Virginia Claims Compliance
Key regulatory requirements, correspondence deadlines, and mandated forms for Virginia (VA).
Quick Reference
Key Deadlines
Requirements
- Mandated Forms
- Catastrophe Rules
- Separate P&C / Life & Health
- Fraud Warning
- Depreciation Notice
- E-Delivery (with_consent)
Regulatory Authority
Virginia State Corporation Commission, Bureau of Insurance
Phone: (804) 371-9741 or toll-free (877) 310-6560; Address: P.O. Box 1157, Richmond, VA 23218; Email: bureauofinsurance@scc.virginia.gov; Website: scc.virginia.gov
Bad Faith: Va. Code Ann. § 38.2-209
Lines of Business
Key Statutes
- Va. Code Ann. §§ 38.2-500 to 38.2-518
- 14VAC5-400-10 et seq.
Virginia handles claims correspondence according to specific state regulations. Requirements vary depending on the line of business and specific claim circumstances.
Acknowledgment
Every claim must be acknowledged within 15 calendar days of receipt. The acknowledgment should identify the insurance policy and coverage at issue.
Denial
A written denial must be issued within 15 calendar days. The denial must reference the specific policy provisions, conditions, or exclusions relied upon.
Statutory Language
Specific fraud warning required.
LOB-Specific Requirements
Regulatory requirements for Virginia, grouped by line of business. Select a chip to filter.
- DOI Contact In Letters Required
- Recommended (not required)
- Unfair Claims Practices Act RefStatutory
- Unfair Trade Practices Act (Va. Code Ann. § 38.2-510); Rules Governing Unfair Claim Settlement Practices (14VAC5-400-10 et seq.)
- Prompt Payment Statute RefStatutory
- Va. Code Ann. § 38.2-510(A)(4); 14VAC5-400-70(E)
- HO Specific Requirements
- Rules Governing Standards for the Content of Homeowners Insurance Policies (14VAC5-342-10 et seq.)
- Depreciation Notice Required
- No
- Proof Of Loss Requirements
- Within 30 days after receiving proof of loss, insurer must provide notice of decision to take property at agreed/appraised value or repair/rebuild/replace (14VAC5-342-70(I)). Claim for difference between ACV and replacement cost must be made within 6 months of last ACV payment.
- Suit Limitation PeriodStatutory
- 2 years (after inception of the loss for standard fire policies per Va. Code Ann. § 38.2-2105(A))
Virginia Case Law
Published decisions that shape claim-handling and correspondence practice in Virginia. Pair these with the statutory deadlines above.
- Case LawStatus UpdatesGeneral LiabilityProfessional Liability
Aetna v. Price represents the genesis of third-party bad faith liability in Virginia and serves as an excellent case study involving professional liability (medical malpractice) . In Aetna, an insured pediatrician (Dr. Price) was sued after failing to conduct a blood test that resulted in injury to a child . Aetna undertook the defense but believed the case had "no liability" .
- Case LawStatus UpdatesProfessional Liability
Further reinforcing the lack of proactive communication duties in Virginia is the case of Maxey v. John Doe and GEICO . In Maxey, an insured failed to file a statutorily required accident report . The insurer, GEICO, became aware of this failure but did not immediately inform the insured that it intended to rely on this breach to deny coverage .
- Case LawReservation of RightsWorkers' Comp
ruled that an insurer waived its right to disclaim coverage for a claim reported 12 years late simply because it failed to copy the claimant on the ROR letters it had sent to the insured .
- Case LawReservation of RightsInland / Ocean Marine
This principle was recently and decisively tested in the context of a high-profile defamation suit involving actor Amber Heard and her ex-husband Johnny Depp. In New York Marine and General Ins. Co. v. Heard, 2024 WL 4879471 (9th Cir. Nov. 25, 2024), Heard's insurer, New York Marine, agreed to defend her under an ROR regarding an intentional acts exclusion .
- Case Law
Norman v. INA
1978
Reservation of RightsCommercial Propertythe Court held that an attorney employed by an insurer to defend an insured "is bound by the same high standards which govern all attorneys, and owes the insured the same duty as if he were privately retained by the insured" . Virginia strictly adheres to the "one-client" or "sole client" model in insurance defense, meaning the defense attorney represents only the insured .
- Case LawDuty to DefendReservation of RightsGeneral LiabilityProfessional LiabilityWorkers' Comp
where the court declared: "An insurer's attorney, employed to represent an insured, is bound by the same high standards which govern all attorneys, and owes the insured the same duty as if he were privately retained by the insured" .
Show 3 more cases
- Case LawReservation of RightsGeneral Liability
confirming that defense counsel cannot ethically favor the insurer or litigate coverage issues to the detriment of the insured .
- Case LawStatus UpdatesProfessional Liability
The boundaries of the communication duty were starkly tested and ultimately restricted in the seminal case of State Farm Mut. Auto. Ins. Co. v. Floyd . This case directly answers the user's inquiry regarding whether failure to provide status updates or proactive communication constitutes bad faith in Virginia.
- Case Law
USG v. INA
1989
Status UpdatesGeneral Liability. While this case dealt with an insured's duty to disclose information during underwriting rather than an insurer's duty during claims handling, it reflects the broader contractual philosophy of Virginia courts.
Historical court cases are for reference only and may be superseded, distinguished, or abrogated.
Applicable Letter Templates
No letter templates currently found for this jurisdiction.