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HB 1335

Fraudulent insurance acts; civil penalty.

2026 Regular Session Introduced by Scott Wyatt

HB 1335 creates civil penalty enforcement mechanism for insurance fraud in Virginia, allowing monetary sanctions beyond criminal prosecution to deter fraudulent claims and recover damages.

Subcommittee recommends laying on the table (7-Y 2-N)
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Bill Summary · HB 1335

Legislative bill overview

HB 1335 establishes civil penalties for fraudulent insurance acts in Virginia, creating a mechanism for financial consequences separate from criminal prosecution. The bill allows for monetary penalties to be imposed on individuals or entities found to have committed insurance fraud.

Why is this important

Insurance fraud increases costs for all policyholders through higher premiums and affects the stability of the insurance market. Civil penalties provide an additional enforcement tool that can deter fraud and recover damages without requiring the higher burden of proof needed in criminal cases, while also allowing faster resolution through civil rather than criminal courts.

Potential points of contention

  • Burden of proof standards: Civil cases require "preponderance of the evidence" rather than "beyond reasonable doubt," raising due process concerns about penalties based on lower evidentiary thresholds
  • Penalty structure clarity: The bill's specific penalty amounts, caps, and calculation methods are not detailed in available information, making it unclear whether penalties could be excessive or disproportionate
  • Enforcement authority: Questions about which agencies enforce the civil penalties and whether adequate resources/oversight exist to prevent inconsistent application across different insurers or fraud types

Compiled from official sources — confirm details with the bill’s official record.

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