Property Insurance Contracts

Del. Code tit. 18, ch. 41
in effect

Del. Code tit. 18, § 4101 Contracts subject to general provisions.

All contracts of property insurance covering subjects located in this State are subject to the applicable provisions of Chapter 27 (The Insurance Contract) of this title, and to other applicable provisions of this title.

Del. Code tit. 18, § 4102 Attorneys’ fees.

The court upon rendering judgment against any insurer upon any policy of property insurance, as “property” insurance is defined in § 904 of this title, shall allow the plaintiff a reasonable sum as attorneys’ fees to be taxed as part of the costs.

Del. Code tit. 18, § 4103 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Basic property insurance” means insurance against direct loss to any property caused by perils as defined and limited in the standard fire policy and extended coverage endorsement as filed with the Commissioner. (2) “Commissioner” means the Insurance Commissioner of the State of Delaware. (3) “Inspection bureau” means any organization designated by the Commissioner to make inspections to determine the insurability and conditions of the properties where basic property insurance is sought. (4) “Premiums written” means gross direct premiums charged on all policies of basic property insurance and the basic property insurance premium components of all multiperil policies, less return premiums, dividends paid or credited to policyholders and the unabsorbed portion of premium deposits. (5) “Qualified property” means all real and tangible personal property at fixed locations, whether or not subject to exposure from an external hazard located on property not owned or controlled by the prospective insured, and whether or not subject to exposure from riot hazard which: a. Complies with applicable state laws and regulations and local building codes and ordinances; and b. Is not commonly owned or controlled, or combinable for rating purposes, with property insured for similar coverages elsewhere; and c. Has characteristics of ownership, condition or occupancy which do not violate public policy. d. For purposes of homeowners and insurance and fire protection insurance, no policy shall exclude a dwelling unit or personal property within the dwelling unit from coverage as being unoccupied if: 1. The unit is regularly maintained; 2. Utility services are available and in use; and 3. The unit remains furnished as a dwelling unit, provided, however, that this protection shall not apply if the dwelling unit remains unoccupied beyond a period of 60 consecutive days. e. The Commissioner shall require the insurer to notify the insured of the 60-day exception contained in paragraph (5)d. of this section.

Del. Code tit. 18, § 4104 Purpose.

The purposes of this subchapter are: (1) To assure stability in the property insurance market of this State; (2) To make basic property insurance available for qualified property established by this section; (3) To encourage maximum use in obtaining basic property insurance of the available, normal insurance market provided by the private property insurance industry; (4) To provide for equitable distribution among authorized insurers of the responsibility for insuring qualified property for which basic property insurance cannot be obtained through the normal insurance market.

Del. Code tit. 18, § 4105 Inspection.

(a) Any person having an insurable interest in real and tangible personal property at a fixed location who has made a diligent effort to obtain basic property insurance in the normal insurance market shall be entitled upon request to an inspection of the property by representatives of the inspection bureau. Such request shall be upon forms and in accordance with procedures reviewed by the Commissioner. (b) The plan of operation of the inspection bureau, the manner and scope of the inspection and the form of the inspection report shall be submitted by the inspection bureau in written report for review by the Commissioner. (c) A copy of the inspection report shall be made available to the applicant or the applicant’s agent or the insurer upon request.

Del. Code tit. 18, § 4106 Establishment of industry placement facility.

An industry placement facility shall be established by authorized insurers to formulate and administer a program for the equitable distribution and placement of applications for basic property insurance for qualified property which has been so inspected. Separate classifications may be established for the purpose of equitable distribution. Such programs should be intended to conform with the applicable provisions of the National Insurance Development Corporation Act of 1968 [former 12 U.S.C. § 1749bbb et seq., repealed], or other such title as such federal legislation may bear upon enactment.

Del. Code tit. 18, § 4107 Review.

Any facility, plan, program or form required under this subchapter shall be subject to review by the Commissioner and deemed to meet the requirements of this subchapter unless disapproved.

Del. Code tit. 18, § 4108 Failure of industry placement facility program.

