Dover, DE – On June 27, 2017, the Delaware State Senate voted nearly unanimously (20-1) to pass House Substitute 1 for House Bill 80 (“HS 1 for HB 80”). This measure, a substitute to the Department of Insurance’s original HB 80, targets unfair discriminatory practices used by automobile insurance companies to determine premium costs.
The following major changes will be imposed under this law:
1. Insurance companies may not use an insurance credit score that uses income, gender, sexual orientation, gender identity, education, address, zip code, race, ethnic group, religion, marital status or nationality of the consumer as a factor.
2. The company may not cancel or non-renew a policy based on credit information alone.
3. They may not take action against a consumer because that person lacks a credit card or lacks credit information
4. Cannot utilize collection information using medical codes.
5. Cannot utilize extraordinary life circumstances such as serious illness or injury, death of a spouse or loved one, divorce, and involuntary loss of employment for 3 months or more.
6. HS 1 for HB 80 continues Delaware’s prohibition on using credit in policy renewals, unless a review request results in lower premiums.
7. An insurer cannot increase a renewal rate for a personal automobile policy based solely on an insured attaining the age of 75 or older.
8. An insurer cannot increase rates based upon a change of marital status due to the death of a spouse.
HS 1 for HB 80 has not yet been signed by Governor Carney. It will go into effect in January 2018. Meantime, consumers who have questions about the new law are encouraged to contact the Consumer Services Division at (302) 674-7310 or by email at consumer@delaware.gov.
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The Delaware Department of Insurance protects Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.