CHAPTER 395

FORMERLY

SENATE BILL NO. 239

AS AMENDED BY

SENATE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR PRACTICES IN THE INSURANCE INDUSTRY.

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

WHEREAS, volunteer firefighters and non-profit ambulance crews provide a critical service to our state, placing their own safety in jeopardy for the good of their neighbors; and

WHEREAS, volunteer firefighters and non-profit ambulance crews should not be denied insurance or pay more for insurance simply by virtue of serving as emergency personnel; and

WHEREAS, at least one Delaware volunteer firefighter recently received a termination notice from an auto insurance carrier and was told that he was having his policy terminated because of his use of the vehicle as a volunteer firefighter; and

WHEREAS, the state’s volunteer fire companies and non-profit ambulance crews already have great difficulty recruiting sufficient personnel, and the state should make every effort to prevent the creation of additional obstacles to recruitment of new volunteers;

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

Section 1. Amend Title 18, Section 2304 of the Delaware Code by adding a new paragraph 28 which shall read:

“ (28) Volunteer Firefighters and Ambulance Personnel. No insurance carrier shall take any negative underwriting action against a policyholder, including, but not limited, to adjustment of rates or termination of a policy, based solely on the membership of a person covered by the policy in a volunteer fire company certified by the Delaware State Fire Prevention Commission or its successor or in a nonprofit organization that provides ambulance and/or rescue services within this State, including, but not limited to, organizations such as volunteer fire companies, the Veterans of Foreign Wars and the American Legion. This paragraph shall not prevent a carrier from taking underwriting action that is permitted by contract and applicable law, provided that the stated basis for such underwriting action is not a pretense for violating this paragraph.”

Approved July 21, 2008