CHAPTER 290

FORMERLY

SENATE BILL NO. 191

AS AMENDED BY

HOUSE AMENDMENT NO. 3

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO INSURANCE.

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

Section 1. Amend Chapter 41, Title 18 of the Delaware Code by adding new § 4129 and §4130 as follows:

Ҥ4129. Non-Renewal.

(a)(1) An insurer may not refuse to renew a policy of homeowners insurance solely on the basis of:

(i) Claims caused by weather, unless three or more such claims have been made

against the policy during the 36 months immediately preceding the expiration of the current policy period; or

(ii) Claims not caused by weather, unless two or more claims have been made

against the policy; or

(iii) A combination of claims caused by weather and claims not caused by weather, unless such combination of claims has been made against the policy during the 36 months immediately preceding the expiration of the current policy period; or

(iv) Claims closed without payment, notwithstanding any other provision of this section. However, an insurer may nonrenew a homeowner’s policy if:

(i) the claim or claims asserted against the policy demonstrate that there has been a substantial change or increase in the hazard or in the risk assumed by the carrier subsequent to the date the policy was issued, and such nonrenewal is applied to other homeowners policies similarly situated; or

(ii) the policyholder has refused or failed to make objectively necessary changes or repairs after being notified by the insurer that failure to make such changes or repairs will constitute a breach of contractual duties, conditions or warranties that will change or increase the hazard or risk assumed by the insurer subsequent to the date the policy was issued.

(b) “Homeowners insurance” for purposes of §4129 and §4130 of this Title shall mean property insurance as defined at §4103(4)d and §4120 of this Title insuring any real or personal property used by a person as a permanent or temporary place of residence.

§4130 Inquiries

An insurer shall not consider an inquiry regarding a homeowners policy or a loss under that policy to be a claim for purposes of making underwriting decisions, including but not limited to decisions to nonrenew a policy. An inquiry is any contact initiated by an insured that is not the filing of a claim to an insurer.”

Approved July 3, 2008