General Assembly>Division of Legislative Services>Publications>Session Summaries>2003>Insurance

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Insurance

Passed

P HB1737

Accident and sickness insurance; coverage for lymphedema. Requires health insurers, health care subscription plans and health maintenance organizations to provide coverage for equipment, supplies, complex decongestive therapy, and outpatient self-management training and education for the treatment of lymphedema.
Patron - Wardrup

P HB1777

Medical Malpractice Joint Underwriting Association. Specifies that the limits of liability for policies written in the Medical Malpractice Joint Underwriting Association may not exceed two million dollars for each claimant under any one policy and six million dollars for all claimants under one policy in any one year. Currently, the limits of liability for such policies may not exceed one million dollars for each claimant under any one policy and three million dollars for all claimants under one policy in any one year. This measure will conform this provision with the cap on recovery in medical malpractice actions. The measure has an emergency clause.
Patron - Woodrum

P HB1826

Health insurance; re-underwriting individuals. Prohibits any health insurer from adjusting premiums, benefits, or contractual terms of existing individual health insurance coverage based upon its reevaluating of the individual's health status or claim experience, at the renewal date of the insurance contract. This prohibition does not apply to adjustments to the premium, or rescission of, or amendments to the insurance contract, if the insurer, subsequent to issuing the policy, learns of information that was not disclosed in the underwriting process and that, if known, would have resulted in higher premiums. Such adjustments, rescission or amendment is also permitted (i) when an insurer provides certain lifestyle-based good health discounts and (ii) when an insurer removes waivers or riders that limit coverage for specific named preexisting conditions.
Patron - Morgan

P HB1886

Health insurance; coverage for reconstructive breast surgery. Provides that notice of the availability of health insurance coverage for reconstructive breast surgery be provided to the policy's subscribers upon enrollment in the policy and annually thereafter.
Patron - May

P HB1937

Insurance agent licensing. Increases the maximum amount of burial association group life insurance certificate that may be solicited with respect to members of such an association, pursuant to a limited burial insurance authority, to $7,500. Currently the maximum is $5,000.
Patron - Nixon

P HB1948

Property insurance; adverse underwriting decisions. Prohibits an insurer from basing an adverse underwriting decision solely on the loss history of a previous owner of the property to be insured.
Patron - Drake

P HB2048

Virginia Birth-Related Neurological Injury Program. Authorizes the Workers' Compensation Commission to award up to $100,000 to the parents or legal guardian of an injured infant covered under the Virginia Birth-Related Neurological Injury Program who dies within 180 days of birth. The Program is made subject to the Freedom of Information Act and is required to implement procedures consistent with the Public Procurement Act and the rulemaking provisions of the Administrative Process Act. The Virginia Birth-Related Neurological Injury Fund must be audited annually by a certified public accountant. The Office of the Attorney General is required to provide legal services for the Program. Other changes (i) clarify that a mother is not subject to the Program's exclusive remedy provision with respect to physical injuries she suffers during delivery; (ii) require hospitals to release fetal monitoring strips to the Program or injured infant's legal representative and provide that the failure to provide the information creates a rebuttable presumption of fetal distress; (iii) require the investigation and referral to the Board of Health Professions or Department of Health, as appropriate, of health care providers and participating hospitals if the conduct gives rise to disciplinary action; (iv) require physicians and nurse midwives to inform patients whether they are participants in the Program; (v) require all hospitals to provide a brochure on the Program with post-partum materials if the infant was hospitalized in a neonatal intensive care unit; (vi) require the report of the reviewing panel of physicians to be mailed to the Program and all parties within 60 days after the filing of a petition; and (vii) provide that the Act's exclusive remedy provision applies with respect to claims by an infant's parents or other representative if the claim is derivative of the medical malpractice claim involving the infant's injury. The panel's report is required to confirm whether each element of the definition of a birth-related injury is satisfied, and the panel is to complete such documentation as the Program's board of directors requires. Physician review panel duties will rotate among Eastern Virginia Medical School, University of Virginia School of Medicine, and the Medical College of Virginia on a case-by-case basis. The Commission may require the claimant to procure health insurance for the injured infant, to be paid for from the Fund. The Commission may award unsuccessful petitioners reasonable attorneys' fees and other expenses incurred in filing a claim in good faith. The Program's board is required to consult semiannually with the chief investment officer of the Virginia Retirement System regarding fund management strategies and asset allocations, and the Program's investment advisor shall provide annual statements explaining the expected returns on its equities and fixed income portfolios. The Program's board is directed to (a) develop and implement a policy on handicapped-accessible housing, (b) study and develop options for revising fees for participating providers, and (c) maintain a list of Program participants and, with consent, make the list available to other claimants. The board of director's power to reduce the annual participating physician assessment and the annual participating hospital assessment is eliminated. The board's nonparticipating physician representative is replaced with a citizen member with professional experience working with the disabled community. Two of the other citizen members of the board are required to have a minimum of five years of professional investment experience, one is required to have professional experience working with the disabled community, and one shall be the parent of a disabled child. This bill incorporates HB 2307.
Patron - Woodrum

