Reduced Driving Leads to Rebates, Reimbursements, Reduced Insurance Rates

This page updated May 7, 2020.

The Delaware Department of Insurance today released a list of consumer-friendly automobile insurer actions that are being implemented due to reduced vehicle use throughout the COVID-19 pandemic. As filed with the department, these actions represent millions of dollars being returned to or saved by policyholders throughout the state.

The following list may not be inclusive and may be updated online. The commitments below apply to only personal automobile insurance policies. Customer eligibility requirements may exist. Residents should direct questions about specific commitments to the insurer.

  • AIPSO: Providing rate relief through a 15% credit on April and May premiums or a 15% refund for customers already paid in full.
  • Allstate: Issuing refunds equal to 15% of March and April auto premiums. A total of 19,155 Delaware Allstate customers will be refunded well over $1 million.
  • American Family: Distributing a one-time check payment of $50.00 per covered vehicle.
  • American National: Providing premium relief equal to a 15% credit of April and May premium.
  • Amica Mutual: Crediting 20% of the policyholder’s monthly auto premium.
  • Bakers Standard: Applying a one-time 6% credit to the premium of auto policies renewing between October 1, 2020 and October 1, 2021.
  • Chubb: Renewing customers will receive a discount equal to 35% of their April and May costs, an estimated $110 per vehicle. A one-time 6% credit will be applied to the premium for auto policies renewing between August 11, 2020 and August 11, 2021.
  • Cincinnati Insurance: Refunding policyholders 15% of their April and May premium.
  • Electric Insurance: Distributing a payback equal to 15% of three months of the policyholder’s premium, an estimated $72 per policy.
  • Encompass: Issuing refunds of 15% of March and April auto premiums. Approximately 2,835 Delaware Encompass customers will be refunded about $168,882.
  • Esurance: Issuing refunds equal to 15% of March and April auto premiums.
  • Farm Family: Providing premium relief equal to a 15% credit of April and May premium.
  • Farmers: Discounting April premiums by 25% discount or providing 25% refunds to customers already paid in full.
  • GEICO: The GEICO Giveback Credit will discount renewed or newly purchased policies between April 8 and October 7, 2020 by 15%. Customers can expect to save an average of $150 on their next auto policy and $30 per motorcycle policy.
  • Goodville Mutual: Issuing a Safe@home premium credit of 15% on two months of new or renewal premium. Members can choose to waive their credit and request that it be donated to local food banks, first responders, or international relief. Goodville Mutual will match donated funds up to $100,000.
  • Hartford: The COVID-19 Personal Auto Payback Plan will credit customers 15% of April and May auto premiums.
  • Horace Mann: The Teacher Appreciation Relief Program will credit customers 15% of two months of premiums.
  • Integon Indemnity: Issuing a 15% credit on April premiums.
  • Liberty Mutual: Providing a 15% refund on two months of annual premiums.
  • Mercury: Refunding 15% of monthly premiums paid in April and May.
  • MetLife: Crediting 15% of monthly premiums paid in April and May.
  • Nationwide: Applying a one-time payment of $50.00 to each policy.
  • Next Insurance: Discounting April premiums by 25%.
  • NGM Insurance: Distributing a Relief Payment of $50.00 per each insured vehicle. In Delaware, approximately 899 private passenger vehicles insured will generate a total refund of $44,950.
  • Progressive: Crediting back 20% of April and May premiums.
  • State Farm Fire and Casualty Company: Distributing a credit equal to 27.5% of a policyholder’s premium from March 20 to May 31, 2020.
  • State Farm Mutual: The Good Neighbor Relief Program will distribute a dividend of approximately 27.5% of premium from March 20 to May 31, 2020.
  • Travelers: The Stay-at-Home Auto Premium Credit Program will issue a credit of 15% to April and May premiums.
  • USAA: Crediting approximately 20% on three months of premiums.
  • 21st Century Insurance: Discounting April premiums by 25% discount, or providing 25% refunds to customers paid in full.

