An Act to amend and reenact § 38.2-510 of the Code of Virginia, relating to insurance; unfair claim settlement practices; modification of loss estimate.
HB808 amends Virginia’s unfair claim settlement practices law in § 38.2-510 of the Code of Virginia. The bill keeps the existing list of prohibited insurer practices and adds/clarifies rules governing motor vehicle damage appraisals and repair estimates. In particular, it addresses how insurers and repair facilities may prepare appraisals for covered vehicle losses, including allowing initial and supplemental estimates to be based on photographs, videos, or electronically transmitted digital imagery in certain circumstances.
The bill also states that no insurer may require a vehicle owner to submit photographs, videos, or digital imagery as a condition of an appraisal. For disputed repairs, however, a personal inspection is required. The measure further reinforces restrictions on kickbacks, rebates, commissions, or other consideration between insurers and repair facilities in connection with appraisal services, and it preserves existing protections against other unfair claim settlement practices such as unreasonable delay, inadequate explanations of claim denials, and failure to settle claims in good faith.
HB808 directly amends § 38.2-510, which governs unfair claim settlement practices under Virginia insurance law. Its practical effect is to update the statute for modern claims handling by expressly recognizing remote appraisal methods while preserving a personal-inspection requirement for disputed repairs and limiting insurer demands on policyholders. The bill affects insurers, repair facilities, appraisers, and insured vehicle owners by clarifying permissible estimate methods and reinforcing anti-kickback and fair-settlement standards.
The available record suggests a generally favorable or noncontroversial posture toward the bill, as it was enacted into law as Chapter 672 and there are no recorded committee transcripts or vote details indicating opposition. The absence of recorded debate in the provided materials suggests the measure may have been viewed as a technical or consumer-protection update to existing insurance practices rather than a highly contentious policy change.
The main policy tension in HB808 is between efficiency in claims handling and consumer protection in vehicle repairs. Supporters would likely favor the flexibility to use photos, videos, and digital imagery for appraisals, which can speed claims processing and reduce costs. Potential concerns center on whether remote estimates could understate damage or disadvantage claimants, which is why the bill preserves a personal-inspection requirement for disputed repairs and prohibits insurers from forcing owners to provide digital imagery as a condition of appraisal. The anti-kickback language also signals concern about conflicts of interest between insurers and repair facilities.