read Read

e-mail E-mailprint Print

2005 Summary of New State Laws - Virginia

(Preliminary List of 2005 Approved/Pending Legislation)

Issue

Bill #

Bill Description

Legal Issues

(Increases Claims Amount for District Court Jurisdiction)

HB 1621

Extends the concurrent jurisdiction of general district courts under the Tort Claims Act to claims up to $15,000, and permits the removal of cases brought under the Act from general district court where the claim amount exceeds $4,500. Effective: 7/1/05. Chapter 144, Laws of 2005.

(General District Court; Medical Records)

HB 2209

Provides that if a personal injury case is removed from general district court to circuit court and the claim is under $15,000, the parties may use general district court procedures to introduce medical evidence, rather than the circuit court procedures. In general district court a party may introduce evidence on injuries, treatment and examination and costs by a report and affidavit from the health care provider. In circuit court medical evidence is typically introduced by deposition or trial testimony of the health care provider. Effective: 7/1/05. Chapter 811, Laws of 2005.

Miscellaneous Laws

(Prohibits Coercion by Motor Vehicle Manufacturers, Distributors)

HB 1736

Prohibits motor vehicle manufacturers and distributors from requiring retail dealers to offer to sell or sell any extended service contract or extended maintenance plan offered, sold, backed by, or sponsored by the manufacturer or distributor. The bill also eliminates the Class 1 misdemeanor penalty for violation and provides for holding hearings at the request of aggrieved parties instead. Effective: 7/1/05. Chapter 906, Laws of 2005.

(Motor Vehicles Sales and Use Tax)

HB 1745

Provides that the daily rental vehicle fee will be implemented, enforced, and collected like rental taxes. Effective: 7/1/05. Chapter 449, Laws of 2005.

(Vehicle Safety Inspections; Extensions for Military Personnel)

HB 2186

Provides that any vehicle safety inspection approval sticker issued for any vehicle whose registered owner is a person in the armed services of the United States will not be held to have expired during the period of the owner's official absence from the Commonwealth in the armed services of the United States and for 24 hours following the return of the service person's vehicle, for any reason, to the Commonwealth. The bill also allows the owner to travel to an inspection station without penalty upon his return. Incorporates HB 1688 (Hargrove). Effective: 7/1/05. Chapter 582, Laws of 2005.

(Motor Vehicle Registrations; Bus Registrations)

HB 2189

Authorizes permanent registration for buses. Effective: 7/1/05. Chapter 301, Laws of 2005.

(Increases Motorcycle Vehicle Inspection Fees)

HB 2199

Increases motorcycle fee from $5 to $12, with $10 going to inspection stations, $1.50 going into the Motorcycle Rider Safety Training Fund, and $.50 to the State Police to administer the safety inspection program. Effective: 1/1/06. Chapter 628, Laws of 2005.

(Electronic Certificates of Title)

HB 2293

Authorizes creation of electronic certificates of title. Effective: 7/1/05. Chapter 305, Laws of 2005.

(Medical Malpractice Insurance; Cancellation, Nonrenewal Notices)

HB 2410

Requires insurers to provide no less than 90 days notice of a cancellation or non-renewal of, or a premium increase of more than 25 percent for, a medical malpractice insurance policy. If cancellation or non-renewal of such a policy is for nonpayment of the premium, the cancellation or non-renewal will be effective not less than 15 days from the date of mailing or delivery of the notice. For all other liability insurance policies, 45 days notice of a 25 percent increase in the premium, rather than in the filed rate, is required. Effective: 7/1/05. Chapter 635, Laws of 2005.

(Vehicle Safety Inspections; Garage Liability Insurance)

HB 2434

Exempts "private" inspection stations that inspect only company-owned or leased or government-owned or leased vehicles from the requirement that inspection stations carry at least $500,000 garage liability insurance coverage. Effective: 7/1/05. Chapter 179, Laws of 2005.

