2006 Code of Virginia § 38.2-3407.1 - Interest on accident and sickness claim proceeds

38.2-3407.1. Interest on accident and sickness claim proceeds.

A. If an action to recover the claim proceeds due under an individual orgroup accident and sickness policy results in a judgment against an insurer,interest on the judgment at the legal rate of interest shall be paid from thedate of presentation to the insurer of proof of loss to the date judgment isentered.

B. If no action is brought, interest upon the claim proceeds paid to thepolicyholder, insured, claimant, or assignee entitled thereto shall becomputed daily at the legal rate of interest from the date of fifteen workingdays from the insurer's receipt of proof of loss to the date of claim payment.

C. This section shall not apply to individual policies issued prior to July1, 1990, but shall apply to any renewals or reissues of group accident andsickness policies occurring after that date.

D. This section shall not apply to claims for which payment has been or willbe made directly to health care providers pursuant to a negotiatedreimbursement arrangement requiring uniform or periodic interim payments tobe applied against the insurer's obligation on such claims.

E. For purposes of this section, "proof of loss" means all necessarydocumentation reasonably required by the insurer to make a determination ofbenefit coverage.

(1990, c. 531; 1992, c. 23; 1996, c. 75.)