Virginia: Problematic Bad Faith Bill

To: All NAMIC Members Doing Business in Virginia

Deadline: Tuesday, February 13, 2024, 12 p.m.

Action: Ask Your State Senator to “NO” Vote on Problematic Bad Faith Bill

The Virginia Senate Commerce and Labor Committee on Feb. 9 favorably reported a problematic bill that would significantly expand Virginia’s bad faith law for underinsured/uninsured motorist coverages.

Despite Virginia’s already strong consumer protection laws and regulations, an effort to create yet another cause of action against Virginia’s insurers has been introduced via SB 256. On its face, this bill isn’t necessary as there is a full and robust system to address bad actors through the Bureau of Insurance. The bill would create a “bad faith” action for underinsured/uninsured motorist coverages when an insured seeks coverage from their insurer due to another driver’s lack of adequate insurance.

SB 256 will substantially and materially impact insurance and ultimately harm Virginia’s consumers.

Please contact your state senator to ask him or her to vote NO on SB 256, as it will lead to increased litigation, higher insurance costs, and an unpredictable court system.