(UETA, Locally Elected Constitutional Officers Included)

HB 2470

Includes locally elected constitutional officers in the definition of public body for purposes of the Uniform Electronic Transactions Act. Effective: 7/1/05. Chapter 417, Laws of 2005.

(Ambulance Services; Localities Authorized to Charge Insurers)

HB 2523

Clarifies that localities are currently permitted to charge insurers for ambulance services provided to any person covered by an accident and sickness insurance policy that provides coverage for ambulance services. Effective: 7/1/05. Chapter 182, Laws of 2005.

(Title Insurance; Allows Negotiated Risk Rates)

HB 2821

Authorizes title insurance companies to charge risk rates that it negotiates with a potential insured. Such rates shall be presumed not to be unfairly discriminatory if they are sufficient to furnish a reasonable margin for profit after provision for probable losses, exposure to loss under policies, allocations to reserves, costs of participating insurance, operating costs and other items of expense fairly attributable to the operation of the business, and are not unfairly discriminatory between risks involving essentially the same hazards and expense elements. Effective: 7/1/05. Chapter 848, Laws of 2005.

(Consumer Protection Act; Violations)

SB 832

Provides that for violations of the Consumer Protection Act based upon misrepresentation, deception and fraud, the cause of action accrues when such misrepresentation, etc. is discovered or by the exercise of due diligence reasonably should have been discovered. Effective: 7/1/05. Chapter 213, Laws of 2005.

(Consumer Protection Act; Fees Upon Settlement)

SB 912

Provides that if the parties desire to settle all matters in a dispute under the Act, the court may determine whether the plaintiff should be awarded attorneys' fees and court costs and the amount of the award. Effective: 7/1/05. Chapter 250, Laws of 2005.

(Fees Authorized for Securities/Surety Bonds)

SB 1059

Authorizes the State Treasurer to assess a fee, to be determined annually based on estimated expenses, to cover the expenses associated with the safekeeping and handling of securities or surety bonds deposited with the State Treasurer by insurance companies. The fee shall not exceed one-fourth of one percent of the par or face value of the deposited securities or surety bonds. Currently, the State Treasurer may charge a fee of not more than one-tenth of one percent of the par or face value of the deposited securities or surety bonds. The assessments will be deposited in a special, nonreverting fund to be known as the Insurance Collateral Assessment Fund. Effective: 7/1/05. Chapter 38, Laws of 2005.

Motor Vehicle Insurance

(Insurance for Unregistered Motor Vehicles)

HB 1663

Authorizes insurance on any motor vehicle, trailer or semi-trailer that is exempt from motor vehicle registration requirements to be written under a policy other than a motor vehicle insurance policy. Such registration-exempt vehicles remain exempt from the liability insurance requirements that apply to registered motor vehicles. Currently, an owner who elects to insure a registration-exempt vehicle that is designed for use on public roads must, with some exceptions, insure it under a motor vehicle insurance policy. This measure, by providing that policies covering such vehicles are exempt from the requirements applicable to motor vehicle insurance generally, allows such vehicles to be insured under a general liability policy or farm policy. Effective: 7/1/05. Chapter 445, Laws of 2005.

(Highway vehicles defined)

HB 1667

Makes a technical correction to clarify which highway vehicles in general may not be distrained for unpaid taxes, levies, or other charges. Sections 58.1-3941 and 58.1-3942 currently cross-reference a repealed section of the Code of Virginia that defined a "highway vehicle." Section 58.1-2101 defined a highway vehicle, but the section was repealed by the 2000 Session of the General Assembly, effective January 1, 2001. The bill corrects §§ 58.1-3941 and 58.1-3942 by including in these sections the definition of a highway vehicle as it appeared in repealed § 58.1-2101. Effective: 7/1/05. Chapter 59, Laws of 2005.

(Process for Correcting Motor Vehicle Titling Errors)

HB 1672

Provides a mechanism for correcting errors made in the motor vehicle title process. Effective: 7/1/05. Chapter 283, Laws of 2005.

