The Delaware Department of Insurance Revises Two Bulletins Relating to COVID-19

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Published: 07.01.2020

Who:    The Delaware Department of Insurance
When:  Effective immediately; revised and reissued June 25, 2020
Why:    The Domestic and Foreign Insurers Bulletin No. 117 and the Producers and Adjusters Bulletin No. 33 Bulletin (dated April 3, 2020 and updated June 25, 2020) were issued to provide additional guidance to insurers, other regulated entities and consumers regarding compliance with regulatory requirements during the COVID-19 public health emergency. This Bulletin is being provided in addition to, but not in place of, any prior guidance previously issued by Bulletin.

• Delaware Department of Insurance- Domestic and Foreign Insurers Bulletin No. 117 & Producers and Adjusters Bulletin No. 33 (Revised June 25, 2020)
• Delaware Department of Insurance: Domestic and Foreign Insurers Bulletin No. 116 & Producers and Adjusters Bulletin No. 32  (Prior Bulletin - March 2020) ​

What:  Updated guidance relating to COVID-19 and insurance issuers and producers in the Bulletins is as follows:

• Cancellations and Nonrenewal of Insurance Policies and Policyholder Flexibility – Nothing in the Order relieves any policyholder of the obligation to pay premiums. The Department of Insurance encourages insurers reach out to their insured and work with them to modify payment schedules / arrangements during the duration of the Governor’s State of Emergency. Insurers should obtain written validation that the hardship of the insured or policyholder is directly related to COVID-19 and the State of Emergency before foregoing a cancellation or nonrenewal.
  • Any accommodations made to insureds incurring economic hardship during the COVID-19 pandemic and the State of Emergency will not be violating insurance laws such as unfair inducement prohibitions. Any accommodations must be made in a fair nondiscriminatory manner.
  • The Commissioner will continue to review and assess circumstances as they arise with regard to insurer solvency and will amend this guidance as necessary. 
• Electronic Filings, Electronic Signatures, and Notarization – The Department is temporarily suspending the notarization requirements for documents required to be filed. This temporary suspension does not negate the necessity of obtaining notarized signatures. Any forms filed without notarization must file notarized documents within 60 days of the end of the declared State of Emergency. Alternatively, the Department will accept documents notarized in compliance with 6 Del. C §12A-111 or by remote notarization in the state in which the document is being notarized.
• Communication with the Department – Insurers are encouraged to communicate with the Department via email or phone since most employees are currently working from home.
  • As a result, correspondence received via the U.S. Postal Service or facsimile may be delayed for review.
  • A list of general email addresses to the Department of Insurance is found in this Bulletin. Please use the link below. 
• Administrative Hearings and Requests for Arbitration – Pursuant to the Executive Orders issued by the Governor, the Department has not held any administrative hearings or schedule any arbitrations that are non-essential or contrary to the directive to limit gatherings or practice social distancing or isolation. That said, the Department has resumed its arbitration program and is scheduling arbitrations to be heard electronically.  
• Temporary Licenses – Person VUE, the testing contractor had temporarily closed its testing centers in order to limit COVID-19 exposure. As a result, the Department offered temporary licenses for all license types and required applicants to sign a Consent Order stating that they have 90 days from the date that Person VUE is back in operation to complete their exam.
  • Person VUE is now able to provide examination services that accommodate applicants when social distancing.
    • As of June 30, 2020, the Department no longer issues temporary licenses.
    • Those who want to remain licensed must take the examination before September 30, 2020, the date the temporary license will lapse.
    • If a temporary licensee successfully passes the licensing exam, the license will automatically convert into a permanent license. If the temporary licensee fails, the license will lapse.
  • Applicants who applies for a temporary license before June 30^th may proceed with their application or withdraw their application and take the applicable licensing examination. 
• Regulatory Filing Deadlines, Response Deadlines and Requests for Extension – Currently, the Department’s Licensing and Examination Division is processing application daily and does not believe an extension is necessary.
  • The Department reiterates that it is not granting a blanket extension for insurers or other regulated entities to respond to inquiries from the Commissioner or from the Department’s Consumer Services Division.
  • The Department requests correspondence be made via email and/or telephone.
  • Companies that are unable to meet the filing/response deadline are encouraged to contact the Department as soon as possible to discuss alternative arrangements.
  • At this time, the Department is not requiring insurers to conduct any on-site audits of third-party administrators that are contrary to directives for social distancing or isolation; insurers can use electronic information requests to satisfy their on-site audit obligations.