Dover – Delaware Insurance Commissioner Karen Weldin Stewart joined Delaware Governor Jack Markell, Senator Patricia Blevins and State Representative Darryl Scott as the Governor signed into law, HB 420, a major piece of the Commissioner’s legislative agenda banning rescission of health insurance policies upon filing of claims.  The Commissioner said, “Governor Markell, Senator Blevins and Representative Scott deserve the gratitude of all Delawareans for the enactment of this important new law putting the patient first.   We could not allow insurance carriers to conclude from computerized sets of mathematical instructions that a policyholder had a pre-existing condition not reported on applications for health insurance coverage.” The Commissioner continued, “Health Insurance is not only a legally binding contract between the carrier and the policyholder, but also a covenant that, as a solemn promise, makes certain that when a policyholder faces a health issue, particularly a serious illness there is no question that the insurance they have paid for will be there in their moment of need.”

The rescission practice was used often against women who had been diagnosed with cervical or breast cancer.  HB 420 bans this practice except for cases of fraud or material misrepresentation.  The law also enables the Department of Insurance to regulate the growing practice of rescinding long-term care policies, even after insured individuals have entered nursing homes.    Commissioner Stewart’s office has already prepared and published proposed regulations on long-term care rescission.

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