Bill > HB406

This bill amends Title 18 of the Delaware Code, specifically Section 3916, which deals with unfair trade practices in automobile insurance. The key change is that insurance companies, their agents, or employees are now prohibited from requiring that automobile repair or replacement work be done by a specific facility, individual, or business as a condition for paying a claim, whereas previously the law used "shall" which is a mandatory requirement, and this bill changes it to "may" which is permissive. This amendment aims to prevent insurance companies from steering policyholders to preferred repair shops, thereby giving consumers more freedom to choose where their vehicle is repaired. The Act will become effective 180 days after it is signed into law and will apply to all automobile insurance policies that are issued, renewed, or modified on or after that effective date.