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HB1335 • 2026

Fraudulent insurance acts; civil penalty.

<p class=ldtitle>A BILL to amend the Code of Virginia by adding in Article 7 of Chapter 6 of Title 18.2 a section numbered 18.2-213.3, relating to fraudulent insurance acts; civil penalty.</p>

Healthcare
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Wyatt
Last action
2026-02-18
Official status
Failed
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on enforcement mechanisms or professional conduct rules.

Fraudulent Insurance Acts; Civil Penalty

The bill creates a new law that defines certain actions as fraudulent insurance acts and imposes a civil penalty of $1,000 for each act.

What This Bill Does

  • Defines specific acts as fraudulent insurance activities, such as providing false information in an insurance claim or application.
  • Outlaws soliciting individuals involved in motor vehicle accidents for personal gain.
  • Prohibits lawyers and healthcare providers from compensating people to bring them clients.
  • Makes it illegal for contractors offering home repair services for damages caused by weather to offer compensation to insured homeowners for repairs covered by insurance policies.

Who It Names or Affects

  • Insurance companies
  • Individuals making or handling insurance claims
  • Lawyers and health care providers
  • Contractors offering home repair services

Terms To Know

Fraudulent Insurance Act
An illegal act related to insurance that involves false information, misleading statements, or other deceptive practices.
Civil Penalty
A fine imposed by a court for breaking a law or regulation.

Limits and Unknowns

  • The bill does not specify the exact penalties beyond the $1,000 civil penalty per act.
  • It is unclear how this new section will be enforced and what specific actions are allowed under professional conduct rules or state/federal laws.

Bill History

  1. 2026-02-18 House

    Left in Committee Courts of Justice

  2. 2026-02-18 House

    Left in Committee Education

  3. 2026-01-26 Criminal

    Subcommittee recommends laying on the table (7-Y 2-N)

  4. 2026-01-23 Criminal

    Assigned HCJ sub: Criminal

  5. 2026-01-19 House

    Presented and ordered printed 26105501D

  6. 2026-01-19 Courts of Justice

    Referred to Committee for Courts of Justice

Official Summary Text

Fraudulent insurance acts; civil penalty.
Creates the offense of fraudulent insurance acts, enumerated in the bill, and provides that any person who commits such acts is subject to a civil penalty of $1,000 for each act.

Current Bill Text

Read the full stored bill text
A BILL to amend the Code of Virginia by adding in Article 7 of Chapter 6 of Title 18.2 a section numbered
18.2-213.3
, relating to fraudulent insurance acts; civil penalty.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 7 of Chapter 6 of Title 18.2 a section numbered
18.2-213.3
as follows:

§
18.2-213.3
. Fraudulent insurance acts
; civil penalty
.

A.
It is a
fraudulent insurance act
for a person to knowingly, with the intent to
injure, defraud, or deceive an insurer or insurance claimant, (i
) present or cause to be presented a written or oral statement, including computer-generated documents
,
as a part of, in support of, or in
opposition
to a claim for payment or other benefit pursuant to an insurance policy
containing false or misleading information concerning any fact or matter material to such claim or
(ii) assist, abet, solicit, or conspire with another person to prepare or make any such written or oral statement
with the intent
for
it
to
be presented to an insurer or insurance company
as a part of, in support of, or in opposition to a claim for payment or other benefit pursuant to an insurance policy containing false or misleading information concerning any fact or matter material to such claim
.

B
.
It is a fraudulent insurance act for
a person to knowingly, with the intent to injure, defraud, or deceive any insurer, self-insured, or other person,
(i)
file an application for insurance containing any false information or
(ii)
co
nceal, for the purpose of misleading, information concer
n
ing any fact material to such application
.

C
.
It is a fraudulent insurance act for

a person to solicit, for personal gain, an individual injured by or in a motor vehicle to
(i)
sue or retain a lawyer to
re
present such individual in a lawsuit
or

(ii)
seek care from a health care provider as defined in §
8.01-581.1
.

D
. It is a fraudulent
insurance
act for a lawyer or health care provider, as defined in
§
8.01-581.1
, to employ, directly or indirectly, or in any way compensate a person for the purpose of having such person solicit or attempt to solicit clients for such lawyer or health care provider.

E. It is a fraudulent insurance act for a person
, with the purpose of submitting a claim under a motor
vehicle
insurance
policy
,
to

organize, plan, or knowingly participate in
(i)
an intentional motor vehicle accident or
(ii)
a scheme to create documentation of a moto
r vehicle accident that did not occur.

F. It is a fraudulent insurance act for a contractor offering home repair or remodeling services
to a private residence
for damages
caused by weather
, with the intent to defraud an insurer,
to
(i)
directly or indirectly pay or otherwise compensate an insured or
(ii) offer or promise to pay or compensate an insured for any part of the insured's deductible under the insured's property or casualty insurance policy if payment for the services will be made from the proceeds of such policy.

G.
A
ny person who

violates
this section is
subject to
a
civil
penalty
of $1,0
00 for each act
.

H.
This section shall not prohibit public communications

or any activity allowed by the applicable rules of
professional
conduct or protected under state or federal law.