Delaware P&C Insurance Law & Regulation
The Delaware supplement begins with who regulates insurance and the state's consumer-protection overlays on the national forms.
The Delaware Department of Insurance
Delaware regulates insurance through the Delaware Department of Insurance, headed by an Insurance Commissioner. Unlike appointed commissioners in some states, Delaware's Commissioner is an elected statewide official. The department licenses producers, reviews forms and rates, investigates complaints, and enforces the Delaware insurance code. Know that this department — not the DMV or a banking agency — licenses P&C producers.
Unfair Trade Practices and Fiduciary Duty
Delaware's unfair trade practices law prohibits misrepresentation, false advertising, unfair discrimination among like risks, coercion, defamation of insurers, and unfair claims practices. Rebating is prohibited. Premiums collected by a producer are held in a fiduciary capacity and may not be commingled or converted. The department can fine, suspend, or revoke a license for violations.
Cancellation and Nonrenewal
Delaware law regulates cancellation and nonrenewal of personal auto and property policies, limiting the grounds for mid-term cancellation of seasoned policies and requiring advance written notice to the insured. Because the specific notice periods are set by statute and change over time, confirm the current day counts with the Delaware Department of Insurance rather than relying on a memorized number.