P HB2234

Essential and standard health services plans. Exempts essential and standard health services plans from mandated provider requirements and allows such plans to include co-payment, co-insurance, deductibles and other cost-sharing arrangements.
Patron - Pollard

P HB2267

Insurance; unfair settlement practices; replacement and repair. Prohibits insurance companies and their representatives from failing to disclose to its insured or claimant, at any time that it recommends the use of a designated replacement or repair facility or service or products of a designated manufacturer that (i) such person is not obligated to use such facilities, services, or materials and (ii) the insurer has a financial interest in the replacement or repair facility, if the insurer has such an interest. This bill incorporates HB 2333 and HB 2737.
Patron - Hargrove

P HB2512

Motor vehicle insurance; exclusion of named persons. Allows a named insured to exclude any person under personal umbrella and excess insurance policies. The exclusion must be made in writing by the first named insured and acknowledged in writing by the excluded driver. This bill is identical to SB 1154.
Patron - McDonnell

P HB2524

Insurance information privacy. Permits the oral communication of an insurer's privacy practices provided that the insured is given written notice of such practices if a policy is issued. The bill also permits agents to be in compliance with notice requirements if the notice has been given within the previous 12 months.
Patron - Morgan

P HB2535

Use of credit information in insurance transactions. Prohibits insurers from nonrenewing homeowners, renters, or motor vehicle insurance policies based on credit information contained in a consumer report. If credit information is used in part as the basis of nonrenewal, the report must have been procured within 120 days from the date of the nonrenewal. The measure also establishes requirements concerning the use of credit information and credit scores for underwriting, tier placement, or rating purposes with respect to such insurance policies. This bill is identical to SB 1284.
Patron - Byron

P HB2544

Home protection companies; arbitration clauses. Permits home protection companies to include in their contracts a provision that requires the contract holder to submit to binding arbitration in any dispute between the contract holder and the home protection company.
Patron - McDonnell

P HB2601

Health maintenance organizations; powers. Permits a health maintenance organization to offer to its subscribers deductibles, copayments, and cost-sharing provisions provided they comply with applicable state law. "Copayment" is defined as an amount an enrollee is required to pay in order to receive a specific health care service. "Deductible" is defined as an amount an enrollee is required to pay out-of-pocket before the health care plan begins to pay the costs associated with health care services. This bill is identical to SB 1195.
Patron - Bryant

P HB2606

Fire insurance; exclusions. Provides that commercial property and casualty insurance policies shall not cover loss or damage from certified acts of terrorism if the insured has refused coverage offered pursuant to the federal Terrorism Risk Insurance Act. The measure also allows simplified and readable policies to be issued to apply on an excess or primary basis if such provisions are clearly stated.
Patron - Bryant

P HB2609

Annuity contracts; minimum interest rate. Reduces the minimum interest rate on individual deferred annuities issued by insurance companies between April 1, 2003 and July 1, 2005, from three percent to one and one-half percent per year. The interest rate applies to minimum nonforfeiture amounts applicable to net considerations, partial withdrawals, and partial surrenders. The measure has an emergency clause.
Patron - Bryant

