Delaware General Assembly

House Economic Development/Banking/Insurance & Commerce 5/14/26

Committee Hearing takes place within twelve legislative days.

SB 189 -SA 1

5/12/26

Poore

Rep. Chukwuocha

Sen. Townsend

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

This legislation is intended to ensure that individuals can, for a period of 15 days, rescind approval of a settlement in a personal injury case involving a motor vehicle accident if the individual was unrepresented at the time of settlement and if payment is returned upon rescission. This Act also requires notice to be given to an unrepresented individual of their right of recission in the release of liability. These changes will allow an individual greater ability to make an informed decision. This Act becomes effective on 6 months after its enactment into law. This Act is a substitute for Senate Bill No. 189. The Act differs from Senate Bill No. 189 in that it provides a rescission period of 15 days, rather than 60 days; it refers to “motor vehicle accidents” rather than “automobile accidents”; it adds a new subsection to make clear that the insurer may withhold any future settlement proceeds until it receives confirmation that the check or settlement proceeds have been returned; and it corrects a typo.

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