                                 CODE OF VIRGINIA

(FOR JANUARY 1, 2016, APPLICABILITY DATE, SEE EDITOR&#8217;S NOTE) SUBROGATION
CLAIMS BY UNDERINSURED MOTORIST BENEFITS INSURER (§ 8.01-66.1:1)

A. Any underinsured motorist benefits insurer paying such benefits to an
insured, by way of settlement or payment pursuant to a judgment, shall have no
right of subrogation against any individual or entity who settled with the
underinsured motorist benefits insurer&#8217;s insured pursuant to subsection K
of § 38.2-2206 unless the underinsured motorist failed to reasonably cooperate
in the defense of any lawsuit brought against him. An underinsured motorist
shall be presumed to have failed to reasonably cooperate if he fails or refuses:

   1. To attend his deposition or trial if subpoenaed to appear at least 21 days
   in advance of either event;

   2. To assist in responding to written discovery;

   3. To meet with defense counsel for a reasonable period of time after
   reasonable notice, by phone or in person, within 21 days of being served with
   any lawsuit and again prior to his deposition and trial; or

   4. To notify counsel for the underinsured motorist benefits insurer of any
   change in address.
   				The underinsured motorist may rebut the presumption that he failed to
   reasonably cooperate. If the court finds that the underinsured
   motorist&#8217;s failure to cooperate was not unreasonable or that the
   underinsured motorist otherwise acted in good faith in attempting to comply
   with his duty to reasonably cooperate with the underinsured motorist benefits
   insurer, then the underinsured motorist benefits insurer will not regain its
   right of subrogation.

B. The underinsured motorist benefits insurer seeking the cooperation of the
underinsured motorist shall pay the reasonable costs and expenses related to
procuring such cooperation, including any travel costs if the underinsured
motorist resides more than 100 miles from the location of his deposition or
trial. Travel costs may be considered by the court in determining whether the
underinsured motorist&#8217;s failure to cooperate was unreasonable or not.

C. If the court finds that the underinsured motorist satisfied his duty to
cooperate with the underinsured motorist benefits insurer or that his failure to
do so was not unreasonable, then the court may award him his costs in defending
such subrogation action, including reasonable attorney fees.

HISTORY: 2015, cc. 584, 585.