P HB2613

Viatical Settlement Act. Replaces the existing Viatical Settlement Act with a more comprehensive version based on model legislation adopted by the National Association of Insurance Commissioners (NAIC) in 2000. The measure authorizes persons who are licensed by the State Corporation Commission as viatical settlement providers and viatical settlement brokers to negotiate, effectuate, and assume responsibility for viatical settlement contracts. A viatical settlement contract is an agreement by which the owner of an insurance policy may accept an immediate cash payment in exchange for the assignment, transfer, sale, or other conveyance of the death benefit or ownership of the insurance policy. This measure regulates viatical settlements regardless of whether the transaction involves a chronically or terminally ill person. Other provisions (i) adopt new definitions that recognize the securitization activities of viatical settlement brokers and providers, (ii) expand notice and disclosure requirements, and (iii) require brokers and providers to develop anti-fraud plans. Provisions of the act that differ from the NAIC model include (a) specifying that this act does not preempt the Virginia Securities Act and (b) prohibiting the viatication of life insurance policies that are less than two years old except in limited circumstances, including the chronic or terminal illness of the insured. Life and annuities insurance agents are permitted to be licensed as viatical settlement brokers. This bill incorporates HB 2268.
Patron - Bryant

P HB2802

Insurance consultants; contract provisions. Requires any incentives, bonuses, overrides, or any other form of remuneration, whether direct or indirect, to which an insurance consultant is entitled to be specified in the consultant's contract.
Patron - Carrico

P HB2803

Accident and sickness insurance; claims experience. Requires insurers issuing group accident and sickness insurance policies to provide to policyholders that are large employers, upon request, when providing the policyholder's claims experience record, a summary of claims charges incurred and the amount paid for each claim for the most recent available 24-month period. This record must also include (i) the monthly enrollment in each membership type, and (ii) a listing of claims in excess of $50,000, for the same 24-month period.
Patron - Carrico

P SB853

Insurance administration assessment; company reports. Allows insurance companies to file assessment reports either on a form furnished by the State Corporation Commission or on a form furnished by the insurer or its vendor if the form has been approved by the Commission. Currently, the reporting forms must be furnished by the Commission.
Patron - Stosch

P SB877

Insurance agents; payment of late payment penalties. Clarifies that an insurer's failure to pay penalties imposed as a result of late payment of appointment processing fees and renewal appointment fees constitutes nonpayment of the required fees, and such failure constitutes grounds for termination of the appointment.
Patron - Wampler

P SB878

Insurance information security programs. Requires insurance institutions, agents, and insurance-support organizations to implement a comprehensive information security program to safeguard the privacy of consumer information. The measure is required pursuant to the federal Gramm-Leach-Bliley Act and is based on model language adopted by the National Association of Insurance Commissioners.
Patron - Wampler

P SB943

Health insurance exclusion periods for preexisting conditions; pregnancy. Clarifies that the prohibition on excluding health insurance coverage for pregnancy as a preexisting condition does not apply to eligible individuals purchasing individual health insurance coverage. In such cases, the health insurer may impose a preexisting condition exclusion for a pregnancy that exists on the effective date of coverage. This change is intended to resolve an inconsistency with another provision that currently provides that preexisting conditions may not be applied for eligible individuals for individual health insurance coverage.
Patron - Colgan

P SB944

Health insurance policy provisions; refunds of unearned premiums. Clarifies that provisions added by House Bill 1236 (2000) regarding refunds of the unearned portion of premiums are inapplicable to policies that were issued prior to January 1, 2001, and have not been subsequently renewed or extended. The amendments make no substantive change to the legislation enacted in the 2000 Session.
Patron - Colgan

P SB978

Insurance; claims experience data. Requires any rate service organization designated by the Commission to gather and compile experience data for any classification of workers' compensation insurance that includes coal mining to report such data annually to the Commission for the most recent five years for which such data is available.
Patron - Wampler

P SB993

Motor vehicle insurance; uninsured motorist coverage. Authorizes an immune defendant to remain as a party to litigation as an anonymous party if the court refuses to dismiss such defendant. A judgment against the immune defendant in such event is enforceable against the insurer to the same extent as though the judgment was entered in the actual name of the immune defendant.
Patron - Mims