Privacy

(Restricts Use of Social Security Number)

HB 2482

Prohibits any person from (i) intentionally communicating an individual's social security number to the general public; (ii) printing an individual's social security number on any card required for the individual to access or receive products or services; (iii) requiring an individual to use his social security number to access an Internet website, unless an authentication device is also required; or (iv) mailing a package with the social security number visible from the outside. The bill exempts public bodies and public records. A violation is a prohibited practice under the Virginia Consumer Protection Act. The measure also requires the state employee's health insurance plan to use identification numbers that are not the employee's social security number. Effective: 7/1/05. Chapter 640, Laws of 2005.

Property Insurance

(Prohibits Canceling/Nonrenewing Solely for Inquiries)

HB 814

Prohibits an insurer from canceling or refusing to renew homeowners insurance policies based solely on inquiries from insureds about insurance coverage or policy provisions. The measure does not apply to notifying the insurer of a loss, incident or accident, or providing information indicating an increase in the hazard insured against. Insurers are prohibited from reporting inquiries to any loss history database maintained by a consumer reporting agency or insurance support organization. Effective: 7/1/05. Chapter 872, Laws of 2005.

(Landlords, Tenants; Purchase of Insurance)

HB 1711

Clarifies that where a landlord obtains for tenant either damage insurance or renter's insurance, the landlord shall name the tenant as a "co-insured," so that the tenant will have privity of contract with the insurance company. Currently, the landlord's authority to obtain such insurance is limited to the purchase of a rider on the landlord's property and casualty insurance contract. Effective: 7/1/05. Chapter 285, Laws of 2005.

(Ultralight aircraft; insurance requirements)

HB 1792

Allows proof of financial responsibility with respect to ultralight aircraft to be satisfied by a liability insurance policy issued by a surplus lines carrier. Currently, ultralight aircraft may be insured by a single-limit policy with limits of $100,000, but the policy must be issued by an insurance company licensed in Virginia. Insurance on other types of aircraft may currently be obtained either from a licensed insurance company or through a surplus lines broker. Effective: 7/1/05. Chapter 451, Laws of 2005.

(Miscellaneous casualty insurance requirements)

HB 1882

Requires insurers deliver written notice of cancellation, renewal, reduction in coverage, or certain rate increases to the named insured under policies of miscellaneous casualty insurance issued to a business entity. Miscellaneous casualty policies insure against liability, and against loss, damage or expense arising out of injury to the economic interests of any person. The measure also requires policies insuring against liability for injury to the economic interests of any person to include provisions regarding the insolvency or bankruptcy of the insurer and when an action may be maintained by the insured against the insurer. Effective: 7/1/05. Chapter 290, Laws of 2005.

(Boiler and Pressure Vessel Inspections)

HB 1955

Authorizes the Commissioner to assign an agent or special inspector to inspect any boiler or pressure vessel 91 days after certificate expiration and assess an inspection fee against the owner or operator of the boiler or pressure vessel. Effective: 7/1/05. Chapter 387, Laws of 2005.

(Rate Caps Allowed for Certain Renewal Policies)

HB 2219

Clarifies that an insurer may cap the renewal rates for policies that have been transferred from another insurer pursuant to a merger, acquisition, or sale, to the same extent that such rates may be capped for policyholders whose coverage is continued by that insurer. Effective: 7/1/05. Chapter 95, Laws of 2005.

(Condo Act; Charges for Disclosure Packets)

HB 2446

Provides that no unit owners' association or property owners' association shall require reimbursement of any costs not expressly authorized in law or charge any other fee in the preparation or issuance of disclosure packet or making such information available by electronic means except as expressly provided in law for providing the required disclosure packets. The bill contains technical amendments. Effective: 7/1/05. Chapter 415, Laws of 2005.

