SB256
Motor vehicle insurance; remedies for bad faith for refusal of claims.
Status:
Enacted
Latest Action:
April 22, 2024
Senate: Impact statement from SCC (SB256ER)
Chief Patron:
Scott Surovell (D)
Session:
2024 Regular Session
Summary
As Passed Both Chambers. Motor vehicle insurance claims; bad faith.
Provides that if an insurance company licensed in the Commonwealth to write motor vehicle insurance (i) denies, refuses, fails to pay, or fails to make a timely and reasonable settlement offer to its insured under the provisions of any uninsured or underinsured motorist benefits coverage in a policy of motor ... (More) vehicle insurance applicable to the insured after the insured has become legally entitled to recover or (ii) after all applicable liability policy limits and underlying uninsured and underinsured motorists benefits have been tendered or paid, rejects a reasonable settlement demand made by the insured within the policy's coverage limits for uninsured or underinsured motorist benefits or fails to respond within a reasonable time after being presented with such demand after the insured has become legally entitled to recover, and it is subsequently found by a court of proper jurisdiction that such denial, refusal, or failure to timely pay or failure to make a timely and reasonable settlement offer, rejection of a reasonable settlement demand, or failure to timely accept a reasonable settlement demand was not made in good faith, in addition to the amount due and owing by the insurance company to its insured on the judgment against the tortfeasor, the insurance company shall also be liable to the insured in an amount up to double the amount of the judgment obtained against the underinsured motorist, uninsured motorist, immune motorist, unknown owner or operator, or released defendant in the underlying personal injury or wrongful death action, not to exceed $500,000, together with reasonable attorney fees for bringing the claim, and all costs and expenses incurred by the insured to secure a judgment against the tortfeasor, and interest from 30 days after the date of such denial or failure or the date the reasonable settlement demand. Under the bill, the insured or the insured's representative may seek adjudication of a claim that the insurance company did not act in good faith as a posttrial motion before the court in which the underlying personal injury or wrongful death judgment was obtained or as a separate action against the company. If the insured or the insured's representative seeks adjudication as a separate action and the underlying judgment is appealed, any action filed under this subsection shall be stayed by the court pending final resolution of the appeal of the underlying judgment. (Less)-
Bill History
- 01/09/2024 - Senate: Prefiled and ordered printed; offered 01/10/24 24104903D
- 01/09/2024 - Senate: Referred to Committee on Commerce and Labor
- 01/20/2024 - Senate: Impact statement from SCC (SB256)
- 01/29/2024 - Senate: Senate committee, floor amendments and substitutes offered
- 02/09/2024 - Senate: Senate committee, floor amendments and substitutes offered
- 02/09/2024 - Senate: Reported from Commerce and Labor with substitute (12-Y 3-N)
- 02/09/2024 - Senate: Committee substitute printed 24106953D-S1
- 02/09/2024 - Senate: Constitutional reading dispensed (39-Y 0-N)
- 02/12/2024 - Senate: Read second time
- 02/12/2024 - Senate: Reading of substitute waived
- 02/12/2024 - Senate: Committee substitute agreed to 24106953D-S1
- 02/12/2024 - Senate: Engrossed by Senate - committee substitute SB256S1
- 02/13/2024 - Senate: Read third time and passed Senate (25-Y 15-N) Close Floor Vote
- 02/15/2024 - House: Placed on Calendar
- 02/15/2024 - House: Read first time
- 02/15/2024 - House: Referred to Committee for Courts of Justice
- 02/16/2024 - House: Assigned Courts sub: Civil
- 02/19/2024 - House: Subcommittee recommends reporting with amendments (8-Y 0-N)
- 02/23/2024 - House: Reported from Courts of Justice with substitute (17-Y 2-N)
- 02/23/2024 - House: Committee substitute printed 24107971D-H1
- 02/27/2024 - House: Read second time
- 02/28/2024 - House: Read third time
- 02/28/2024 - House: Committee substitute agreed to 24107971D-H1
- 02/28/2024 - House: Engrossed by House - committee substitute SB256H1
- 02/28/2024 - House: Passed House with substitute (65-Y 33-N 1-A)
- 02/28/2024 - House: VOTE: Passage (65-Y 33-N 1-A) Close Floor Vote
- 03/01/2024 - Senate: House substitute rejected by Senate (0-Y 40-N)
- 03/04/2024 - House: House insisted on substitute
- 03/04/2024 - House: House requested conference committee
- 03/05/2024 - Senate: Impact statement from SCC (SB256H1)
- 03/05/2024 - Senate: Senate acceded to request (40-Y 0-N)
- 03/05/2024 - Senate: Conferees appointed by Senate
- 03/05/2024 - Senate: Senators: Surovell, Bagby, Obenshain
- 03/06/2024 - House: Conferees appointed by House
- 03/06/2024 - House: Delegates: Hope, Simon, Ballard
- 03/07/2024 - Conference: Amended by conference committee
- 03/07/2024 - House: Conference report agreed to by House (65-Y 32-N 1-A)
- 03/07/2024 - House: VOTE: Adoption (65-Y 32-N 1-A)
- 03/08/2024 - Senate: Conference report agreed to by Senate (30-Y 9-N 1-A)
- 03/25/2024 - Senate: Enrolled
- 03/25/2024 - Senate: Bill text as passed Senate and House (SB256ER)
- 03/25/2024 - Senate: Signed by President
- 03/26/2024 - House: Signed by Speaker
- 03/27/2024 - Senate: Enrolled Bill Communicated to Governor on March 27, 2024
- 03/27/2024 - Governor: Governor's Action Deadline 11:59 p.m., April 8, 2024
- 04/08/2024 - Senate: Governor's recommendation received by Senate
- 04/17/2024 - Senate: Senate concurred in Governor's recommendation (40-Y 0-N)
- 04/17/2024 - House: House concurred in Governor's recommendation (89-Y 10-N 1-A)
- 04/17/2024 - House: VOTE: Adoption (89-Y 10-N 1-A)
- 04/17/2024 - Governor: Governor's recommendation adopted
- 04/17/2024 - Senate: Reenrolled
- 04/17/2024 - Senate: Reenrolled bill text (SB256ER2)
- 04/17/2024 - Senate: Signed by President as reenrolled
- 04/17/2024 - House: Signed by Speaker as reenrolled
- 04/17/2024 - House: Enacted, Chapter 781 (effective 7/1/24)
- 04/17/2024 - Governor: Acts of Assembly Chapter text (CHAP0781)
- 04/22/2024 - Senate: Impact statement from SCC (SB256ER)
