Westmont Wire

The Delaware Department of Insurance has recently released Domestic and Foreign Insurers Bulletin No. 142/Producers and Adjusters Bulletin No. 36 regarding ​pet insurance policies in Delaware. The key highlights are as follows:

• The passage of House Bill No. 156 adds new Chapter 88 to Title 18, entitled the “Pet Insurance Act”, which reflects the adoption of the NAIC Pet Insurance Model Act.
• The Act applies to a pet insurance policy that is issued to a resident of Delaware, a pet insurance policy that is sold, solicited, negotiated, or offered in Delaware, or a pet insurance policy or certificate
• that is delivered or issued for delivery in Delaware.
• The Act standardizes policy language and includes various consumer protections, including:
  • Multiple disclosure requirements
  • 30-day “free look” period for consumers
  • Insurers may impose a 30-day waiting period before coverage starts for illnesses or orthopedic conditions not resulting from an accident. However, a pet owner may avoid the waiting period by having a medical examination of the pet completed right away.
  • Insurers are prohibited from imposing waiting periods for injuries due to accidents.
  • Wellness programs are not insurance and may not be marketed as a prerequisite for pet insurance coverage.
• An insurance producer is prohibited from selling, soliciting or negotiating a pet insurance product until after the producer is appropriately licensed and has completed training on the product the producer is offering for sale.
• It is the insurer’s responsibility to confirm that the insurer’s insurance producer is properly trained – the insurer should maintain documentation of the insurer’s compliance with the Code. If a producer is selling the products of multiple carriers, presumably with differing products, then training would have to be provided for each product/carrier.
• Satisfaction of the training requirement of another state that is substantially similar to the training requirements set forth at subsection 8807(c) (as determined by the Commissioner) satisfies the training requirement under Chapter 88.

Please note the bulletin became effective upon signing on 8/31/2023 and allows insurers up until 12/1/23 to refile any currently-approved pet insurance policy forms to bring them into compliance with the Act.

For any questions related to the above referenced bulletin in Delaware, please contact Westmont Associates!

856-216-0220

info@westmontlaw.com

www.westmontlaw.com

The Delaware Department of Insurance has recently released Bulletin No. 141 regarding the timeline for filing and reviewing insurers’ rate filings. The key highlights are as follows:

• Extends the timeline for filing and reviewing insurers’ rate filing by requiring rate filings to be filed at least 60 days in advance of the proposed effective date.
• Authorizes the Commissioner to extend the timeframe to review the filing and postpone the effective date of the filing pending completion of the extended review.
• Sets forth the process for when the Commissioner proposes to deny a rate filing and require that a filing may not become effective until a final order is issued.

Please note the bulletin became effective upon signing on 8/31/2023. Please further note that this bulletin does not apply to workers’ compensation; Chapter 26 of Title 18, entitled “Workers’ Compensation Rating”, applies specifically to workers’ compensation rate filings.

For any questions related to the above referenced bulletin in Delaware, please contact Westmont Associates!

856-216-0220

info@westmontlaw.com

www.westmontlaw.com

Effective May 25, 2023, the Delaware legislature passed a law amending 18 Delaware Code Section 511, which establishes the minimum amounts of capital and surplus required for a carrier to transact insurance within Delaware. All licensed insurers in Delaware, including stock, mutuals, or reciprocals, must now possess minimum capital of $650,000 as well as a minimum free surplus of $350,000 in order to transact any line of insurance. Previously, these minimum amounts of capital and surplus varied among carrier types and/or lines of authority.

For Delaware domestic insurers which obtained a valid certificate of authority prior to January 1, 2024, they may continue to be authorized under the prior capital and surplus minimums for a period of 5 years (until January 1, 2029). This exception does not apply to new applicants, or those Delaware domestic which seek to expand their authority in the state.

The Delaware Department of Insurance has issued Domestic/Foreign Insurers Bulletin 140, which provides further information on these changes.

For any questions related to the new capital and surplus requirements in Delaware, or for any of your carrier licensing and compliance needs, please contact Westmont Associates!

856-216-0220

info@westmontlaw.com

www.westmontlaw.com