AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO USE OF CERTAIN FACTORS IN UNDERWRITING PRIVATE INSURANCE.

Research has shown that certain underwriting factors used by insurers, while facially neutral, may have a disparate impact on protected classes. This bill seeks to address this disparate impact by prohibiting certain underwriting and rating factors, despite being correlative with loss, in homeowner’s and private passenger motor vehicle insurance policies. This bill would specifically prohibit an insurer’s consideration of an insured’s or proposed insured’s (i) non-pending arrests, charges and indictments that do not result in conviction, (ii) convictions unrelated to fraud or the risk being insured, or (iii) driver’s license suspensions or revocations for non-driving related reasons. This bill also corrects an incorrect statutory reference in current law.