Tort Law

This page within Virginia Tort Case Law is a compilation of cases reported by the Virginia Supreme Court and summarized by Brien Roche dealing with the topic of Insurance Reservation of Rights and the related topic of personal injury. For more information on insurance see the pages on Wikipedia. 

Insurance Reservation of Rights-Statutes

See Va. Code § 38.2-2226 requiring insurer to give notice to claimant of intention to rely on certain policy defenses and of execution of nonwaiver of rights agreement. 

Insurance Reservation of Rights-Cases

1998 State Farm Fire & Casualty Co. v. Mabry, 255 Va. 286, 497 S.E.2d 844. 

State Farm provided defense under Reservation of Rights. In liability claim counsel appointed by State Farm entered into a consent judgment against State Farm insured in order to avoid exposure to that client as to any punitive claim. That consent judgment by State Farm appointed counsel did not bar State Farm from litigating issue of whether conduct of its insured was negligent or intentional in separate declaratory action.

1984 Dan River, Inc. v. Commercial Union Ins. Co., 227 Va. 485, 317 S.E.2d 485. 

Insured was sued in discrimination action on October 24, 1969. Insured notified carrier of suit on March 16, 1977. Insurer properly denied coverage due to late notice. There was no waiver of this to deny under Va. Code § 38.1-389.1 [now § 38.2-2226] simply because carrier failed to give notice within 20 days after its discovery of breach. That statute has no effect upon contractual relations between insured and insurer. Purpose of statute is to provide prompt notice to claimant so that he may take steps to protect his interests.