Payee Notification Proposal
Approved October 16, 2009, by VSB Council
Notice of settlement payment in excess of five thousand dollars by insurer to an attorney or other representative of a claimant or judgment creditor
(a) Upon the payment of the sum of five thousand dollars ($5,000) or more in settlement or satisfaction of any third-party liability claim or judgment, the insurer or self-insured entity, or its representative, shall mail to the claimant or judgment creditor a notice of such payment as set forth in subsection (b) at the same time payment is made by the insurer to an attorney or other representative of the claimant or judgment creditor.
(b) The notice required pursuant to subsection (a) of this section shall be mailed to the last known address of such claimant or judgment creditor and shall contain only the following language:
Pursuant to Va. Code § ___, you are hereby notified that a payment was sent today by [insert insurer’s name] to your attorney, [insert name, address, and telephone number known to the insurance carrier], in satisfaction of your claim against [insert insured’s name].
If you have any questions, please contact your attorney.
(c) Nothing in subsection (a) or (b) of this section shall (1) create any cause of action for any person or entity against an insurer based upon a failure to provide notice as required by this section or a defective notice, (2) establish a defense for any party to any cause of action based upon a failure to provide notice as required by this section or a defective notice, or (3) invalidate or in any way affect the settlement for which the payment was made by the insurer.
Updated: Oct 27, 2009