The Delaware Insurance Commissioner has the authority to issue a cease and desist order when they have reasonable cause to believe that any person is violating, has violated, or is threatening to violate any provision of Title 18 of the Delaware Code (the Insurance Code) or any rule or order promulgated thereunder. This power is outlined in 18 Del. C. § 317. The order will specify the provisions allegedly violated or about to be violated, and require the person to cease and desist from the unlawful conduct. An individual or entity subject to a cease and desist order has the right to request a hearing to challenge the order. This request must be made within a specified timeframe, typically outlined in the order itself. If a hearing is requested, the Commissioner must hold a hearing in accordance with the Delaware Administrative Procedures Act (29 Del. C. Chapter 101). Following the hearing, the Commissioner may affirm, modify, or set aside the cease and desist order. Further recourse may involve appealing the Commissioner’s decision to the Delaware Superior Court, as provided by law. The burden of proof generally rests with the Commissioner to demonstrate that the violation occurred or is about to occur.

Delaware law, specifically 18 Del. C. § 1717, mandates that licensed insurance producers complete continuing education (CE) requirements to maintain their licenses. Producers must complete a specified number of CE credit hours biennially (every two years). The exact number of hours can vary depending on the license type, but it is generally around 24 credit hours, with a certain number of those hours dedicated to ethics training. Qualifying courses must be approved by the Delaware Department of Insurance and relate to insurance principles, practices, laws, or regulations. Courses can be delivered through various methods, including classroom instruction, online courses, and self-study. Failing to meet the CE requirements can result in disciplinary actions, including license suspension or revocation. Producers are typically given a grace period to complete the requirements, but penalties may still apply. It is the producer’s responsibility to track their CE credits and ensure timely completion.

“Twisting” in insurance refers to the illegal practice of inducing a policyholder to drop an existing insurance policy and purchase a new one from the same or a different insurer, based on misrepresentations or incomplete comparisons of the policies. The primary motivation behind twisting is often the agent’s desire to earn a new commission, rather than the policyholder’s best interest. Delaware law prohibits twisting under its unfair trade practices regulations, specifically 18 Del. C. § 2304(7). This statute prohibits unfair or deceptive acts or practices in the business of insurance, including misrepresenting the terms, benefits, advantages, or conditions of any insurance policy, or making any incomplete comparison of policies to induce a policyholder to lapse, forfeit, surrender, retain, or convert an insurance policy. Violators may face penalties, including fines, license suspension, or revocation. The Department of Insurance actively investigates complaints of twisting and takes disciplinary action against agents found to be engaging in this practice.

To obtain an insurance producer license in Delaware, candidates must meet several requirements outlined in 18 Del. C. § 1704. First, they must complete a pre-licensing education course approved by the Delaware Department of Insurance. The number of required hours varies depending on the line of authority (e.g., life, health, property, casualty). After completing the pre-licensing education, candidates must pass a state-administered licensing examination for each line of authority they seek. The exams are designed to test the candidate’s knowledge of insurance principles, laws, and regulations. Upon passing the examination, candidates must submit an application for licensure to the Department of Insurance, including providing fingerprints for a background check. The application must include all required documentation and fees. The Department reviews the application and conducts a background check to ensure the applicant meets all qualifications for licensure, including being of good character and competent to transact insurance business.

Delaware’s law regarding unfair claim settlement practices is primarily outlined in 18 Del. C. § 2304(16). This section prohibits insurers from engaging in unfair or deceptive acts or practices in the handling of insurance claims. Key provisions include: **Misrepresenting pertinent facts or policy provisions:** Insurers cannot misrepresent the terms of the policy to claimants. **Failing to acknowledge and act promptly upon communications:** Insurers must respond to communications from claimants in a timely manner. **Failing to adopt and implement reasonable standards for the prompt investigation of claims:** Insurers must have procedures in place to investigate claims efficiently. **Refusing to pay claims without conducting a reasonable investigation:** Insurers must conduct a thorough investigation before denying a claim. **Failing to affirm or deny coverage of claims within a reasonable time after proof of loss requirements have been completed:** Insurers must make a decision on coverage within a reasonable timeframe. **Not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear:** Insurers must make reasonable settlement offers when liability is clear. **Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds:** Insurers cannot force insureds to sue by offering unreasonably low settlements. Violations of these provisions can result in penalties, including fines and other disciplinary actions by the Department of Insurance.

