Delaware Administrative Code
Title 18 - Insurance
1900 - Rates and Rating Organization
1901 - Consent-to-rate Filings (Excess Rates) [Formerly Regulation 33]
Section 1901-3.0 - Requirements for Filing
Current through Register Vol. 28, No. 3, September 1, 2024
3.1 Pursuant to 18 Del.C. Ch. 25, and 18 Del.C. § 2509 in particular, licensed insurers are authorized to issue policies of insurance at rates higher than those on file with the Department, for those risks which would not be accepted at filed and approved rate levels.
3.2 When a licensed agent and/or broker is unable to cover a risk at regular rates, the risk may be submitted to a licensed, appointed agent for any insurance company licensed to do business in Delaware, or to a licensed broker, for quotation of a rate in excess of that otherwise applicable.
3.3 If submitted to another agent or broker for quotation, that agent or broker must be licensed for that kind or line of insurance within which the risk would be placed.
3.4 Once a quote is received, the producer of record shall explain to the insured the coverage, the rates, and the circumstances necessitating an excess rate on the risk. Upon informing the insured of this information, the consent-to-rate action shall be initiated by completing the form prescribed by section 4.0.
3.5 Consent-to-rate forms shall be filed with the Insurance Department no later than fifteen calendar days after the effective date of the coverage. The consent-to-rate filing shall be issued in triplicate, one for the applicant, one for the producer's records, and the original for the Commissioner's records. All copies must be signed by the applicant indicating acknowledgment and acceptance of the rate proposed for the coverage.
3.6 All such policies shall be written subject to approval by the Commissioner. In the event a consent-to-rate filing is disapproved, the termination shall be on a pro rata basis, effective ten calendar days after receipt of the Commissioner's disapproval action.
3.7 In the event that the Commissioner does not approve the filing, the disapproval will specify in what respects he finds the filing to be unacceptable. The notice of disapproval shall be provided to the producer, the insurer, and the insured.
