The Virginia UM/UIM statute, Va. Code §38.2-2206, has yet again been amended by the legislature. SB1293 was signed into law by the Governor and became effective July 1, 2019. This bill clarifies the 2015 amendment to Virginia Code §38.2-2206, which allowed liability carriers to tender their limits and shift the duty to defend its insured to the UM/UIM carrier.
This bill solves several problems with the 2015 iteration of §38.2-2206. First, in Section K, it states that if a release explicitly indicates it is being executed pursuant to §38.2-2206, any release language inconsistent with the code section is void. This code update should encourage attorneys for the plaintiffs to sign a properly worded release.
Second, the amendment clarifies the nature of the relationship between the tortfeasor and the UIM carrier’s counsel. Subsection K plainly states there is no attorney-client relationship