REGULATORY ACTIVITY:

• Posted notice of revised regulation regarding Title 18 DE Admin Code 603.  The order:
  • 03 Delaware Motorists Protection Act Regulation 603 implements the Delaware Motorists Protection Act. Recently, the Legislature passed HB 114, "An Act to Amend Title 21 of the Delaware Code Relating to Bodily Injury and Property Damage Coverage on Motor Vehicles," signed into law by the Governor on June 13, 2017 and effective on December 13, 2017 (six months after the date of enactment). The Act amends 21 Del.C. §2902 to raise the minimum bodily injury and property damage limits in all automobile insurance policies newly written or renewed after the effective date of the Act.
  • On July 15, 2017 the Department filed a general notice of amendments to Regulation 603 that updated coverage limits codified in the regulation to reflect the increased limits in HB 114. That notice was published in the August 1, 2017 Register of Regulations.
  • Attached to Regulation 603 is Form A, the Coverage Election form that must be presented by the insurer, broker or agent to the policyholder and acknowledged by the policyholder's signature that describes various types and levels of coverage. In its July 15, 2017 General Notice, the Department should have also updated the coverage limits set forth on Form A, Line 6. Accordingly, by way of this notice, the Department is updating Form A, Line 6 to reflect the revised coverage minimums promulgated by HB 114.
  • This amendment is exempt from the requirement of public notice and comment because it is an amendment to existing regulations to make them consistent with changes in basic law, but which do not otherwise alter the substance of the regulations, pursuant to 29 Del.C. §10113(b)(5).
• Delaware has issued a final regulatory implementation order:
• 901 Arbitration of Automobile and Homeowners' Insurance Claims.
  • SUMMARY OF THE EVIDENCE AND INFORMATION SUBMITTED
    • The Department of Insurance (the Department) gave notice in the Delaware Register of Regulations at 21 DE Reg. 398 (11/01/17) of proposed amendments to Regulation 901, Arbitration of Automobile and Homeowners' Insurance Claims.
    • The amendments as proposed raise the filing fees for Automobile Insurance and Homeowners' Insurance claims from $30.00 to $50.00. These fees have not been adjusted since the regulation was codified on March 1, 2002. The Department also proposed non-substantive amendments to correct style and subsection references. The Department's internal docket number for this regulatory project is 3647-2017.
    • The Department did not hold a public hearing on the proposed regulation. The Department accepted written comments, suggestions, briefs, and compilations of data or other materials concerning the proposed amendment until the 4:30 p.m. EST, the 4th day, December 2017, which was thirty days from the date of publication. No comments, suggestions, briefs, or compilations of data or other materials concerning the proposed amendments were submitted.
  • FINDINGS OF FACTS
    • The Commissioner finds that it is appropriate to adopt proposed amendments to 18 DE Admin. Code 901 as proposed. The Department received no comments on the proposed filing fee increases, and these fees have not been raised since 2002.
  • DECISION TO AMEND THE REGULATION
    • For the foregoing reasons, the Commissioner concludes that it is appropriate to amend 18 DE Admin. Code 901 as proposed.
  • EFFECTIVE DATE OF ORDER
    • The actions hereinabove referred to were taken by the Commissioner pursuant to 18 Del.C. §311 and Chapter 23, and 21 Delaware Code, Sections 2118 and 2118B on December 15, 2017. The effective date of this Order shall be ten (10) days from the date this Order is published in the Delaware Register of Regulations.

REGULATORY ACTIVITY:

• Posted a re-proposal of a rule regarding unfair claim settlement practices. In the May 1, 2020 edition of the Register of Regulations, the Department published a proposal to update and clarify  requirements  concerning  prohibited  unfair  claim  settlement  practices  that  are  set  forth  in  Regulation  902 (see  23  DE    920 (05/01/2020)).  In  that  proposal,  the  Department  proposed  adding  new  subsection  3.1.14, which included a failure to promptly settle a claim as required under Regulation 903 as an unfair claim settlement practice.  The  Department  also  took  the  opportunity  of  the  proposal  to  make  grammatical  and  formatting  edits throughout the regulation. Upon further review, the Department has determined not to proceed with proposed new subsection 3.1.14 and is hereby withdrawing that proposal, as violations of Regulation 903 are already a defined unfair claims settlement practice. Instead,  the  Department  proposes  to  add  new  subsection  3.2,  which  would  specifically  provide  that  three instances of an insurer's commission of a prohibited claim settlement practice within a 36 month period, as listed in subsection 1.2.1 (to be recodified at subsection 3.1), shall give rise to a rebuttable presumption that the insurer is in violation  of  this  regulation  and  18  Del.C.  §2304(16) f.  The Department is again taking the opportunity of this re- proposal to make grammatical and formatting edits throughout the regulation. To view the notice, go to https://insurance.delaware.gov/information/proposedregs/

