Bill > SB1154

This bill prohibits policyholders from assigning or transferring their fire insurance policy claims or benefits to another person without the written consent of their insurance company. The bill adds a new section to the Virginia Code that makes any contract provision violating this prohibition void and unenforceable. The legislation includes two specific exceptions: policyholders can still authorize payment to persons providing reasonable services or materials covered by the insurance policy, and they can assign rights to seek damages in a personal injury or tort case that exceeds their liability insurance coverage. The bill applies not only to standard insurance companies but also to mutual assessment property and casualty insurers, as well as mutual insurers operating exclusively in Virginia that provide perpetual insurance. The purpose of this bill appears to be protecting insurance companies from unauthorized claim transfers and maintaining their control over claims processing and settlement.

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https://lis.virginia.gov/bill-details/20251/SB1154