                                 CODE OF VIRGINIA

ATTORNEY FEES (§ 38.2-807)

A. In any action against an unlicensed insurer upon an insurance contract issued
or delivered in this Commonwealth to a resident of this Commonwealth or to a
corporation authorized to do business in this Commonwealth, the court may allow
the plaintiff a reasonable attorney fee if (i) the insurer has failed to make
payment in accordance with the terms of the contract for 30 days after demand
prior to the commencement of the action and (ii) the court concludes that the
refusal was vexatious and without reasonable cause. The fee shall not exceed 33
1/3 percent of the amount that the court or jury finds the plaintiff is entitled
to recover against the insurer, but shall be at least $200.

B. Failure of the insurer to defend the action shall be deemed prima facie
evidence that its failure to make payment was vexatious and without reasonable
cause.

HISTORY: 1952, c. 317, § 38.1-70; 1986, c. 562; 2010, c. 343.