Delaware Personal Lines Study Guide

Personal Lines is Delaware’s largest exam — 115 scored questions — but only 40 of them are state law. Those 40 concentrate almost entirely on one theme: what an insurer must tell a policyholder before it walks away, and how much warning it owes. Delaware is more prescriptive here than most states, and the detail is where the marks live.

The notice ladder — and the split you must not average

Delaware gives auto and homeowners different nonpayment periods and the same periods for everything else. That asymmetry is the whole game:

• Auto, nonpayment — 15 days (§ 3905)
• Homeowners, nonpayment — 10 days (§ 4122)
• Either, for permitted cause — 30 days
• Either, nonrenewal — 30 days, with the reason stated (§§ 3905(b), 4122(c))

There is also a 60-day new-policy window for private passenger auto (§ 3903(b)). During the first 60 days an insurer may cancel more freely; after that, only on the statutory grounds.

The reason must always be given

Many states require an insurer to supply its reason only if the insured asks, or only on one line of business. Delaware requires a specific reason for both cancellation and nonrenewal, on both auto and homeowners. The policyholder does not have to request it.

And homeowners carries a consequence rather than a penalty: fail to give proper nonrenewal notice and the policy is deemed renewed (§ 4122(c)). The insurer does not get a second chance; it gets another policy year.

Auto coverage — the mandatory pieces

The liability minimums are 25/50/10, and Delaware — although a tort state — mandates PIP at $15,000 per person / $30,000 per accident plus a $5,000 funeral benefit (21 Del. C. § 2118). Uninsured motorist coverage is mandatory unless rejected in writing, and UM property damage carries a $250 deductible (18 Del. C. § 3902).

That $250 deductible is a small, specific, very testable number. So is the $10,000 property damage liability minimum, which is lower than most of Delaware’s neighbours.

Negligence — the 51% bar

Delaware applies modified comparative negligence with a 51% bar (10 Del. C. § 8132): a claimant recovers only if their negligence was not greater than the defendant’s. At exactly 50%, the Delaware claimant still recovers, with damages reduced by half.

Credit information — restricted, not banned

Delaware permits credit information in personal lines underwriting but fences it (§ 8304). An insurer may not deny, cancel or nonrenew solely on credit information, and may not use income, gender, race or ZIP code. A lack of credit history must be treated neutrally rather than as a negative.

The operative word is solely. Delaware is not a state that has banned credit-based scoring; it is a state that has refused to let it stand alone.