CHAPTER 142

FORMERLY

HOUSE BILL NO. 197

AS AMENDED BY HOUSE AMENDMENT NOS. 1, 2, HOUSE AMENDMENT NO. 1

TO HOUSE AMENDMENT NO. 2

AND HOUSE AMENDMENT NO. 3

AN ACT TO AMEND CHAPTER 39, TITLE 18, DELAWARE CODE RELATING TO CANCELLATION OF AUTOMOBILE INSURANCE POLICIES.

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

Section 1. Amend Chapter 39, Title 18, Delaware Code by adding a new Section 3915 thereto to read as follows:

"Section 3915. (a) No insurer shall honor a request for a cash refund on cancellation of a policy by the insured until such time as the insured has provided sufficient evidence to the insurer that one of the following has occurred:

(1) The insured has other insurance in effect which provides at least such minimum insurance coverage as is set forth in §3902 of this chapter.

(2) The insured vehicle is no longer owned by the insured.

(3) The vehicle is no longer operable or capable of being repaired so as to become operable.

(4) The insured becomes self-insured under the provisions of 21 Delaware Code §2904.

(b) The requirement of 'sufficient evidence' under subsection (a) hereof is satisfied by the insured providing the insurer with an affidavit certifying that any one of the conditions set forth in subsection (a) has occurred. The insurer shall notify any insured who requests a cash refund on cancellation of a policy of the requirements of this section, and shall provide an appropriate form of affidavit, approved by the Insurance Commissioner (who is expressly authorized to approve appropriate forms of such affidavit), for execution by the insured. Any form of affidavit presented to or executed by an insured under this section shall bear a notice to the effect that false statements therein are punishable pursuant to 11 Del. C. §1233."

Section 2. This Act shall take effect and apply to all new automobile casualty insurance contracts being issued or taking effect on or after January 1st of the calendar year immediately following its enactment into law. Renewal of an existing policy shall be considered issuance of a new policy for purposes of this Act.

Approved July 19, 1989.