The Delaware Department of Insurance published a bulletin reminding insurers authorized to conduct business in the state to notify the Department if they intend to withdraw a business line or product from the market.

The Department is concerned about carriers quietly exiting lines of business and aims to minimize potential disruptions in the marketplace. An informational letter of intent is requested in scenarios where:

  • The carrier intends to discontinue an entire book of business at the end of the policy term
  • The carrier intends to transition all business from its company to an affiliated or non-affiliated insurer
  • The carrier doesn't intend to renew a block of business
Letters of intent must be submitted via SERFF at least 90 days before the carrier issues the mandated notices for withdrawal for a specific line. The letters of intent should include:

  • The reason for withdrawal
  • Whether the withdrawal is specific to Delaware or if other areas are impacted
  • The effective date of withdrawal
  • The total annual premium loss
  • The number of Delaware insureds that will be affected, broken down by line of insurance and by location

The bulletin can be found here.