Virginia Bureau of Insurance–Property Claim Appraisal Awards Are Binding; Insurance Coverage Forms Must be Amended
Sep 3, 2014
The Virginia Bureau of Insurance (“Bureau”) advised via memorandum on August 29, 2014 that all licensed property and casualty insurers and rate service organizations must amend coverage forms to remove language requiring appraisal awards in property claims to be non-binding. Revised policy forms must be submitted to the Bureau within 90 days.
The memorandum is attached in PDF format.
With respect to appraisal provisions found in motor vehicle insurance policies, the Bureau will take action to amend the standard auto forms.
Based on its recent legal and regulatory review of the issue, the Bureau concluded that the appraisal process should be construed as binding in nature. Its previous position, stated in Administrative Letter 1998-12, was that the appraisal process was to be construed as non-binding.
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