This law allows individuals who win a court judgment against a Virginia motor vehicle dealer for fraud, violations, or breach of extended service contracts to make claims against the dealer's bond. The surety on the bond can pay damages up to the bond's maximum liability and is then subrogated to the claimant's rights. The law also requires the surety to notify the Board about claims, payments, and cancellations.
Anyone awarded a final judgment for fraud, violations, or breach of extended service contracts involving a dealer can file a claim against the dealer's bond.
The bond covers actual damages awarded by the court and attorney fees assessed against the dealer or salesperson, but not interest or punitive damages.
The surety's liability is limited to the maximum liability specified in the bond, as set forth in § 46.2-1527.9.
The surety must notify the Board when a claim is made, paid, or when the bond is canceled.