Report to the General Assembly (Published)

Document Title

Minimum Levels of Motor Vehicle Liability and Property Insurance

Author

Joint Subcommittee

Enabling Authority

HJR 601 (1995)

Executive Summary

HJR 601 approved by the 1995 Session of the Virginia General Assembly established a joint subcommittee to study the appropriate minimum levels of motor vehicle liability and property insurance coverage." The subcommittee considered "(i) whether the required minimum levels of motor vehicle liability and property insurance coverage should be increased or decreased; (ii) whether comprehensive coverage should be required; and (iii) whether exemptions from the required minimum levels of motor vehicle liability and property insurance coverage should be permitted."

As introduced, HJR 601 called for a study of the appropriate minimum levels of uninsured motorist coverage for property damage. The introduced resolution's language stated that "the current level of required minimum coverage may exceed the amount of [uninsured motorist property damage] coverage many insureds can reasonably expect to need." The resolution ultimately passed by the General Assembly, however, broadened the study to include an examination of all minimum coverage levels above.

The Joint Subcommittee met twice at the General Assembly Building in Richmond, first on October 6 and then on December 6. Final subcommittee action included (i) recommending a 1996 study of model legislation establishing a "choice" auto insurance program which combines fault and no-fault insurance, and (ii) opposing a plan by the Department of Motor Vehicles to eliminate its current paper-based insurance audit program in favor of an electronic cancellation-based model.