Virginia Business Groups, Small Business Owners, and Experts Urge Governor to Veto SB 256

CHICAGO, Illinois, March 28 -- The American Property Casualty Insurance Association issued the following news release:

A number of business groups, small business owners, policy experts, and others in Virginia are voicing concerns about the potential harmful impacts of Senate Bill 256 and are urging Governor Youngkin to veto the bill. A recent analysis (https://www.apci.org/attachment/static/9682) by Milliman, Inc., an independent actuarial firm, estimates Senate Bill 256 could lead to an auto insurance premium increase of as much 14 percent for residents and businesses in Virginia. The study concludes the median estimated impact is a 9.9 percent auto premium increase per policyholder annually.

WHAT THEY ARE SAYING

"This legislation would have a detrimental impact on Virginia and the Commonwealth's economic growth...this bill would likely raise costs for both Virginia businesses and its consumers." - The Virginia Chamber of Commerce

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"This bill, to address a problem that is uncommon, could increase insurance premiums for individuals and businesses in the Commonwealth between 5.6 percent and 14.3 percent, with a median estimated impact of 9.9 percent premium increase per year. In short, at a time when insurance policies are up more than twenty percent already, this additional increase of 9.9 percent will be a massive cost that will certainly impact the poor disproportionately." - Thomas Jefferson Institute of Public Policy

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"The past few years have been difficult for many Virginia business owners. With inflation still high and the cost of labor and parts and supplies still up, now is not the time to pass legislation that would further burden Virginians with increased car insurance premiums. According to some estimates, SB 256 could increase the cost of car insurance by as much as 14 percent. As something that would increase costs for Virginia business owners, Governor Youngkin should veto this bill." - Rooz Dadabhoy, President, Rally Virginia

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"In addition to impacting Virginia's business environment, SB 256 will potentially increase the cost of living for young individuals and families in Virginia, at a time when prices for everyday goods are already high... Younger residents of the state are already being squeezed by inflation, and affordability remains one of their top concerns." - FreedomWorks

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"SB256 places an undue burden on businesses operating in Virginia that own and insure fleets of vehicles. Whether it be a food distributor, or a handyman business, for each vehicle a business owns and insures, SB256 increases the cost of operating those vehicles." - David Yancey, Former Member of Virginia's House of Delegates (Read former Delegate Yancey's full op-ed in The Virginian Pilot [https://www.pilotonline.com/2024/03/19/column-insurance-costs-would-rise-due-to-legislatures-action/])

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"SB 256 benefits trial lawyers by opening the floodgates of litigation related to auto insurance policies through the establishment of an onerous first-party bad faith law. Only a few states in the U.S. have enacted such laws, but none are as troubling as SB 256, which will make Virginia an outlier...Governor Youngkin has an opportunity to protect Virginia drivers and businesses from increased auto insurance costs by vetoing this harmful bill." - Dr. Robert Hartwig, Clinical Associate Professor of Risk Management, Insurance and Finance in the Darla Moore School of Business at the University of South Carolina (USC) and Director of USC's Center for Risk and Uncertainty Management (Read Dr. Hartwig's full op-ed in the Cardinal News [https://cardinalnews.org/2024/03/25/gov-youngkin-can-protect-virginians-from-higher-auto-insurance-costs-by-vetoing-senate-bill-256/?utm_source=ActiveCampaign&utm_medium=email&utm_content=County%20Sales%2C%20a%20music%20store%20that%20became%20a%20Floyd%20institution%2C%20will%20close%20after%20almost%2060%20years&utm_campaign=Monday%2C%20March%2025%2C%202024])

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"SB 256 would burden Virginians with a premium increase for their car insurance policies in response to a problem that rarely occurs here in Virginia. Not only are rising local taxes a concern, but the escalating costs of doing business are also making Virginia less competitive. Any potential benefits from this policy do not outweigh the additional expenses Virginians would be shouldered with. Governor Youngkin should veto SB 256 promptly." - Craig Nargi, President, Stable Craft Brewing

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"Senate Bill 256 would lead to higher auto insurance loss costs, increased litigation, and could increase the number of uninsured drivers on the road if coverage becomes less affordable. No other state has a law as problematic as Senate Bill 256, which would make Virginia an outlier to the detriment of every Virginian who purchases auto insurance. Governor Youngkin needs to protect Virginians from higher auto insurance costs by vetoing Senate Bill 256." - Nancy Egan, Vice President of State Government Relations and Counsel for the American Property Casualty Insurance Association

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The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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Original text here: https://www.apci.org/attachment/static/9682/