{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-510.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-510.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-510.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-510.html"}],"law_id":56597,"edition_id":1,"section_id":56597,"structure_id":13684,"section_number":"38.2-510","catch_line":"Unfair claim settlement practices","history":"Code 1950, \u00a7 38.1-52; 1952, c. 317, \u00a7 38.1-52.9; 1977, c. 529; 1978, c. 441; 1979, c. 324; 1980, c. 404; 1986, c. 562; 1988, c. 29; 1999, cc. 709, 739; 2000, c. 187; 2001, c. 335; 2016, cc. 183, 286.","full_text":"A\n\nNo person shall commit or perform with such frequency as to indicate a general business practice any of the following:1\n\nMisrepresenting pertinent facts or insurance policy provisions relating to coverages at issue;2\n\nFailing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies;3\n\nFailing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies;4\n\nRefusing arbitrarily and unreasonably to pay claims;5\n\nFailing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed;6\n\nNot attempting in good faith to make prompt, fair and equitable settlements of claims in which liability has become reasonably clear;7\n\nCompelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds;8\n\nAttempting to settle claims for less than the amount to which a reasonable man would have believed he was entitled by reference to written or printed advertising material accompanying or made part of an application;9\n\nAttempting to settle claims on the basis of an application that was altered without notice to, or knowledge or consent of, the insured;10\n\nMaking claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made;11\n\nMaking known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration;12\n\nDelaying the investigation or payment of claims by requiring an insured, a claimant, or the physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, when both contain substantially the same information;13\n\nFailing to promptly settle claims where liability has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage;14\n\nFailing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement;15\n\nFailing to comply with § 38.2-3407.15, or to perform any provider contract provision required by that section;16\n\nPayment to an insurer or its representative by a repair facility, or acceptance by an insurer or its representative from a repair facility, directly or indirectly, of any kickback, rebate, commission, thing of value, or other consideration in connection with such person’s appraisal service; or17\n\nMaking appraisals of the cost of repairing a motor vehicle that has been damaged as a result of a covered loss unless such appraisal is based upon a personal inspection by a representative of the repair facility or a representative of the insurer who is making the appraisal. Notwithstanding the requirement that an appraisal be based upon a personal inspection, the repair facility or the insurer making the appraisal may prepare an initial, which may be the final, repair appraisal on a motor vehicle that has been damaged as a result of a covered loss either from the representative’s personal inspection of the motor vehicle or from photographs, videos, or electronically transmitted digital imagery of the motor vehicle; however, no insurer may require an owner of a motor vehicle to submit photographs, videos, or electronically transmitted digital imagery as a condition of an appraisal. Supplemental repair estimates that become necessary after the repair work has been initiated due to discovery of additional damage to the motor vehicle may also be made from photographs, videos, or electronically transmitted digital imagery of the motor vehicle, provided that in the case of disputed repairs a personal inspection is required.B\n\nNo violation of this section shall of itself be deemed to create any cause of action in favor of any person other than the Commission; but nothing in this subsection shall impair the right of any person to seek redress at law or equity for any conduct for which action may be brought.C\n\n1. No insurer shall prepare or use an estimate of the cost of automobile repairs based on the use of an after market part, as defined herein, unless:\n\t\t\tThe insurer discloses to the claimant in writing either on the estimate or in a separate document attached to the estimate the following information:\n\t\t\t“THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AUTOMOBILE PARTS NOT MADE BY THE ORIGINAL MANUFACTURER. PARTS USED IN THE REPAIR OF YOUR VEHICLE BY OTHER THAN THE ORIGINAL MANUFACTURER ARE REQUIRED TO BE AT LEAST EQUAL IN LIKE KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING.”2\n\n“After market part” as used in this section shall mean an automobile part which is not made by the original equipment manufacturer and which is a sheet metal or plastic part generally constituting the exterior of a motor vehicle, including inner and outer panels.","order_by":null,"text":{"0":{"id":207109,"text":"No person shall commit