Delaware Requests Letter of Intent for Withdrawals

The Delaware Department of Insurance published a bulletin asking that all insurance carriers doing business in the state submit a letter of intent when withdrawing a line of business from the market. The Department is concerned about carriers quietly exiting lines of business and aims to minimize potential disruptions in the marketplace. The Department is asking for transparency from carriers and aims to protect consumers from unfair or discriminatory practices.

A letter of intent is requested in scenarios where: a carrier intends to discontinue an entire book of business at the end of the policy term; a carrier intends to transition all business from its company to an affiliated or non-affiliated insurer; or a carrier doesn’t intend to renew a block of business.