Bill > SB189

This bill amends Delaware's insurance law to provide additional protections for individuals involved in automobile accident settlements by creating a 60-day rescission period for unrepresented persons. Specifically, the bill allows an individual who signs a release or accepts a settlement check within 30 days of an automobile accident, without legal representation, to rescind (cancel) that agreement within 60 days. To effectively rescind the settlement, the individual must: 1) provide written notice to the releasee (the party receiving the release), 2) return any settlement proceeds received, and 3) complete these actions within 10 days after the 60-day rescission period. Additionally, the bill requires that any release of liability executed within 30 days of the incident must include a conspicuous notice informing the individual of their right to rescind the settlement. This legislation aims to protect individuals who might sign settlements quickly after an accident without fully understanding their rights or the extent of their injuries, giving them a reasonable opportunity to reconsider their initial agreement. The act will take effect six months after its enactment into law, allowing time for insurance companies and legal professionals to adjust to the new requirements.

Business and Industry

https://legis.delaware.gov/BillDetail?LegislationId=142584