{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-517.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-517.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-517.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-517.html"}],"law_id":76418,"edition_id":1,"section_id":76418,"structure_id":13684,"section_number":"38.2-517","catch_line":"Unfair settlement practices; replacement and repair; penalty","history":"1992, cc. 870, 882; 1999, c. 129; 2003, c. 361; 2004, c. 767; 2008, cc. 111, 516.","full_text":"A\n\nNo person shall:1\n\nRequire an insured or claimant to utilize designated replacement or repair facilities or services, or the products of designated manufacturers, as a prerequisite to settling or paying any claim arising under a policy or policies of insurance;2\n\nEngage in any act of coercion or intimidation causing or intended to cause an insured or claimant to utilize designated replacement or repair facilities or services, or the products of designated manufacturers, in connection with settling or paying any claim arising under a policy or policies of insurance;3\n\nFail to disclose to the insured or claimant, prior to being referred to a third party representative in connection with a glass claim arising under a motor vehicle insurance policy, that the third party representative is not the insurer and is acting on behalf of the insurer;4\n\nFail to disclose to the insured or claimant, at such time as the insurer or its third party representative recommends the use of a designated motor vehicle replacement or repair facility or service, or products of a designated manufacturer, in connection with settling or paying any claim arising under a policy or policies of insurance, that the insured or claimant is under no obligation to use the replacement or repair facility or service or products of the manufacturer recommended by the insurer or by a representative of the insurer;5\n\nFail to disclose to the insured or claimant, at such time as it or its third party representative recommends the use of a designated motor vehicle replacement or repair facility in connection with settling or paying any claim arising under a policy or policies of insurance, that the insurer or its third party representative has a financial interest in such replacement or repair facility, if the insurer or its third party representative has such an interest; or6\n\nEngage in the practice of capping. As used in this subdivision, “capping” means the setting of arbitrary and unreasonable limits on what an insurer will allow as reimbursement for paint and materials.B\n\nThis section shall not be construed to require an insurer to pay an amount for motor vehicle repair services or repair products necessary to properly and fairly repair the vehicle to its pre-loss condition that is greater than the prevailing competitive charges for equivalent services or products charged by similar contractors or repair shops within a reasonable geographic or trade area of the address of the repair facility. Offering an explanation of the extent of an insurer’s obligation under this section to its policyholder or third party claimant shall not constitute a violation of this section.C\n\nAny person violating this section shall be subject to the injunctive, penalty, and enforcement provisions of Chapter 2 (§ 38.2-200 et seq.) of this title. The Commission shall investigate, with the written authorization of the insured or the claimant, any written complaints received pursuant to this section, regardless of whether such written complaints are submitted by an individual or a repair facility. For the purpose of this section, any insurance company utilizing a third party representative shall be held accountable for any violation of this section by such third party representative.","order_by":null,"text":{"0":{"id":274296,"text":"No person shall:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":274297,"text":"Require an insured or claimant to utilize designated replacement or repair facilities or services, or the products of designated manufacturers, as a prerequisite to settling or paying any claim arising under a policy or policies of insurance;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":274298,"text":"Engage in any act of coercion or intimidation causing or intended to cause an insured or claimant to utilize designated replacement or repair facilities or services, or the products of designated manufacturers, in connection with settling or paying any claim arising under a policy or policies of insurance;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":274299,"text":"Fail to disclose to the insured or claimant, prior to being referred to a third party representative in connection with a glass claim arising under a motor vehicle insurance policy, that the third party representative is not the insurer and is acting on behalf of the insurer;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":274300,"text":"Fail to disclose to the insured or claimant, at such time as the insurer or its third party representative recommends the use of a designated motor vehicle replacement or repair facility or service, or products of a designated manufacturer, in connection with settling or paying any claim arising under a policy or policies of insurance, that the insured or claimant is under no obligation to use the replacement or repair facility or service or products