                                 CODE OF VIRGINIA

NOTICE OF SETTLEMENT PAYMENT (§ 38.2-236)

A. Upon payment by any insurer of at least $5,000 in a single check to an
attorney licensed in the Commonwealth, or other representative, in settlement or
satisfaction by an insured or a third party of any claim arising out of an
insurance policy issued or delivered in the Commonwealth, the insurer shall send
to the claimant or judgment creditor on the underlying insurance or liability
claim a notice of such payment as required by subsection B within five business
days after the date payment is made or sent to the attorney or other
representative of the claimant or judgment creditor. A copy of the notice shall
be sent simultaneously to the attorney or representative of the claimant or
judgment creditor.

B. The notice required pursuant to subsection A shall be sent to the physical
address, or email or other electronic address, furnished by the claimant or
judgment creditor to the insurance company, unless the claimant or judgment
creditor has notified the insurance company in writing that he waives notice of
payment. In the absence of any address or waiver furnished by the claimant or
judgment creditor, the notice shall be sent to the last known physical address,
or email or other electronic address, of the claimant or judgment creditor.
			The notice shall be sent by the insurance company only after a settlement has
been agreed to by the attorney or other representative of the claimant or
judgment creditor, and shall contain only the following language:
			&#8220;Pursuant to &#xA7; 38.2-236 of the Code of Virginia, you are hereby
notified that a payment was sent on (insert date on which payment was sent) by
(insert name of insurer) to your attorney or other representative (insert name,
address, and telephone number of attorney or other representative known to
insurer), in satisfaction of your claim or judgment against (insert name of
insurer, or insured, whichever is appropriate).
			If you have any questions, please contact your attorney or other
representative.&#8221;

C. Nothing in subsection A or B shall (i) create any cause of action for
monetary damages for any person against an insurer based upon a failure to
provide notice as required by this section or the provision of a defective
notice, (ii) establish a defense for any person to any cause of action based on
a failure to provide notice as required by this section or the provision of a
defective notice, or (iii) invalidate or in any way affect the settlement or
satisfaction for which the payment was made by the insurer.

D. Except as provided and authorized by this section, no insurer shall otherwise
communicate with a claimant or judgment creditor known to be represented by an
attorney licensed in the Commonwealth, or other representative, regarding
settlement of a claim or satisfaction of a judgment without the written consent
of such attorney or other representative.

HISTORY: 2013, c. 146.