P SB1081

Health insurance; mandated coverage for morbid obesity treatment. Requires that the standards and criteria, including those related to diet, used by insurers to approve or restrict access to surgery for morbid obesity shall be based upon current clinical guidelines recognized by the National Institutes of Health. This is intended to clarify whether insurers can consider dietary standards.
Patron - Lambert

P SB1131

Insurance notices. Provides that a cancellation, nonrenewal or certain other notices regarding motor vehicle, homeowners, and certain liability insurance policies are effective if the insurer (i) obtains a written receipt from the United States Postal Service showing the date of mailing and the number of items mailed and (ii) retains a mailing list showing the name and address of the insured to whom the notices were mailed, together with a signed statement that the United States Postal Service receipt corresponds to the insurer's mailing list.
Patron - Norment

P SB1154

P SB1195

P SB1284

P SB1316

Medical malpractice joint underwriting association; activation. Require the State Corporation Commission to commence an investigation of the voluntary market for medical malpractice insurance not later than October 1, 2003, to determine whether there exists sufficient need to activate the medical malpractice joint underwriting association. The Commission shall activate the association if, after investigation, notice, and hearing, it finds that medical malpractice insurance cannot be made reasonably available in the voluntary market for a significant number of any class, type, or group of providers of health care.
Patron - O'Brien

Failed

F HB1698

Health insurance; diabetes treatment by dietitians. Prohibits the denial of reimbursement under an accident and sickness insurance policy when covered services are provided by a dietitian in connection with care for diabetes. The measure also provides that mandated diabetes in-person outpatient self-management training and education may be provided by dietitians.
Patron - McQuigg

F HB2032

Healthcare coverage; hearing aids. Requires health insurers, health maintenance organizations, and corporations providing health care coverage subscription contracts to provide coverage for hearing aids and related services for children from birth to age 18. Such coverage shall include one hearing aid per hearing-impaired ear, up to a cost of $1,400, every 36 months. The insured may choose a higher priced hearing aid and pay the difference in cost above $1,400, with no penalty to the insured or the hearing aid provider.
Patron - Petersen

F HB2072

Health insurance; referrals to participating physicians. Prohibits health insurers, corporations providing accident and sickness subscription contracts, and health maintenance organizations from requiring a covered individual to obtain a referral from his primary care physician or prior authorization of the health plan as a condition to access to the services any physician who is (i) participating in the plan's provider panel, (ii) authorized to provide services under the plan, and (iii) selected by such individual.
Patron - Dudley

F HB2092

Uninsured motorist insurance coverage; duty to defend. Eliminates the duty of a primary insurance carrier to defend an uninsured motorist case once the carrier has paid the limits of the policy.
Patron - Joannou

F HB2178

Civil procedure; disclosure of insurance liability limits. Requires disclosure of the liability limits to an attorney for an injured person, prior to the filing of a civil action for personal injuries resulting from a motor vehicle accident, after the attorney provides written notice of representation.
Patron - Kilgore

F HB2260

Uninsured motorist insurance coverage. Permits an insured who sues an uninsured motorist for damages of less than $35,000 to add his insurance carrier to a suit as a defendant if the carrier chooses to participate in a defense against the insured. The bill also allows an insured to seek judgment jointly or severally against any owner of a vehicle who knew or should have known that the vehicle was operated unlawfully. Finally, the bill prohibits an insurer that was defending an uninsured motorist claim from appealing a judgment of less than $35,000.
Patron - Watts

F HB2268

Viatical Settlement Act. Replaces the existing Viatical Settlement Act with a more comprehensive version based on model legislation adopted by the National Association of Insurance Commissioners (NAIC) in 2000. A viatical settlement contract is an agreement by which the owner of an insurance policy may accept an immediate cash payment in exchange for the assignment, transfer, sale, or other conveyance of the death benefit or ownership of the insurance policy. The proposal permits the viatication of life insurance policies within two years following their issuance upon the occurrence of several events, such as divorce or attaining age 65, that are not currently authorized. Currently, such policies may be viaticated within the two-year period only if the viator is terminally ill or chronically ill. Variations from the NAIC model will (i) allow any person with a life insurance producer's license to be deemed to hold a viatical settlement broker's license upon notifying the State Corporation Commission and paying applicable fees; (ii) permit viatical settlement providers to appoint a viatical settlement provider representative, who negotiate viatical settlement contracts with viators on behalf of providers; and (iii) require insurers to inform policy owners who may be considering canceling their policies or letting them lapse of the opportunity of a viatical settlement. Administrative matters, including procedures for obtaining cease and desist orders, the conduct of examinations, issuing subpoenas, retaining experts to assist in examinations, confidentiality of materials, conflicts of interest, and liability of the Commission and its examiners, are addressed in detail. The bill will become effective September 1, 2003. This bill is incorporated into HB 2613.
Patron - Hargrove

