Underinsured motorist insurance coverage; claim settled for amount exhausting policy limits. (HB2431)

Introduced By

Del. Johnny Joannou (D-Portsmouth) with support from co-patrons Del. Mark Cole (R-Fredericksburg), Del. Morgan Griffith (R-Salem), Del. Terry Kilgore (R-Gate City), and Del. Sam Nixon (R-Richmond)

Description

Underinsured motorist insurance coverage. Provides a mechanism for a motor vehicle liability insurer to settle a claim for bodily injury or death for an amount that would exhaust its policy limits. Notice of the offer is required to be sent to any insurer providing uninsured motorist coverage. If the insurer consents to the liability insurer's tentative policy limits settlement offer, it will thereby waive its subrogation rights against the tortfeasor and his insurer. The measure also provides that the liability insurer of a tortfeasor, after paying the limits of liability under its policy and obtaining the court's approval, shall be released from further liability and the obligation to participate in the defense of an action against a tortfeasor for damages, including death, caused by the operation of an underinsured motor vehicle. The court may approve an application if it is persuaded that the tortfeasor has been sent notice of the nature of the proceeding and of his right to select counsel of his choice to appear in the action. Read the Bill »

Outcome

History