If the Commissioner finds, after a reasonable period of time, that the plan of operation set forth in § 4106 of this title is not creating a market which meets the purposes of that section, the Commissioner may order the implementation of §§ 4109 and 4110 of this title.

Del. Code tit. 18, § 4109 Joint underwriting association.

(a) After hearing and upon promulgation of an order by the Commissioner pursuant to § 4108 of this title, a joint underwriting association shall be created consisting of all insurers authorized to write and engaged in writing within this State, on a direct basis, fire and extended coverage insurance, including insurers covering such perils in homeowners and commercial multiple peril package policies. Every such insurer shall be a member of the association and shall remain a member as a condition of its authority to continue to transact such kinds of insurance within this State. (b) The association shall, pursuant to this chapter and the plan of operation and with respect to basic property insurance on qualified property, have the power to: (1) Cause its members to issue policies of insurance to applicants; (2) Assume reinsurance from members; and (3) Cede reinsurance. (c) Within 90 days following the effective date of the order of the Commissioner, the association shall submit to the Commissioner for review a proposed plan of operation, consistent with the provisions of this subchapter, which shall provide for economical, fair and nondiscriminatory administration and for the prompt and efficient provision of basic property insurance to promote orderly community development, including, but not limited to, preliminary assessment of all members for initial expenses necessary to commence operations, establishment of necessary facilities, management of the association, assessment of members to defray losses and expenses, commission arrangements, reasonable underwriting standards and limits of liability, acceptance and cession of reinsurance, and procedures for determining amounts of insurance to be provided. (d) The plan of operation shall be subject to review by the Commissioner, after consultation with affected individuals and organizations, and shall take effect 10 days thereafter in the absence of any disapproval. If the Commissioner disapproves all or any part of the proposed plan of operation, the association shall, within 30 days, submit for review an appropriately revised plan of operation or part thereof, and, if the association fails to do so, or if the revised plan so filed is unacceptable, the Commissioner shall promulgate such a plan of operation or part thereof as the Commissioner may deem necessary to carry out the purpose of this subchapter. (e) The association may, on its own initiative, or at the request of the Commissioner, amend the plan of operation or part thereof subject to review by the Commissioner.

Del. Code tit. 18, § 4110 Procedures.

(a) Any member of the association may cede to the association basic property insurance written on qualified property, to the extent, if any, and on the terms and conditions set forth in the plan of operation. (b) All members of the association shall participate in its writings, expenses, profits and losses in the proportion that the premiums written by each such member (but excluding (1) premiums on farm or manufacturing property, and (2) that portion of premiums attributable to the operation of the association) during the preceding calendar year bear to the aggregate premiums written in this State by all members of the association. Such participation by each insurer in the association shall be determined annually on the basis of such premiums written during the preceding calendar year, as disclosed in the annual statements and other reports filed by the insurer with the Commissioner. (c) The association shall be governed by a board of 11 directors, elected annually by cumulative voting by the members of the association, whose votes in such election shall be weighed in accordance with each member’s premiums written during the preceding calendar year. The first board shall be elected at a meeting of the members or their authorized representatives, which shall be held within 30 days after approval of the plan of operation as provided in § 4109 of this title.

Del. Code tit. 18, § 4111 Examinations.

The operation of the inspection bureau, the industry placement facility and any joint underwriting association shall at all times be subject to the supervision and regulation of the Commissioner. The Commissioner, or any person designated by the Commissioner, shall have the power of visitation of and examination into such operations and free access to all books, records, files, papers and documents that relate to such operations, may summon and qualify witnesses under oath, and may examine directors, officers, agents or employees or any other person having knowledge of such operations.

Del. Code tit. 18, § 4112 Appeals.

Any person aggrieved by any action or decision of the inspection bureau or industry placement facility may appeal to the Commissioner within 30 days from the action or the decision. The Commissioner shall after hearing held upon not less than 10 days written notice to the aggrieved person and the inspection bureau or the industry placement facility issue an order approving the action or decision, disapproving the action or decision or directing the inspection bureau or the industry placement facility to reassign and place the application pursuant to said plan.

