Virginia House Bill HB2095

Virginia 2025 Regular Session

• Introduced: 1/7/25
• Refer: 1/7/25

Caption

Fraudulent insurance acts; penalty.

Impact

By enforcing stringent penalties classified as a Class 4 felony for violations of this bill, HB2095 seeks to deter fraudulent activities in the insurance sector. The implications of this legislation extend beyond just the individual perpetrators, impacting the overall integrity of the insurance industry. Insurers may experience fewer fraudulent claims, leading potentially to a healthier insurance market and possibly reducing premiums for policyholders in the long run. This law intends to foster consumer trust in the insurance system by holding accountable those who attempt to manipulate it for personal gain.

Summary

House Bill 2095 aims to address fraudulent insurance acts in Virginia by adding a new section to the Code of Virginia. The bill defines various fraudulent acts related to insurance, including knowingly presenting false statements or documents in support of a claim, filing false insurance applications, and soliciting for personal gain individuals involved in motor vehicle incidents. Specifically, the bill targets the malpractices of both individuals and professionals aiming to defraud insurers and insurance claimants through deceptive practices, including staged accidents and misleading communications.

Contention

While supporters argue that HB2095 is crucial for combating insurance fraud, there may be concerns about its potential to silence legitimate claims. Critics could raise the argument that stringent penalties may lead to an environment where genuine claimants fear being inadvertently classified as fraudulent. Additionally, the bill has nuanced implications for contractors involved in home repairs following weather damage, as they are prohibited from compensating insured individuals for their deductibles, which may alter industry practices regarding insurance claims in home improvement and repairs.