REGULATORY ACTIVITY:

• Published notice of proposed rules regarding prohibited unfair claim settlement practices.  To view the proposed rule, go to https://insurance.delaware.gov/information/proposedregs/.

REGULATORY ACTIVITY:

• Issued a published notice of the proposed rule to amend regulation 903-prompt payment of settlement claims. Regulation 903 contains the requirements for prompt payment of settled insurance claims as required by 18 Del.C. §2304(16). The Delaware Department of Insurance (the Department) is proposing to amend Regulation 903 to allow insurance carriers to pay settled insurance claims other than claims that are subject to the Workers Compensation Statute at 19 Del.C. §2344 by electronic means. The Department is also taking the opportunity of this proposal to make grammatical and formatting edits throughout the regulation. The authority for the proposed amendments is 18 Del.C. §§311, 520, 2304(16), and 2312, in accordance with the Delaware Administrative Procedures Act, 29 Del.C. Ch. 101. To view the proposed regulation, go to https://regulations.delaware.gov/register/march2020/proposed/23%20DE%20Reg%20730%2003-01-20.htm.  

• Issued Bulletin 116 regarding additional guidance relating to CPVOD-19 to Insurers.  Beginning on Friday, March 13, 2020, at 8  a.m., Delaware has been under the State of Emergency to prevent the spread of coronavirus  (COVID-19) in Delaware. The  Department issued guidance to carriers in the form of  Domestic and  Foreign  Insurers Bulletin  No.  115, which may be downloaded from the  Legal dropdown menu of the  Department’s website, insurance.delaware.gov.

REGULATORY ACTIVITY:

• Published Auto Bulletin Number 31.  This bulletin reminds automobile insurers, brokers and agents that since June 30, 2008, it has been illegal in Delaware to charge a higher premium for automobile insurance to a member of the armed services or that member's spouse due to a break in coverage that is caused by overseas deployment (the "Patriot penalty").  This protection is codified in the Delaware Insurance Code at 18 Del. C. section 3917.  To view the bulletin, go to https://insurance.delaware.gov/information/bulletins/.

REGULATORY ACTIVITY:

• Published Universally Applicable Bulletin No 5. Regarding Delaware Insurance Data Security Act Requirements. To view the bulletin, go to https://insurance.delaware.gov/information/bulletins/.
• Published Domestic/Foreign Insurers Bulletin  No 15 regarding the insurance fraud reporting form.  To view the bulletin, go to https://insurance.delaware.gov/information/bulletins/.

REGULATORY ACTIVITY:

• The Department of Insurance's Dover office will be moving to 1351 West North Street, Suite 101, Dover, Delaware effective July 15, 2019.

REGULATORY ACTIVITY:

• Has posted notice of repeal of 18 Delaware Administrative Code 610 regarding Automobile Premium Consumer Comparison.  The repeal of the rule became effective on January 11, 2019.  A copy of the final action can be viewed at https://insurance.delaware.gov/information/proposedregs/.

REGULATORY ACTIVITY:

• Issued Auto Bulletin 30 regarding reimbursing towing companies for "recovery costs".  This Bulletin reminds automobile liability insurers that when their policy holder is the at-fault driver in an automobile accident, Delaware law requires the insurer to cover the costs of removing both the at-fault and not-at-fault vehicles from a roadway or from property adjacent to a roadway after an accident (sometimes referred to as "recovery costs"), even if the at-fault driver’s liability policy does not include full collision coverage.  Note that "recovery costs” do not include the cost of towing the at-fault vehicle from the scene of the accident.  To view the bulletin, go to https://insurance.delaware.gov/information/bulletins/.

REGULATORY ACTIVITY:

• Reissued bulletin number 1 regarding determination of replacement value of automobiles.  To view the reissued bulletin, go to https://insurance.delaware.gov/information/bulletins/.