The law introduces a mandatory written settlement and notice requirement. Any agreement between the injured person or personal representative, any insurer providing liability coverage applicable to the claim, and the underinsured motorist described in subsection K must be in writing, signed by both the injured person or personal representative and the underinsured motorist, and must include a prescribed notice to the motorist that must be signed. The notice informs the motorist that the liability insurer has agreed to pay its available limits to settle claims on the motorist’s behalf, the settlement ensures a full release and ensures that no judgment can ever be entered against the motorist by a claimant or plaintiff, and in return, the motorist agrees to cooperate with the UIM insurer. The notice outlines cooperation obligations – attending testimony and trial if subpoenaed, assisting in discovery, meeting with defense counsel at a reasonable time after the trial begins and before deposition or testimony at trial, and notifying the UIM insurer or its defense attorney of any change in address – provided that the UIM insurer or its defense attorney has notified the motorist of its existence and provided contact information.
Virginia’s new law rewrites the rules on underinsured motorist claims & more related News Here
