SB 189 — ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR PRACTICES IN THE INSURANCE BUSINESS.

Poore DELAWARE& STATERep. SENATE 153rd GENERAL ASSEMBLY SENATE AMENDMENT NO.

1Chukwuocha TOSen. SENATE SUBSTITUTE NO.

Townsend;

Rep.

Lambert DELAWARE STATE SENATE 153rd GENERAL ASSEMBLY SENATE SUBSTITUTE NO.

189 ACT TO AMEND SenateTITLE Substitute18 No.OF THE DELAWARE CODE RELATING TO UNFAIR PRACTICES IN THE INSURANCE BUSINESS.

1BE forIT SenateENACTED BillBY No.THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

189Section on1. line 5 by deleting "the infliction of the injuries" as it appears therein and inserting in lieu thereof "the motor vehicle accident".

FURTHERAmend AMEND§ Senate2322, SubstituteTitle No.18 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

1§ 2322 Release of claim or settlement agreement by injured persons in motor vehicle accidents (a) A release of a claim of an individual for Senateinjuries Billresulting No.from a motor vehicle accident, signed by the individual within 30 days of the infliction of the injuries without the assistance or guidance of an attorney at law, and without any power of attorney to or contract of employment with an attorney at law, with reference to recovery of damages resulting from the accident, may be rescinded by the injured individual within 15 days after the date on which the individual signed the document, or, if no release is signed, within 15 days from the cashing of a settlement check or transfer of electronic funds.

189(b) onFor linea 17recission byunder insertingsubsection "confirmed(a) by certified mail, certificate of mailing,this ACHsection trackingto number,be oreffective, otherall recognized method of fundsthe tracking"following aftermust "rescissionbe period"satisfied: and before the period therein.

SYNOPSIS(1) ThisThe Amendmentnotice of rescission must be in writing to Senatethe Substitutereleasee, No.or to the releasee’s legal representative or insurance carrier.

1(2) forThe Senateinjured Billindividual No.must return to the releasee or releasee’s legal representative or insurance carrier any check or settlement proceeds received by the injured individual.

189(3) clarifiesThe thatitems anrequired individualby seekingparagraphs to(b)(1) rescindand a(b)(2) release of athis claimsection must havebe thesent return a notice of rescission and settlement proceeds to the releasee or releasee'sreleasee’s legal representative or insurance carrier confirmedno bylater certifiedthan mail,10 certificatedays ofafter mailing,the ACHexpiration trackingof number,the or15-day otherrescission recognizedperiod. method of funds tracking.

In(c) addition,An thisinsurer Amendmentmay clarifieswithhold thatpayment inof orderany tofuture besettlement subjectproceeds tountil thisit Act,has areceived releaseconfirmation mustthat beany signedcheck byor ansettlement individualproceeds withinhave 30been daysreturned ofas therequired motorunder vehicleparagraph accident.(b)(2) of this section.

SD :

MD :

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05/12/2026 04:28 PM (d) A release of liability executed within 30 days of the motor vehicle accident giving rise to the claim for personal injury must contain a notice of the individual’s right to rescind the release, stated conspicuously and separately on the release or settlement check.

If no release or settlement check exists, the required language must be provided to the individual via written communication.

Section 2.

This Act takes effect 6 months after its enactment into law.

SYNOPSIS This legislation is intended to ensure that individuals can, for a period of 15 days, rescind approval of a settlement in a personal injury case involving a motor vehicle accident if the individual was unrepresented at the time of settlement and if payment is returned upon rescission.

This Act also requires notice to be given to an unrepresented individual of their right of recission in the release of liability.

These changes will allow an individual greater ability to make an informed decision.

This Act becomes effective on 6 months after its enactment into law.

This Act is a substitute for Senate Bill No.

189.

The Act differs from Senate Bill No.

189 in that it provides a rescission period of 15 days, rather than 60 days;

it refers to “motor vehicle accidents” rather than “automobile accidents”;

it adds a new subsection to make clear that the insurer may withhold any future settlement proceeds until it receives confirmation that the check or settlement proceeds have been returned;

and it corrects a typo.

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