The Delaware Department of Insurance is not forcing insurers to raise premiums, and anyone who says otherwise could lose their license and face fines of $10,000, the department warned in a bulletin this week.
“The department continues to regularly receive complaints advising that various members of the insurance industry, including insurers and brokers, have been responding to consumer inquiries related to premium rate increases by claiming that the Department has required an insurer to raise premium rates,” reads a bulletin posted Monday, Aug. 7.
The bulletin was initially posted in 2017, but has been reissued after new complaints were filed about producers in property-casualty insurance lines, particularly auto insurance, a spokesperson for the department said. Delaware, like many states, has seen auto insurance rates increase this year, due to a number of factors.
The department said it follows an extensive process, dictated by state law, when reviewing rate-increase requests that are often made by insurers themselves. The Department of Insurance does not set insurance rates, the DOI noted, adding that its role is to analyze proposed rate changes against specific, actuarily justified criteria to determine whether rates are fair.
“When an insured questions a change in premium, “the department expects producers to obtain a full explanation of the premium increase from the insurance company and provide that information to the insured,” reads the bulletin, signed by Insurance Commissioner Trinidad Navarro.
It is unlawful to provide misleading information to insureds, and errant producers can face significant penalties, the department said.
Topics Delaware
Was this article valuable?
Here are more articles you may enjoy.
State Farm Seeking Large Rate Increases in Wildfire-Prone California 
NCCI Identifies ‘Big 3′ Workers’ Comp Issues to Watch 
Homebuilders Cut on ‘Sluggish’ Housing Market, Florida Woes 
The 10 Major Risks Shaping Insurance Today 
