DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE CONCURRENT RESOLUTION NO. 111

ESTABLISHING AN AUTOMOBILE INSURANCE REFORM TASK FORCE FOR THE DEVELOPMENT OF CONSUMER COST-SAVING LEGISLATION, REGULATIONS, AND POLICIES.

WHEREAS, Delaware residents and businesses have expressed concerns regarding the affordability and accessibility of automobile insurance coverage; and

WHEREAS, Delawareans are required by law to purchase automobile insurance coverage in order to legally operate a vehicle; and

WHEREAS, medical costs factor substantively into automobile insurance rates; and

WHEREAS, medical care cost schedules — such as those from the Workers Compensation Task Force, which lowered rates – carry the added benefits of standardizing payments and reducing provider payment inequities based on provider health system participation, provider location, and other factors; and

WHEREAS, various other costs contributing to automobile insurance premium rise are not controllable by state entities, such as the integration of technology into vehicles, supply chain shortages, investment volatility, inflation and tariffs that increase automobile repair and replacement costs; and

WHEREAS, the Insurance Commissioner is responsible for reviewing proposed rate changes from insurance companies to ensure that they are not inadequate, excessive, or unfairly discriminatory; and

WHEREAS, the General Assembly and the Insurance Commissioner share the common goal of making sure that mandatory coverages are affordable and accessible; and

WHEREAS, it is prudent for a broadly representative group with expertise in automobile insurance matters and health care costs to review current practices and accessible policy outcomes to ensure that Delaware’s automobile insurance premiums remain as low as actuarially justified while the system still provides consumers with appropriate coverage.

NOW, THEREFORE:

BE IT RESOLVED by the Senate of the 153rd General Assembly of the State of Delaware, the House of Representatives concurring therein, that the Automobile Insurance Reform Task Force (“Task Force”) is established to do all of the following:

(1) Develop a set schedule of medical expenses or medical cost caps to be proposed.

(2) Engage with the Department of Insurance to do the following: a) work with insurers who shall assist the Department in determining the potential premium impact of the medical cost schedule proposed, b) if advisable, conduct an actuarial study, c) if advisable, consult with the Insurance Services Office, other insurance support organizations, and/or a data analytics company.

(3) No later than January 30, 2026, make written recommendations to the General Assembly on ways to accomplish savings for automobile insurance consumers legislatively.

(4) No later than January 30, 2026, make written recommendations to the Insurance Commissioner on ways to accomplish savings for automobile insurance consumers regulatorily.

BE IT FURTHER RESOLVED that the Task Force be comprised of the following members, or a designee selected by a member serving by virtue of position:

(1) One member of the Senate, from the Majority Caucus, appointed by the President Pro Tempore of the Senate, who shall serve as Co-Chair.

(2) One member of the House, from the Majority Caucus, appointed by the Speaker of the House of Representatives, who shall serve as Co-Chair.

(3) One member of the Senate, from the Minority Caucus, appointed by the President Pro Tempore of the Senate in consultation with the Minority Leader in the Senate.

(4) One member of the House, from the Minority Caucus, appointed by the Speaker of the House in consultation with the Minority Leader of the House.

(5) The Insurance Commissioner.

(6) A representative of the Delaware Association of Insurance Agents & Brokers, appointed by the President Pro Tempore of the Senate.

(7) One insurance agent or broker, appointed by the Insurance Commissioner in consultation with the Insurance Commissioner’s Agent Advisory Committee.

(8) A representative from the insurance industry, from a company or trade association, that is or has a member that is one of the top 5 writers of private passenger automobile insurance coverage or commercial insurance coverage in the State of Delaware, appointed by the Speaker of the House of Representatives.

(9) A representative from the insurance industry, from a company or trade association, appointed by the President Pro Tempore of the Senate.

(10) A representative from the insurance industry, from a company or trade association, appointed by the Speaker of the House of Representatives.

(11) A representative of an organization which purchases commercial automobile insurance, appointed by the President Pro Tempore of the Senate.

(12) One member of the public who purchases personal passenger insurance, appointed by the Speaker of the House of Representatives.

(13) One member leading an organization that repairs vehicles, appointed by the President Pro Tempore of the Senate.

(14) One member of the Delaware Trial Lawyers Association, appointed by the Speaker of the House of Representatives.

(15) The President of the Delaware Society of Orthopedic Surgeons.

(16) The President of the Delaware Academy of Physical Medicine and Rehabilitation.

(17) One chiropractor appointed by the President Pro Tempore of the Senate.

(18) One physical therapist, appointed by the Speaker of the House of Representatives.

(19) The President of the Delaware Healthcare Association.

(20) The Executive Director of the Medical Society of Delaware.

(21) An at-large member of the Medical Society of Delaware appointed by the President Pro Tempore of the Senate.

BE IT FURTHER RESOLVED that members serving by virtue of position who are granted the ability to designate another individual to attend a Task Force meeting must provide the designation in writing to the Co-Chairs. An individual attending a meeting for a member serving by virtue of position has the same duties and rights as the member serving by virtue of position.

BE IT FURTHER RESOLVED that the Co-Chairs of the Task Force be responsible for guiding the administration of the Task Force by, at a minimum, doing all of the following:

(1) Notifying the individuals who are members of the Task Force and, if applicable, notifying a person of the need to nominate or appoint a member.

(2) Setting a date, time, and place for all meetings.

(3) Supervising the preparation and distribution of Task Force meeting notices, agendas, minutes, correspondence, and reports.

(4) Sending to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Director of the Division of Legislative Services, after the first meeting of the Task Force, a list of the members of the Task Force and the person who appointed them.

(5) Providing meeting notices, agendas, and minutes to the Director of the Division of Legislative Services.

(6) Ensuring that any written recommendations required by this Concurrent Resolution are submitted to the following:

a. The President Pro Tempore and Secretary of the Senate, for distribution to all Senators.

b. The Speaker and Chief Clerk of the House of Representatives, for distribution to all Representatives.

c. The Director and the Librarian of the Division of Legislative Services.

d. The Director of the Delaware Public Archives.

e. The Governor.

BE IT FURTHER RESOLVED that the Task Force must hold its first meeting not later than September 1, 2025.

BE IT FURTHER RESOLVED that:

(1) Official action by the Task Force, including making findings and recommendations, requires the approval of a quorum of the Task Force. A quorum of the Task Force is a majority of its members.

(2) The Task Force may adopt rules necessary for its operation. If the Task Force does not adopt rules or if the adopted rules do not govern a given situation, Mason’s Manual of Legislative Procedure controls.

(3) The Task Force shall operate in an open and transparent manner, ensuring public participation is possible throughout its deliberations.

BE IT FURTHER RESOLVED that the Task Force may make data requests of the Delaware Department of Insurance for the purposes of their efforts.

BE IT FURTHER RESOLVED that the General Assembly is responsible for providing reasonable and necessary support staff and materials for the Task Force.

SYNOPSIS

This Concurrent Resolution establishes the Automobile Insurance Reform Task Force (“Task Force”). The General Assembly is creating the Task Force to address rising costs relating to automobile insurance both in private passenger and commercial markets. Rates have risen in actuarially justified manner due to a number of factors including increasing commonality of expensive vehicle technology, supply shortages, inflation and tariffs, rising health care costs, and significant insurer loses during climate events.

Author: Senator Mantzavinos