Subcommittee approves amendment requiring proof of extended reporting insurance for nursing-home buyers

Sponsor (Senator, speaker 7) told the subcommittee SB 535 addresses situations where nursing homes with claims-made insurance policies change ownership and families might lack coverage for injuries that occurred before the sale. The bill requires purchasers to obtain coverage extending back two years to correspond with the statute of limitations; the sponsor said an amendment would let the seller supply a certificate of insurance evidencing extended reporting in lieu of the purchaser buying a separate tail policy.

"It simply closes this insurance gap, protects residents and their families, and ensures compliance with Virginia law," the sponsor said when explaining the measure. Mister Brooks reported the line amendment adding language that "the seller may provide the purchaser with a certificate of insurance, evidence of coverage under an extended reporting endorsement consistent with the requirements of this section." The amendment was moved, seconded, and adopted by voice vote.

Scott Johnson, general counsel for the Virginia Health Care Association, testified supportively on behalf of nursing home operators and urged a green vote. There was no opposition in the hearing. The committee reported SB 535 as amended; recommendation vote recorded as 10-0.

The bill’s change would require a purchaser to certify coverage extending back two years (matching the sponsor’s description of the statute of limitations) or accept a seller-provided certificate; the subcommittee’s action advances the bill for further legislative consideration.