With the Delaware General Assembly’s regular session set to adjourn in less than one week, state lawmakers could soon take up for consideration a problematic insurance bill.
The Owner-Operator Independent Drivers Association said the legislation could result in higher insurance rates for truck drivers and others.
Senate Bill 189
Introduced a week ago, the amended bill is touted to address unfair practices in the insurance business.
SB189 covers personal injury settlements signed by unrepresented claimants within 30 days of a vehicle incident.
The bill would allow an unrepresented person with injuries related to a vehicle incident to rescind their approval of a settlement. The settlement would be permitted within 30 days of signing the document.
If no release is signed, rescission would be available within 30 days from the cashing of a settlement check or transfer of electronic funds.
As introduced, the insurance bill would authorize rescission within 60 days.
A notice for rescission would have to be provided in writing no later than 10 days after the 30-day rescission period expires. Any received settlement funds or checks also would have to be returned within the time period.
Additionally, an unrepresented person would have to be given notice of his or her right of rescission in the release of liability.
Advocates have said the bill is intended to ensure individuals can make informed decisions when settling personal injury claims without a lawyer. The change is touted to prevent individuals from being pressured into settlements they could later regret.
Others have pointed out the proposed rule could significantly affect how insurers handle early settlements.
Critics have said SB189 would complicate a process that already works well. They’ve highlighted small bodily injury claims that typically are settled quickly and avoid litigation.
What’s next?
The bill is in the Senate Banking, Business, Insurance and Technology Committee.
OOIDA encourages Delaware truckers to contact their state senator about the bill. Truck drivers should ask lawmakers to vote “no” on this bill that could increase insurance rates for consumers.
If approved by the Senate and House, SB189 would head to the governor. Gov. Matt Meyer could sign the bill into law, allow it to become law without his signature or veto it.
The new rule would take effect six months after becoming law. LL
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