or perform with such frequency as to indicate a general business practice any of the following:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":207110,"text":"Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":207111,"text":"Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":207112,"text":"Failing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":207113,"text":"Refusing arbitrarily and unreasonably to pay claims;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":207114,"text":"Failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":207115,"text":"Not attempting in good faith to make prompt, fair and equitable settlements of claims in which liability has become reasonably clear;","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":207116,"text":"Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds;","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"A8"},"8":{"id":207117,"text":"Attempting to settle claims for less than the amount to which a reasonable man would have believed he was entitled by reference to written or printed advertising material accompanying or made part of an application;","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A7","next_prefix":"A9"},"9":{"id":207118,"text":"Attempting to settle claims on the basis of an application that was altered without notice to, or knowledge or consent of, the insured;","type":"section","prefixes":["A","9"],"prefix":"9","entire_prefix":"A9","prefix_anchor":"A9","level":2,"prior_prefix":"A8","next_prefix":"A10"},"10":{"id":207119,"text":"Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made;","type":"section","prefixes":["A","10"],"prefix":"10","entire_prefix":"A10","prefix_anchor":"A10","level":2,"prior_prefix":"A9","next_prefix":"A11"},"11":{"id":207120,"text":"Making known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration;","type":"section","prefixes":["A","11"],"prefix":"11","entire_prefix":"A11","prefix_anchor":"A11","level":2,"prior_prefix":"A10","next_prefix":"A12"},"12":{"id":207121,"text":"Delaying the investigation or payment of claims by requiring an insured, a claimant, or the physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, when both contain substantially the same information;","type":"section","prefixes":["A","12"],"prefix":"12","entire_prefix":"A12","prefix_anchor":"A12","level":2,"prior_prefix":"A11","next_prefix":"A13"},"13":{"id":207122,"text":"Failing to promptly settle claims where liability has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage;","type":"section","prefixes":["A","13"],"prefix":"13","entire_prefix":"A13","prefix_anchor":"A13","level":2,"prior_prefix":"A12","next_prefix":"A14"},"14":{"id":207123,"text":"Failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement;","type":"section","prefixes":["A","14"],"prefix":"14","entire_prefix":"A14","prefix_anchor":"A14","level":2,"prior_prefix":"A13","next_prefix":"A15"},"15":{"id":207124,"text":"Failing to comply with § 38.2-3407.15, or to perform any provider contract provision required by that section;","type":"section","prefixes":["A","15"],"prefix":"15","entire_prefix":"A15","prefix_anchor":"A15","level":2,"prior_prefix":"A14","next_prefix":"A16"},"16":{"id":207125,"text":"Payment to an insurer or its representative by a repair facility, or acceptance by an insurer or its representative from a repair facility, directly or indirectly, of any kickback, rebate, commission, thing of value, or other consideration in connection with such person’s appraisal service; or","type":"section","prefixes":["A","16"],"prefix":"16","entire_prefix":"A16","prefix_anchor":"A16","level":2,"prior_prefix":"A15","next_prefix":"A17"},"17":{"id":207126,"text":"Making appraisals of the cost of repairing a motor vehicle that has been damaged as a result of a covered loss unless such appraisal is based upon a personal inspection by a representative of the repair facility or a representative of the insurer who is making the appraisal. Notwithstanding the requirement that an appraisal be based upon a personal inspection, the repair facility or the insurer making the appraisal may prepare an initial, which may be the final, repair appraisal on a motor vehicle that has been damaged as a result of a covered loss either from the representative’s personal inspection of the motor vehicle or from photographs, videos, or electronically transmitted digital imagery of the motor vehicle; however, no insurer may require an owner of a motor vehicle to submit photographs, videos, or electronically transmitted digital imagery as a condition of an appraisal. Supplemental repair estimates that become necessary after the repair work has been initiated due to discovery of additional damage to the motor vehicle may also be made from photographs, videos, or electronically transmitted digital imagery of the motor vehicle, provided that in the case of disputed repairs a personal inspection is required.","type":"section","prefixes":["A","17"],"prefix":"17","entire_prefix":"A17","prefix_anchor":"A17","level":2,"prior_prefix":"A16","next_prefix":"B"},"18":{"id":207127,"text":"No violation of this section shall of itself be deemed to create any cause of action in favor of any person other than the Commission; but nothing in this subsection shall impair the right of any person to seek redress at law or equity for any conduct for which action may be brought.