CHAPTER 66

FORMERLY

SENATE BILL NO. 231

AN ACT TO AMEND CHAPTER 21, SUBCHAPTER I OF TITLE 21 OF DELAWARE CODE RELATING TO THE RIGHTS OF SUBROGATION UNDER THE DELAWARE NO-FAULT INSURANCE FOR MOTOR VEHICLES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend subsection §2118 (f), Title 21 of the Delaware Code by striking said subsection (f) in its entirety and substituting in lieu thereof a new subsection (f) which shall read as follows:

"(f) Insurers providing benefits described in subsections (a)(1), (a)(2), (a)(3), and (a)(4) shall be subrogated to the rights, including claims under any Workmen's Compensation Law, of the person for whom benefits are provided, to the extent of the benefits so provided.

(1) Such subrogated rights shall be limited to the maximum amounts of the tort feasor's liability insurance coverage available for the injured party, after the injured party's claim has been settled or otherwise resolved, except that the insurer providing benefits shall be indemnified by any Workmen's Compensation insurer obligated to make such payments to the injured party.

(2) Any settlement made with an injured party by a liability insurer shall not be challenged or disputed by any insurer having subrogated rights.

(3) Disputes among insurers as to liability or amounts paid pursuant to subsections (a)(1), (a)(2), (a)(3), and (a)(4) shall be arbitrated by the Wilmington Auto Accident Repraration Arbitration Committee or its successors. Any disputes arising bdtween an insurer or insurers and a self-insurer or self-insurers shall be submitted to arbitration which shall be conducted by the Commissioner in the same manner as the arbitration of claims provided for in 21 Delaware Code §2118 (i).

(4) No insurer or self-insurer shall join or be joined in an action by an injured party against a tort feasor for the recovery of damages by the injured party and/or the recovery of benefits paid by the insurer or self-insurer.

(5) Nothing contained herein shall prohibit aliability insurer from paying the subrogated claim of another insurer prior to the settlement or resolution of the injured party's claim. However, should the amount of such settlement or resolution, in addition to the amount of any subrogated claim, exceed the maximum amount for the tort feasor's liability insurance coverage available for the injured party,

then any insurer who has been paid its subrogated claim shall reimburse the tort feasor's liability insurer that portion of the claims exceeding the maximum amount of the tort feasor's liability insurance coverage available for the injured party.

Except as specifically otherwise provided herein, all provisions of this subsection shall also apply to self-insurers."

Approved June 2, 1977.