Delaware Claims Compliance
Key regulatory requirements, correspondence deadlines, and mandated forms for Delaware (DE).
Catastrophe-Specific Rules Apply
Delaware has catastrophe-specific rules that may modify standard deadlines and require additional consumer notices during declared emergency periods. Check the Disclosures tab for details.
Quick Reference
Key Deadlines
Requirements
- Mandated Forms
- Catastrophe Rules
- Separate P&C / Life & Health
- Fraud Warning
- Depreciation Notice
- E-Delivery (with_consent)
Regulatory Authority
Delaware Department of Insurance
Phone: 1-800-282-8611 or (302) 674-7300 / (302) 674-7310; Website: https://insurance.delaware.gov/services/filecomplaint/; Address: 1351 West North Street, Suite 101, Dover, DE 19904; Email: consumer@delaware.gov
Bad Faith: 18 Del. C. § 2304(16)
Lines of Business
Key Statutes
- 18 Del. C. §§ 2301–2316
- 18 DE Admin. Code § 902
- 18 DE Admin. Code § 903
Delaware handles claims correspondence according to specific state regulations. Requirements vary depending on the line of business and specific claim circumstances.
Acknowledgment
Every claim must be acknowledged within 15 business days of receipt. The acknowledgment should identify the insurance policy and coverage at issue.
Denial
A written denial must be issued within 30 calendar days. The denial must reference the specific policy provisions, conditions, or exclusions relied upon.
Statutory Language
Specific fraud warning required.
LOB-Specific Requirements
Regulatory requirements for Delaware, grouped by line of business. Select a chip to filter.
- SOL Notice In Denial RequiredStatutory
- CONDITIONAL (Required for casualty/liability portion under 18 Del. C. § 3914; no specific requirement for first-party property coverage per Woodward v. Farm Family Cas. Ins. Co., 796 A.2d 638)
- Unfair Claims Practices Act RefStatutory
- 18 Del. C. § 2304(16)
- Prompt Payment Statute RefStatutory
- 18 DE Admin. Code § 903
- HO Specific RequirementsStatutory
- 18 Del. C. § 4140 requires clear and prominent notice to residential property insurance policyholders as to the existence of deductibles for losses caused by wind, hail, or hurricanes for new policies or policy renewals
- Catastrophe ProvisionsStatutory
- Adjusters are exempt from standard licensing requirements if sent into the state for a catastrophe, provided written notice is furnished to the Commissioner within 10 calendar days (18 Del. C. § 1704(e)(1))
- Proof Of Loss RequirementsStatutory
- The insurer must affirm or deny coverage within 30 days after proof of loss statements have been received (18 DE Admin. Code § 902-3.1.5)
- Suit Limitation PeriodStatutory
- Property insurance contracts may not require that an action for a claim be filed less than 1 year from the date of the denial of the claim by the insurer (10 Del. C. § 8106(b)); general property damage SOL is 2 years (10 Del. C. § 8107)
Delaware Case Law
Published decisions that shape claim-handling and correspondence practice in Delaware. Pair these with the statutory deadlines above.
- Case Law
San Diego Navy Federal Credit Union v. Cumis Ins. Soc'y, Inc
162 Cal. App. 3d 358 (1984)
Reservation of RightsGeneral Liability. The Cumis court held that where divergent interests of the insured and the insurer are brought about by the insurer's reservation of rights based on possible noncoverage, the insurer must pay the reasonable cost for hiring independent counsel selected by the insured. This attorney is colloquially known as Cumis counsel .
- Case LawClosing LettersCommercial Property
the Delaware Superior Court addressed the intersection of claim closures and the notice requirement of 18 Del. C. § 4129 . The commercial property plaintiffs sued for coverage following Superstorm Sandy, but the insurer invoked a 24-month contractual limitation period to dismiss the claim .
- Case LawStatus UpdatesCyber
and Tackett v. State Farm Fire & Cas. Ins. Co. (1995) .
- Case LawBad FaithGeneral LiabilityProfessional Liability
and Tackett v. State Farm Fire & Casualty Insurance Co. (1995). In Casson, the Delaware Superior Court ruled that to establish bad faith, a plaintiff must show the denial was clearly without any reasonable justification, explicitly tying the bad faith concept to arbitrary or malicious breach of contract rather than mere negligence .
- Bad FaithGeneral Liability
the Delaware Supreme Court addressed a matter of first impression regarding when a third-party bad faith claim accrues .
- Case LawStatus UpdatesWorkers' Comp
an injured worker sued a Third-Party Administrator (TPA) for the bad-faith delay and denial of his Workers' Compensation claim . The TPA argued it could not be sued for bad faith because it was not a party to the insurance contract . Relying on previous precedent (Thomas v.
Show 10 more cases
- Case LawBad FaithCommercial Property
"an insurer's actions only give rise to a bad faith breach of contract claim if the insurer's actions first breach the contract" .
- Reservation of RightsGeneral Liability
the Delaware Superior Court reiterated that the court "doesn't recognize coverage via estoppel [or waiver]" to bring within a policy's coverage risks that the terms expressly exclude . Similarly, in Liberty Ins. Underwriters, Inc. v. Cocrystal Pharma, Inc.
- Reservation of RightsAuto
the Bulletin declares that an insurer's liability is absolute to the extent of statutory minimums, regardless of policy condition violations .
- Closing LettersCyber
. In this case, CorVel, an insured under an errors and omissions (E&O) liability policy, faced class action claims in Louisiana and ultimately settled the claims using its own funds. CorVel sued Homeland for bad faith, alleging the insurer wrongfully denied coverage and delayed decisions .
- Case LawClosing LettersCommercial Auto
: https://law.justia.com/cases/delaware/supreme-court/1990/570-a-2d-1148-5.html
- Reservation of RightsGeneral Liability
the court held that an insurer's failure to issue a supplemental reservation of rights letter when it started to advance defense costs did not operate as a waiver of its right to recoup those costs, explicitly applying the principle that coverage cannot be created by waiver .
- Status UpdatesWorkers' Comp
. In Pierce, an injured employee sued the employer's Workers' Compensation carrier for bad faith delay in recognizing liability and paying benefits . The Superior Court initially dismissed the claim, citing the exclusivity of the WCL. However, the Delaware Supreme Court reversed, holding that a bad faith claim for delay does not merge with the original workplace injury .
- Case LawBad FaithWorkers' Comp
the Delaware Superior Court threw out a $500,000 punitive damages award because the compensatory damages were only $28.22 (the interest on a 2.5-month delay in $7,300 of benefits). The court held that a 17,000-to-1 ratio shocked the conscience and disregarded the great weight of the evidence, noting that the insurer's conduct was merely "reckless" rather than intentionally fraudulent .
- Case LawStatus UpdatesCyberWorkers' Comp
. In Tackett, the Delaware Supreme Court established that to maintain a claim for bad faith, a plaintiff must demonstrate that the insurer "lacked reasonable justification" in delaying or refusing payment .
- Bad FaithGeneral Liability
. In Casson, the Delaware Superior Court ruled that to establish bad faith, a plaintiff must show the denial was clearly without any reasonable justification, explicitly tying the bad faith concept to arbitrary or malicious breach of contract rather than mere negligence .
Historical court cases are for reference only and may be superseded, distinguished, or abrogated.
Applicable Letter Templates
No letter templates currently found for this jurisdiction.