Individuals who are experiencing financial hardship due to income changes related to COVID-19 and are unable to pay their premium should contact their insurance company to discuss assistance. Delaware’s insurance carriers are required to freeze cancellations and nonrenewal of policies that might have otherwise occurred due to non-payment of premiums through the duration of the Delaware state of emergency for individuals who have been laid off or fired due to the state of emergency.

Residents may be using personal vehicles to augment income through commercial use, such as delivering food or other goods. At the request of Insurance Commissioner Trinidad Navarro, many auto insurers are temporarily allowing this activity. Residents are encouraged to review their insurance company’s COVID-19 policies prior to beginning to provide delivery services.

Have questions about insurance and COVID-19? Visit the Delaware Department of Insurance FAQ page.

If you are an insurer who would like to provide or modify information included in this list, or on our FAQ page, please email Christina.Haas@Delaware.Gov.

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Delaware Issues RFP for Office of Value-Based Health Care Delivery

Delaware’s Department of Insurance is pleased to announce that it is actively recruiting for a qualified independent contractor to staff and run its new Office of Value-Based Health Care Delivery. The Office will assist the Insurance Commissioner and Delaware’s Primary Care Reform Collaborative in evaluating primary care accessibility and affordability statewide.

“Reducing health care costs in Delaware is a key priority of my administration,” said Insurance Commissioner Trinidad Navarro. “The team leading our Office of Value-Based Health Care Delivery needs to possess a high level of expertise in health care transformation and innovation. Together with the Primary Care Reform Collaborative, we intend to identify quantitative tools that will help increase the availability of high quality, cost-efficient health insurance products that have stable, predictable, and affordable rates.”

Earlier this year, members of the General Assembly passed Senate Substitute 1 for Senate Bill No. 116, in order to create the Office. The Office was a recommendation of the Primary Care Reform Collaborative, which is tasked with evaluating the high costs of care in Delaware. In the months since passage, the Collaborative has been working hard to develop recommendations to strengthen Delaware’s primary care system.

“The legislature’s consideration of pro-consumer bills has allowed us to continue to foster an environment where residents are prioritized over profits,” said Leslie W. Ledogar, Esq, the Commissioner’s representative within the working group. “The Office of Value-Based Health Care Delivery epitomizes that vision, and we are grateful for everyone who spent time working on this effort.”

The Request for Proposal may be downloaded from the Office of Management and Budget website. Applicant questions should be directed to the Department’s Regulatory Specialist Leslie W. Ledogar, Esq.


ACA Marketplace Rates to Decrease 19% in Delaware for Plan Year 2020

Dover, DE – Insurance Commissioner Trinidad Navarro officially announced the final approval of the 2019 Affordable Care Act (“ACA”) rates. Highmark Blue Cross Blue Shield of Delaware (“Highmark BCBSD”), the only insurer currently on the Marketplace, originally proposed a rate decrease of 5.8% for its 2019 individual Marketplace business. Commissioner Navarro, ultimately approved a decrease of 19%, after the implementation of a state-run reinsurance program, the first decrease ever since the Marketplace opened in 2013.

The approved decrease was a result of federal approval for the State of Delaware to implement a state-run reinsurance program as established pursuant to the 1332 State Innovation Waiver Application (“Waiver”). Under this program, individual market policies that meet certain minimum criteria, as set forth in the Waiver, will be eligible for reimbursement from a state-administered fund. The fund will be financed through a 1% assessment on the individual, small and large group market premium amounts for all health insurance carriers operating in those markets in Delaware. The assessment will take place annually and may vary depending on the federal government’s actions on the Health Insurance Industry Fee.

“I am happy to announce the first rate decrease in Delaware since the beginning of the Health Insurance Marketplace. In spite of the many efforts in Washington to dismantle the Affordable Care Act, we have been able to work with our state counterparts and stakeholders to give Delaware policyholders much-needed premium relief. I thank Secretary Walker for the work she and her team at DHSS put into seeing the Waiver across the finish line.”

Because this year’s filing may result in lower costs for many consumers, the Department urges consumers to examine their rates and reapply for coverage through the Marketplace.

Presently, approximately 23,000 Delawareans have health insurance through the Affordable Care Act and may be affected by these rates.

