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SB 1159

Motor vehicle insurance; underinsured motorist coverage, revises language of required notice.

2025 Regular Session Introduced by Mark Obenshain

Virginia law now requires insurance companies to use updated language in notices explaining underinsured motorist coverage options to policyholders, effective July 1, 2025.

Acts of Assembly Chapter text (CHAP0331)
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Bill Summary · SB 1159

Legislative bill overview

SB 1159 revises the language and disclosure requirements for underinsured motorist (UIM) coverage notices that insurance companies must provide to Virginia policyholders. The bill updates how insurers must inform drivers about their options regarding UIM coverage limits and the consequences of their choices.

Why is this important

Underinsured motorist coverage protects drivers when at-fault parties have insufficient insurance to cover accident damages. Clear disclosure requirements ensure consumers understand their protection gaps and make informed coverage decisions. Updated notice language can reduce confusion and disputes between insurers and policyholders about coverage options previously selected.

Potential points of contention

  • Consumer protection vs. industry burden: Insurance companies may face compliance costs updating systems and forms, while consumer advocates may argue existing notices remain unclear despite revisions
  • Notification effectiveness: Changes to notice language may not meaningfully improve consumer comprehension if the underlying complexity of UIM coverage remains difficult for average drivers to understand
  • Retroactive application questions: Unclear whether revised notices apply only to new policies or require notification to existing policyholders, affecting implementation scope and costs

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

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