                                 CODE OF VIRGINIA

LIABILITY INSURANCE ON PRIVATE PLEASURE WATERCRAFT; OPTIONAL COVERAGE (§
38.2-2232)

A. Every insurer issuing a new or renewal policy or contract covering liability
arising from the ownership, maintenance or use of a private pleasure watercraft
shall offer, in writing, to the named insured the option of purchasing coverage
for damages which the insured is legally entitled to recover from the owner or
operator of an uninsured private pleasure watercraft arising out of the
ownership, maintenance, or use of such uninsured watercraft. Such insurer shall
be required to offer limits of liability for uninsured private pleasure
watercraft coverage equal to the limits of the liability insurance provided by
the policy. However, no insurer shall be required to pay damages for uninsured
private pleasure watercraft coverage in excess of the limits of uninsured
private pleasure watercraft coverage provided by the policy. Uninsured private
pleasure watercraft coverage shall include coverage for bodily injury and
property damage liability; provided, however, that such property damage
liability coverage shall be excess over any other valid and collectible
insurance of any kind applicable to the property. Insurers issuing or providing
liability policies that are of an excess or umbrella type or which provide
liability coverage incidental to a policy not related to a specifically insured
private pleasure watercraft shall not be required to offer, provide or make
available to those policies uninsured private pleasure watercraft coverage.
			For purposes of this section, a &#8220;new or renewal policy or contract
covering liability arising from the ownership, maintenance or use of a private
pleasure watercraft&#8221; shall mean and include only a policy or contract of
marine protection and indemnity insurance, as defined in subsection B of &#xA7;
38.2-126, written as a separate policy, which is not in combination with any
other class of insurance defined in Article 2 (&#xA7; 38.2-101 et seq.) of
Chapter 1 of this title, to insure a private pleasure watercraft.
			For purposes of this section, &#8220;uninsured private pleasure
watercraft&#8221; means a private pleasure watercraft for which there is no
valid insurance policy or contract covering liability arising from the
ownership, maintenance, or use of such private pleasure watercraft in effect at
the time liability is incurred. Such term does not, however, include any
watercraft owned by, furnished to, or available for the regular use of any
insured, or owned by any governmental unit or agency.

B. If any action is instituted against an owner or operator of an uninsured
private pleasure watercraft by any insured intending to rely on the coverage
required by this section, then the insured shall serve a copy of the process
upon the insurer in the manner prescribed by law, as though the insurer were a
party defendant, but the provisions of &#xA7; 8.01-288 shall not be applicable
to service of process under this section. The insurer shall then have the right
to file pleadings and take other actions allowable by law in the name of the
owner or operator of the uninsured private pleasure watercraft or in its own
name.
			Any insurer paying a claim under coverage required by this section shall be
subrogated to the rights of the insured to the extent of any payment on such
claim.

HISTORY: 1998, c. 726; 1999, c. 918.