Cancellation or nonrenewal of automobile policy; definitions; scope. [For application of this section, see 82 Del. Laws, c. 160, § 5]
Del. Code tit. 18, § 3903
in effect(a) As used in §§ 3903-3907 of this title:
(1) “Certified mail” as used in this chapter shall refer to the following as used by the postal service:
a. Certified mail;
b. Certified mail, return receipt;
c. Certified mailing list.
(2) “Nonpayment of premium” means failure of the named insured to discharge when due any of his or her obligations in connection with the payment of premiums on a policy or any installment of such premium, whether the premium is payable directly to the insurer or its agent or indirectly under any premium finance plan or extension of credit.
(3) “Policy” means any 1 or more of the following portions of an automobile insurance policy:
a. Insuring against bodily injury and property damage liability;
b. Insuring against physical damage;
c. Insuring against risks commonly included under “comprehensive coverage”;
d. Relating to medical payments;
e. Providing uninsured motorist coverage, where such policy is delivered or issued for delivery in this State, insuring an individual as named insured or 1 or more related individuals resident of the same household, and under which the insured vehicles therein designated are motor vehicles of the private passenger or station wagon type (not used for public or livery conveyance of passengers, or rented to others) or any other 4 wheel motor vehicles with a load capacity of 1500 pounds or less not used in the occupation, profession, or business of the insured, and other than a policy of automobile liability insurance that meets any of the following criteria:
1. Issued under an assigned risk plan.
2. Insuring more than 4 motor vehicles.
3. Covering garage, automobile sales agency, repair shop, service station, or public parking place operation hazards.
(4) “Renewal” or “to renew” means the issuance and delivery by an insurer of a policy superseding at the end of the policy period a policy previously issued and delivered by the same insurer, or the issuance and delivery of a certificate or notice extending the term of a policy beyond its policy period or term. Any policy with a policy period or term of less than 6 months or any policy with no fixed expiration date shall for the purpose of this section be considered as if written for successive policy periods or terms of 6 months.
(b) Sections 3903-3907 of this title shall not apply to any policy which has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer, unless it is a renewal policy.
(c) (1) Notwithstanding § 3911 of this title, the transfer of a policyholder between authorized insurers within the same insurance group is not a cancellation or nonrenewal if the policyholder’s premium does not increase and the policyholder does not experience a reduction in coverage. A policyholder so transferred must be provided with written notice of the transfer.
(2) A transfer under this subsection shall be treated as a renewal for purposes of the use of credit information pursuant to Chapter 83 of this title.
(3) The notice required under this subsection shall be made no less than 20 days before the effective date of the proposed transfer. The notice may be a part of a renewal form sent to the policyholder renewing the coverage by the new insurer.
(d) Where an insurer either fails to renew a policy or cancels a policy based solely upon the reason of nonpayment of premium, the insurer shall renew or reinstate the policy if the insured tenders to the insurer or its agent the full amount due within 30 days after the end of the policy period or cancellation date. The renewed or reinstated policy shall contain the same conditions at the same rates or premiums had he or she paid his or her premium on the due date. The effective date of such renewed or reinstated policy shall be the date of actual receipt by the insurer or its agent of the full premium payment due. The renewed or reinstated policy shall not cover and the insurer shall not be liable for any losses occurring or claims which were sustained during the period from the end of the policy period or cancellation date until the date the full premium payment was actually received by the insurer or its agent, regardless of whether or not such a loss or claim would otherwise fit within the coverage of such a policy.
Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title18/c039/index.htmlFetched: 10/4/2026