(Revises Rating Criteria for Large Commercial Risks)

SB 913

Revises the criteria for qualification as a large commercial risk by reducing the eligibility threshold for net worth from $10 million to $2 million; for annual revenues from $25 million to $2 million; for full time employees from 80 to 10; for aggregate insurance payments from $100,000 to $25,000; and for annual budgeting expenditures for nonprofit organizations or public bodies from $10 million to $5 million. Effective: 7/1/05. Chapter 251, Laws of 2005.

(Liability Insurance; Limits on Policies)

SB 1260

Authorizes a liability insurer to limit its liability, under an insurance policy covering bodily injury or property damage, for injury or damage resulting from any one accident or occurrence to the liability limits for such coverage set forth in the policy for any accident or occurrence or for any one person. The measure also provides that if an accident or occurrence involves more than one defendant who is covered by the policy, the plaintiff may recover the per person limit of the policy against each defendant, subject to the policy's per accident or occurrence limit. Effective: 7/1/05. Chapter 771, Laws of 2005.

Traffic Issues

(Traffic Incidents; Allows Reimbursement of Expenses From Juveniles)

HB 1674

Includes juvenile defendants in existing provisions that allow localities to seek reimbursement of expenses related to providing an emergency response to certain traffic and DUI incidents. Effective: 7/1/05. Chapter 148, Laws of 2005.

(Restricted Licenses Allowed at Judge's Discretion)

HB 1722

Allows the issuance of a restricted license by a judge who has suspended the license of someone convicted of certain reckless driving offenses. Under current law there is no provision for the issuance of a restricted license for the following reckless driving offenses: faulty brakes, passing on a crest, grade or curve, obstructed view, impaired control, passing two vehicles abreast, driving two abreast in a single lane, passing at a railroad crossing, passing a stopped school bus, failing to give a signal, driving too fast for conditions, exceeding the speed limit, failure to yield right-of-way, and reckless driving on parking lots. Although discretionary with the judge, the period of suspension for these offenses is not less than 60 days nor more than six months. Another statute (§ 46.2-392) provides for a period of suspension of not less than 10 days nor more than six months for reckless driving and allows restricted licenses. This bill is a recommendation of the Committee on District Courts. Effective: 7/1/05. Chapter 152, Laws of 2005.

(DUI; Schedule I & II Drugs in System)

HB 1896

Makes it a violation of the DUI statute to drive with specified levels of the following illegal drugs in one's blood: cocaine, methamphetamine, phencyclidine (PCP) and methylenedioxymethamphetamine (MDMA ecstasy). Effective: 7/1/05. Chapter 616, Laws of 2005.

(Blood Alcohol Tests in Civil Cases)

HB 2118

Makes the written reports or records of blood alcohol tests conducted upon persons receiving medical treatment in a hospital or emergency room admissible in evidence in any civil proceeding as a business records exception to the hearsay rule. The protections for confidentiality of medical records and treatment and against civil liability for those taking blood and conducting tests that now apply in criminal proceedings are extended to civil proceedings. Effective: 7/1/05. Chapter 801, Laws of 2005.

(Driver's Tests; Reduces Retaking of Written Tests)

HB 2193

Reduces the number of applicants for driver's license renewal that have to retake the rules-of-the-road written test. Effective: 7/1/05. Chapter 302, Laws of 2005.

(Speed Limits, Defined)

HB 2418

Includes residential subdivisions and territory zoned residential in the definition of residence district for purposes of Title 46.2 (Motor Vehicles). The bill also excludes nonlimited access highways with four or more lanes and primary highways located in residence districts from having 25 miles per hour speed limits. Effective: 7/1/05. Chapter 310, Laws of 2005.

(Notice of Vehicle Impoundment)

HB 2435

Removes the requirement that the officer who impounds a car shall serve notice of the impoundment to the Commissioner of DMV. Effective: 7/1/05. Chapter 312, Laws of 2005.

(Full Legal Name on Driver's License Applications)

HB 2509

Requires that driver's license applications include the applicant or licensee's full legal name. Effective: 7/1/05. Chapter 828, Laws of 2005.

