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HB406 • 2025

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR TRADE PRACTICES IN AUTOMOBILE INSURANCE.

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR TRADE PRACTICES IN AUTOMOBILE INSURANCE.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Bush
Last action
2026-05-19
Official status
Out of Committee 5/19/26
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details about enforcement mechanisms for non-compliance with the new rules.

Act to Protect Auto Insurance Fairness

The bill updates auto insurance rules in Delaware by stopping car insurers from requiring specific repair shops for claim payments.

What This Bill Does

  • Stops car insurance companies from forcing drivers to use certain repair shops as a condition of getting their claims paid.

Who It Names or Affects

  • Car insurance companies and their agents in Delaware
  • Drivers who have car insurance in Delaware

Terms To Know

Unfair trade practices
Actions by businesses that are not fair or honest, especially when dealing with customers.

Limits and Unknowns

  • The bill does not specify how insurance companies will be punished if they do not follow these new rules.
  • It is unclear what specific changes the technical corrections will include beyond making the law easier to understand.

Bill History

  1. 2026-05-19 Delaware General Assembly

    Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 7 Favorable, 2 On Its Merits

  2. 2026-05-07 Delaware General Assembly

    Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR TRADE PRACTICES IN AUTOMOBILE INSURANCE.
This Act updates auto insurance protections by prohibiting carriers from limiting repair or replacement work to particular facilities, individuals, or business establishments as a condition of payment of a claim.
This Act makes technical corrections to conform the statute with the Delaware Legislative Drafting Manual.

Current Bill Text

Read the full stored bill text 
Legislation Document

SPONSOR:

Rep. Bush & Sen. Mantzavinos

Reps. Osienski, Snyder-Hall, Berry, Carson; Sens. Richardson, Seigfried

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 406

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR TRADE PRACTICES IN AUTOMOBILE INSURANCE.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 3916, Title 18 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 3916. Unfair trade practices.

No insurance company, domestic or foreign, or any agent or employee

shall

may

require that automobile

glass

repair or replacement work be performed by a particular facility,

individual

individual,

or business establishment as a condition of payment of a claim.

Section 2. This Act is effective 180 days after its enactment into law and applies to all policies, contracts, or certificates issued, renewed, modified, altered, amended, or reissued on or after the effective date.

SYNOPSIS

This Act updates auto insurance protections by prohibiting carriers from limiting repair or replacement work to particular facilities, individuals, or business establishments as a condition of payment of a claim.

This Act makes technical corrections to conform the statute with the Delaware Legislative Drafting Manual.