F HB2307

Birth-Related Neurological Injury Compensation Program. Requires participating hospitals and physicians to notify obstetrical patients of the rights and limitations provided by the Birth-Related Neurological Injury Compensation Program, and to provide for written consent by patients who agree that any claim with respect to a birth-related neurological injury will be pursued under the Program to the exclusion of any medical malpractice claim. If an obstetrical patient does not consent to have the participation in the program be the claimant's exclusive remedy, the infant's legal representative may either pursue a claim under the Program or bring a civil action against a participating hospital or physician. Other amendments to the Program require that each hospital that provides obstetrical services (i) retain records relating to labor or delivery, including the fetal heart monitor tape, for a minimum of 10 years and (ii) provide possible claimants with all medical records related to birth. A hospital that fails to do so shall be subject to a civil penalty of not more than $5,000. If the hospital fails to provide the fetal heart monitor tape, fetal distress shall be rebuttably presumed. The State Corporation Commission's authority to suspend the annual assessment levied upon participating hospitals and physicians is eliminated. This bill is incorporated into HB 2048.
Patron - Devolites

F HB2333

Insurance; unfair settlement practices; replacement and repair. Prohibits insurance companies and their representatives from recommending the use of a designated replacement or repair facility or service or products of a designated manufacturer when settling a claim without first (i) advising the insured or claimant that they are not obligated to use such facilities, services, or materials and (ii) disclosing to the insured or claimant whether or not the insurer or its representative has a financial interest in the facility. Failure to advise the insured or claimant may result in penalties of up to $5,000. The use of such facilities, services or materials alters neither the insurer's nor the insured or claimant's liabilities or obligations under the insurance policy or applicable law. This bill is incorporated into HB 2267.
Patron - Miles

F HB2353

Motor vehicle insurance; information cards. Requires insurers issuing motor vehicle insurance policies to provide the named insured with an information card that includes information about the insurer, the insured, the period of coverage, and the policy number.
Patron - Hull

F HB2443

Homeowners insurance policy nonrenewals. Prohibits an insurer or agent from refusing to renew an insurance policy that was written on an owner-occupied dwelling solely because of a claim resulting primarily from other than natural causes, unless the claim is related to a substantial increase in the risk of loss that the insurer assumed under the policy. Currently, an insurer may not refuse to renew a policy due to claims resulting primarily from natural causes, but may do so for claims resulting primarily from any other cause.
Patron - Dillard

F HB2552

Health care coverage; artificial limbs. Requires health insurers, health maintenance organizations and corporations providing health care coverage subscription contracts to provide coverage for artificial limbs.
Patron - Landes

F HB2558

Liability insurance; overvoltage claims. Provides that a liability insurer's refusal to pay a claim resulting from an electricity overvoltage is arbitrary or unreasonable if the insurer requires relitigation of the issue of the negligence of the insured or the electric utility as causing the overvoltage. In addition, a finding that the insured or the electric utility was, or was not, negligent shall be binding upon the trier of fact in any subsequent action involving a claim against the insured for injury or damage resulting from the overvoltage, and the insured is collaterally estopped from relitigating the issue of the negligence of the insured and the electric utility.
Patron - Scott

F HB2567

Nonrenewal of fire policies based on claims. Prohibits an insurer from nonrenewing a homeowner's policy based on the filing of a claim that results primarily from nonnatural causes when the insurer's underwriting standards or other business practices under which the filing of claims constitutes grounds for not renewing the policy, unless the insurer notifies the insured that his claim will be grounds for nonrenewing the policy and that the insured may withdraw such claim without prejudice. If the insured does not withdraw his filing of the claim, the processing of the claim will proceed and its filing may be considered by the insurer in deciding whether to nonrenew the policy.
Patron - Scott