The Delaware Insurance Guaranty Association (DIGA) is a statutory entity created to protect policyholders and claimants in the event that an insurance company becomes insolvent and is unable to meet its obligations. DIGA’s purpose is to provide a mechanism for the payment of covered claims under certain insurance policies, thereby minimizing disruption and financial loss to Delaware residents. DIGA is activated when an insurance company licensed in Delaware is declared insolvent by a court of competent jurisdiction. DIGA then steps in to pay covered claims up to certain limits, as defined by 18 Del. C. Chapter 42. Generally, DIGA covers claims arising from direct insurance policies, such as property, casualty, and workers’ compensation insurance. There are exclusions, such as life, health, and annuity policies, as well as certain types of reinsurance and surety bonds. DIGA is funded by assessments on solvent insurance companies doing business in Delaware. The amount of coverage provided by DIGA is subject to statutory limits, and there may be a deductible.

Delaware law, specifically 18 Del. C. § 2304A, regulates the use of credit information in underwriting and rating personal insurance policies. Insurers are permitted to use credit information, including credit scores, as one factor in determining rates and eligibility for coverage, but they are subject to several restrictions. Insurers must disclose to the applicant or insured that credit information may be used. They cannot deny, cancel, or non-renew a policy solely based on credit information. If an adverse action (e.g., higher rate, denial of coverage) is taken based in whole or in part on credit information, the insurer must provide the applicant or insured with the specific reasons for the action and information about the credit reporting agency that provided the information. Insurers are also required to re-underwrite or re-rate a policy at the request of the insured if the insured can demonstrate that their credit information has been inaccurately reported or has improved. Furthermore, insurers cannot use credit information that does not comply with the Fair Credit Reporting Act (FCRA).

The Delaware Insurance Commissioner possesses the authority to issue a cease and desist order when it appears that a person has engaged, is engaging, or is about to engage in any act or practice constituting a violation of the Delaware Insurance Code (Title 18 of the Delaware Code) or any rule, regulation, or order issued thereunder. Due process is paramount. Before issuing a cease and desist order, the Commissioner must provide the person with notice and an opportunity for a hearing. This notice must state the specific charges and the proposed action. The hearing must be conducted in accordance with the Delaware Administrative Procedures Act. If, after the hearing, the Commissioner determines that a violation has occurred, is occurring, or is about to occur, the Commissioner may issue a cease and desist order requiring the person to cease and desist from the unlawful act or practice. The order must clearly state the specific acts or practices that the person is prohibited from engaging in. Non-compliance with a cease and desist order can result in significant penalties, including monetary fines, suspension or revocation of licenses, and other administrative sanctions as outlined in Title 18. The Commissioner can also seek injunctive relief in the Delaware Court of Chancery to enforce the cease and desist order.

Insurance companies operating in Delaware are mandated to maintain adequate books and records that accurately reflect their financial condition and transactions. These records must be maintained in accordance with generally accepted accounting principles (GAAP) or statutory accounting principles (SAP), as applicable. The specific types of records that must be maintained include, but are not limited to, premium records, claim records, reinsurance records, investment records, and records of all financial transactions. The retention period for these records is generally five years from the date of the transaction or the termination of the policy, whichever is later, as specified in the Delaware Insurance Code. Failure to comply with these requirements can result in a variety of consequences, including administrative penalties, fines, and suspension or revocation of the company’s license to do business in Delaware. The Delaware Insurance Commissioner has the authority to examine the books and records of insurance companies to ensure compliance with these requirements. Furthermore, intentionally falsifying or destroying records can result in criminal charges.

