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NAMIC 2006 Survey of New State Insurance Laws Summary and Analysis

2006 SUMMARY OF NEW STATE LAWS - VIRGINIA

Virginia State Legislative Website

BILL #

CHAPTER #

ISSUE

BILL DESCRIPTION

HB 41

82

Motor vehicle insurance - traffic offenses

Clarifies that the additional punishment for two offenses of DUI is applicable to any second offense occurring within five years after any prior offense, rather than a second offense occurring within five years after a first offense; includes juvenile offenders. Effective: July 1, 2006.

HB 261

589

Producer licensure - licensing requirements

Relates to registration and licensure of insurance agents; allows an insurance agent who obtained the required continuing education course credits but failed to submit proof of compliance within the permitted time to submit proof of compliance after the State Corporation Commission has issued a notice of impending termination of the agent's license. Effective: July 1, 2006.

HB 326

629

Workers' compensation -- miscellaneous

Relates to workers' compensation; provides a definition of employee; relates to a shareholder of a stock corporation having only one shareholder and a member of a limited liability company having only one member. Effective: July 1, 2006.

HB 340

837

Property insurance

Regulates dangerous and vicious dogs; expands authority to petition a court to find a dog dangerous to any law enforcement officer; prohibits sale, adoption, transfer or fostering of dangerous dogs by any animal control officer, pound, shelter, foster care provider or foster home, dealer or home based rescue; includes dogs that inflict injury to a companion animal requiring the animal to be euthanized; provides that parents and legal guardians are responsible if such dog's owner is a minor. (Same as HB 1039). Effective: July 1, 2006.

HB 436

402

Motor vehicle insurance -- miscellaneous

Provides that any vehicle valuation service may be used as evidence of a vehicle's value and not just the National Automobile Dealers' Association black or yellow book. Effective: July 1, 2006.

HB 514

101

Motor vehicle insurance - traffic offenses

Provides that evidence admissible in any court in any criminal or civil proceeding as evidence of the validity and accuracy of an individual's blood alcohol breath test shall include any and all documentation; provides that such documentation shall specifically include, but shall not be limited to, breath test equipment logs, certification and repair records, and certificates of accuracy; requires certification as true copies. Effective: July 1, 2006.

HB 596

648

Catastrophe related legislation

Creates the Dam Safety, Flood Prevention and Protection Assistance Fund; provides the fund will be used to make loans and grants to local governments and loans to private entities to finance the cost of implementing projects to prevent, reduce, or mitigate damages caused by flooding, to upgrade dams or impounding structures, and to fund flood prevention studies. (Same as SB 624). Effective: July 1, 2006.

HB 816

851

Motor vehicle insurance - event data recorders

Limits access to data stored on recording devices in motor vehicles without owner consent; relates to third party contracts, court-authorized access, motor vehicle dealers, mechanics, recorded data accessed by an emergency medical response provider and cancellation or refusal to renew motor vehicle insurance policies; prohibits an insurer from reducing coverage, increasing a premium, applying a surcharge, refusing to apply a discount or failing to place in the best tier because of access refusal by owner. Effective: July 1, 2006.

HB 865

660

Workers' compensation - benefits, claims or treatments

Requires compensation for a temporary partial disability of 13 weeks or less to be calculated based on post injury average wages over the entire period of partial disability; participants in AmeriCorps, Food Stamps and temporary assistance for needy families shall not be eligible to receive weekly compensation for partial incapacity, whether permanent or temporary, regardless of whether the injury results in death. Effective: July 1, 2006.

HB 941

265

Workers' compensation

Relates to a self-insurance of worker's compensation liability; provides for a minimum ratio of debt to equity. Effective: July 1, 2006.

HB 942

786

Workers' compensation - self-insurance

Relates to the Structured Settlement Protection Act; exempts all settlements of workers' compensation benefit payments from the provisions of the Structured Settlement Protection Act; relates to transfers of workers compensation claims, awards, benefits and settlements. Effective: July 1, 2006.

HB 1001

554

Tort reform - disputes and settlements

Relates to liability insurance; limits the circumstances pursuant to which insurers are required to provide notice of reduction in coverage or increase in premiums; relates to medical malpractice insurance. Effective: July 1, 2006.

HB 1258

874

Motor vehicle insurance - towing issues

Relates to liens by tow trucks, wreckers, towing and recovery vehicles, towing and recovery operators and regulation by the Board for Towing; increases the present three-day limit for garage keepers to obtain vehicle data from DMV; provides written notice to the owner of the stored vehicle, boat or aircraft. Effective: July 1, 2006.

