CHAPTER 161

FORMERLY

SENATE BILL NO. 171

AN ACT TO AMEND TITLE 18, DELAWARE CODE RELATING TO THE CANCELLATION OF AGENCY CONTRACTS WITH INDEPENDENT INSURANCE AGENTS.

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

Section 1. Amend Title 18 Delaware Code by adding the following new subsection (e) to Section 529.

"(e)(1) This subsection shall not apply in an instance where such company:

(i) Employs an agent directly; or

(ii) has an exclusive business arrangement with an agent.

(2) Notwithstanding any other provision of this section, a company may not cancel the contract of an independent agent for property and casualty insurance solely because of adverse underwriting experience in the line of private passenger insurance to the extent losses incurred by the insurer were not the fault of the insured.

(3) This subsection does not apply to adverse underwriting experience on losses incurred by the company on:

(i) bodily injury coverage;

(ii) property damage coverage;

(iii) collision coverage; or

(iv) to the extent that the losses incurred by the insurer were the fault of the insured, personal injury protection coverage and comprehensive coverage."

Approved July 9, 1997