SB 1195 has been closely followed by insurers and insurance defense firms in Virginia since January 2021 when Senator Mark Obenshain introduced SB 1195. The targeted outcome of this bill is to effectively do away with the current offset as it relates to underinsured motorist (UIM) coverage and instead cause the insurer “to make payment for bodily injury or property damage caused by the operation or use of an underinsured vehicle to the extent the vehicle is underinsured . . . without any credit, set-off, or reduction for the available bodily injury and property damage coverage.” Currently, the amount an insurer pays to the claimant under UIM coverage is reduced by the amount the claimant receives from the tortfeasor.

On January 29, 2021, SB 1195 passed the Senate and made its way to the House Labor and Commerce Subcommittee. On February 16, 2021, the Subcommittee recommended reporting with substitutes in a seven to one bipartisan vote. Voting in favor of reporting were Delegates Heretick, Lopez, Gooditis, Scott, Byron, Webert, and Head. The lone nay came from Delegate Sullivan.