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A17","next_prefix":"C"},"19":{"id":207128,"text":"1. No insurer shall prepare or use an estimate of the cost of automobile repairs based on the use of an after market part, as defined herein, unless:\n\t\t\tThe insurer discloses to the claimant in writing either on the estimate or in a separate document attached to the estimate the following information:\n\t\t\t“THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AUTOMOBILE PARTS NOT MADE BY THE ORIGINAL MANUFACTURER. PARTS USED IN THE REPAIR OF YOUR VEHICLE BY OTHER THAN THE ORIGINAL MANUFACTURER ARE REQUIRED TO BE AT LEAST EQUAL IN LIKE KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING.”","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C2"},"20":{"id":207129,"text":"“After market part” as used in this section shall mean an automobile part which is not made by the original equipment manufacturer and which is a sheet metal or plastic part generally constituting the exterior of a motor vehicle, including inner and outer panels.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C"}},"ancestry":[{"id":13684,"edition_id":1,"name":"Unfair Trade Practices","identifier":"5","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:45:33","date_modified":"2026-06-26 03:45:33","permalink":{"id":217475,"object_type":"structure","relational_id":13684,"identifier":"5","token":"38.2\/5","url":"\/38.2\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":66905,"structure_id":13684,"section_number":"38.2-500","catch_line":"Declaration of purpose","url":"\/38.2-500\/","token":"38.2\/5\/38.2-500","metadata":false},{"id":79956,"structure_id":13684,"section_number":"38.2-501","catch_line":"Definitions","url":"\/38.2-501\/","token":"38.2\/5\/38.2-501","metadata":false},{"id":79437,"structure_id":13684,"section_number":"38.2-502","catch_line":"Misrepresentations and false advertising of insurance policies","url":"\/38.2-502\/","token":"38.2\/5\/38.2-502","metadata":false},{"id":54663,"structure_id":13684,"section_number":"38.2-503","catch_line":"False information and advertising generally","url":"\/38.2-503\/","token":"38.2\/5\/38.2-503","metadata":false},{"id":82451,"structure_id":13684,"section_number":"38.2-504","catch_line":"Defamation","url":"\/38.2-504\/","token":"38.2\/5\/38.2-504","metadata":false},{"id":84128,"structure_id":13684,"section_number":"38.2-505","catch_line":"Boycott, coercion and intimidation","url":"\/38.2-505\/","token":"38.2\/5\/38.2-505","metadata":false},{"id":78214,"structure_id":13684,"section_number":"38.2-506","catch_line":"False statements and entries","url":"\/38.2-506\/","token":"38.2\/5\/38.2-506","metadata":false},{"id":56726,"structure_id":13684,"section_number":"38.2-507","catch_line":"Stock operations and advisory board contracts","url":"\/38.2-507\/","token":"38.2\/5\/38.2-507","metadata":false},{"id":67626,"structure_id":13684,"section_number":"38.2-508","catch_line":"Unfair discrimination","url":"\/38.2-508\/","token":"38.2\/5\/38.2-508","metadata":false},{"id":80488,"structure_id":13684,"section_number":"38.2-508.1","catch_line":"Unfair discrimination; members of the armed forces","url":"\/38.2-508.1\/","token":"38.2\/5\/38.2-508.1","metadata":false},{"id":63719,"structure_id":13684,"section_number":"38.2-508.2","catch_line":"Discrimination prohibited","url":"\/38.2-508.2\/","token":"38.2\/5\/38.2-508.2","metadata":false},{"id":79096,"structure_id":13684,"section_number":"38.2-508.3","catch_line":"Consideration of Medicaid eligibility prohibited","url":"\/38.2-508.3\/","token":"38.2\/5\/38.2-508.3","metadata":false},{"id":61622,"structure_id":13684,"section_number":"38.2-508.4","catch_line":"Genetic information privacy","url":"\/38.2-508.4\/","token":"38.2\/5\/38.2-508.4","metadata":false},{"id":77794,"structure_id":13684,"section_number":"38.2-508.5","catch_line":"Re-underwriting individual under existing group or individual accident and sickness insurance policy prohibited; exceptions","url":"\/38.2-508.5\/","token":"38.2\/5\/38.2-508.5","metadata":false},{"id":66721,"structure_id":13684,"section_number":"38.2-509","catch_line":"Rebates","url":"\/38.2-509\/","token":"38.2\/5\/38.2-509","metadata":false},{"id":56597,"structure_id":13684,"section_number":"38.2-510","catch_line":"Unfair claim settlement practices","url":"\/38.2-510\/","token":"38.2\/5\/38.2-510","metadata":false},{"id":80252,"structure_id":13684,"section_number":"38.2-511","catch_line":"Failure to maintain record of complaints","url":"\/38.2-511\/","token":"38.2\/5\/38.2-511","metadata":false},{"id":77547,"structure_id":13684,"section_number":"38.2-512","catch_line":"Misrepresentation in insurance documents or