                                 CODE OF VIRGINIA

UNINSURED MOTORIST INSURANCE COVERAGE (§ 38.2-2206)

A. Except as provided in subsection J, no policy or contract of bodily injury or
property damage liability insurance relating to the ownership, maintenance, or
use of a motor vehicle shall be issued or delivered in this Commonwealth to the
owner of such vehicle or shall be issued or delivered by any insurer licensed in
this Commonwealth upon any motor vehicle principally garaged or used in this
Commonwealth unless it contains an endorsement or provisions undertaking to pay
the insured all sums that he is legally entitled to recover as damages from the
owner or operator of an uninsured motor vehicle, within limits not less than the
requirements of &#xA7; 46.2-472. Those limits shall equal but not exceed the
limits of the liability insurance provided by the policy, unless any one named
insured rejects the additional uninsured motorist insurance coverage by
notifying the insurer as provided in subsection B of &#xA7; 38.2-2202. This
rejection of the additional uninsured motorist insurance coverage by any one
named insured shall be binding upon all insureds under such policy. The
endorsement or provisions shall also provide underinsured motorist insurance
coverage with limits that shall be equal to the uninsured motorist insurance
coverage limits and shall obligate the insurer to make payment for bodily injury
or property damage caused by the operation or use of an underinsured motor
vehicle to the extent the vehicle is underinsured.
			The endorsement shall provide that underinsured motorist coverage shall be
paid without any credit for the bodily injury and property damage coverage
available for payment, unless any one named insured signs an election to reduce
any underinsured motorist coverage payments by the bodily injury liability or
property damage liability coverage available for payment by notifying the
insurer as provided in subsection C of &#xA7; 38.2-2202. This election by any
one named insured shall be binding upon all insureds under such policy.
			The endorsement or provisions shall also provide for at least $20,000
coverage for damage or destruction of the property of the insured in any one
accident but may provide an exclusion of the first $200 of the loss or damage
where the loss or damage is a result of any one accident involving an
unidentifiable owner or operator of an uninsured motor vehicle.
			For the purposes of this section, &#8220;legally entitled to recover&#8221;
has the same meaning as provided in &#xA7; 8.01-66.1.

B. 1. As used in this section:
			&#8220;Bodily injury&#8221; includes death resulting from bodily injury.
			&#8220;Insured&#8221; as used in subsections A, D, G, and H, means the named
insured and, while resident of the same household, the spouse of the named
insured, and relatives, wards or foster children of either, while in a motor
vehicle or otherwise, and any person who uses the motor vehicle to which the
policy applies, with the expressed or implied consent of the named insured, and
a guest in the motor vehicle to which the policy applies or the personal
representative of any of the above.
			&#8220;Uninsured motor vehicle&#8221; means a motor vehicle for which (i)
there is no bodily injury liability insurance and property damage liability
insurance in the amounts specified by § 46.2-472, (ii) there is such insurance
but the insurer writing the insurance denies coverage for any reason whatsoever,
including failure or refusal of the insured to cooperate with the insurer, (iii)
there is no bond or deposit of money or securities in lieu of such insurance,
(iv) the owner of the motor vehicle has not qualified as a self-insurer under
the provisions of § 46.2-368, or (v) the owner or operator of the motor vehicle
is immune from liability for negligence under the laws of the Commonwealth or
the United States, in which case the provisions of subsection F shall apply and
the action shall continue against the insurer. A motor vehicle shall be deemed
uninsured if its owner or operator is unknown.
			A motor vehicle is &#8220;underinsured&#8221; when, and to the extent that,
the total amount of bodily injury and property damage coverage applicable to the
operation or use of the motor vehicle and available for payment for such bodily
injury or property damage, including all bonds or deposits of money or
securities made pursuant to Article 15 (§ 46.2-435 et seq.) of Chapter 3 of
Title 46.2, is less than the total amount of damages sustained up to the total
amount of underinsured motorist coverage afforded any person injured as a result
of the operation or use of the vehicle.
			&#8220;Available for payment&#8221; means the amount of liability insurance
coverage applicable to the claim of the injured person for bodily injury or
property damage reduced by the payment of any other claims arising out of the
same occurrence.

   2. If an injured person is entitled to uninsured or underinsured motorist
   coverage under more than one policy, the insurers shall be obligated to the
   injured person in the following order of priority of payment:
   				a. The policy covering a motor vehicle occupied by the injured person at
   the time of the accident;
   				b. The policy covering a motor vehicle not involved in the accident under
   which the injured person is a named insured;
   				c. The policy covering a motor vehicle not involved in the accident under
   which the injured person is an insured other than a named insured.
   				Where there is more than one insurer providing coverage under one of the
   payment priorities set forth, their liability shall be proportioned as to
   their respective available uninsured or underinsured motorist coverages.

