§ 8.01-66.1. Remedy for arbitrary refusal of motor vehicle insurance claim.
A. Whenever any insurance company licensed in this Commonwealth to writeinsurance as defined in § 38.2-124 denies, refuses or fails to pay to itsinsured a claim of $3,500 or less in excess of the deductible, if any, underthe provisions of a policy of motor vehicle insurance issued by such companyto the insured and it is subsequently found by the judge of a court of properjurisdiction that such denial, refusal or failure to pay was not made in goodfaith, the company shall be liable to the insured in an amount double theamount otherwise due and payable under the provisions of the insured's policyof motor vehicle insurance, together with reasonable attorney's fees andexpenses.
The provisions of this subsection shall be construed to include an insurancecompany's refusal or failure to pay medical expenses to persons covered underthe terms of any medical payments coverage extended under a policy of motorvehicle insurance, when the amount of the claim therefor is $3,500 or lessand the refusal was not made in good faith.
B. Notwithstanding the provisions of subsection A, whenever any insurancecompany licensed in this Commonwealth to write insurance as defined in §38.2-124 denies, refuses or fails to pay to a third party claimant, on behalfof an insured to whom such company has issued a policy of motor vehicleliability insurance, a claim of $3,500 or less made by such third partyclaimant and if the judge of a court of proper jurisdiction finds that theinsured is liable for the claim, the third party claimant shall have a causeof action against the insurance company. If the judge finds that such denial,refusal or failure to pay was not made in good faith, the company, inaddition to the liability assumed by the company under the provisions of theinsured's policy of motor vehicle liability insurance, shall be liable to thethird party claimant in an amount double the amount of the judgment awardedthe third party claimant, together with reasonable attorney's fees andexpenses.
C. Notwithstanding the provisions of subsections A and B whenever any personwho has paid a fee to the Department of Motor Vehicles to register anuninsured motor vehicle pursuant to § 46.2-706 or any person who hasfurnished proof of financial responsibility in lieu of obtaining a policy orpolicies of motor vehicle liability insurance pursuant to the provisions ofTitle 46.2 or any person who is required and has failed either to pay suchfee or to furnish such proof pursuant to the provisions of Title 46.2 denies,refuses or fails to pay to a claimant a claim of $3,500 or less made by suchclaimant as a result of a motor vehicle accident; and if the trial judge of acourt of proper jurisdiction finds that such denial, refusal or failure topay was not made in good faith, such person shall be liable to the claimantin an amount double the amount otherwise due and payable together withreasonable attorney's fees and expenses.
For the purposes of this subsection C "person" shall mean and include anynatural person, firm, partnership, association or corporation.
D. 1. Whenever a court of proper jurisdiction finds that an insurance companylicensed in this Commonwealth to write insurance as defined in § 38.2-124denies, refuses or fails to pay to its insured a claim of more than $3,500 inexcess of the deductible, if any, under the provisions of a policy of motorvehicle insurance issued by such company to the insured and it issubsequently found by the judge of a court of proper jurisdiction that suchdenial, refusal or failure to pay was not made in good faith, the companyshall be liable to the insured in the amount otherwise due and payable underthe provisions of the insured's policy of motor vehicle insurance, plusinterest on the amount due at double the rate provided in § 6.1-330.53 fromthe date that the claim was submitted to the insurer or its authorized agent,together with reasonable attorney's fees and expenses.
2. The provisions of this subsection shall be construed to include aninsurance company's refusal or failure to pay medical expenses to personscovered under the terms of any medical payments coverage extended under apolicy of motor vehicle insurance when the refusal was not made in good faith.
(1977, c. 621; 1979, c. 521; 1980, c. 437; 1989, c. 698; 1991, c. 155; 1997,c. 401; 2002, c. 631.)
§ 8.01-66.1. Remedy for arbitrary refusal of motor vehicle insurance claim.
A. Whenever any insurance company licensed in this Commonwealth to writeinsurance as defined in § 38.2-124 denies, refuses or fails to pay to itsinsured a claim of $3,500 or less in excess of the deductible, if any, underthe provisions of a policy of motor vehicle insurance issued by such companyto the insured and it is subsequently found by the judge of a court of properjurisdiction that such denial, refusal or failure to pay was not made in goodfaith, the company shall be liable to the insured in an amount double theamount otherwise due and payable under the provisions of the insured's policyof motor vehicle insurance, together with reasonable attorney's fees andexpenses.
The provisions of this subsection shall be construed to include an insurancecompany's refusal or failure to pay medical expenses to persons covered underthe terms of any medical payments coverage extended under a policy of motorvehicle insurance, when the amount of the claim therefor is $3,500 or lessand the refusal was not made in good faith.
B. Notwithstanding the provisions of subsection A, whenever any insurancecompany licensed in this Commonwealth to write insurance as defined in §38.2-124 denies, refuses or fails to pay to a third party claimant, on behalfof an insured to whom such company has issued a policy of motor vehicleliability insurance, a claim of $3,500 or less made by such third partyclaimant and if the judge of a court of proper jurisdiction finds that theinsured is liable for the claim, the third party claimant shall have a causeof action against the insurance company. If the judge finds that such denial,refusal or failure to pay was not made in good faith, the company, inaddition to the liability assumed by the company under the provisions of theinsured's policy of motor vehicle liability insurance, shall be liable to thethird party claimant in an amount double the amount of the judgment awardedthe third party claimant, together with reasonable attorney's fees andexpenses.
