Virginia House Bill HB1335

Virginia 2026 Regular Session

• Introduced: 1/19/26
• Refer: 1/19/26

Caption

Fraudulent insurance acts; civil penalty.

Impact

If enacted, HB1335 would introduce civil penalties, specifically a fine of $1,000 for each violation of the outlined fraudulent acts. This could have significant implications for both insurance companies and individuals, as it seeks to discourage fraudulent claims and practices through financial repercussions. The bill is seen as a means to promote integrity within the insurance industry by holding individuals accountable for dishonest activities that can inflate insurance costs and undermine the system's reliability. Moreover, it could catalyze a shift in how insurance claims are processed, encouraging more stringent verification processes.

Summary

House Bill 1335 aims to amend the Code of Virginia by introducing provisions related to fraudulent insurance acts, establishing a clear definition of various fraudulent activities concerning insurance claims and applications. The bill outlines specific actions that will be categorized as fraudulent, including but not limited to, submitting misleading statements to insurance companies, assisting in the preparation of fraudulent claims, and soliciting individuals for personal gain under false pretenses. This act is designed to deter fraudulent behavior in the insurance sector and protect insurers and claimants alike.

Contention

The focus of HB1335 on punitive measures against fraudulent actions could spark debate regarding the balance between protecting insurance companies and ensuring fair treatment for genuine claimants. Critics may argue that the bill could inadvertently penalize individuals who unknowingly submit incorrect information rather than those intentionally committing fraud. There could also be concerns about the enforcement of these provisions and the potential for misuse of the law against legitimate claimants under the guise of preventing fraud. Stakeholders in the insurance industry, consumer advocacy groups, and legal professionals will likely weigh in on these perspectives as discussions about the bill unfold.