The Delaware Department of Insurance published a bulletin reminding insurers of the requirement to promptly respond to arbitration requests made by insureds and claimants, as required by Delaware law.

18 DE Admin. Code § 901 requires automobile and homeowners insurers to submit to arbitration of covered claims, unless exempt by the Insurance Commissioner. Respondents must submit a response within 20 business days of receiving a filed arbitration petition. If a response is not filed on time, the claim will proceed to a hearing for summary disposition. A request for reopening can be made within 5 business days after notice of the default judgment.

The Department has seen many violations by carriers who have failed to respond to filed arbitration petitions promptly. There have also been delays in carriers sending petitions to legal counsel, which often end in requests for continuances. Failure to comply with the statute can result in regulatory review and enforcement action.