Delaware Establishes Procedures for Appeal of Automobile Insurance Cancellation or Non-Renewal

Delaware Establishes Procedures for Appeal of Automobile Insurance Cancellation or Non-Renewal

The Delaware Department of Insurance issued Auto Bulletin No. 34 on May 4, 2022 to inform automobile insurers about the implementation of House Bill 41 and the updated process by which an insured may contest or appeal a nonrenewal or cancellation of a private automobile policy. 

Delaware enacted House Bill 41 on September 30, 2021, which, among other changes, increased the time for a named insured to submit a request to contest the cancellation or nonrenewal of a private passenger automobile policy from 15 to 20 days prior to the effective date of such action. The request must be submitted to the Department via email to consumer@delaware.gov, using the Department-supplied application for appeal form, clearly stating the basis for the appeal.  The Department will forward the appeal to the insurer. 

Upon an insurer’s receipt of an appeal, the insurer has five business days to submit all documentation supporting its statutory authority to cancel or non-renew the policy to the Department. In-person hearings of such appeals were eliminated, and reviews are now based on the factual record submitted.

Any questions, comments, or requests for clarification about Auto Bulletin No. 34 should be emailed to consumer@delaware.gov.

 

Link to Auto Bulletin No. 34 

Link to House Bill 41 

Application for Appeal of Automobile Insurance Cancellation or Non-Renewal