(DUI; Refusal to Take Blood, Breath Test)

HB 2655

Clarifies provisions in the driving under the influence laws, particularly in the refusal statute. The bill states that a first offense of refusal is a civil offense and that subsequent offenses are criminal. Procedures for charging a person with refusal are specified. A law-enforcement officer will have to read the refusal form only to persons who refuse to take a blood or breath test. Effective: 7/1/05. Chapter 840, Laws of 2005.

(Driver's License; Reinstatement Fee)

HB 2664

Imposes an additional $40 fee for reinstatement of suspended or revoked driver's licenses. Proceeds of this additional fee are to be paid into the Trauma Center Fund for the purpose of defraying the costs of providing emergency medical care to victims of automobile accidents attributable to alcohol or drug use. Effective: 7/1/05. Chapter 886, Laws of 2005.

(DUI; Person Taken to Medical Facility; Issuance of Summons)

HB 2668

Provides that if a person arrested for DUI has been taken to a medical facility for treatment or evaluation of his medical condition, the arresting officer at a medical facility may issue, on the premises of the medical facility, a summons for the DUI violation and for refusal of blood alcohol tests in lieu of securing a warrant. Currently, the summons is authorized only for a refusal. Effective: 7/1/05. Chapter 425, Laws of 2005.

(DUI; Includes Moped Operators)

HB 2786

Provides that the defined term "motor vehicle," which includes mopeds while operated on the public highways of this Commonwealth, applies to all of the provisions of the article of the Code establishing the DUI laws. Effective: 7/1/05. Chapter 845, Laws of 2005.

(Motor Vehicle Titles; New Titles Issued)

HB 2822

Provides that DMV will issue a new title upon presentation of a title from another state and a form prescribed by the Commissioner attesting to the lawful repossession of the vehicle and the intent to offer the vehicle for sale in the Commonwealth. DMV will then request the other state to cancel its title. This bill is the same as SB 1234 (Houck). Effective: 3/25/05. Chapter 849, Laws of 2005.

(Driver's License; Waiver of Learner's Permit for Foreign Drivers)

SB 821

Allows any person at least 19 years old to have the learner's permit or driver education requirement waived if that person possesses a foreign driver's license. This bill also prohibits unlicensed non-residents who are over the age of 16 years and 3 months from operating non-commercial motor vehicles without a Virginia driver's license. Effective: 7/1/05. Chapter 245, Laws of 2005.

(Driver's License; Full Legal Name Required)

SB 965

Requires that driver's license applications and driver's licenses include the applicant or licensee's full legal name. The bill also requires that applications for special identification cards issued by DMV include the applicant's full name; year, month, and date of birth; sex; and residence address. Effective: 7/1/05. Chapter 259, Laws of 2005.

(Allows for Special ID Cards for Drivers)

SB 972

Allows licensed drivers to exchange their driver's licenses for special identification cards without incurring an additional fee. The bill also brings the fees charged for issuance of special identification cards more into line with those of driver's licenses. Effective: 7/1/05. Chapter 260, Laws of 2005.

(DUI; Clarifies Refusal Statue)

SB 1093

Clarifies provisions in the driving under the influence laws, particularly in the refusal statute. The bill spells out the procedure for charging a person with refusal and states that a first violation of the refusal statute is a civil offense and that subsequent violations are criminal offenses. A law-enforcement officer will have to read the refusal form only to persons who refuse to take a blood or breath test. Effective: 7/1/05. Chapter 757, Laws of 2005.

(Commercial Driver's License Requirements)

SB 1198

Amends various Virginia Code sections in order to comply with the final rule promulgated by the Federal Motor Carrier Safety Administration to implement the commercial driver licensing requirements of Section 201(b) of the Motor Carrier Safety Improvement Act of 1999. This act requires stricter licensing and record-keeping procedures and imposes increased sanctions against commercial driver's license holders who operate commercial and noncommercial vehicles in an unsafe manner. Effective: 7/1/05. Chapter 513, Laws of 2005.

