- Insurance companies may not cancel or non-renew a policy based on credit information alone.

- Insurance companies may not take action against a consumer because that person lacks a credit card or lacks credit information.

- Insurance companies cannot utilize collection information using medical codes.

- Insurance companies cannot utilize extraordinary life circumstances such as serious illness or injury, death of a spouse or loved one, divorce, and involuntary loss of employment for three months or more.

- An insurer cannot increase a renewal rate for personal automobile insurance policies based solely on an insured attaining the age of 75 or older.

- An insurer cannot increase rates based upon a change of marital status due to the death of a spouse.

In addition, the new law continues Delaware's prohibition on using credit in policy renewals, unless a review request results in lower premiums.

The new law was prime sponsored by Representative Trey Paradee and Senator Majority Leader Margaret Rose Henry and Senator Brian Pettyjohn.

Delaware Insurance Commissioner Trinidad Navarro stated, “As head of the state's top consumer protection agency, my priority is and always will be to level the playing field by standing up for Delaware consumers. Insurance rates should be fair. However, as I have seen over the past several years, they are far from fair. By addressing unfair discriminatory practices, [the new law] adds and enhances Delaware's consumer protection measures to hold companies accountable. This law will push Delaware in the right direction toward a fairer and more affordable insurance marketplace. I thank Governor Carney and the legislature for recognizing the importance of this legislation and enacting it into law.”

Representative Paradee added, “For too long, insurance companies have used practices that unfairly discriminate against Delaware consumers and our state's most vulnerable populations. Although the final measure was not everything we originally fought for, I am excited, and confident, that the additional protections enshrined in this bill will make insurance fairer and more affordable for all Delaware consumers.”

Senate Majority Leader Margaret Rose Henry said, “This is a good update of a law that outlines allowable uses of credit information in rating personal insurance. This is a fair and commonsense approach that protects the interests of consumers and insurance companies. This also restricts age as a factor in setting rates and puts rate-setting clearly where it should be – on an insurance consumer's record.”

Senator Pettyjohn said, “Insurance rates should be based primarily on the way a driver behaves behind the wheel. Life events such as reaching the age of 75 or divorce alone should not be factors in raising an individual's insurance rates. This new law strengthens Delaware's insurance consumer protection statutes to prohibit these types of actions on the part of insurance companies.”

The new law passed the Delaware House on June 15, 2017, with 24 yes and 14 no votes. It passed its final floor vote in the Senate on June 27, 2017, with 20 yes and 1 no votes.

Learn more: http://www.insurance.delaware.gov.