of the manufacturer recommended by the insurer or by a representative of the insurer;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":274301,"text":"Fail to disclose to the insured or claimant, at such time as it or its third party representative recommends the use of a designated motor vehicle replacement or repair facility in connection with settling or paying any claim arising under a policy or policies of insurance, that the insurer or its third party representative has a financial interest in such replacement or repair facility, if the insurer or its third party representative has such an interest; or","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":274302,"text":"Engage in the practice of capping. As used in this subdivision, “capping” means the setting of arbitrary and unreasonable limits on what an insurer will allow as reimbursement for paint and materials.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"B"},"7":{"id":274303,"text":"This section shall not be construed to require an insurer to pay an amount for motor vehicle repair services or repair products necessary to properly and fairly repair the vehicle to its pre-loss condition that is greater than the prevailing competitive charges for equivalent services or products charged by similar contractors or repair shops within a reasonable geographic or trade area of the address of the repair facility. Offering an explanation of the extent of an insurer’s obligation under this section to its policyholder or third party claimant shall not constitute a violation of this section.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A6","next_prefix":"C"},"8":{"id":274304,"text":"Any person violating this section shall be subject to the injunctive, penalty, and enforcement provisions of Chapter 2 (§ 38.2-200 et seq.) of this title. The Commission shall investigate, with the written authorization of the insured or the claimant, any written complaints received pursuant to this section, regardless of whether such written complaints are submitted by an individual or a repair facility. For the purpose of this section, any insurance company utilizing a third party representative shall be held accountable for any violation of this section by such third party representative.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-517\/","history_text":"

This law was first created in 1992. The record of its establishment is cataloged in chapters 870 and 882 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1992 \u201cActs\u201d aren\u2019t available online. It has been modified 4 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 1999, chapter 129<\/a>; in 2003, chapter 361<\/a>; in 2004, chapter 767<\/a>; in 2008, chapters 111<\/a> and 516<\/a>.<\/p>","references":false,"refers_to":[{"id":84875,"section_number":"38.2-200","catch_line":"General powers of the Commission relative to insurance","order_by":null,"url":"\/38.2-200\/"}],"permalink":{"id":217581,"object_type":"law","relational_id":76418,"identifier":"38.2-517","token":"38.2\/5\/38.2-517","url":"\/38.2-517\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-517\/","token":"38.2\/5\/38.2-517","dublin_core":{"Title":"Unfair settlement practices; replacement and repair; penalty","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-517","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> No person<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Require an insured or claimant to utilize designated replacement or repair facilities or services, or the products of designated manufacturers, as a prerequisite to settling or paying any claim arising under a policy or policies of insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Engage in any act of coercion or intimidation causing or intended to cause an insured or claimant to utilize designated replacement or repair facilities or services, or the products of designated manufacturers, in connection with settling or paying any claim arising under a policy or policies of insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Fail to disclose to the insured or claimant, prior to being referred to a third party<\/span> representative in connection with a glass claim arising under a motor vehicle insurance policy<\/span>, that the third party<\/span> representative is not the insurer<\/span> and is acting on behalf of the insurer<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Fail to disclose to the insured or claimant, at such time as the insurer<\/span> or its third party<\/span> representative recommends the use of a designated motor vehicle replacement or repair facility or service, or products of a designated manufacturer, in connection with settling or paying any claim arising under a policy or policies of insurance, that the insured or claimant is under no obligation to use the replacement or repair facility or service or products of the manufacturer recommended by the insurer<\/span> or by a representative of the insurer<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Fail to disclose to the insured or claimant, at such time as it or its third party<\/span> representative recommends the use of a designated motor vehicle replacement or repair facility in connection with settling or paying any claim arising under a policy or policies of insurance, that the insurer<\/span> or its third party<\/span> representative has a financial interest in