Anyone Engaged in Any Aspect of the Business of Insurance in Delaware, Including But Not Limited to Insurers, Intermediaries Including Producers (Agents, Brokers and Direct Writers), and Underwriters

Trinidad Navarro Commissioner [LOGO] Delaware Department of Insurance # UNIVERSALLY APPLICABLE BULLETIN NO. 1 TO: ANYONE ENGAGED IN ANY ASPECT OF THE BUSINESS OF INSURANCE IN DELAWARE, INCLUDING BUT NOT LIMITED TO INSURERS, INTERMEDIARIES INCLUDING PRODUCERS (AGENTS, BROKERS AND DIRECT WRITERS), AND UNDERWRITERS RE: FALSE OR MISLEADING REPRESENTATIONS CONCERNING HOW INSURANCE RATES ARE SET IN DELAWARE DATED: May 8, 2017 It has been brought to the Department's attention that various members of the insurance industry have been responding to consumer inquiries related to premium rate increases by claiming that the Department has required an insurer to raise premium rates. The purpose of this Universally Applicable Bulletin No. 1 is to remind any and all persons and companies engaged in any aspect of the business of insurance in Delaware, regardless of the line or lines of insurance offered that, pursuant to 18 Del.C. § 2304(2), it is unlawful to "... [make] any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of the insurance business, which is untrue, deceptive or misleading." Additionally, any misrepresentation of any provision of the Delaware Code or of the Delaware Administrative Code is a violation of 18 Del.C. § 2304(2) and, pursuant to 18 Del.C. § 2308, is punishable by an administrative penalty of up to $10,000 for each violation and revocation of the person's license if the person knows or reasonably knows they are violating the statute. The criteria according to which the Department evaluates rates proposed by insurers are set forth with specificity at 18 Del.C. § 2503. It is the Department's position that any explanation to any consumer that suggests the Department is responsible or is otherwise the cause for any premium rate increase constitutes a violation of 18 Del.C. § 2304(2) and will be prosecuted accordingly. Any questions, comments or requests for clarification about this Bulletin should be emailed to DOI-Legal@state.de.us. This Bulletin shall be effective immediately and shall remain in effect unless withdrawn or superseded by subsequent law, regulation or bulletin. Trinidad Navarro Trinidad Navarro Delaware Insurance Commissioner 841 Silver Lake Blvd., Dover, DE 19904-2465 ♦ www.delawareinsurance.gov (302) 674-7300 Dover ♦ (302) 739-5280 fax ♦ (302) 577-5280 Wilmington