An Act To Amend Title 18 Of The Delaware Code Relating To Underinsurance Motorist Coverage.
The introduction of SB 139 is expected to reduce the number of unnecessary lawsuits filed solely for the purpose of obtaining consent to accept a settlement offer from a liability insurer. By allowing the injured individual to accept a settlement offer under specified conditions, the bill aims to facilitate quicker resolutions and instill more efficiency in claims handling. This legislative change is anticipated to benefit both insurers and claimants by potentially leading to faster claims resolutions and reduced legal fees associated with litigation.
Senate Bill 139 aims to amend Title 18 of the Delaware Code, specifically related to underinsured motorist coverage. The primary objective of the bill is to streamline the process for settling claims involving underinsured motorists without necessitating the filing of lawsuits in certain situations. Under this proposed legislation, when a liability insurer extends a settlement offer, the injured party, whether represented by an attorney or not, can notify their underinsured motorist insurer of this offer. The underinsured motorist insurer is then given 60 days to respond with either consent or refusal, and should they fail to respond, they cannot deny the validity of the underinsured motorist coverage based on the existence of other liability insurance for the claim.
The sentiment surrounding SB 139 appears to be largely supportive, with advocates highlighting the bill's potential to alleviate burdens on the judicial system and streamline insurance processes. However, as with many insurance-related legislative changes, concerns may arise regarding the implications of altering existing consent requirements and ensuring that injured parties are adequately protected. Stakeholders in the insurance industry may express varying opinions about the bill based on their business interests and the impact on liability coverage.
A notable point of contention that may emerge during discussions of SB 139 revolves around the balance between efficient claims processing and the rights of underinsured motorist insurers to assert claims regarding liability. Some critics may argue that the bill, while aiming to simplify the settlement process, could inadvertently undermine the ability of insurers to contest the underlying liability of an accident. Therefore, navigating this balance will be crucial as the bill progresses through the legislative process.