PROHIBITED UNFAIR CLAIM SETTLEMENT PRACTICES, CDR 18-900-902

Summary

Section 1.0 Purpose.

The purpose of this regulation is to set forth unfair claim settlement practices which, when committed or performed with such frequency as to indicate a general business practice, are prohibited.

Section 2.0 Authority.

This regulation is adopted by the Commissioner pursuant to the authority granted by 18 Del.C. §§ 311 and 2312, and promulgated in accordance with the Delaware Administrative Procedures Act, 29 Del.C. Ch. 101.

Section 3.0 Prohibited Unfair Claims Settlement Practices.

3.1 The following unfair claim settlement practices when committed or performed with such frequency as to indicate a general business practice are prohibited:

3.1.1 Misrepresenting pertinent facts or insurance policy provisions relating to coverage at issue.

3.1.2 Failing to acknowledge and respond within 15 working days, upon receipt by the insurer, to communications with respect to claims by insureds arising under insurance policies.

3.1.3 Failing to implement prompt ...