Del. Code tit. 18, § 4113 Nonliability as to information, statements.

There shall be no liability on the part of, and no cause of action of any nature shall arise against, insurers, the inspection bureau, the industry placement facility, the joint underwriting association or their agents or employees, or the Commissioner or authorized representatives of the Commissioner, for any inspections undertaken or statements made by them in any reports and communications concerning the property to be insured or at the time of the hearings conducted in connection therewith, or in the findings required by this chapter.

Del. Code tit. 18, § 4120 Scope of subchapter.

This subchapter shall apply to policies of property insurance, other than policies of inland marine insurance and policies of property insurance issued through a residual market mechanism, covering risks to property located in this State which take effect or are renewed after January 19, 1986, and which insure any of the following contingencies: (1) Loss of or damage to real property which consists of not more than 4 residential units, 1 of which is the principal place of residence of the named insured; or (2) Loss of or damage to personal property in which the named insured has an insurable interest where: a. The personal property is used for personal, family or household purposes; and b. The personal property is within a residential dwelling.

Del. Code tit. 18, § 4121 Definitions.

(a) “Declination” is the refusal of an insurer, an agent or a broker to issue a property insurance policy on a written nonbinding application or written request for coverage. For the purpose of this subchapter, the offering of insurance coverage with a company within an insurance group which is different from the company requested on the nonbinding application or written request for coverage or the offering of insurance upon different terms than requested in the nonbinding application or written request for coverage shall be considered a declination. (b) “Nonpayment of premium” means the failure of the named insured to discharge any obligation in connection with the payment of premiums on policies of property insurance subject to this subchapter, whether such payments are directly payable to the insurer or its agent or indirectly payable under a premium finance plan or extension of credit. “Nonpayment of premium” shall include the failure to pay dues or fees where payment of such dues or fees is a prerequisite to obtaining or continuing property insurance coverage. (c) “Renewal” or “to renew” means the issuance and delivery by an insurer at the end of a policy period of a policy superseding a policy previously issued and delivered by the same insurer or the issuance and delivery of a certificate or notice extending the term of an existing policy beyond its policy period or term. For the purposes of this subchapter, any policy period or term of less than 6 months shall be considered a policy period or term of 6 months and any policy period or term of more than 1 year or any policy with no fixed expiration date shall be considered a policy period or term of 1 year. (d) “Termination” means either cancellation or nonrenewal of property insurance coverage in whole or in part. A cancellation occurs during the policy term. A nonrenewal occurs at the end of the policy term as set forth in subsection (a) of this section. For purposes of this subchapter, the transfer of a policyholder between companies within the same insurance group shall be considered a termination, but requiring a reasonable deductible, reasonable changes in the amount of insurance or reasonable reductions in policy limits or coverage shall not be considered a termination if such requirements are directly related to the hazard involved and are made on the renewal date of the policy.

Del. Code tit. 18, § 4122 Notification and reasons for declination or termination [For application of this section, see 79 Del. Laws, c. 390, § 8].