F HB2660

Fire Programs Fund; assessment on motor vehicle insurance. Requires insurance companies that write motor vehicle insurance to pay an assessment of one percent of the total direct gross premium income from such insurance. The assessments will be paid into the Fire Programs Fund, which is administered by the Department of Fire Programs under policies and definitions established by the Virginia Fire Services Board.
Patron - Van Yahres

F HB2676

Insurance; reimbursement for ambulance services. Requires the issuer of an accident and sickness policy that provides reimbursement for ambulance services to pay the amount billed, unless the issuer has negotiated a different amount. If the issuer has negotiated a lower amount, the covered person may not be held liable for the difference between the billed amount and the negotiated amount.
Patron - O'Bannon

F HB2737

Motor vehicle insurance; referral of certain business. Prohibits motor vehicle insurers from recommending the use of a designated replacement or repair facility or service, or the products of a designated manufacturer, in connection with settling or paying any claim arising under a policy or policies of insurance without (i) notifying the insured or claimant that he is under no obligation to use the recommended facility, service or products, and (ii) disclosing to the insured or claimant whether or not the insurer or its representative has a financial interest in such facility or service. The bill also prohibits such insurers from referring an insured to such facilities in which the insurer holds a controlling interest. "Control" is defined as the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, and includes ownership of 10 percent or more of a corporation's voting shares. This bill is incorporated into HB 2267.
Patron - Lingamfelter

F HB2753

Insurance; use of credit information. Sets forth specific criteria for insurers who use consumer credit information to underwrite risks in motor vehicle insurance and fire insurance policies. Insurers are prohibited from denying, cancelling, or nonrenewing a policy solely based on credit information, basing an insured's rates solely upon credit information, or considering the absence of credit information in underwriting. Insurers that use credit information in underwriting are required to update an insured's credit information every 36 months. If an insurer uses credit information in underwriting, it must disclose so on the insurance application. If an insurer takes an adverse action based upon credit information, the insurer must notify the consumer and explain the reason for the action in specific terms. Insurers are required to file their credit scoring models or other scoring processes with the Bureau of Insurance.
Patron - Abbitt

F HB2779

Accident and sickness insurance; coverage for household members. Permits an accident and sickness insurance policy to be extended to include coverage for persons (i) in whom the primary insured has an insurable interest, and (ii) who reside in the same household as the insured. Current law only permits coverage to be extended to a spouse or dependent children of the insured.
Patron - Dillard

F SB870

Health insurance; exclusion for prophylactic surgical procedures for difficult-to-diagnose pathologies; genetic predisposition. Prohibits health insurers, corporations providing accident and sickness subscription contracts, and health maintenance organizations from refusing to provide coverage for prophylactic surgical procedures and medical services directly related thereto, in cases where the covered person's treating physician has determined that the person has a genetic factor or family history indicating a predisposition to a difficult-to-diagnose pathology, the risks to the covered person of developing the difficult-to-diagnose pathology as a result of such person's predisposition render such services medically appropriate, and coverage for treatment of the difficult-to-diagnose pathology would be provided under the terms of the policy, contract or plan if the difficult-to-diagnose pathology has been diagnosed. A difficult-to-diagnose pathology is a disease that is asymptomatic or otherwise not susceptible to diagnosis until reaching a stage at which the likelihood of successful treatment is significantly less than it would be had the treatment been performed when the disease was asymptomatic or not susceptible to diagnosis. A prophylactic surgical procedure is a surgical procedure that is performed prior to the diagnosis of or presentation of symptoms of a difficult-to-diagnose pathology, in order to prevent, eliminate or reduce the likelihood of the development of the difficult-to-diagnose pathology.
Patron - Deeds

F SB919

Health insurance program for self-employed persons. Requires the Department of Human Resource Management to establish a program authorizing self-employed persons and their dependents to participate as enrollees in the health insurance plan for state employees. Participating self-employed persons will be required to pay the full cost of their participation in the state employees' health insurance plan, in order that the costs of the program shall have no material effect upon the costs of the state employees' health insurance plan. Participating self-employed persons will constitute a part of the same group as the other individuals participating in the state employees' health insurance plan.
Patron - Byrne