C. Notwithstanding the provisions of subsections A and B whenever any personwho has paid a fee to the Department of Motor Vehicles to register anuninsured motor vehicle pursuant to § 46.2-706 or any person who hasfurnished proof of financial responsibility in lieu of obtaining a policy orpolicies of motor vehicle liability insurance pursuant to the provisions ofTitle 46.2 or any person who is required and has failed either to pay suchfee or to furnish such proof pursuant to the provisions of Title 46.2 denies,refuses or fails to pay to a claimant a claim of $3,500 or less made by suchclaimant as a result of a motor vehicle accident; and if the trial judge of acourt of proper jurisdiction finds that such denial, refusal or failure topay was not made in good faith, such person shall be liable to the claimantin an amount double the amount otherwise due and payable together withreasonable attorney's fees and expenses.
For the purposes of this subsection C "person" shall mean and include anynatural person, firm, partnership, association or corporation.
D. 1. Whenever a court of proper jurisdiction finds that an insurance companylicensed in this Commonwealth to write insurance as defined in § 38.2-124denies, refuses or fails to pay to its insured a claim of more than $3,500 inexcess of the deductible, if any, under the provisions of a policy of motorvehicle insurance issued by such company to the insured and it issubsequently found by the judge of a court of proper jurisdiction that suchdenial, refusal or failure to pay was not made in good faith, the companyshall be liable to the insured in the amount otherwise due and payable underthe provisions of the insured's policy of motor vehicle insurance, plusinterest on the amount due at double the rate provided in § 6.1-330.53 fromthe date that the claim was submitted to the insurer or its authorized agent,together with reasonable attorney's fees and expenses.
2. The provisions of this subsection shall be construed to include aninsurance company's refusal or failure to pay medical expenses to personscovered under the terms of any medical payments coverage extended under apolicy of motor vehicle insurance when the refusal was not made in good faith.
(1977, c. 621; 1979, c. 521; 1980, c. 437; 1989, c. 698; 1991, c. 155; 1997,c. 401; 2002, c. 631.)
§ 8.01-66.1. Remedy for arbitrary refusal of motor vehicle insurance claim.
A. Whenever any insurance company licensed in this Commonwealth to writeinsurance as defined in § 38.2-124 denies, refuses or fails to pay to itsinsured a claim of $3,500 or less in excess of the deductible, if any, underthe provisions of a policy of motor vehicle insurance issued by such companyto the insured and it is subsequently found by the judge of a court of properjurisdiction that such denial, refusal or failure to pay was not made in goodfaith, the company shall be liable to the insured in an amount double theamount otherwise due and payable under the provisions of the insured's policyof motor vehicle insurance, together with reasonable attorney's fees andexpenses.
The provisions of this subsection shall be construed to include an insurancecompany's refusal or failure to pay medical expenses to persons covered underthe terms of any medical payments coverage extended under a policy of motorvehicle insurance, when the amount of the claim therefor is $3,500 or lessand the refusal was not made in good faith.
B. Notwithstanding the provisions of subsection A, whenever any insurancecompany licensed in this Commonwealth to write insurance as defined in §38.2-124 denies, refuses or fails to pay to a third party claimant, on behalfof an insured to whom such company has issued a policy of motor vehicleliability insurance, a claim of $3,500 or less made by such third partyclaimant and if the judge of a court of proper jurisdiction finds that theinsured is liable for the claim, the third party claimant shall have a causeof action against the insurance company. If the judge finds that such denial,refusal or failure to pay was not made in good faith, the company, inaddition to the liability assumed by the company under the provisions of theinsured's policy of motor vehicle liability insurance, shall be liable to thethird party claimant in an amount double the amount of the judgment awardedthe third party claimant, together with reasonable attorney's fees andexpenses.
C. Notwithstanding the provisions of subsections A and B whenever any personwho has paid a fee to the Department of Motor Vehicles to register anuninsured motor vehicle pursuant to § 46.2-706 or any person who hasfurnished proof of financial responsibility in lieu of obtaining a policy orpolicies of motor vehicle liability insurance pursuant to the provisions ofTitle 46.2 or any person who is required and has failed either to pay suchfee or to furnish such proof pursuant to the provisions of Title 46.2 denies,refuses or fails to pay to a claimant a claim of $3,500 or less made by suchclaimant as a result of a motor vehicle accident; and if the trial judge of acourt of proper jurisdiction finds that such denial, refusal or failure topay was not made in good faith, such person shall be liable to the claimantin an amount double the amount otherwise due and payable together withreasonable attorney's fees and expenses.
For the purposes of this subsection C "person" shall mean and include anynatural person, firm, partnership, association or corporation.
D. 1. Whenever a court of proper jurisdiction finds that an insurance companylicensed in this Commonwealth to write insurance as defined in § 38.2-124denies, refuses or fails to pay to its insured a claim of more than $3,500 inexcess of the deductible, if any, under the provisions of a policy of motorvehicle insurance issued by such company to the insured and it issubsequently found by the judge of a court of proper jurisdiction that suchdenial, refusal or failure to pay was not made in good faith, the companyshall be liable to the insured in the amount otherwise due and payable underthe provisions of the insured's policy of motor vehicle insurance, plusinterest on the amount due at double the rate provided in § 6.1-330.53 fromthe date that the claim was submitted to the insurer or its authorized agent,together with reasonable attorney's fees and expenses.
2. The provisions of this subsection shall be construed to include aninsurance company's refusal or failure to pay medical expenses to personscovered under the terms of any medical payments coverage extended under apolicy of motor vehicle insurance when the refusal was not made in good faith.
(1977, c. 621; 1979, c. 521; 1980, c. 437; 1989, c. 698; 1991, c. 155; 1997,c. 401; 2002, c. 631.)