   3. If an injured person is entitled to underinsured motorist coverage under
   one or more policies wherein a named insured has elected to reduce the
   underinsured motorist limits by the available bodily injury liability
   insurance or property damage liability insurance coverage available for
   payment, any amount available for payment shall be credited against such
   policies in payment priority pursuant to subdivision 2 a only, and where there
   is more than one such policy entitled to such credit, the credit shall be
   apportioned pro-rata pursuant to the policies&#8217; respective available
   underinsured motorist coverages.

   4. Recovery under the endorsement or provisions shall be subject to the
   conditions set forth in this section.

C. There shall be a rebuttable presumption that a motor vehicle is uninsured if
the Commissioner of the Department of Motor Vehicles certifies that, from the
records of the Department of Motor Vehicles, it appears that (i) there is no
bodily injury liability insurance and property damage liability insurance in the
amounts specified by &#xA7; 46.2-472 covering the owner or operator of the motor
vehicle; (ii) no bond has been given or cash or securities delivered in lieu of
the insurance; or (iii) the owner or operator of the motor vehicle has not
qualified as a self-insurer in accordance with the provisions of &#xA7;
46.2-368.

D. If the owner or operator of any motor vehicle that causes bodily injury or
property damage to the insured is unknown, and if the damage or injury results
from an accident where there has been no contact between that motor vehicle and
the motor vehicle occupied by the insured, or where there has been no contact
with the person of the insured if the insured was not occupying a motor vehicle,
then for the insured to recover under the endorsement required by subsection A,
the accident shall be reported promptly to either (i) the insurer or (ii) a
law-enforcement officer having jurisdiction in the county or city in which the
accident occurred. If it is not reasonably practicable to make the report
promptly, the report shall be made as soon as reasonably practicable under the
circumstances.

E. If the owner or operator of any vehicle causing injury or damages is unknown,
an action may be instituted against the unknown defendant as &#8220;John
Doe&#8221; and service of process may be made by delivering a copy of the motion
for judgment or other pleadings to the clerk of the court in which the action is
brought. Service upon the insurer issuing the policy shall be made as prescribed
by law as though the insurer were a party defendant. The provisions of &#xA7;
8.01-288 shall not be applicable to the service of process required in this
subsection. The insurer shall have the right to file pleadings and take other
action allowable by law in the name of John Doe.

F. If any action is instituted against the owner or operator of an uninsured or
underinsured motor vehicle by any insured intending to rely on the uninsured or
underinsured coverage provision or endorsement of this policy under which the
insured is making a claim, then the insured shall serve a copy of the process
upon this insurer in the manner prescribed by law, as though the insurer were a
party defendant. The provisions of &#xA7; 8.01-288 shall not be applicable to
the service of process required in this subsection. The insurer shall then have
the right to file pleadings and take other action allowable by law in the name
of the owner or operator of the uninsured or underinsured motor vehicle or in
its own name. Notwithstanding the provisions of subsection A, the immunity from
liability for negligence of the owner or operator of a motor vehicle shall not
be a bar to the insured obtaining a judgment enforceable against the insurer for
the negligence of the immune owner or operator, and shall not be a defense
available to the insurer to the action brought by the insured, which shall
proceed against the named defendant although any judgment obtained against an
immune defendant shall be entered in the name of &#8220;Immune Defendant&#8221;
and shall be enforceable against the insurer and any other nonimmune defendant
as though it were entered in the actual name of the named immune defendant.
Nothing in this subsection shall prevent the owner or operator of the uninsured
motor vehicle from employing counsel of his own choice and taking any action in
his own interest in connection with the proceeding.

G. Any insurer paying a claim under the endorsement or provisions required by
subsection A shall be subrogated to the rights of the insured to whom the claim
was paid against the person causing the injury, death, or damage and that
person&#8217;s insurer, although it may deny coverage for any reason, to the
extent that payment was made. The bringing of an action against the unknown
owner or operator as John Doe or the conclusion of such an action shall not bar
the insured from bringing an action against the owner or operator proceeded
against as John Doe, or against the owner&#8217;s or operator&#8217;s insurer
denying coverage for any reason, if the identity of the owner or operator who
caused the injury or damages becomes known. The bringing of an action against an
unknown owner or operator as John Doe shall toll the statute of limitations for
purposes of bringing an action against the owner or operator who caused the
injury or damages until his identity becomes known. In no event shall an action
be brought against an owner or operator who caused the injury or damages,
previously filed against as John Doe, more than three years from the
commencement of the action against the unknown owner or operator as John Doe in
a court of competent jurisdiction. Any recovery against the owner or operator,
or the insurer of the owner or operator shall be paid to the insurer of the
injured party to the extent that the insurer paid the named insured in the
action brought against the owner or operator as John Doe. However, the insurer
shall pay its proportionate part of all reasonable costs and expenses incurred
in connection with the action, including reasonable attorney fees. Nothing in an
endorsement or provisions made under this subsection nor any other provision of
law shall prevent the joining in an action against John Doe of the owner or
operator of the motor vehicle causing the injury as a party defendant, and the
joinder is hereby specifically authorized. No action, verdict or release arising
out of a suit brought under this subsection shall give rise to any defenses in
any other action brought in the subrogated party&#8217;s name, including res
judicata and collateral estoppel.