communications","url":"\/38.2-512\/","token":"38.2\/5\/38.2-512","metadata":false},{"id":64491,"structure_id":13684,"section_number":"38.2-513","catch_line":"Repealed","url":"\/38.2-513\/","token":"38.2\/5\/38.2-513","metadata":false},{"id":68759,"structure_id":13684,"section_number":"38.2-513.1","catch_line":"Insurance sales by depository institutions and other lending institutions","url":"\/38.2-513.1\/","token":"38.2\/5\/38.2-513.1","metadata":false},{"id":84848,"structure_id":13684,"section_number":"38.2-514","catch_line":"Failure to make disclosure","url":"\/38.2-514\/","token":"38.2\/5\/38.2-514","metadata":false},{"id":75763,"structure_id":13684,"section_number":"38.2-514.1","catch_line":"Disclosure required","url":"\/38.2-514.1\/","token":"38.2\/5\/38.2-514.1","metadata":false},{"id":72002,"structure_id":13684,"section_number":"38.2-514.2","catch_line":"Disclosures required of motor vehicle rental contract insurance agents and enrollers","url":"\/38.2-514.2\/","token":"38.2\/5\/38.2-514.2","metadata":false},{"id":77046,"structure_id":13684,"section_number":"38.2-515","catch_line":"Power of Commission","url":"\/38.2-515\/","token":"38.2\/5\/38.2-515","metadata":false},{"id":62747,"structure_id":13684,"section_number":"38.2-515.1","catch_line":"Power of Commission; policies issued outside of the Commonwealth","url":"\/38.2-515.1\/","token":"38.2\/5\/38.2-515.1","metadata":false},{"id":67332,"structure_id":13684,"section_number":"38.2-516","catch_line":"Prohibited compensation for intra-company replacement","url":"\/38.2-516\/","token":"38.2\/5\/38.2-516","metadata":false},{"id":76418,"structure_id":13684,"section_number":"38.2-517","catch_line":"Unfair settlement practices; replacement and repair; penalty","url":"\/38.2-517\/","token":"38.2\/5\/38.2-517","metadata":false},{"id":74674,"structure_id":13684,"section_number":"38.2-518","catch_line":"Certificates of insurance","url":"\/38.2-518\/","token":"38.2\/5\/38.2-518","metadata":false}],"previous_section":{"id":66721,"structure_id":13684,"section_number":"38.2-509","catch_line":"Rebates","url":"\/38.2-509\/","token":"38.2\/5\/38.2-509","metadata":false},"next_section":{"id":80252,"structure_id":13684,"section_number":"38.2-511","catch_line":"Failure to maintain record of complaints","url":"\/38.2-511\/","token":"38.2\/5\/38.2-511","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-510\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 11 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1952, chapter 317; in 1977, chapter 529; in 1978, chapter 441; in 1979, chapter 324; in 1980, chapter 404; in 1986, chapter 562; in 1988, chapter 29; in 1999, chapters 709<\/a> and 739<\/a>; in 2000, chapter 187<\/a>; in 2001, chapter 335<\/a>; in 2016, chapters 183<\/a> and 286<\/a>.<\/p>","references":[{"id":75632,"section_number":"46.2-2056","catch_line":"Effect of unfair claims settlement practices on self-insured motor carriers","order_by":null,"url":"\/46.2-2056\/"},{"id":68028,"section_number":"46.2-2146","catch_line":"Effect of unfair claims settlement practices on self-insured motor carriers","order_by":null,"url":"\/46.2-2146\/"}],"refers_to":[{"id":71060,"section_number":"38.2-3407.15","catch_line":"Ethics and fairness in carrier business practices","order_by":null,"url":"\/38.2-3407.15\/"}],"permalink":{"id":217537,"object_type":"law","relational_id":56597,"identifier":"38.2-510","token":"38.2\/5\/38.2-510","url":"\/38.2-510\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-510\/","token":"38.2\/5\/38.2-510","dublin_core":{"Title":"Unfair claim settlement practices","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-510","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> No person<\/span> shall commit or perform with such frequency as to indicate a general business practice any of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Misrepresenting pertinent facts<\/span> or insurance policy<\/span> provisions relating to coverages at issue<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Failing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Refusing arbitrarily and unreasonably to pay claims; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Failing to affirm<\/span> or deny coverage of claims within a reasonable time after proof of loss statements have been completed; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Not attempting in good faith to make prompt, fair and equitable<\/span> settlements<\/span> of claims in which liability has become reasonably clear; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Compelling insureds to institute litigation<\/span> to recover amounts due under an insurance policy<\/span> by offering substantially less than the amounts ultimately recovered in actions brought by such insureds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Attempting to settle claims for less than the amount to which a reasonable man would have believed he was entitled by reference to written or printed advertising material<\/span> accompanying or made part of an application; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Attempting to settle claims on the basis of an application that was altered without notice to, or knowledge or consent of, the