Source: http://regulations.delaware.gov/register/february2005/final/8%20DE%20Reg%201158%2002-01-05.htm
Timestamp: 2018-07-17 23:24:42
Document Index: 607074349

Matched Legal Cases: ['§311', '§2118', '§2118', '§2118', '§2712', '§ 2118', '§2118', '§10113', '§10115', '§ 2118', '§314', '§2712', '§311', '§2118', '§2118', '§2118', '§2118', '§ 11', '§ 11', '§ 11', '§ 11', '§ 11']

8 DE Reg 1158 02-01-05
Statutory Authority: 18 Delaware Code, Sections 311 and 2712 and 21 Delaware Code, Section 2118; (18 Del.C. §§311, 2712; 21 Del.C. §2118); 18 DE Admin. Code 603
Regulation 603 (formerly Regulation 9) first became effective on December 1, 1983. It was last amended effective May 16, 1987. Effective July 22, 2004, the Delaware General Assembly amended 21 Del.C. §2118(a)(2)f to require certain consumer notifications and acknowledgements for policies issued on or after October 1, 2004. Those new statutory provisions required all automobile insurers to: (a) provide each consumer/policyholder with a separate document that fully explains all of the PIP deductible options offered by the insurer, (b) obtain a written acknowledgment from the consumer/policyholder that such explanation has in fact been received, and (c) obtain from the consumer/policyholder a signed separate acknowledgment of the specific PIP deductible selected by the consumer/policyholder which shall include an acknowledgment of the policy costs relating to such PIP deductible.
Prior to that amendment, 21 Del.C. §2118 and 18 Del.C. §2712 required similar but different notifications and acknowledgements from consumers. The statutory provisions that took effect on July 22, 2004 require that Regulation 603 and Form A attached thereto be amended to conform to the new legal requirements imposed by amended 21 Del. C. § 2118(a)(2)f. Since the date the regulation was last amended, there have been statutory changes to 21 Del.C. §2118 that affect other provisions of the regulation.
Under the authority of 29 Del.C. §10113(b)(4) and (5) I hereby order that Regulation 603 be amended without the necessity of meeting the procedural requirements of 29 Del.C. §§10115-10118 as follows:
1. Revise Section 1.0 of the regulation to reflect the scope and authority of the regulation in conformity with the requirements of the Register of Regulations.
2. Move the definition of “Loss of Use” from Section 8.3 to the definitions in Section 4.0.
3. Amend Section 11.1 by deleting the reference to prior iterations of the regulation.
4. Amend Section 11.0 by adding a new Section 11.2 to reflect 21 Del. C. § 2118 as amended by 74 Del Laws c. 400.
5. Revise Section 15.0 to reflect the effective dates of the regulation’s adoption and amendment.
6. Revise Form A to reflect the changes required by 74 Del Laws c. 400.
7. Revise the statutory reference to the Wilmington Auto Accident Reparations Arbitration Committee or its Successors in Section 4.0.
I order that the proposed change shall become effective on February 11, 2005.
IT IS SO ORDERED this 18th day of January, 2005.
1.0 Rules and Regulations Scope and Authority
1.1 18 Del.C. §314 of the Delaware Insurance Laws authorizes the Insurance Commissioner to "make reasonable rules and regulations necessary for or as an aid to the administration or effectuation of any provision of this Title." 18 Del.C. §2712 provides that no policy providing automobile liability insurance shall be delivered or issued for delivery in this State, unless the form has been filed with the Commissioner. It also allows the Commissioner to disapprove any such form within 30 days after the date of filing. This Regulation is adopted by the Commissioner pursuant to 18 Del.C. §§311 and 2712, 21 Del.C. §2118 and promulgated in accordance with the Delaware Administrative Procedures Act, Title 29 Del.C. Chapter 101.
1.2 21 Del.C. §2118 provides that policies purporting to meet the requirements of the Section must provide coverage and policyholder notifications required by theat Section.
2.1.2 Personal Injury Protection, and
4.1 Whenever used:
"Wilmington Auto Accident Reparations Arbitration Committee or Its Successors" as described at 21 Del.C. §2118(a)(4) (f)(3) (g)(3) is deemed to include the insurance industry forums including the nationwide intercompany arbitration agreement, special arbitration agreement forum, automobile accident reparations arbitration agreement.
6.2 The policy must have minimum limits for this coverage as stated in 21 Del.C. §2118. The policy may provide for higher limits of compensation but the compensation for funeral expenses included in the foregoing shall not exceed the sum of $3000 per person. Personal injury protection benefits shall be payable within 30 days of the demand thereof by the claimants provided that reasonable proof of loss for which the benefits as demanded has been submitted to the PIP carrier.