F SB994

Motor vehicle insurance; underinsurance coverage; notice of payment to the extent of available coverage. Specifies the nature and content of the notice that a liability insurance carrier must give its insured whenever (i) it intends to pay the entire amount of the insured's limits of available coverage under the policy to a liability insurance claimant and (ii) the claimant has underinsured insurance coverage in excess of the amount paid. The notice must also be given to all insurance carriers providing underinsurance coverage relative to the claim. The contents of the notice must include a statement that (a) the liability insurance carrier will continue to provide a defense of the claim, (b) all available limits of liability have been paid to the claimant and (c) the insured may be personally liable for any judgment in excess of the amount paid. The bill also provides that by giving such notice to the carrier providing underinsurance coverage to the claimant, the costs of defense may be shifted from the liability carrier to the underinsurance carrier.
Patron - Mims

F SB1016

Insurance; use of social security number. Prohibits an insurer from using an insured's social security number as the insured's account number with the insurer, and from including the insured's social security number on any written or electronic correspondence, if the consumer has requested in writing that the supplier use a different number.
Patron - Reynolds

F SB1150

Insurance reimbursement for multiple surgical procedures. Requires insurers to reimburse each procedure for reconstructive breast surgery on different breasts in full whether or not performed during the same operative session.
Patron - Stolle

F SB1159

Hearing aids for small children. Requests the State Corporation Commission to study the costs and benefits of requiring insurers to cover hearing aids for children under age five. In conducting its study, the Commission shall examine (i) the cost of providing hearing aids to children under age five, including the effect on health insurance premiums, (ii) the effects on the speech, language, and emotional development of children who have not had hearing aids before age five, (iii) the costs of providing special services to children who are deaf and hard-of-hearing, (iv) the additional costs of education of children who are deaf and hard-of-hearing, and (v) any other matter the Commission deems relevant.
Patron - Ticer

F SB1166

Fire Programs Fund; assessment on motor vehicle insurance. Requires insurance companies that write motor vehicle insurance to pay an assessment of one percent of the total direct gross premium income from such insurance. The assessments will be paid into the Fire Programs Fund, which is administered by the Department of Fire Programs under policies established by the Virginia Fire Services Board.
Patron - Puckett

F SB1248

Accident and sickness insurance; coverage for obesity. Requires health insurers, corporations providing accident and sickness subscription contracts, and health maintenance organizations to offer and make available the opportunity to purchase a rider or endorsement to the policy, contract or plan that provides coverage for the treatment of obesity.
Patron - Miller, Y.B.

F SB1265

Health insurance coverage; menorrhagia. Expands the current requirement for insurance coverage for bleeding disorders to include menorrhagia. "Menorrhagia" is defined as menstrual blood loss greater than 80 milliliters per menstrual cycle.
Patron - Miller, Y.B.

F SB1294

Motor vehicle insurance repair settlement practices. Provides that insurers shall not be required to pay an amount for motor vehicle repair services or repair products necessary to properly and fairly repair a vehicle that exceeds the prevailing competitive charges for equivalent services or products charged by similar contractors or repair shops within a reasonable geographic or trade area of the address of the insured or claimant.
Patron - Williams

F SB1328

Health insurance; fair business practices. Provides that the "retroactive denial of a previously paid claim" or "retroactive denial of payment" includes any attempt by a carrier to deny or adjust a claim after it has been paid, or collect from the provider any sums previously paid to the provider with respect to a claim that the carrier had approved, unless the carrier has based such denial or adjustment on information specific to that claim, and not on an extrapolation of the results of an audit of a sample of other claims. The measure also prohibits a carrier from (i) seeking to collect alleged overpayments from a provider with respect to any claim or claims previously paid if the carrier's allegation of overpayment is based on an extrapolation of the results of an audit of a sample of a provider's claims to other, unaudited claims or (ii) conducting an audit of a provider's claims unless the State Corporation Commission has determined that the methods and procedures pursuant to which the audit is conducted are fair and equitable.
Patron - Saslaw

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