The Right and Duty to Settle Third-Party Liability Claims: A 50-State Survey

Edited and Updated as of January 30, 2015 by:

The relevant portion of this law as it relates to Virginia and perhaps Sky
Harbours right to sue as a Third Party Beneficiary relation to Virginia is below:

VIRGINIA
Insurers Duty to Settle: Virginia utilizes the bad faith standard in determining
an insurer's liability for failure to settle within policy limits. Specifically, an
insured must prove by clear and convincing evidence that the insurer acted in
furtherance of its own interest with intentional disregard of the financial
interest of the insured. State Farm Mut. Auto. Ins. Co. v. Floyd, 366 S.E 2d 93,
97-98 (Va. 1988).
Third Party Standing: A bad faith claim may be pursued by a third party
beneficiary to an insurance contract, particularly where the insurer knew that
the policy was intended to benefit the claimant. Levine v. Selective Ins. Co. of
America, 462 S.E.2d 81, 83 (Va. 1995).