(a) Upon declining to insure any real or personal property subject to this subchapter, the insurer, agent, or broker making such declination shall either provide the insurance applicant with a written explanation of the specific reasons for the declination or an explanation will be provided within 21 days of the timely receipt of the applicant’s written request for such an explanation. An applicant’s written request shall be timely under this subsection if received within 90 days of the date of notice of the declination. In the event of a declination by an insurer of a risk submitted by an agent or broker on behalf of the applicant, the insurer shall provide that agent or broker with a written explanation of the reasons for the declination. In the event the agent or broker is unable to effect insurance for the applicant through an admitted insurer other than a residual market mechanism, the agent or broker shall submit an explanation in writing to the applicant of all insurer declinations. No agent, broker, or insurer not represented by an agent or broker shall decline to provide an insurance application form or other means of making a written request for insurance to a prospective applicant who requests insurance coverage from the agent, broker, or insurer. (b) No cancellation of a property insurance policy shall be effective unless notice thereof is mailed or delivered by the insurer to the named insured at least 30 days prior to the effective date of cancellation, except that, where cancellation is for nonpayment of premium, at least 10 days’ notice of cancellation shall be given. A notice of cancellation of property insurance coverage by an insurer shall be in writing, shall be delivered to the named insured or mailed to the named insured at the last known address of the named insured, shall state the effective date of the cancellation, and shall be accompanied by a written explanation of the specific reasons for the cancellation. (c) At least 30 days before the end of a policy period, as described in § 4121(c) of this title, an insurer shall deliver or mail to the named insured, at the last known address of the named insured, either of the following: (1) Written notice of the insurer’s offer to renew the policy if the applicable premium for the policy is received within a specified billing period; or (2) Written notice of the insurer’s intention not to renew the policy upon expiration of the current policy period. The notice of intention not to renew shall include or be accompanied by a written explanation of the insurer’s specific reason or reasons for the nonrenewal. (d) Except for notices for nonpayment of premium, the notices required under subsection (b) and paragraph (c)(2) of this section shall be delivered to the named insured by certified mail or by USPS Intelligent Mail barcode. Proof of mailing of all notices under subsections (b) and (c) of this section shall be retained by the insurer for a period of not less than 1 year. If the insurer fails to comply with either paragraph (c)(1) or (2) of this section, coverage shall be deemed renewed under the same terms and conditions until the named insured has accepted replacement coverage with another insurer or until the named insured has agreed to the nonrenewal. For purposes of this section, “certified mail” includes certified mail, certified mail return receipt, and certified mailing list, as used by the postal service.

Del. Code tit. 18, § 4123 Permissible cancellations.

After coverage has been in effect for more than 60 days or after the effective date of a renewal policy a notice of cancellation shall not be issued unless it is based upon at least 1 of the following reasons: (1) Nonpayment of premium; (2) Discovery of fraud or material misrepresentation made by or with the knowledge of the named insured in obtaining the policy, continuing the policy or in presenting a claim under the policy; (3) Discovery of wilful or reckless acts or omissions on the part of the named insured which increase any hazard insured against; (4) The occurrence of a change in the risk which substantially increases any hazard insured against after insurance coverage has been issued or renewed; (5) A violation of any local fire, health, safety, building or construction regulation or ordinance with respect to any insured property or the occupancy thereof which substantially increases any hazard insured against; (6) A determination of the Insurance Commissioner that the continuation of the policy would place the insurer in violation of the insurance laws of this State; (7) Real property taxes owing on the insured property have been delinquent for 2 or more years and continue delinquent at the time notice of cancellation is issued.

Del. Code tit. 18, § 4124 Discriminatory practices prohibited.

The declination or termination of a policy of property insurance subject to this subchapter by an insurer, agent or broker is prohibited if the declination or termination is: (1) Based upon the race, religion, nationality, ethnic group, age, sex or marital status of the applicant or named insured; (2) Based solely upon the lawful occupation or profession of the applicant or named insured, except that this provision shall not apply to an insurer, agent or broker which limits its market to 1 lawful occupation or profession or to several related lawful occupations or professions; (3) Based upon the age or location of the residence of the applicant or named insured unless such decision is for a business purpose which is not a mere pretext for unfair discrimination; (4) Based upon the fact that another insurer previously declined to insure the applicant or terminated an existing policy in which the applicant was named insured; (5) Based upon the fact that the applicant or named insured previously obtained insurance coverage through a residual market insurance mechanism.

Del. Code tit. 18, § 4125 Enforcement.

