Dover - Delaware Insurance Commissioner Karen Weldin Stewart expressed her gratitude to the Delaware General Assembly for passing, and to Governor Markell for quickly signing into law, H.B. 202, which amends the Delaware Life and Health Guaranty Association Act to increase the coverage for Delaware policyholders in the event of the insolvency of the insurance company that issued their policy. 

The law, as amended, dramatically increases coverage for policyholder as follows:

• Increases the coverage limit for long term care insurance from $100,000 to   $300,000.

• Increases the coverage limit for fixed annuity contracts from $100,000 to $250,000.

• Increases the coverage limit for certain government retirement benefit plans from $100,000 to $250,000.

• Increases the coverage limit for each payee of a structured settlement annuity plan or the beneficiary of the payee (if deceased) from $100,000 to $250,000.

“I want to thank both the General Assembly for promptly passing H.B. 202 at the beginning of the 2010 session and the Governor for quickly signing the bill into law,” said Commissioner Stewart, noting the integral roles played by H. B. 202’s sponsors, Rep. Bryon Short and Senator Harris McDowell, as well as Senate Insurance Committee Chairman, Patricia Blevins, in getting the legislation enacted.  “Passage of H.B. 202 provides a tremendous benefit to Delaware consumers specifically including 165 Delaware policyholders who potentially face loss of coverage because of pending proceedings seeking an order of liquidation against their insurer.”

“H.B. 202 conforms to the NAIC’s (National Association of Insurance Commissioners) Model Law,” added the Commissioner.  “Through the enactment of this legislation, Delaware continues to be on the forefront when it comes to protecting the interests of its consumers.

The Delaware Department of Insurance (“DOI”) consists of five divisions: (1) the Bureau of Examination, Rehabilitation & Guaranty: (2) the Consumer Services & Investigations Division; (3) the Producer Licensing & Continuing Education Division; (4) the Fraud Prevention Bureau; and (5) the Bureau of Captive and Financial Insurance Products.  The DOI is tasked with ensuring reliable insurance coverage at reasonable rates for Delaware consumers while ensuring their claims are paid in full and in a timely manner.  The DOI is an entirely self-funded agency with a yearly contribution to the Delaware General Fund that is approximately five times the amount of its annual operating budget.

 

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Contacts:
Elliott Jacobson (302) 674-7303; (202) 294-3266 cell
Michael Gould (302) 674-7304