insured; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> Making known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements<\/span> or compromises less than the amount awarded in arbitration; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> Delaying the investigation or payment of claims by requiring an insured, a claimant, or the physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, when both contain substantially the same information; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> Failing to promptly settle claims where liability has become reasonably clear, under one portion of the insurance policy<\/span> coverage in order<\/span> to influence settlements<\/span> under other portions of the insurance policy<\/span> coverage; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> Failing to promptly provide a reasonable explanation of the basis in the insurance policy<\/span> in relation to the facts<\/span> or applicable law<\/span> for denial of a claim or for the offer of a compromise settlement<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

15.<\/span> Failing to comply with § 38.2-3407.15<\/a>, or to perform any provider contract<\/span> provision required by that section; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

16.<\/span> Payment to an insurer<\/span> or its representative by a repair facility, or acceptance by an insurer<\/span> or its representative from a repair facility, directly or indirectly, of any kickback, rebate, commission<\/span>, thing of value, or other consideration in connection with such person<\/span>’s appraisal service; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

17.<\/span> Making appraisals of the cost of repairing a motor vehicle that has been damaged as a result of a covered loss unless such appraisal is based upon a personal inspection by a representative of the repair facility or a representative of the insurer<\/span> who is making the appraisal. Notwithstanding the requirement that an appraisal be based upon a personal inspection, the repair facility or the insurer<\/span> making the appraisal may prepare an initial, which may be the final, repair appraisal on a motor vehicle that has been damaged as a result of a covered loss either from the representative’s personal inspection of the motor vehicle or from photographs, videos, or electronically transmitted digital imagery of the motor vehicle; however, no insurer<\/span> may require an owner of a motor vehicle to submit photographs, videos, or electronically transmitted digital imagery as a condition of an appraisal. Supplemental repair estimates that become necessary after the repair work has been initiated due to discovery<\/span> of additional damage to the motor vehicle may also be made from photographs, videos, or electronically transmitted digital imagery of the motor vehicle, provided that in the case of disputed repairs a personal inspection is required. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> No violation of this section shall of itself be deemed to create any cause of action<\/span> in favor of any person<\/span> other than the Commission<\/span>; but nothing in this subsection shall impair the right of any person<\/span> to seek redress at law<\/span> or equity<\/span> for any conduct for which action may be brought. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> 1. No insurer<\/span> shall prepare or use an estimate of the cost of automobile repairs based on the use of an after market part<\/span>, as defined herein, unless:\n\t\t\tThe insurer<\/span> discloses to the claimant in writing either on the estimate or in a separate document attached to the estimate the following information:\n\t\t\t“THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AUTOMOBILE PARTS NOT MADE BY THE ORIGINAL MANUFACTURER. PARTS USED IN THE REPAIR OF YOUR VEHICLE BY OTHER THAN THE ORIGINAL MANUFACTURER ARE REQUIRED TO BE AT LEAST EQUAL IN LIKE KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING.” <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> “After market part<\/span>” as used in this section shall mean an automobile part which is not made by the original equipment manufacturer and which is a sheet metal or plastic part generally constituting the exterior of a motor vehicle, including inner and outer panels<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nUNFAIR CLAIM SETTLEMENT PRACTICES (\u00a7 38.2-510)\n\nA. No person shall commit or perform with such frequency as to indicate a\ngeneral business practice any of the following:\n\n 1. Misrepresenting pertinent facts or insurance policy provisions relating to\n coverages at issue;\n\n 2. Failing to acknowledge and act reasonably promptly upon communications with\n respect to claims arising under insurance policies;\n\n 3. Failing to adopt and implement reasonable standards for the prompt\n investigation of claims arising under insurance policies;\n\n 4. Refusing arbitrarily and unreasonably to pay claims;\n\n 5. Failing to affirm or deny coverage of claims within a reasonable time after\n proof of loss