The Delaware Department of Insurance has been made aware of recent misrepresentations related to the basis for premium changes in consumer-facing communications. In response, the department is reminding agents, producers, and insurers of their obligations to provide full explanations of rate changes to policyholders when asked.
Additionally, the department is reissuing Universally Applicable Bulletin No. 1 relating to false or misleading representations.
“In order to adjust rates in our state, insurers go through a robust regulatory process during which they have to justify their rates to our team before they are approved,” said Insurance Commissioner Trinidad Navarro. “Consumers deserve understandable and accurate explanations too. And insurers, producers, and agents are required to provide that information by law. We will continue to enforce these provisions that ensure Delawareans are treated honestly and fairly in both the rates they experience, and the explanations they are afforded.”
The Department of Insurance does not set insurance rates, instead, its role is to analyze proposed rate changes against specific, actuarily justified criteria to determine whether rates are fair for both consumers and the insurance industry alike.