Please be advised that the proposed rate decrease will not apply to Delawareans on Medicare, Medicaid, or those with group or individual policies outside of the Marketplace.

 

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Contact: Vince Ryan

Office: (302) 674-7303

Email: vince.ryan@delaware.gov

                                                          

Delaware Department of Insurance

http://www.insurance.delaware.gov

Dover Office: 302-674-7300

Consumer Services Division: 1-800-282-8611


Sussex County Woman Indicted for Insurance Fraud

Dover, DE—Janet Lane, 59, formerly of Ocean View, Delaware was indicted on Monday September 9th, 2019 by a Sussex County Grand Jury for two counts of insurance fraud and one count of identity theft following an investigation by the Delaware Department of Insurance Fraud Prevention Unit.

Ms. Lane had been a passenger in a car that was struck in a motor vehicle accident in July 2015.  Ms. Lane sustained injuries from the accident.  During the course of the claim process, Ms. Lane submitted a fraudulent wage and salary verification form to her insurance company, CSAA Insurance,  utilizing her past employer’s information and forged signature. She claimed that she was employed during the time of the July 2015 accident.  However, Ms. Lane was not employed at the time of the accident. In addition, Ms. Lane submitted a fraudulent doctor’s work note to CSAA Insurance.  Based upon the fraudulent documents, Lane received $15,488 for lost wages she was not entitled to receive from CSAA Insurance.

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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.

Contact: Vince Ryan

Office: (302) 674-7303

Mobile: (302) 387-7670

Email: vince.ryan@delaware.gov


Delaware Department of Insurance Opens New Building in Dover, DE

FOR IMMEDIATE RELEASE

September 10, 2019

Delaware Department of Insurance Opens New Building in Dover, Delaware

Delaware Department of Insurance Opens New Building in Dover, Delaware
Lt. Scott Simpson Capital Police, State Auditor Kathy McGuiness, Building Owner and Developer Frank DiMondi, Lt. Governor Bethany Hall-Long, Department of Insurance Chief of Staff Stuart Snyder, Insurance Commissioner Trinidad Navarro, Deputy Commissioner Tanisha Merced, Esquire, Market Conduct / Consumer Services Divisions Director Frank Pyle

 

Delaware Insurance Commissioner Trinidad Navarro cut the ribbon during a ceremony held this morning at 11 AM to commemorate the opening of the Delaware Department of Insurance’s new Dover office location at 1351 West North Street, Suite 101 in Dover. The Department moved from its original location in the Silver Lake Office Complex in Dover to its new location on July 15, 2019. The event was also attended by Lt. Governor Bethany Hall-Long, State Auditor Kathy McGuiness, as well as Dover City Councilmen Fred Neil and Bill Hare.

 

The Department began its relocation efforts in 2018 to improve Delaware consumers’ ability to visit the office so their needs could be better met. This included expanded parking, and improved handicap access, in addition to a significant rent savings of over $150,000 during the first year.

 

Commissioner Navarro mentioned the rent savings over the 15 year lease term with DGKP North (the building’s owner) that would exceed $2 million from what the rent was in the previous location.  Additional savings were cited by the Commissioner that included relocating existing furniture, computers, video equipment, and reducing document storage by more than 100 square feet.  Several construction modifications were made to the interior of the previous office that became cramped over the past 2 decades, and the Department of Insurance was out of space.  The new building is a more efficient design employing the latest technology for energy efficiency. The footprint of the new building is a 13% increase in space, but a 30% reduction in rent per square foot.

 

Commissioner Navarro stated, “I’m pleased that we were able to move to a new building with these enhancements, and save taxpayers money at the same time.  We now have a conference room that can accommodate our entire staff. A move of this magnitude is never easy.  I have to commend our internal staff who worked on this project, as it was completed on time, and on budget.”

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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.

Contact: Vince Ryan

Office: (302) 674-7303

Mobile: (302) 387-7670

Email: vince.ryan@delaware.gov

                                                         

Delaware Department of Insurance

http://www.insurance.delaware.gov

Dover Office: 302-674-7300

Consumer Services Division: 1-800-282-8611