(a) Upon a complaint of person filed within 90 days of any violation of this subchapter, the Commissioner shall determine whether such complaint is reasonably founded. If the Commissioner determines that such complaint is reasonably founded, or if the Commissioner otherwise has reason to believe that an insurer, agent or broker has engaged in practices which violate this subchapter and that a proceeding in respect thereto would be in the public interest, the Commissioner shall set a date for a public hearing to determine whether a violation of this subchapter has in fact occurred. Such hearing shall be held upon no less than 10 days’ notice to the person charged and the complainant, if any. Such notice shall set forth the specified grounds upon which the complaint is based. If a hearing is based upon a complaint, the hearing shall be set no later than 30 days from the date the complaint was filed. The hearing shall take place before a hearing examiner who shall make a record of the evidence and set forth findings and conclusions. Once a prima facie violation of this subchapter has been established, the person charged in the complaint shall have the burden of showing that such violation was based on a reason not prohibited by this subchapter. The findings of fact determined by the hearing examiner shall be reviewed by the Commissioner who shall issue a final order. A petition for hearing may be filed within 30 days of the final order of the Commissioner. (b) If the Commissioner determines in a final order that: (1) An insurer has violated §§ 4123 and 4124 of this title, the Commissioner may require the insurer to: a. Accept the application or written request for insurance coverage at a rate and on the same terms and conditions as are available to other risks similarly situated; or b. Reinstate insurance coverage to the end of the policy period; or c. Continue insurance coverage at a rate and on the same terms and conditions as are available to other risks similarly situated. (2) Any person has violated this subchapter, the Commissioner may: a. Issue a cease and desist order to restrain such person from engaging in practices which violate this subchapter; or b. Assess a penalty against such person of up to $500 for each violation of this subchapter.

Del. Code tit. 18, § 4126 Civil liability and actions; limitation.

(a) If the Commissioner determined in a final order that an insurer has violated § 4123 or § 4124 of this title, the applicant or named insured aggrieved by the violation may bring an action in a court of competent jurisdiction in this State to recover from such insurer any loss, not otherwise recovered through insurance, which would have been paid under the insurance coverage that was declined or terminated in violation of this subchapter. (b) Any amounts recovered under subsection (a) of this section shall not be duplicative of any recovery obtained through the exercise of any other statutory or common-law cause of action arising out of the same occurrence. No action under this section shall be brought 2 years after the date of a final order of the Commissioner finding a violation of § 4123 or § 4124 of this title.

Del. Code tit. 18, § 4127 Judicial review.

Any person aggrieved by any determination or order of the Commissioner under this subchapter may seek judicial review in the Superior Court. Failure of the Commissioner to act upon a complaint under this subchapter within 30 days of the filing of such complaint shall constitute a determination that the complaint was not reasonably founded. Review in the Superior Court shall be de novo.

Del. Code tit. 18, § 4128 Immunity.

(a) There shall be no liability on the part of and no cause of action shall arise against: (1) The Insurance Commissioner; (2) Any insurer or its authorized representatives, agents or employees; (3) Any licensed insurance agent or broker; or (4) Any person furnishing information to an insurer as to reasons for a termination or declination for any communication giving notice of or specifying the reasons for a declination. (b) Subsection (a) of this section shall not apply to statements made in bad faith with malice in fact.

Del. Code tit. 18, § 4129 Notice.

During the pendency of any claim received pursuant to a property insurance policy, the insurer shall be required to give prompt and timely written notice to a policyholder making a claim informing the policyholder of the applicable state statute of limitations or any contractual period of limitations regarding the filing of an action for the claimant’s damages under the contract.

Del. Code tit. 18, § 4130 Nonrenewal [For application of this section, see 79 Del. Laws, c. 390, § 8].

(a) (1) An insurer may not refuse to renew a policy of homeowners insurance solely on the basis of: a. Claims caused by weather, unless 3 or more such claims have been made against the policy during the 36 months immediately preceding the expiration of the current policy period; or b. Claims not caused by weather, unless 2 or more claims have been made against the policy during the 60 months immediately preceding the expiration of the current policy period; or c. A combination of claims caused by weather and claims not caused by weather, unless such combination of 3 or more claims has been made against the policy during the 48 months immediately preceding the expiration of the current policy period; or d. Claims closed without payment, notwithstanding any other provision of this section. (2) However, an insurer may nonrenew a homeowner’s policy if: a. The claim or claims asserted against the policy demonstrate that there has been a reasonably substantial change or increase in the hazard or in the risk assumed by the carrier subsequent to the date the policy was issued, and such nonrenewal is applied to other homeowners policies similarly situated; or b. The policyholder has refused or failed to make reasonably necessary changes or repairs after being notified by the insurer that failure to make such changes or repairs will constitute a breach of contractual duties, conditions or warranties that will change or increase the hazard or risk assumed by the insurer subsequent to the date the policy was issued. (b) “Homeowners insurance” for purposes of this section and § 4131 of this title shall mean property insurance as defined at §§ 4103(5)d. and 4120 of this title insuring any real or personal property used by a person as a permanent or temporary place of residence.

