SB 80 — AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO ASSIGNABILITY OF INSURANCE CONTRACTS.

Summary

This Act adds a provision addressing the assignability of rights under property insurance policies and authorizes a property insurance carrier to limit a policy’s assignability only to those persons or entities that have the legal authority to represent an insured. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Bill Text

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This Act clarifies the conditions under which rights under property insurance policies may be assigned, specifically limiting assignability to those with legal authority to represent the insured.

• § 2720

  may provide that the rights and benefits under the insurance policy may only be assigned to a person who has the legal authority to represent the named insured → may provide that the rights and benefits under the insurance policy may only be assigned to a person who has the legal authority to represent the named insured and may explicitly prohibit assignment of rights and benefits to any other person, including a property repair contractor.

  This change allows property insurance policies to explicitly prohibit assignment of rights to certain parties, ensuring that only authorized individuals can receive those benefits.

• § 2720(c)

  having “legal authority to represent the named insured” includes the person named by the named insured as having the named insured’s power of attorney, the person who is the named insured’s licensed public adjuster, or any other comparable person. → having “legal authority to represent the named insured” includes the person named by the named insured as having the named insured’s power of attorney, the person who is the named insured’s licensed public adjuster, or any other comparable person.

  No effective change was made, as the struck and inserted text are identical.

• § 2720(c)

  Property repair contractors operating in this State may not subvert the public adjuster licensing requirements in § 1751 of this title through the acquisition of a power of attorney from the named insured.

  This provision reinforces that property repair contractors cannot bypass licensing rules via power of attorney.

Action History

1. July 30, 2021

   Signed by Governor

2. June 23, 2021

   Passed By House. Votes: 41 YES

3. June 18, 2021

   Suspension of Rules in House

4. May 19, 2021

   Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 1 Favorable, 8 On Its Merits

5. April 01, 2021

   Assigned to Economic Development/Banking/Insurance & Commerce Committee in House

6. March 31, 2021

   Passed By Senate. Votes: 21 YES

7. March 24, 2021

   Reported Out of Committee (Banking, Business & Insurance) in Senate with 4 Favorable, 1 On Its Merits

8. March 04, 2021

   Introduced and Assigned to Banking, Business & Insurance Committee in Senate

Sponsors

• Spiros Mantzavinos · Primary
• William Bush · Primary
• Stephanie L. Hansen · Cosponsor
• Trey Paradee · Cosponsor
• Bryant L. Richardson · Cosponsor
• David P. Sokola · Cosponsor
• John "Jack" Walsh · Cosponsor
• Jeffrey N. Spiegelman · Cosponsor
• Gerald L. Brady · Cosponsor
• Paul S. Baumbach · Cosponsor
• Bruce C. Ennis · Cosponsor

Votes

Subjects