The American Property Casualty Insurance Association (APCIA) is strongly opposing Senate Bill 256 and urging Governor Glenn Youngkin to veto the legislation. APCIA has raised concerns that the bill could lead to a challenging first-party bad faith law, resulting in increased litigation against insurance companies in Virginia. This type of law is uncommon in the US and could ultimately lead to higher costs for both consumers and businesses.
Nancy Egan, vice president of state government relations and counsel for APCIA, highlighted the potential negative impacts of Senate Bill 256, such as higher auto insurance costs, increased litigation, and a potential rise in uninsured drivers on the roads. The organization is worried that this bill could disproportionately affect low-income Virginians, making auto insurance less affordable and potentially causing premiums to rise across the board.
A study conducted by actuarial firm Milliman on behalf of APCIA found that the passage of Senate Bill 256 could lead to up to a $550 million increase in motor vehicle insurance premiums in Virginia, with an estimated 9.9% rise per policyholder. Egan emphasized the urgency of Governor Youngkin's intervention to prevent further escalation of auto insurance costs for Virginians, especially considering recent significant rate increases. The organization also emphasized that Virginia would be unique among other states if this law is enacted, potentially placing consumers in the state at a disadvantage. APCIA is calling on Governor Youngkin to veto the bill to prevent these negative outcomes from becoming a reality.
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