Virginia Code § 46.2-2056 addresses the impact of unfair claims settlement practices on self-insured motor carriers. It specifies that certain provisions related to insurance and financial security, such as bonds or letters of credit, apply to holders of certificates or permits issued by the Department of Motor Vehicles. Non-compliance with these provisions can lead to revocation or suspension of the certificates or permits.
They are practices by insurers or carriers that are deceptive, unfair, or unreasonable in settling claims, which can affect self-insured motor carriers.
Self-insured motor carriers holding certificates or permits issued by the Virginia Department of Motor Vehicles that have deposited bonds or letters of credit instead of insurance policies.
Their certificate or permit can be revoked or suspended by the Department of Motor Vehicles.
They can deposit state, federal, or municipal bonds or file an unconditional letter of credit issued by a bank as a substitute for insurance policies.