Cancellation or nonrenewal of automobile policy — Reasons for cancellation or nonrenewal [For application of this section, see 84 Del. Laws, c. 209, § 3].
Del. Code tit. 18, § 3904
in effect(a) No notice of cancellation of a policy shall be effective and the insurer shall not refuse renewal or threaten to refuse renewal of a policy unless based on 1 or more of the following reasons:
(1) Nonpayment of premium; or
(2) The policy was obtained through a material misrepresentation; or
(3) Any insured violated any of the terms and conditions of the policy; or
(4) The named insured knowingly failed to disclose fully the named insured motor vehicle accidents and moving traffic violations, or the named insured losses covered under any automobile physical damage or comprehensive coverage, for the preceding 36 months, if called for in the application; or
(5) As to renewal of the policy, if the insured at any time while the policy was in force failed to disclose fully to the insurer, upon request therefor, facts relative to accidents and losses incurred material to underwriting of the risk; or
(6) Any insured made a false or fraudulent claim or knowingly aided or abetted another in the presentation of such a claim; or
(7) The named insured or any other operator who either resides in the same household or customarily operates an automobile insured under such policy:
a. Has, within the 36 months prior to the notice of cancellation or nonrenewal, had a driver’s license under suspension or revocation, except for any of the following:
1. A child whose license has been revoked or suspended pursuant to § 1009 of Title 10.
2. A child whose license had been revoked or suspended pursuant to § 904 of Title 4.
3. A person who had a driver’s license under suspension or revocation for a nondriving-related offense, including a nondriving-related drug offense pursuant to § 2707(b)(10) of Title 21; or
b. Has a history of and is subject to epilepsy or heart attacks, and such individual cannot produce a certificate from a physician testifying to the named insured unqualified ability to operate a motor vehicle safely; or
c. Has an accident record, conviction record (criminal or traffic), physical, mental or other condition which is such that the named insured operation of an automobile might endanger the public safety; or
d. Has, while the policy is in force, engaged in a competitive speed contest while operating an automobile insured under the policy; or
e. Is addicted to or uses narcotics or other drugs; or
f. Uses alcoholic beverages to excess thereby impairing the named insured ability to operate a motor vehicle; or
g. Has been convicted, or forfeited bail, during the 36 months immediately preceding the notice of cancellation or nonrenewal, for:
1. Any felony related to fraud or to the type of risk being insured; or
2. Criminal negligence resulting in death, homicide or assault arising out of the operation of a motor vehicle; or
3. Operating a motor vehicle while in an intoxicated condition or while under the influence of drugs; or
4. Leaving the scene of an accident without stopping to report; or
5. Theft or unlawful taking of a motor vehicle; or
6. Making false statements in an application for a driver’s license; or
h. Has been convicted of, or forfeited bail, for 3 or more violations, the point total for which exceeds 8 points, or 3 at fault accidents in which claims are paid in excess of $250 per accident within the 36 months immediately preceding the notice of cancellation or nonrenewal, of any law, ordinance or regulation limiting the speed of motor vehicles or any of the provisions of the motor vehicle laws of any state, violation of which constitutes a dangerous moving violation as set forth in Chapter 41 of Title 21, whether or not the violations were repetitions of the same offense or different offenses; or
(8) The insured automobile is:
a. So mechanically defective that its operation might endanger public safety; or
b. Used in carrying passengers for hire or compensation, except that the use of an automobile for a car pool shall not be considered use of an automobile for hire or compensation; or
c. Used in the business of transportation of flammables or explosives; or
d. An authorized emergency vehicle; or
e. Modified or changed in condition during the policy period so as to increase the risk substantially; or
f. Subject to an inspection law and has not been inspected or, if inspected fails to qualify.
(b) (1) Insureds protected by a policy covering 2 or more persons in a family or household shall not be subject to cancellation or nonrenewal because of the wrongdoing or fault of another insured under the policy;
(2) In the event 1 or more of the insureds under such policy is subject to cancellation or nonrenewal, such insured shall be excluded pursuant to the terms of § 3909 of this title;
(3) The excluded driver or drivers shall be required to furnish proof that the coverage required under Delaware law is carried with another company or through the Delaware Automobile Insurance Plan, or surrender the excluded driver’s motor vehicle operator’s license within 30 days.
(c) A policy may not be subject to cancellation or nonrenewal solely because the insured’s driver license is denied or suspended in accordance with § 516(g) or § 2216 of Title 13.
Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title18/c039/index.htmlFetched: 10/4/2026