KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Delaware

SB189 • 2025

ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR PRACTICES IN THE INSURANCE BUSINESS.

ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR PRACTICES IN THE INSURANCE BUSINESS.

Passed Legislature

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

Sponsor
Poore
Last action
2026-05-14
Official status
Lieu/Substituted 5/12/26
Effective date
Not listed

Plain English Breakdown

The official source does not specify what happens if a settlement is signed more than 30 days after an injury.

Act to Allow Rescission of Unrepresented Car Accident Settlements

This act allows individuals injured in car accidents who were not represented by a lawyer during settlement negotiations to rescind the agreement within 60 days if they return any received payments.

What This Bill Does

  • Allows an individual injured in a car accident, without legal representation, to rescind a settlement agreement within 60 days of signing or receiving payment.
  • Requires that unrepresented individuals be informed about their right to rescind the settlement when signing a release or getting paid.

Who It Names or Affects

  • People injured in car accidents who settle without legal representation
  • Insurance companies involved in these settlements

Terms To Know

Rescission
The act of canceling or undoing a contract or agreement.
Release of liability
A document that removes responsibility from another party for any future claims related to an accident.

Limits and Unknowns

  • Does not specify what happens if the settlement is signed more than 30 days after the injury.
  • The act will take effect six months after it becomes law, giving time for adjustments before implementation.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SA 1

1 • Poore

PWB 6/23/25

Plain English: The amendment shortens the time for individuals to rescind their approval of a settlement in insurance business from 60 days to 30 days.

  • Changes '60 days' to '30 days' where an individual can rescind their agreement on a settlement.
  • Adds the word 'the' before 'individual' when referring to who must be provided with something.
  • The amendment text does not provide details about what specific typographical error is corrected, so this information cannot be included in the summary.

Bill History

  1. 2026-05-14 Delaware General Assembly

    SS 1 for SB 189 - Assigned to Economic Development/Banking/Insurance & Commerce Committee in House

  2. 2026-05-13 Delaware General Assembly

    Substituted in Senate by SS 1 for SB 189

  3. 2026-05-13 Delaware General Assembly

    SS 1 for SB 189 - - Passed By Senate. Votes: 21 YES

  4. 2026-05-13 Delaware General Assembly

    SS 1 for SB 189 - Passed By Senate. Votes: 21 YES

  5. 2026-05-12 Delaware General Assembly

    Reported Out of Committee (Banking, Business, Insurance & Technology) in Senate with 2 Favorable, 3 On Its Merits

  6. 2026-05-12 Delaware General Assembly

    Substituted in Senate by SS 1 for SB 189

  7. 2025-06-23 Delaware General Assembly

    Amendment SA 1 to SB 189 - Introduced and Placed With Bill

  8. 2025-06-19 Delaware General Assembly

    Introduced and Assigned to Banking, Business, Insurance & Technology Committee in Senate

Official Summary Text

ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR PRACTICES IN THE INSURANCE BUSINESS.
This legislation is intended to ensure that individuals can, for a period of 60 days, rescind approval of a settlement in a personal injury case involving an automobile accident if the individual was unrepresented at the time of settlement and if payment is returned upon rescission. This act also requires notice to be given to an unrepresented individual of their right of recission in the release of liability. These changes will allow an individual greater ability to make an informed decision. This Act becomes effective on 6 months after its enactment into law.

Current Bill Text

Read the full stored bill text 
Legislation Document

SPONSOR:

Sen. Poore & Rep. Chukwuocha

Sen. Townsend

DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE BILL NO. 189

ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO UNFAIR PRACTICES IN THE INSURANCE BUSINESS.

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

Section 1. Amend § 2322, Title 18 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 2322

Release of claim or settlement agreement by injured persons in automobile accidents

(a) A release of a claim of an individual for injuries resulting from an automobile accident, signed by the individual within 30 days of the infliction of the injuries

without the assistance or guidance of an attorney at law, and without any power of attorney to or contract of employment with an attorney at law,

with reference to recovery of damages resulting from the accident, may be rescinded by the injured individual within 60 days after the date on which the individual signed the document, or,

if no release is signed, within 60 days from the cashing of a settlement check or transfer of electronic funds.

(b) For a recission under subsection (a) of this section to be effective, all of the following must be satisfied:

(1) The notice of rescission must be in writing to the releasee, or to the releasee’s legal representative or insurance carrier.

(2) The injured individual must return to the releasee or releasee’s legal representative or insurance carrier any check or settlement proceeds received by the injured individual.

(3) The items required by paragraphs (b)(1) and (b)(2) of this section must be sent to the releasee or releasee’s legal representative or insurance carrier no later than 10 days after the expiration of the 60-day rescission period.

(c) A release of liability executed within 30 days of the incident giving rise to the claim for personal injury must contain a notice of the individual’s right to rescind the release, stated conspicuously and separately on the release or settlement check. If no release or settlement check exists, the required language must be provided to individual via written communication.

Section 2. This Act takes effect 6 months after its enactment into law.

SYNOPSIS

This legislation is intended to ensure that individuals can, for a period of 60 days, rescind approval of a settlement in a personal injury case involving an automobile accident if the individual was unrepresented at the time of settlement and if payment is returned upon rescission. This act also requires notice to be given to an unrepresented individual of their right of recission in the release of liability. These changes will allow an individual greater ability to make an informed decision. This Act becomes effective on 6 months after its enactment into law.

Author: Senator Poore