CHAPTER 55

FORMERLY

HOUSE SUBSTITUTE NO. 1

FOR

HOUSE BILL NO. 90

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR INSURANCE BUSINESS PRACTICES AND APPLICABLE PENALTIES.

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

Section 1. Amend Title 18 of the Delaware Code by deleting Section 2308(a)(1) of Title 18 in its entirety, and replace it with the following:

“(1) Payment of a monetary penalty of not more than $1,000 for each and every act or violation but not to exceed an aggregate penalty of $100,000 unless the person knew or reasonably should have known he/she was in violation of this chapter, in which case the penalty shall not be more than $10,000 for each and every act or violation but not to exceed an aggregate penalty of $150,000 in any 6 month period;”

Section 2. Amend Title 18 of the Delaware Code by adding a new Section 2304(26) to Title 18 of the Delaware Code, which shall read as follows:

“(26) Failure to Respond to Regulatory Inquiries—No person shall, with such frequency as to indicate a general business practice, fail to provide preliminary substantive responses to inquiries from the Department of Insurance regarding the denial of claims, cancellation, non-renewal, or refusal of benefits, refusal to pre-authorize benefits, or violations of this Title, within twenty-one calendar days of such inquiry. A response in compliance with this subsection shall not preclude the provision of additional information responsive to the inquiry.”

Approved June 23, 2005