Virginia: Bad Faith Legislation Advances Out of House Subcommittee

Senate Bill 256, which would expand the bad faith statute to apply to uninsured or underinsured motorist coverage, saw quick action in the House following the crossover deadline. The bill is sponsored by Senate Majority Leader Scott Surovell and was the only piece of legislation on the docket Feb. 19 for the House Courts of Justice Civil Subcommittee. After an hour of deliberation, the subcommittee unanimously voted, 8-0, to advance the bill to the full committee after accepting a series of amendments:

• Clarifying an amendment on the enactment clause;
• Adding an amount “up to” double the amount of the judgment obtained (line 150): and
• Striking “up to” $500,000 and replacing with “not to exceed” $500,000. (line 152).

While the amendments address some of the concerns that have been raised by the industry, NAMIC continues to oppose the expansion of bad faith.

The bill is likely to be on the Courts of Justice Committee docket Feb. 21, which could put it on the House floor for final passage the week of Feb. 26.