Del. Code tit. 18, § 4131 Inquiries.

An insurer shall not consider an inquiry regarding a homeowners policy or a loss under that policy to be a claim for purposes of making underwriting decisions, including but not limited to decisions to nonrenew a policy. An inquiry is any contact initiated by an insured that is not the filing of a claim to an insurer.

Del. Code tit. 18, § 4140 Notice regarding deductibles.

(a) All insurers licensed to and writing residential property insurance in Delaware shall provide clear and prominent notice to residential property insurance policyholders as to the existence of deductibles for losses caused by wind, hail or hurricanes, as follows: (1) The notice shall be included: a. With regard to any policy in effect before January 1, 2013, with the first renewal on or after that date. b. On or after January 1, 2013, with a policy at first issuance and with the first renewal after any insurer-initiated change in the deductibles for losses caused by wind/hail or hurricanes. (2) Such notice may be sent electronically to any policyholder who has consented to receive such notices electronically. (3) The notice shall clearly disclose relevant details pertaining to the wind/hail and hurricane deductibles, including the trigger of the deductible, regardless of whether it is stated as a percentage or as a dollar amount. (4) If there is a percentage deductible, the insurer must provide an example of how it applies to the loss. The example does not have to be tailored to the insured value of the specific property, but must show clearly how the deductible works (e.g., a 2% deductible on a house insured for $300,000 means the policy holder is responsible for $6,000 of the wind, hail or hurricane loss). (5) If there is not a separate deductible for wind/hail or hurricane losses, the insurer is not required to provide a notice. (b) This section sets forth the minimum information that must be included in the notice. Insurers may provide any other information to assist their insureds in understanding wind/hail and hurricane deductibles and their application to the insurance policy. (c) For purposes of this section, “residential property insurance” means insurance that provides coverage for: (1) A 1-, 2-, 3-, or 4-family dwelling primarily intended for occupancy as living quarters; (2) A condominium unit primarily intended for occupancy as living quarters; (3) Nonbusiness personal property of a tenant insured on an unscheduled basis and primarily located in the living quarters occupied by the tenant; (4) A manufactured home situated in a fixed location and intended for occupancy as living quarters. However, “residential property insurance” does not include insurance provided using commercial multiple-peril or commercial property policy forms.

Del. Code tit. 18, § 4151 Short title.

This subchapter is known and may be cited as the “Private Primary Residential Flood Insurance Model Act.”

Del. Code tit. 18, § 4152 Purpose and intent.

To provide protection of lives and property from the peril of flood, this legislation is designed to encourage a robust private primary residential flood insurance market to provide consumer choices and alternatives to the existing National Flood Insurance Program.

Del. Code tit. 18, § 4153 Definitions.

As used in this subchapter: (1) “Authorized insurer” means an insurer that is authorized by the Department to write insurance under a certificate of authority issued by the Department to transact insurance in Delaware. (2) “Commissioner” means the Insurance Commissioner of the State of Delaware. (3) “Department” means the Delaware Department of Insurance. (4) “National Flood Insurance Program” or “NFIP” means the program of flood insurance coverage and floodplain management administered under the National Flood Insurance Act of 1968 (42 U.S.C. § 4001 et seq.) and applicable federal regulations promulgated in Title 44 of the Code of Federal Regulations. (5) “Primary residential flood insurance” means an insurance policy covering losses from flood to residential property, other than commercial property, written in Delaware by any insurer authorized to do business that is not written to apply coverage in excess of the coverage provided under another flood insurance policy, whether issued by a private insurer or the National Flood Insurance Program.

