Bill Text: DE HB423 | 2015-2016 | 148th General Assembly | Draft
Bill Title: An Act To Amend Title 18 Of The Delaware Code Relating To Unfair Practices In The Insurance Business.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2016-06-14 - Introduced and Assigned to Economic Development/Banking/Insurance/Commerce Committee in House [HB423 Detail]
Download: Delaware-2015-HB423-Draft.html
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SPONSOR: |
Rep. Paradee & Sen. Ennis |
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Reps. Keeley, Longhurst, Mitchell |
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HOUSE OF REPRESENTATIVES 148th GENERAL ASSEMBLY |
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HOUSE BILL NO. 423 |
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AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR PRACTICES IN THE INSURANCE BUSINESS. |
Section 1. Amend §2304, Title 18 of the Delaware Code by making deletions as shown by strike through and insertions shown by underline as follows and redesignating accordingly:
§2304 Unfair methods of competition and unfair or deceptive acts or practices defined.
The following are hereby defined as unfair methods of competition and unfair or deceptive acts or practices in the business of insurance:
(16) Unfair claim settlement practices. — No person shall commit or perform with such frequency as to indicate a general business practice any of the following:
o. Refusing to promptly pay to an insured an amount based on the insurer's offer of settlement rejected by the insured, with both the insurer and the insured reserving and retaining all rights, claims, and arguments related to a proper amount for a subsequent determination or agreement.
Section 2.This Act shall take effect 90 days after the date of its enactment.
SYNOPSIS
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This Act requires insurance companies to pay to the insured the amount of the insurance company's offer of settlement which was rejected by the insured party.However, the amount remains subject to both parties' reservation or rights, claims, and arguments for the ultimate outcome of the claim. |
