Section 40. Misrepresentation of policy provisions

A. No person shall knowingly obscure or conceal from first party claimants, either directly or by omission, benefits, coverages or other provisions of any insurance policy or insurance contract when such benefits, coverages or other provisions are pertinent to a claim.

B. No insurer shall deny a claim for failure of a claimant to submit to physical examination or for failure of a claimant to exhibit the property which is the subject of the claim without proof of demand by such insurer and unfounded refusal by a claimant to do so.

C. No insurer shall, except where there is a time limit specified in the policy, make statements, written or otherwise, requiring a claimant to give written notice of loss or proof of loss within a specified time limit and which seek to relieve the company of its obligations if such a time limit is not complied with unless the failure to comply with such time limit in fact prejudices the insurer's rights.

D. No insurer shall request a first party claimant to sign a release that extends beyond the subject matter that gave rise to the claim payment.

E. No insurer shall issue checks or drafts in partial settlement of a loss or claim under a specific coverage which contain language that purports to release the insurer or its insured from its total liability.

Historical Notes

Derived from Regulation 12, Case No. 19961, § 5, eff. September 15, 1978.

Statutory Authority

§ 38.2-510 of the Code of Virginia.