A. 1. Each policy or contract of bodily injury or property damage liability insurance which provides insurance to a named insured in connection with the business of selling, leasing, repairing, servicing, storing or parking motor vehicles, against liability arising from the ownership, maintenance, or use of any motor vehicle incident thereto shall contain a provision that the insurance coverage applicable to those motor vehicles shall not be applicable to a person other than the named insured and his employees in the course of their employment if there is any other valid and collectible insurance applicable to the same loss covering the other person under a policy with limits at least equal to the financial responsibility requirements specified in § 46.2-472. Such provision shall apply to motor vehicles which are either for the purpose of demonstrating to the other person as a prospective purchaser, or which are loaned or leased to the other person as a convenience during the repairing or servicing of a motor vehicle for the other person, or leased to the other person for a period of six months or more. This provision shall apply whether such repair or service is performed by the owner of the vehicle being loaned or leased or by some other person or business.
2. If the other valid and collectible insurance has limits less than the financial responsibility requirements specified in § 46.2-472, then the coverage afforded a person other than the named insured and his employees in the course of their employment shall be applicable to the extent necessary to equal the financial responsibility requirements specified in § 46.2-472.
3. If there is no other valid and collectible insurance available, the coverage under such policy afforded a person, other than the named insured and his employees in the course of their employment, shall be applicable, but the amount recoverable in such case shall not exceed the financial responsibility requirements specified in § 46.2-472. If there is no other valid and collectible collision or upset insurance available and if such policy provides insurance to the named insured for collision or upset, it shall include any such other person as an additional insured, unless in the case of a leased vehicle such other person receives a conspicuous written disclosure at the commencement of the lease, warning such person that he is not an additional insured under the owner's policy for collision or upset coverage.
B. 1. Any policy or contract of bodily injury or property damage liability insurance relating to the ownership, maintenance, or use of a motor vehicle shall exclude coverage to persons other than (i) the named insured, or (ii) directors, stockholders, partners, agents, or employees of the named insured, or (iii) residents of the household of either (i) or (ii), while those persons are employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking motor vehicles if there is any other valid or collectible insurance applicable to the same loss covering the persons under a policy with limits at least equal to the financial responsibility requirements specified in § 46.2-472.
2. If the other valid and collectible insurance has limits less than the financial responsibility requirements specified in § 46.2-472, then the coverage afforded a person other than the named insured while that person is employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking motor vehicles shall be applicable to the extent necessary to equal the financial responsibility requirements specified in § 46.2-472.
3. If there is no other valid and collectible insurance available, the coverage afforded a person other than the named insured while that person is employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking motor vehicles shall apply, but the amount recoverable shall not exceed the financial responsibility requirements specified in § 46.2-472.
Code 1950, § 38-238; 1952, c. 317, § 38.1-381; 1958, c. 282; 1959, Ex. Sess., cc. 42, 70; 1970, c. 462; 1962, c. 457; 1964, c. 477; 1966, cc. 182, 459; 1968, cc. 199, 721; 1970, c. 494; 1971, Ex. Sess., c. 216; 1973, cc. 225, 390; 1974, c. 87; 1976, cc. 121, 122; 1977, c. 78; 1979, c. 113; 1980, cc. 326, 331; 1981, Sp. Sess., c. 6; 1982, cc. 638, 642; 1984, c. 541; 1985, cc. 39, 325; 1986, c. 562; 1987, c. 685; 1992, c. 474.
Notes of Decisions
Seals v. Erie Ins. Exch., 674 S.E.2d 860 (Va. 2009).
· cites it 10× “2d 612, 614 (1986) (discussing predecessor versions of Code §§ 38.2-2205 and -2206). [3] Moreover, while the "garage keeper's exclusion" in Code § 38.”
Field v. Transcontinental Ins., 219 B.R. 115 (E.D. Va. 1998).
· cites it 13× “This reference demonstrates that when the General Assembly intended a provision of the Motor Vehicles title to be read into a particular section of the Insurance title, it specifically included a cross-reference to that effect in the Code.”
Aetna Cas. & Sur. Co. v. Nat'l Union Fire Ins., 353 S.E.2d 894 (Va. 1987).
· cites it 2× “1-381(a3) (now, Code § 38.2-2205(A)(l)), a restrictive modifier of subsection (a), commonly called the “omnibus clause”, creates an exception to that clause.”
Bonner v. Watkins, 51 Va. Cir. 241 (Richmond County Cir. Ct. 2000).