Del. Code tit. 18, § 4154 Rates.

(a) Rates for flood insurance coverage established pursuant to this subchapter are subject to the requirements of Chapter 25 of this title. (b) An insurer shall file with the Department all rates and any change to such rates in accordance with the requirements of Chapter 25 of this title. Any filing requesting a rate change must include the name of the insurer and the average statewide percentage change in rates.

Del. Code tit. 18, § 4155 Forms.

(a) An insurer shall file with the Department all forms for flood insurance coverage in accordance with § 2712 of this title. (b) The Department may require, through the promulgation of regulations, additional conditions related to the forms or rates for private residential flood insurance coverage, including any of the following: (1) That an authorized insurer may issue an insurance policy, contract, or endorsement. (2) For residential properties required to have flood insurance that are in a special flood hazard area designated by the Federal Emergency Management Agency, that the coverage at least meets the private flood insurance requirements as specified in 42 U.S.C. § 4012a(b) and applicable federal regulations in document 84 FR 4953, effective July 1, 2019.

Del. Code tit. 18, § 4156 Duties of insurer to provide regulatory notice of intent to transact residential primary flood insurance.

Authorized insurers intending to sell primary residential flood insurance products in Delaware must do all of the following: (1) Notify the Department of its plans at least 30 days before making a form or rate filing relating to such flood insurance in Delaware. (2) File a plan of operation and financial projections or material revisions to such plan.

Del. Code tit. 18, § 4157 Notice to consumers.

(a) If a consumer has no coverage under the NFIP, before placing the consumer applicant with private flood insurance, the consumer must be informed of the existence of the NFIP. (b) All consumers covered by subsection (a) of this section as well as consumers who currently have coverage under the NFIP must be informed that the coverage under the NFIP may be provided at a subsidized rate and that the full-risk rate for flood insurance may apply to the property if the applicant later seeks to reinstate coverage under the program. The insurance producer, surplus lines broker, or the insurer upon its election or if there is no producer or broker must provide such notice. (c) This section only applies if the applicant lives in a special flood hazard area. This section automatically sunsets if federal legislation is enacted allowing the insured to switch between private flood insurance and NFIP coverage without risk of penalty.

Del. Code tit. 18, § 4158 Cancellation and nonrenewal notice.

(a) Notice of cancellation or nonrenewal, other than for nonpayment of premium, shall be made and provided in compliance with § 4122 of this title, provided that at least 45 days’ notice must be provided before the cancellation or nonrenewal of private flood insurance coverage to the insured. (b) Notwithstanding subsection (a) of this section, notice of cancellation for nonpayment of premium shall be made and provided in compliance with § 4122 of this title.

Del. Code tit. 18, § 4160 Other provisions.

(a) FAIR Plan participation. — Writing private flood insurance under this subchapter does not constitute participation in the property insurance market for purposes of determining participation in the Delaware Fair Access to Insurance Requirements (FAIR) Plan under Chapter 41, subchapter II of this title. (b) Filings open to inspection. — All rate filings and supporting information filed under this subchapter shall be open to public inspection by parties in interest after the filing becomes effective. (c) With respect to the regulation of flood coverage written in this State by authorized insurers, this subchapter supersedes any other provision in this title in the event of a conflict. (d) An insurer may certify that the insurance policy meets the definition of “private flood insurance,” as specified in 42 U.S.C. § 4012a(b)(7) and applicable federal regulations. (e) It is the intent of the General Assembly that nothing in this subchapter is intended to restrict the use of existing filings by an insurer or limit the ability of private insurers to provide flood insurance coverage of any type not addressed herein.

Del. Code tit. 18, § 4161 Regulations.

The Commissioner may, in accordance with § 311 of this title, promulgate regulations necessary to carry out the provisions of this subchapter.
Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title18/c041/sc01/index.htmlFetched: 10/4/2026