Delaware General Assembly

Signed 8/30/10

The General Assembly has ended, the current status is the final status.

5/27/10

Scott

Sen. Blevins

Reps. D. Short, Briggs King, Cathcart, Hocker, Jaques, Q. Johnson, Keeley, Kovach, Mitchell, Outten, B. Short
Sen. Bushweller, Ennis, Hall-Long, Henry

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

This Act is intended to prohibit the practice of “post-claims underwriting” by health insurers, as defined in Title 18 of the Delaware Code. Underwriting is the practice of determining, based upon information provided by an applicant for an insurance policy about the applicant’s health and background, whether the insurance company should offer the applicant a policy and, if so, what should be the terms and the cost of the policy. Health insurance underwriting normally is completed prior to the issuance of an insurance policy. Post claims underwriting is a practice whereby an insurance company fails to properly complete underwriting prior to issuing a policy, and instead waits until a claim is filed to determine that the insured was originally ineligible for the policy and rescind the policy, notwithstanding the fact that the insured has, in some instances, been paying premiums on the policy for several months or years. This Act prohibits rescissions of health insurance policies, as defined in the Act, based upon post-claims underwriting. This Act does not apply in instances where the insured knowingly misrepresented or omitted information which materially affects the risk of hazard assumed by the insurer.

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Takes effect upon being signed into law

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