H. No endorsement or provisions providing the coverage required by subsection A
shall require arbitration of any claim arising under the endorsement or
provisions, nor may anything be required of the insured except the establishment
of legal liability, nor shall the insured be restricted or prevented in any
manner from employing legal counsel or instituting legal proceedings.

I. Except as provided in &#xA7; 65.2-309.1, the provisions of subsections A and
B of &#xA7; 38.2-2204 and the provisions of subsection A shall not apply to any
policy of insurance to the extent that it covers the liability of an employer
under any workers&#8217; compensation law, or to the extent that it covers
liability to which the Federal Tort Claims Act applies. No provision or
application of this section shall limit the liability of an insurer of motor
vehicles to an employee or other insured under this section who is injured by an
uninsured motor vehicle; provided that in the event an employee of a
self-insured employer receives a workers&#8217; compensation award for injuries
resulting from an accident with an uninsured motor vehicle, such award shall be
set off against any judgment for damages awarded pursuant to this section for
personal injuries resulting from such accident.

J. Policies of insurance whose primary purpose is to provide coverage in excess
of other valid and collectible insurance or qualified self-insurance may include
uninsured motorist coverage as provided in subsection A. Insurers issuing or
providing liability policies that are of an excess or umbrella type or which
provide liability coverage incidental to a policy and not related to a
specifically insured motor vehicle, shall not be required to offer, provide or
make available to those policies uninsured or underinsured motor vehicle
coverage as defined in subsection A.

K. An injured person, or in the case of death or disability his personal
representative, may settle a claim with (i) a liability insurer, including any
insurer providing liability coverage through an excess or umbrella insurance
policy or contract and (ii) the liability insurer&#8217;s insured for the
available limits of the liability insurer&#8217;s coverage. Upon settlement with
the liability insurer, the injured party or personal representative shall
proceed to execute a full release in favor of the underinsured motorist&#8217;s
liability insurer and its insured and finalize the proposed settlement without
prejudice to any underinsured motorist benefits or claim. Any such release that
states that it is being executed pursuant to or consistent with this subsection
shall not operate to release any parties other than the liability insurer and
underinsured motorist, regardless of the identities of the released parties set
forth in the release, and any terms contained in the release that are
inconsistent with, or in violation of, this section are null and void. Upon
payment of the liability insurer&#8217;s available limits to the injured person
or personal representative or his attorney, the liability insurer shall
thereafter have no further duties to its insured, including the duty to defend
its insured if an action has been or is brought against the liability
insurer&#8217;s insured, and the insurer providing applicable underinsured
motorist coverage shall have no right of subrogation or claim against the
underinsured motorist. However, if the underinsured motorist unreasonably fails
to cooperate with the underinsured motorist benefits insurer in the defense of
any lawsuit brought by the injured person or his personal representative, he may
again be subjected to a claim for subrogation by the underinsured motorist
benefits insurer pursuant to &#xA7; 8.01-66.1:1. Nothing in this section or
&#xA7; 8.01-66.1:1 shall create any duty on the part of any underinsured
motorist benefits insurer to defend any underinsured motorist. No
attorney-client relationship is created between the underinsured motorist and
counsel for the underinsured motorist benefits insurer without the express
intent and agreement of the underinsured motorist, the underinsured motorist
benefits insurer, and counsel for the underinsured motorist benefits insurer.
This section provides an alternative means by which the parties may resolve
claims and does not eliminate or restrict any other available means.

