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Virginia
Acts of Assembly - Chapter 870 Re-enrolled
An Act to amend the Code of
Virginia by adding Chapter Five of Title 38.3 a section numbered
38.2-517, relating to insurance settlement practices; penalty.
[H 632]
Approved April 15, 1992
Be it enacted by the General Assemble of Virginia;
1. That the Code of Virginia is amended by adding in Chapter Five of
Title 38.2 a section numbered 38.2-517 as follows;
38.2-517. Unfair settlement practices; replacement and repair;
penalty,--
A. No person shall:
1. Require an insured or claimant to utilize a specific replacement or
repair facility or services, or the products of a specified
manufacturer, as a prerequisite to settling or paying any claim arising
under a policy or policies of insurance; or
2. Engage in any act of coercion or intimidation causing or intending to
cause an insured or claimant, to utilize a specific replacement or
repair facility or service, or the products of a specific manufacturer,
in connection with settling or paying any claim arising under a policy
or policies of insurance.
"B. Any person violating this section shall be subject to the
injunctive, penalty, and enforcement provisions in Chapter Two
(38.2-200) of this title.
President of the Senate
Speaker of the House of Delegates
8.01.88 Recovery of damages for the loss of use of vehicle--
A. Whenever any person is entitled to recover for damage or destruction
of a motor vehicle, he shall, in addition to any other damages to which
he may be legally entitled, be entitled to recover the reasonable cost
which was actually incurred in hiring a comparable substitute vehicle
for the period of time during which such person is deprived of the use
of his motor vehicle. However, such rental period shall not exceed a
reasonable period of time for such repairs to be made or if the original
vehicle is total loss, a reasonable time to purchase a new vehicle.
Nothing herein contained shall relieve the claimant of the duty to
mitigate damages.
B. Whenever any insurance company licensed in the Commonwealth to write
insurance as defined in 88.2-124 or any self-insured company refuses or
fails to provide a comparable temporary substitute vehicle to any person
entitled to recover the actual cost of hiring a substitute vehicle as
set forth in subsection A and if the trail judge of a court of proper
jurisdiction subsequently finds that such refusal or failure was not
made in good faith, such company shall be liable to that person in the
amount of $500.00 or double the amount of the rental cost he is entitled
to recover under subsection A of this section, whichever amount is
greater. If the trial court finds that an action brought against the
insurance company under subsequent B. of this section is frivolous, or
not to have been brought in good faith, the court may in its discretion
require the plaintiff to pay the reasonable attorney's fees, not to
exceed $200.000, incurred by the defendant in defending the action. This
section in no way precludes any party from seeking such additional
common law remedies as might otherwise be civilly legal.
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