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Property and Casualty

COVID-19 Report

close up of a coronavirus molecule

Property and Casualty

COVID-19 Report

Delaware

For Benefits Compliance specific state updates for Delaware click here.

Bulletins previously issued on March 20, 2020, and updated on March 26, 2020, remind insurers that the Sixth Modification of the Declaration of a State of Emergency prohibits, without a court order, suspensions, cancellations and nonrenewals of certain defined insurance policies due to nonpayment of premium during the pendency of the Governor’s declared State of Emergency. Then a Ninth Modification of the Declaration of a State of Emergency was issued clarifying that prior guidance should not be considered a forgiveness of premium under a covered insurance policy prior to, after or during the pendency of the declared state of emergency. Upon the termination of the COVID-19 State of Emergency, any premium due by a covered policyholder will remain due.

On April 3, 2020, the Department issued Bulletin No. 117 to further clarify insurers can, and should, obtain validation that the hardship of the insured or policyholder are directly related to the COVID-19 pandemic and the State of Emergency, or any subsequent Executive Orders issued by the Governor which closed businesses or ordered residents to remain at home unless performing an essential activity, by obtaining evidence in writing, or otherwise, from an employer, policyholder, insured or other appropriate source before foregoing a cancellation or nonrenewal.

DE Bulletin No. 117

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April 08, 2020

Bulletins previously issued on March 20, 2020 and updated on March 26, 2020, remind insurers that the Sixth Modification of the Declaration of a State of Emergency prohibits, without a court order, the suspension, cancellations and nonrenewals of certain defined insurance policies due to nonpayment of premium during the pendency of the Governor’s declared State of Emergency. Then a Ninth Modification of the Declaration of a State of Emergency was issued clarifying that prior guidance should not be considered a forgiveness of premium under a covered insurance policy prior to-, post-, or during the pendency of the declared state of emergency. Upon the termination of the COVID19 State of Emergency, any premium due by a covered policyholder will remain due.

On April 3, 2020, the Department issued Bulletin No. 117 to further clarify insurers can, and should, obtain validation that the hardship of the insured or policyholder are directly related to the COVID-19 pandemic and the State of Emergency, or any subsequent Executive Orders issued by the Governor which closed businesses or ordered residents to remain at home unless performing an essential activity, by obtaining evidence in writing, or otherwise, from an employer, policyholder, insured or other appropriate source before foregoing a cancellation or nonrenewal.

DE Bulletin No. 117

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April 08, 2020

On March 25, 2020, a Sixth Modification to Delaware’s Declaration of a State of Emergency was issued that prohibits an insurer, without a court order, to lapse, terminate or cause to be forfeited a covered insurance policy because a covered policyholder does not pay a premium or interest or indebtedness on a premium under the policy that is due during the pendency of the declared state of emergency. As used in this paragraph, 1) “covered insurance policy” means a policy for health insurance, life insurance, disability insurance, property insurance, motor vehicle insurance, and commercial/business insurance, and 2) “covered policyholder” means any individual or business entity who, as a result of the conditions imposed under the COVID-19 State of Emergency (or Modifications) or the public health emergency, was laid off or fired from their employment or was required to close or significantly reduce its business.

DE Executive Order

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April 17, 2020

On April 1, 2020, the Governor of Delaware issued the Ninth Modification of the Declaration of a State of Emergency to clarify that the order intends to grant covered policyholders an extension of time for the payment of premium due under covered insurance policies during the pendency of the declared state of emergency without penalty or interest.

DE Ninth Modification

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April 24, 2020

On April 7, 2020, the Delaware Department of Insurance issued a press release in which it outlined various automobile insurers’ activities related to premium payback programs resulting in $1.5 million going back to Delaware residents. The insurers are providing such premium paybacks voluntarily.

DE Press Release

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April 24, 2020

On April 3, 2020, the Delaware Department of Insurance issued Bulletin No. 117 to insurers, which, among other things, outlined the various governor communications related to insurance and the COVID-19 crisis, including the mandates related to premium payment flexibility. In addition, the bulletin provided guidance to insurers to obtain validation that the hardship of the insured or policyholder are directly related to the COVID-19 pandemic by obtaining evidence in writing, or otherwise, from an employer, policyholder, insured or other appropriate source before foregoing a cancellation or nonrenewal.

DE Bulletin No. 117

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May 08, 2020

On April 29, 2020, the Delaware Department of Insurance released a list of consumer-friendly automobile insurer actions that are being implemented due to reduced vehicle use throughout the COVID-19 pandemic, including premium refunds.

DE Press Release

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July 14, 2020

On July 2, 2020, the department issued a revised Bulletin No. 117 to domestic and foreign insurers and Bulletin No. 33 to producers. The bulletins, among other things, stated that the moratorium on the cancellation or nonrenewal of policies has been lifted. Insurers must grant policyholders suffering from COVID-19-related hardships an extension of time for their payment of premium which was past due between March 25, 2020, through July 1, 2020, without penalty or interest.

Bulletin 117/33

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