HB 1275

279

Tort reform -- bonds

Eliminates the ability of an individual to recover costs and attorney's fees from surety in a civil action to determine what coverage exists under a bond; relates to a fidelity bond. Effective: July 1, 2006.

HB 1546

301

Motor vehicle insurance - traffic offenses

Defines reckless driving as a person shall be guilty of reckless driving who drives a motor vehicle on the highways in the Commonwealth at a speed of twenty miles per hour or more in excess of the applicable maximum speed limit, or in excess of eighty miles per hour regardless of the applicable maximum speed limit. Effective: July 1, 2006.

SB 8

472

Motor vehicle insurance - enforcement issues

Raises the penalty for displaying or having in possession any motor vehicle registration card, certificate of title, or license plate or decal which is known to be fictitious or cancelled, revoked, suspended, or altered, or displaying any license plate or decal that is known to be currently issued to another vehicle; raises the penalty for refusing to surrender any certificate of title, registration card, or license plate decal; raises the penalty for using a false name or address. Effective: July 1, 2006.

SB 89

888

Motor vehicle insurance - event data recorders

Requires manufacturers of new motor vehicles equipped with a recording device and sold or leased to disclose that fact in the owner's manual for that vehicle. Effective: July 1, 2006.

SB 90

889

Motor vehicle insurance - event data recorders

Adds a section that makes the vehicle owner the owner of any recorded data stored on a recording device in the vehicle; provides that vehicle owner may consent or contract with a third party to access recorded data; provides no insurer shall reduce coverage, increase the premium, apply or surcharge, refuse to apply a discount other than a discount that is based on the data recorded, or fail to place the insurer in the most favorably priced company for refusal to allow the insurer access to the information. Effective: July 1, 2006.

SB 134

891

Motor vehicle insurance - towing issues

Provides for regulation by the Board for Towing and Recovery Operators; provides that every keeper of a livery stable, hangar, tie-down, marina, or garage, and every person pasturing or keeping any horses or other animals, vehicles, boats, aircraft, or harness, shall have a lien upon such horses and other animals, vehicles, boats, aircraft, and harness, for the amount which may be due him for the towing, storage, recovery, keeping, supporting, and care thereof, until such amount is paid. Effective: July 1, 2006.

SB 191

896

Motor vehicle insurance - all-terrain vehicles

Requires that every owner of any all-terrain vehicle or off-road motorcycle powered by a gasoline or diesel engine must obtain a title to the vehicle; provides that, for purposes of motorcycle dealers, all-terrain vehicles and off-road motorcycles will be considered motorcycles; allows children under 12 years of age to operate all-terrain vehicles and off-road motorcycles; provides for imposition of personal property tax on all-terrain vehicles and off-road motorcycles. Effective: July 1, 2006.

SB 299

314

Motor vehicle insurance - traffic offenses

Relates to maximum punishment for DUI; clarifies that in no case shall mandatory minimum punishments for DUI cumulate so as to exceed the statutory maximum punishment for a Class 1 misdemeanor or, in the case of a third or subsequent offense, for a Class 6 felony. Effective: July 1, 2006.

SB 474

320

Financial regulation

Relates to actuarial statements provided by insurers; requires insurers to submit an actuarial opinion summary, written by the insurer's appointed actuary, to the State Corporation Commission if they are required to submit an actuarial opinion. Effective: July 1, 2006.

SB 546

577

Financial regulation

Prohibits a domestic insurer from declaring or paying a dividend or other distribution from any source other than earned surplus without the Commission's prior approval; limits or disallows the payment of ordinary dividends by insurers that are financially distressed; requires the quality of an insurer's earnings in determining whether an insurer's surplus to policyholders is reasonable. Effective: July 1, 2006.

SB 586

329

Corporate governance - company rules

Relates to notice of transfer; removes the requirement that insurers file copies of amendments to their bylaws with the State Corporation Commission when they change their state of domicile. Effective: July 1, 2006.

SB 593

762

Corporate governance - company rules

Authorizes the State Corporation Commission to place on probation, suspend, revoke, or refuse to issue or renew the license of a reinsurance intermediary or managing general agent that has had its corporate existence or certificate of organization, trust, partnership, authority, or registration terminated, cancelled, surrendered, or revoked. Effective: July 1, 2006.

The information contained in this summary is not intended as a portrayal of every property/casualty-related law enacted in each state. Rather, it represents recently enacted legislation specifically identified by NAMIC State and Regulatory Affairs Staff as bearing direct relevance to those issues that represent NAMIC's National State Legislative Agenda or otherwise deemed pertinent to the interests of the majority of NAMIC members.

This summary is for use as a convenient tool for our members, and is not intended, and should not be considered to be, legal advice. Please consult your legal representatives.