Several bills affecting the insurance industry recently were approved by Delaware's 2005 general assembly. Other legislation, deemed negative to the industry by the Property Casualty Insurers Association of America, was postponed.

Legislation that was approved included HB 20, a bill that allows the Department of Insurance's Fraud Bureau to confiscate auto tags of owners without insurance — as long as owners are notified in advance and are given the opportunity to provide proof of insurance. Another bill that was approved, HB 90, centers on bad-faith notice to the department. In its final form, the bill was amended to reduce the increases in fines, to modify the time frame for a response to the department to 21 calendar days, and to remove a provision making the legislation applicable to health insurance carriers.

“While we did not feel that there was a strong need to revise the state's bad faith law, we wish to applaud legislators for working with the insurance industry in creating balanced legislation that will assure a timely response to the department,” said Richard Stokes, regional vice president for PCI.