The Delaware Department of Insurance (DOI) plays a crucial role in handling consumer complaints against insurance companies. The process typically begins with the consumer filing a written complaint with the DOI. The DOI then investigates the complaint, which may involve contacting the insurance company for a response and gathering additional information from both parties. Insurance companies are required to respond to consumer complaints within a specified timeframe, typically 20 business days, as outlined in the Delaware Insurance Regulations. The DOI reviews the insurance company’s response and determines whether the complaint is justified. If the DOI finds that the insurance company has violated any laws or regulations, it may take corrective action, such as ordering the company to pay a claim, refund premiums, or cease certain practices. Potential remedies available to consumers include monetary compensation, policy reinstatement, and other forms of relief. Consumers also have the right to appeal the DOI’s decision to the Delaware Superior Court. The DOI provides resources and information to consumers to help them understand their rights and navigate the complaint process.

Delaware law places specific requirements and limitations on the use of credit information in underwriting and rating personal insurance policies. While insurers are permitted to use credit information as one factor in their underwriting and rating decisions, they are subject to several restrictions. Insurers must disclose to consumers that they may use credit information in their underwriting and rating processes. They must also provide consumers with the opportunity to correct any inaccuracies in their credit reports. Adverse actions, such as denying coverage or increasing premiums, cannot be based solely on credit information. Insurers must consider other factors, such as driving record and claims history. Furthermore, insurers are prohibited from using credit information to unfairly discriminate against consumers. The Delaware Insurance Code outlines specific circumstances under which an insurer cannot take adverse action based on credit information, such as when a consumer has experienced a significant life event, such as divorce or job loss. Insurers must also re-underwrite policies at least every three years to ensure that the rates continue to be appropriate.

The Delaware Insurance Code prohibits unfair trade practices in the insurance industry. These practices are defined as any act, practice, or method of competition that is unfair or deceptive. Examples of prohibited activities include misrepresentation of policy terms, false advertising, unfair discrimination in rates or coverage, and failure to promptly and fairly settle claims. Specifically, Delaware Code Title 18, Section 2304 outlines numerous unfair methods of competition and unfair or deceptive acts or practices. The Delaware Insurance Commissioner has broad authority to investigate and enforce these provisions. The Commissioner may conduct investigations, issue cease and desist orders, and impose penalties for violations. Penalties can include monetary fines, suspension or revocation of licenses, and other administrative sanctions. The Commissioner can also seek injunctive relief in the Delaware Court of Chancery to prevent or restrain unfair trade practices. Consumers who have been harmed by unfair trade practices may also have a private right of action to seek damages.

To become a licensed insurance producer in Delaware, individuals must meet specific requirements outlined in the Delaware Insurance Code. These requirements include completing pre-licensing education courses, passing a state-administered examination, and submitting an application to the Delaware Department of Insurance. The pre-licensing education requirements vary depending on the type of insurance license being sought. The examination tests the applicant’s knowledge of insurance principles, laws, and regulations. Once licensed, insurance producers must complete continuing education courses to maintain their licenses. The continuing education requirements typically involve completing a certain number of credit hours each license period. The Delaware Insurance Code also specifies grounds for denial, suspension, or revocation of a license. These grounds include, but are not limited to, providing false information on an application, violating insurance laws or regulations, and engaging in dishonest or fraudulent conduct. The Delaware Department of Insurance has the authority to investigate and take disciplinary action against insurance producers who violate these requirements.

The Delaware Insurance Guaranty Association (DIGA) is a statutory entity created to protect policyholders in the event that an insurance company becomes insolvent and is unable to meet its obligations. DIGA provides coverage for covered claims under certain insurance policies issued by insolvent insurers. The purpose of DIGA is to minimize disruption to policyholders and to maintain public confidence in the insurance industry. DIGA’s coverage is subject to certain limitations. There are maximum limits on the amount of coverage provided for each claim, as specified in the Delaware Insurance Code. Certain types of policies are excluded from DIGA coverage, such as life insurance, health insurance, and surety bonds. DIGA is funded by assessments on solvent insurance companies operating in Delaware. When an insurance company becomes insolvent, DIGA steps in to pay covered claims, subject to the applicable limitations. This helps to ensure that policyholders receive the benefits they are entitled to under their insurance policies, even when their insurance company is unable to pay. The specific types of policies covered and excluded are detailed in Title 18 of the Delaware Code, specifically Chapter 42.