossed by Senate - committee substitute SB256S1 |
| 2024-02-12 | Senate | Committee substitute agreed to 24106953D-S1 |
| 2024-02-12 | Senate | Reading of substitute waived |
| 2024-02-12 | Senate | Read second time |
| 2024-02-09 | Senate | Constitutional reading dispensed (39-Y 0-N) |
| 2024-02-09 | Senate | Committee substitute printed 24106953D-S1 |
| 2024-02-09 | Senate | Reported from Commerce and Labor with substitute (12-Y 3-N) |
| 2024-01-09 | Senate | Referred to Committee on Commerce and Labor |
| 2024-01-09 | Senate | Prefiled and ordered printed; offered 01/10/24 24104903D |
