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Delaware General AssemblyDelaware RegulationsAdministrative CodeTitle 18600

601 Cancellation or Non-renewal of Automobile Policies [Formerly Regulation 2]

1.0 Authority and Scope

1.1 Pursuant to 18 Del.C. §314, the following rules and regulations are hereby promulgated and adopted. They are applicable to all casualty insurance companies delivering or issuing for delivery in this State automobile policies pursuant to 18 Del.C. Ch. 39. (All subsequent references in this regulation to sections or chapters of said Insurance Laws shall be by section or chapter number only, and unless a specific Title reference is otherwise set forth, it shall be understood to refer to a section or chapter in Title 18 of the Delaware Code Annotated.)

2.0 Use of 18 Del.C. §3904(7)(iii)

2.1 It is ordered that in all instances where 18 Del.C. §3904(7)(iii) is invoked said case including all pertinent information shall be submitted to this Department for review thirty days prior to the contemplated action for nonrenewal and twenty days prior for cancellation.

3.0 Cancellation and Non-Renewal

3.1 It is ordered in the event of cancellation or non-renewal that the company must stand ready to justify its action in accordance with its filings or as allowed in 18 Del.C. §3904. Said company must keep all information concerning rejected risks readily available to this Department for a period of three years following such action.

4.0 Primary Notice to Insureds

4.1 Of prime consideration in promulgation of this Rule is a full disclosure at the inception of the contract to the insured of his rights and limitations under the contract regarding cancellation and non-renewal. Therefore, it is ordered in this regard that pertinent provisions stated in the filings be expressly stated in a separate letter or notice which is to accompany each contract.

5.0 Compliance

5.1 It is ordered that full compliance with this Rule shall be effected by the close of business, January 30, 1970 with the exception of existing contracts which shall comply on their next contract renewal date after November 30, 1969.


Last Updated: February 16 2019 21:36:01.
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