Section 70. Standards for prompt, fair and equitable settlement of claims applicable to all insurers

A. Any denial of a claim must be given to a claimant in writing and the claim file of the insurer shall contain a copy of the denial.

B. No insurer shall deny a claim unless a reasonable explanation of the basis for such denial is included in the written denial. Specific reference to a policy provision, condition or exclusion shall be made when a denial is based on such provision, condition or exclusion.

C. Insurers shall not fail to settle first party claims on the basis that responsibility for payment should be assumed by others except as may otherwise be provided by policy provisions.

D. In any case where there is no dispute as to coverage or liability, every insurer must offer to a first party claimant, or to a first party claimant's authorized representative, an amount which is fair and reasonable as shown by the investigation of the claim, provided the amount so offered is within policy limits and in accordance with policy provisions.

Historical Notes

Derived from Regulation 12, Case No. 19961, § 8, eff. September 15, 1978.

Statutory Authority

§ 38.2-510 of the Code of Virginia.