38.2-3731 - Claims.
§ 38.2-3731. Claims.
A. All claims shall be promptly reported to the insurer or its designatedclaim representative. The insurer shall maintain adequate claim files. Allclaims shall be settled as soon as possible and in accordance with the termsof the insurance contract.
B. All claims shall be paid or credited by: (i) electronic means to theaccount of the claimant to whom payment of the claim is due pursuant to thepolicy provisions or to an account or person specified by such claimant; or(ii) draft drawn upon the insurer or by check of the insurer to the order ofthe claimant to whom payment of the claim is due pursuant to the policyprovisions, or to a person specified by such claimant.
C. No plan or arrangement shall be used where any person other than theinsurer or its designated claim representative shall be authorized to settleor adjust claims. The creditor shall not be designated as claimrepresentative for the insurer in adjusting claims. A group policyholdermay, by arrangement with the insurer, draw drafts or checks, or credit byelectronic means in payment of claims due to the group policyholder subjectto audit and review by the insurer. The insurer shall periodically reviewclaims payments made on its behalf by claim representatives or grouppolicyholders.
(1960, c. 67, § 38.1-482.11; 1982, c. 223, § 38.2-3713; 1986, c. 562; 1992,c. 586.)