Delaware Delaware Travel Insurance Act, Sales Practices (18 Del.C. § 5606)

Establishes consumer protection requirements for travel insurance, including marketing, disclosure, and cancellation standards, and prohibits unfair practices such as misleading coverage claims.

Status: Passed State: Delaware

About the Legislation:

All persons offering travel insurance to Delaware residents are subject to the Unfair Trade Practices Act unless otherwise provided. Offering or selling a travel insurance policy that could never result in payment of any claims for any insured under the policy is an unfair trade practice. Additionally, the statute imposes marketing and cancellation requirements. For example, all documents provided to consumers before purchasing the travel insurance must be consistent with the travel insurance policy; for policies that contain pre-existing exclusions, there must be information and an opportunity to learn more any time before purchase; the company must disclose whether the travel insurance is primary or secondary to other applicable coverage in the policy documentation. The statute prohibits a person who offers, solicits, or negotiates travel insurance or travel protection plans on an individual or group basis from using negative option or opt out. It is an unfair trade practice to market blanket travel insurance coverage as free. The statute also describes situations that do not qualify as an unfair trade practice.

Private Right of Action: No.
Damages/Enforcement: A violation constitutes an unfair trade practice under the Unfair Trade Practices Act enforced by the Insurance Commissioner.

Read the Legislation

State Association Contact

Josephine Bahn, Member

Aaron Krauss, Member

Any updates or new legislation should be sent to fraud@aba.com.

Delaware Delaware Travel Insurance Act, Sales Practices (18 Del.C. § 5606)

About the Legislation:

State Association Contact

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