(Driver's License; Surrender for Revocation or Suspension of License)

SB 1205

Clarifies when a driver's license is retained by the court, returned to the defendant or submitted to DMV when a defendant is convicted of an offense which requires or permits the revocation or suspension of the license. Effective: 7/1/05. Chapter 943, Laws of 2005.

(Motor Vehicle Titles; New Titles Issued)

SB 1234

Provides that DMV will issue a new title upon presentation of a title from another state and a form prescribed by the Commissioner attesting to the lawful repossession of the vehicle and the intent to offer the vehicle for sale in the Commonwealth. DMV will then request the other state to cancel its title. Same as HB 2822 (Welch). Effective: 3/26/05. Chapter 766, Laws of 2005.

Workers' Compensation

(Coverage for Local Emergency Response Teams)

HB 1567

Provides that those volunteer members of community emergency response teams and volunteer members of medical reserve corps who have been acknowledged as employees by the local governing body or state institution of higher education in which the principal office of their team or corps is located are employees of that local government or state institution for workers' compensation purposes. HB 1697 is incorporated. Effective: 7/1/05. Chapter 368, Laws of 2005.

(Non-work driving activity not compensable)

HB 1728

Provides that any injury, disease or condition resulting from the use by an employee of a dealer motor vehicle for commuting to or from work or any other non-work activity is not compensable under workers' compensation. This bill is identical to SB 1215. Effective: 7/1/05. Chapter 374, Laws of 2005.

(Business Entity Obligations)

HB 1862

Authorizes the Workers' Compensation Commission to require a business entity with a controlling interest in or sharing common ownership with any professional employer organization providing services in the Commonwealth to guarantee the performance of all obligations under the Workers' Compensation Act by the non-controlling business entity, including payment of benefits. Effective: 7/1/05. Chapter 158, Laws of 2005.

(Failure to Ensure Payment, Penalty)

HB 1863

Provides for imposition of civil and criminal penalties on employers that fail to insure payment of workers' compensation to their employees, and for the imposition of civil penalties on employers that fail to comply to with requirements governing professional employer organizations. Effective: 7/1/05. Chapter 69, Laws of 2005.

(Recipients of Temporary Assistance for Needy Families Not Eligible for Workers' Compensation)

HB 2462

Provides that recipients of Temporary Assistance for Needy Families benefits who participate in the work experience component of the Virginia Initiative for Employment Not Welfare Program, and are not eligible for Medicaid, will be employees of the Commonwealth for purposes of the Workers' Compensation Act. Such recipients will not be eligible for wage replacement or death benefits. Effective: 7/1/05. Chapter 472, Laws of 2005.

(Coverage for First Responders in State of Emergency)

HB 2700

Provides that injuries to first responders incurred while traveling from home or another location outside a work location to that work location are deemed to be within the scope of employment for purposes of the Workers' Compensation Act, if a state of emergency is in effect. Effective: 7/1/05. Chapter 429, Laws of 2005.

(Limitation on Claims Filed by 9/11 Rescue, Relief Workers)

HB 2775

Allows an employee suffering from a disease directly attributable to 9/11 rescue and relief efforts two years after the employee first learns of the disease diagnosis within which to file claim. Effective: 7/1/05. Chapter 433, Laws of 2005.

(Claims allowed under military duty)

SB 1035

Provides that a claim for workers' compensation shall be deemed to be in the course of employment with the Virginia National Guard, Virginia State Defense Force, or naval militia for any member thereof, who, in reacting to an order to report while he is outside an assigned shift or work location, undertakes in direct obedience to a lawful military order travel to his designated place of state active duty. Effective: 7/1/05. Chapter 223, Laws of 2005.

(Non-work driving activity not compensable)

SB 1215

Provides that any injury, disease or condition resulting from the use by an employee of a dealer motor vehicle for commuting to or from work or any other non-work activity is not compensable under workers' compensation. This bill is identical to HB 1728. Effective: 7/1/05. Chapter 354, Laws of 2005.

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.

Virginia State Resource Center