such replacement or repair facility, if the insurer<\/span> or its third party<\/span> representative has such an interest; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Engage in the practice of capping<\/span>. As used in this subdivision, “capping<\/span>” means the setting of arbitrary and unreasonable limits on what an insurer<\/span> will allow as reimbursement for paint and materials<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> This section shall not be construed to require an insurer<\/span> to pay an amount for motor vehicle repair services or repair products necessary to properly and fairly repair the vehicle to its pre-loss condition that is greater than the prevailing competitive charges for equivalent services or products charged by similar contractors or repair shops within a reasonable geographic or trade area of the address of the repair facility. Offering an explanation of the extent of an insurer<\/span>’s obligation under this section to its policyholder or third party<\/span> claimant shall not constitute a violation of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any person<\/span> violating this section shall be subject to the injunctive, penalty<\/span>, and enforcement provisions of Chapter 2 (§ 38.2-200<\/a> et seq.) of this title. The Commission<\/span> shall investigate, with the written authorization of the insured or the claimant, any written complaints received pursuant to this section, regardless of whether such written complaints are submitted by an individual or a repair facility. For the purpose of this section, any insurance company<\/span> utilizing a third party<\/span> representative shall be held accountable for any violation of this section by such third party<\/span> representative. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nUNFAIR SETTLEMENT PRACTICES; REPLACEMENT AND REPAIR; PENALTY (\u00a7 38.2-517)\n\nA. No person shall:\n\n 1. Require an insured or claimant to utilize designated replacement or repair\n facilities or services, or the products of designated manufacturers, as a\n prerequisite to settling or paying any claim arising under a policy or\n policies of insurance;\n\n 2. Engage in any act of coercion or intimidation causing or intended to cause\n an insured or claimant to utilize designated replacement or repair facilities\n or services, or the products of designated manufacturers, in connection with\n settling or paying any claim arising under a policy or policies of insurance;\n\n 3. Fail to disclose to the insured or claimant, prior to being referred to a\n third party representative in connection with a glass claim arising under a\n motor vehicle insurance policy, that the third party representative is not the\n insurer and is acting on behalf of the insurer;\n\n 4. Fail to disclose to the insured or claimant, at such time as the insurer or\n its third party representative recommends the use of a designated motor\n vehicle replacement or repair facility or service, or products of a designated\n manufacturer, in connection with settling or paying any claim arising under a\n policy or policies of insurance, that the insured or claimant is under no\n obligation to use the replacement or repair facility or service or products of\n the manufacturer recommended by the insurer or by a representative of the\n insurer;\n\n 5. Fail to disclose to the insured or claimant, at such time as it or its\n third party representative recommends the use of a designated motor vehicle\n replacement or repair facility in connection with settling or paying any claim\n arising under a policy or policies of insurance, that the insurer or its third\n party representative has a financial interest in such replacement or repair\n facility, if the insurer or its third party representative has such an\n interest; or\n\n 6. Engage in the practice of capping. As used in this subdivision,\n “capping” means the setting of arbitrary and unreasonable limits\n on what an insurer will allow as reimbursement for paint and materials.\n\nB. This section shall not be construed to require an insurer to pay an amount\nfor motor vehicle repair services or repair products necessary to properly and\nfairly repair the vehicle to its pre-loss condition that is greater than the\nprevailing competitive charges for equivalent services or products charged by\nsimilar contractors or repair shops within a reasonable geographic or trade area\nof the address of the repair facility. Offering an explanation of the extent of\nan insurer’s obligation under this section to its policyholder or third\nparty claimant shall not constitute a violation of this section.\n\nC. Any person violating this section shall be subject to the injunctive,\npenalty, and enforcement provisions of Chapter 2 (§ 38.2-200 et seq.) of\nthis title. The Commission shall investigate, with the written authorization of\nthe insured or the claimant, any written complaints received pursuant to this\nsection, regardless of whether such written complaints are submitted by an\nindividual or a repair facility. For the purpose of this section, any insurance\ncompany utilizing a third party representative shall be held accountable for any\nviolation of this section by such third party representative.\n\nHISTORY: 1992, cc. 870, 882; 1999, c. 129; 2003, c. 361; 2004, c. 767; 2008, cc.\n111, 516.","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}}