The Delaware Department of Insurance published a bulletin informing insurers of their requirement to report geographic allocation of premiums under Delaware insurance law. The bulletin also provides a summary of the recent legislative changes made under House Bill 371.

Under 18 Del. C. § 705, insurers writing business in the state are required to use an electronic geographic information system (GIS) to allocate and report premiums written for certain areas in the state annually. The areas include the city of Wilmington, the county of New Castle outside the city of Wilmington, and Kent and Sussex counties.

The Department states that accurate allocation of premiums is necessary to ensure appropriate fund distribution. Insurers should avoid using only a zip code to determine a risk location, as it can lead to inaccurate premium reporting. Effective as of January 1, 2025, 18 Del. C. § 705 defines the City of Wilmington as zip codes 19801, 19802, 19805, and 19806. Failure to comply with this statute can result in regulatory action.