L. Any settlement between the injured person or his personal representative, any
insurer providing liability coverage applicable to the claim, and the
underinsured motorist described in subsection K shall be in writing, signed by
both the injured person or his personal representative and the underinsured
motorist, and shall include the following notice to the underinsured motorist,
which must be initialed by the underinsured motorist:
			&#8220;NOTICE TO RELEASED PARTY: Your insurance company has agreed to pay the
available limits of its insurance to settle certain claims on your behalf. This
settlement secures a full release of you for all claims the claimant/plaintiff
has against you arising out of the subject accident, as well as ensures that no
judgment can ever be entered against you by the claimant/plaintiff. In order to
protect yourself from subrogation by any underinsured motorist insurer, you are
agreeing to cooperate with the underinsured motorist benefits insurer(s). The
underinsured motorist benefits insurer is not your insurer and has no duty to
defend you.
			Under this manner of settlement, the underinsured motorist benefits
insurer(s) that is/are involved in this case has/have no right of subrogation
against you unless you fail to reasonably cooperate in its/their defense of the
claim by not (i) attending your deposition and trial, if subpoenaed, (ii)
assisting in responding to discovery, (iii) meeting with defense counsel at
reasonable times after commencement of this suit and before your testimony at a
deposition and/or trial, and (iv) notifying the underinsured motorist benefits
insurer or its defense counsel of any change in your address, provided that the
underinsured motorist benefits insurer or its defense counsel has notified you
of its existence and provided you with their contact information.
			Upon payment of the agreed settlement amount by your insurance company(ies),
such company shall no longer owe you any duties, including the duty to hire and
pay for an attorney for you. You are not required to consent to settlement in
this manner. If you do not consent to settlement in this manner, your insurance
company will still defend you in any lawsuit brought against you by the
claimant/plaintiff, but you will not have the protections of a full release from
the claimant/plaintiff, judgment could be entered against you and may exceed
your available insurance coverage, and any underinsured motorist benefits
insurer would have a right of subrogation against you to recover any moneys it
pays to the claimant/plaintiff.
			You are encouraged to discuss your rights and obligations related to
settlement in this manner with your insurance company and/or an attorney. By
signing this document, you agree to consent to this settlement and to reasonably
cooperate with the underinsured motorist benefits insurer in the defense of any
lawsuit brought by the claimant/plaintiff.
			______ (initial)&#8221;
			In the alternative to having the underinsured motorist sign the release and
initial the notice, the liability insurer may send the notice and release to the
underinsured motorist by certified mail return receipt requested to his last
known address, which will be deemed to have satisfied the requirements of this
subsection.

M. Any action brought by the injured person or his personal representative to
recover underinsured motorist benefits after payment of the liability
insurer&#8217;s available limits pursuant to subsection K shall be brought
against the released defendant, and a copy of the complaint shall be served on
any insurer providing underinsured motorist benefits. If an action is pending at
the time the liability insurer&#8217;s available limits are paid to the injured
person or personal representative or his attorney, then the action shall remain
pending against the named defendant or defendants who have been released. If
such action results in a verdict in favor of the injured person or his personal
representative against a released defendant, then judgment as to that defendant
shall be entered in the name of &#8220;Released Defendant&#8221; and shall be
enforceable against the underinsured motorist benefits insurer, not to exceed
the underinsured motorist benefits limits, and against any unreleased defendant,
as though it were entered in the actual name of the released defendant.

N. Any proposed settlement between a liability insurer and a person under a
disability or a personal representative as permitted in subsection K that
compromises in part a claim for personal injuries by the person under a
disability or for death by wrongful act pursuant to &#xA7; 8.01-50 may be, but
is not required to be, approved pursuant to &#xA7; 8.01-424 or 8.01-55, as
applicable. If the personal representative elects not to have the settlement
with the liability insurer approved pursuant to &#xA7; 8.01-55, then any payment
made to the personal representative by the liability insurer shall be made
payable to the personal representative&#8217;s attorney, to be held in trust, or
paid into the court pursuant to &#xA7; 8.01-600 if the personal representative
is not represented by an attorney, with no disbursements made therefrom until
the compromise is approved by the court pursuant to &#xA7; 8.01-55. Approval by
the court of a settlement between the liability insurer and a person under a
disability or the personal representative pursuant to this subsection shall not
prejudice the person&#8217;s or personal representative&#8217;s claim for
underinsured motorist benefits.

HISTORY: Code 1950, § 38-238; 1952, c. 317, § 38.1-381; 1958, c. 282; 1959,
Ex. Sess., cc. 42, 70; 1960, c. 462; 1962, c. 457; 1964, c. 477; 1966, cc. 182,
459; 1968, cc. 199, 721; 1970, c. 494; 1971, Ex. Sess., c. 216; 1973, cc. 225,
390; 1974, c. 87; 1976, cc. 121, 122; 1977, c. 78; 1979, c. 113; 1980, cc. 326,
331; 1981, Sp. Sess., c. 6; 1982, cc. 638, 642; 1984, c. 541; 1985, cc. 39, 325;
1986, c. 562; 1987, c. 519; 1988, cc. 565, 578, 585, 586, 594; 1989, c. 621;
1993, c. 381; 1995, cc. 189, 267, 476; 1997, cc. 170, 191; 1999, c. 992; 2001,
c. 218; 2003, c. 283; 2010, c. 492; 2011, c. 107; 2015, cc. 584, 585; 2019, c.
779; 2022, c. 308; 2024, c. 781.