Beginning July 1, 2013, insurers settling claims in excess of $5,000 in Virginia will be required to notify claimants or plaintiffs within five business days of making a payment to the claimant's attorney or representative. The insurer must also submit a copy of the notice to the claimant's counsel.
This law applies to claims covered by first- and third-party insurance policies, but it does not apply to self-insured companies.
The required notice may be delivered via email, and claimants may waive their right to receive this notice in writing. If the claimant does not waive his right to this notice, then the notice must contain the following language:
Pursuant to 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).
To review the full text of this new statute, please click here.