8.1 Every insurer shall offer compensation for damage to the insured motor vehicle identified in the policy including the loss of use of the motor vehicle up to but not exceeding the actual cash value of the vehicle at the time of the loss, The coverage for loss of use shall not be less than $10 per day.
8.3 "Loss of Use" means expenses necessarily and actually incurred by the named insured as a result of damage to the insured motor vehicle.
(1)9.4.1 notify policyholders if they are considered nonstandard by the insurer and
(2)9.4.2 to inform the policyholders of the availability of the Delaware Assigned Insurance Risk Plan ("DAIP"). Notwithstanding the above, no agent is required to write a DAIP policy.
11.1 The coverage election form (Delaware Form A), attachment to Regulation 603 (Formerly Regulation No. 9), shall be properly presented by the insurer, broker, or agent to the policyholder, and acknowledged by the policyholder's signature. Proper presentation by the insurer, where possible, should be in person at the time application is made. If personal presentation is not possible, or if there is further need for clarification, insurers may present Form A by mail. The language or context of this form Form A shall be as shown unless, in accordance with filings made with this office, the insurer offers options, deductibles, etc., other than those described on the approved form. Any amended Form A shall clearly describe all additional options of coverage and must be filed with this Department prior to use. Any version of the coverage election form which deviates from Delaware Form A as shown (Appendix 1), must be filed with the Department prior to its use except that (Exception companies may overprint the form with company name, address and logo without filing it with the Department, providing the text remains unchanged.
Amendments to 11(a): Prior to May 16, 1987, the first sentence of § 11(a) read as follows:
"(a) The coverage election form (Delaware Form A), attachment to Regulation 9, shall be properly presented to the new policyholder by the insurer, broker, or agent, and shall be completed for each policyholder and vehicle."
Amendment No. 1 effective May 16, 1987 inserted the word "new" between the words "the" and "policyholder" in the second line of the sentence.
A second amendment to § 11(a), first sentence, ordered effective December 31, 1987, deleted at the end of the first sentence of § 11(a) the words "and shall be completed for each policyholder and vehicle. "The sentence now reads as shown § 11(a). (4/l/88)
The notice of amendment to § 11(a) effective December 31, 1987, follows:
DELAWARE MOTORIST'S PROTECTION ACT (As amended)
"WHEREAS, on April 16, 1987, the Department adopted an amended Regulation 9 which became effective May 16, 1987;
WHEREAS, under the Administrative Procedures Act, 29 Del. C., Section 10113(b) (4) duly adopted regulations may be amended to reflect non substantive changes or to alter style or form or to correct technical errors; and
WHEREAS, it has come to the attention of the Department that a certain provision of Section 11 of Regulation 9 may be interpreted more broadly than was intended,."
NOW, THEREFORE, the Commissioner finds that Regulation 9, Section 11 requires clarification in the form of a non substantive change in form.
IT IS ORDERED AS FOLLOWS: Section 11 of Regulation 9 is hereby amended to delete the words at the end of the first sentence "and shall be completed for each policyholder and vehicle." The first sentence of Regulation 11 shall therefore read:
"(a) The coverage election form (Delaware Form A), attachment to Regulation 9 shall be properly presented by the insurer, broker, or agent to the policyholder, and acknowledged by the policyholder's signature."
This amendment shall be effective immediately upon signature by the Commissioner as no substantive change is contemplated by this amendment.
SO ORDERED THIS 31st DAY OF DECEMBER, 1987.
11.2 The policyholder shall receive a full explanation of all deductible options avilable to the policyholder in writing as a separate document from the insurer and the insurer shall obtain from the policyholder a written acknowledgment of the policyholder’s receipt of such explanation as a separately includable item on the Form A. Additionally, the Form A acknowledgment signed by the policyholder shall include the related cost for each deductible offered by the insurer.
15.1 The above amendments to existing Regulation 603 (Formerly Regulation No. 9) shall become effective May 16, 1987. This regulation became effective on December 1, 1983 and was amended effective May 16, 1987. The effective date of the second amenment, including revisions to Form A, is February 11, 2005. The use of revised Form A shall be required for all policies issued on or after march 1, 2005.
DELAWARE MOTORIST'S PROTECTION ACT FORM A
The Coverage Election form (Delaware Form A) attachment to Regulation 9 shall be properly presented to the new policyholder by the insurer or broker or agent.
DELAWARE MOTORISTS PROTECTION ACT REQUIRED STATEMENT TO POLICYHOLDERS
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