· cites it 49× “Furthermore, the current statute, Va. Code § 38.2-2205, “shall apply whether such repair or service is performed by the owner of the vehicle being loaned or leased or by some other person or business.”
Harlow v. Nationwide Ins., 69 Va. Cir. 26 (Richmond County Cir. Ct. 2005).
· cites it 11× “326 (1986), the case does not control here because the case was decided under a former version of Va. Code § 38.2-2205 and because GEICO held that the exclusion did not apply to UIM/UM coverage on the basis that the statute only referred to liability coverage.”
Select Auto Imports, Inc. v. Minor, 58 Va. Cir. 280 (2002).
· cites it 9× “” Commercial Union argues that under Va. Code § 38.2-2205(A)(l), a bailee’s insurance coverage is primary under a garage policy.”
Jaynes v. Becker, 501 S.E.2d 402 (Va. 1998).
· cites it 13× “2-2204”; (2) that, “because Haigh was a permissive user, liability coverage under the Policy extends to claims of the plaintiffs arising from the accident which prompted this suit for declaratory judgment”; and (3) that “the Defendants in this case are entitled to the limitation…”
Erie Ins. Exch. v. Rapid Rentals, Inc., 46 Va. Cir. 301 (Charlottesville Cir. Ct. 1998).
· cites it 3× “30, 1997), relied on by Defendant Budget to be inapposite since that case turned on an analysis of Va. Code § 38.2-2205, which does not apply here.”
Enter. Rent-A-Car v. Allstate Ins., 46 Va. Cir. 564 (Richmond County Cir. Ct. 1997).
· cites it 9× “Under Va. Code § 38.2-2205, the automobile liability policy on the renter is to provide primary liability coverage.”
Jaynes v. Haigh, 42 Va. Cir. 125 (Virginia Beach Cir. Ct. 1997).
· cites it 6× “§ 38.2-2205, to the established facts. Defendants argue that this statute limits the liability coverage available to these plaintiffs to the statutory minimum amounts specified in Code of Va.”
— Va. Code Ann. § 38.2-2205(A) — 2 cases
Field v. Transcontinental Ins., 219 B.R. 115 (E.D. Va. 1998).
“This reference demonstrates that when the General Assembly intended a provision of the Motor Vehicles title to be read into a particular section of the Insurance title, it specifically included a cross-reference to that effect in the Code.”
Jaynes v. Haigh, 42 Va. Cir. 125 (Virginia Beach Cir. Ct. 1997).
“§ 38.2-2205, to the established facts. Defendants argue that this statute limits the liability coverage available to these plaintiffs to the statutory minimum amounts specified in Code of Va.”
— Va. Code Ann. § 38.2-2205(A)(1) — 5 cases
Seals v. Erie Ins. Exch., 674 S.E.2d 860 (Va. 2009).
“2d 612, 614 (1986) (discussing predecessor versions of Code §§ 38.2-2205 and -2206). [3] Moreover, while the "garage keeper's exclusion" in Code § 38.”
Bonner v. Watkins, 51 Va. Cir. 241 (Richmond County Cir. Ct. 2000).
“Furthermore, the current statute, Va. Code § 38.2-2205, “shall apply whether such repair or service is performed by the owner of the vehicle being loaned or leased or by some other person or business.”
Jaynes v. Becker, 501 S.E.2d 402 (Va. 1998).
“2-2204”; (2) that, “because Haigh was a permissive user, liability coverage under the Policy extends to claims of the plaintiffs arising from the accident which prompted this suit for declaratory judgment”; and (3) that “the Defendants in this case are entitled to the limitation…”
— Va. Code Ann. § 38.2-2205(A)(l) — 5 cases
Aetna Cas. & Sur. Co. v. Nat'l Union Fire Ins., 353 S.E.2d 894 (Va. 1987).
“1-381(a3) (now, Code § 38.2-2205(A)(l)), a restrictive modifier of subsection (a), commonly called the “omnibus clause”, creates an exception to that clause.”
Select Auto Imports, Inc. v. Minor, 58 Va. Cir. 280 (2002).
“” Commercial Union argues that under Va. Code § 38.2-2205(A)(l), a bailee’s insurance coverage is primary under a garage policy.”
Bonner v. Watkins, 51 Va. Cir. 241 (Richmond County Cir. Ct. 2000).
“Furthermore, the current statute, Va. Code § 38.2-2205, “shall apply whether such repair or service is performed by the owner of the vehicle being loaned or leased or by some other person or business.”
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