statements have been completed;\n\n 6. Not attempting in good faith to make prompt, fair and equitable settlements\n of claims in which liability has become reasonably clear;\n\n 7. Compelling insureds to institute litigation to recover amounts due under an\n insurance policy by offering substantially less than the amounts ultimately\n recovered in actions brought by such insureds;\n\n 8. Attempting to settle claims for less than the amount to which a reasonable\n man would have believed he was entitled by reference to written or printed\n advertising material accompanying or made part of an application;\n\n 9. Attempting to settle claims on the basis of an application that was altered\n without notice to, or knowledge or consent of, the insured;\n\n 10. Making claims payments to insureds or beneficiaries not accompanied by a\n statement setting forth the coverage under which payments are being made;\n\n 11. Making known to insureds or claimants a policy of appealing from\n arbitration awards in favor of insureds or claimants for the purpose of\n compelling them to accept settlements or compromises less than the amount\n awarded in arbitration;\n\n 12. Delaying the investigation or payment of claims by requiring an insured, a\n claimant, or the physician of either to submit a preliminary claim report and\n then requiring the subsequent submission of formal proof of loss forms, when\n both contain substantially the same information;\n\n 13. Failing to promptly settle claims where liability has become reasonably\n clear, under one portion of the insurance policy coverage in order to\n influence settlements under other portions of the insurance policy coverage;\n\n 14. Failing to promptly provide a reasonable explanation of the basis in the\n insurance policy in relation to the facts or applicable law for denial of a\n claim or for the offer of a compromise settlement;\n\n 15. Failing to comply with § 38.2-3407.15, or to perform any provider\n contract provision required by that section;\n\n 16. Payment to an insurer or its representative by a repair facility, or\n acceptance by an insurer or its representative from a repair facility,\n directly or indirectly, of any kickback, rebate, commission, thing of value,\n or other consideration in connection with such person’s appraisal\n service; or\n\n 17. Making appraisals of the cost of repairing a motor vehicle that has been\n damaged as a result of a covered loss unless such appraisal is based upon a\n personal inspection by a representative of the repair facility or a\n representative of the insurer who is making the appraisal. Notwithstanding the\n requirement that an appraisal be based upon a personal inspection, the repair\n facility or the insurer making the appraisal may prepare an initial, which may\n be the final, repair appraisal on a motor vehicle that has been damaged as a\n result of a covered loss either from the representative’s personal\n inspection of the motor vehicle or from photographs, videos, or electronically\n transmitted digital imagery of the motor vehicle; however, no insurer may\n require an owner of a motor vehicle to submit photographs, videos, or\n electronically transmitted digital imagery as a condition of an appraisal.\n Supplemental repair estimates that become necessary after the repair work has\n been initiated due to discovery of additional damage to the motor vehicle may\n also be made from photographs, videos, or electronically transmitted digital\n imagery of the motor vehicle, provided that in the case of disputed repairs a\n personal inspection is required.\n\nB. No violation of this section shall of itself be deemed to create any cause of\naction in favor of any person other than the Commission; but nothing in this\nsubsection shall impair the right of any person to seek redress at law or equity\nfor any conduct for which action may be brought.\n\nC. 1. No insurer shall prepare or use an estimate of the cost of automobile\nrepairs based on the use of an after market part, as defined herein, unless:\n\t\t\tThe insurer discloses to the claimant in writing either on the estimate or in\na separate document attached to the estimate the following information:\n\t\t\t“THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AUTOMOBILE PARTS\nNOT MADE BY THE ORIGINAL MANUFACTURER. PARTS USED IN THE REPAIR OF YOUR VEHICLE\nBY OTHER THAN THE ORIGINAL MANUFACTURER ARE REQUIRED TO BE AT LEAST EQUAL IN\nLIKE KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO THE ORIGINAL\nMANUFACTURER PARTS THEY ARE REPLACING.”\n\n 2. “After market part” as used in this section shall mean an\n automobile part which is not made by the original equipment manufacturer and\n which is a sheet metal or plastic part generally constituting the exterior of\n a motor vehicle, including inner and outer panels.\n\nHISTORY: Code 1950, \u00a7 38.1-52; 1952, c. 317, \u00a7 38.1-52.9; 1977, c. 529; 1978,\nc. 441; 1979, c. 324; 1980, c. 404; 1986, c. 562; 1988, c. 29; 1999, cc. 709,\n739; 2000, c. 187; 2001, c. 335; 2016, cc. 183, 286.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}