Unfair Practices in the Insurance Business

What this document is

Delaware Code Title 18, Ch. 023 - Unfair Practices in the Insurance Business is a state statute published by State of Delaware (delcode.delaware.gov). It is one of the Delaware documents that insurance license exam questions are written from, including delaware life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 18 Del. C. § 2304 (Boycott, coercion and intimidation)

  “No person shall enter into any agreement to commit, or by any concerted action commit, any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of or any monopoly in any business of insurance.”

• 18 Del. C. § 2304 (Defamation)

  “which is false, or maliciously critical of or derogatory to the financial condition of an insurer, or of an organization proposing to become an insurer, and which is circulated to injure any person engaged or proposing to engage in the business of insurance.”

• 18 Del. C. § 2304(16)a. (Unfair Claim Settlement Practices)

  “(16) Unfair claim settlement practices. - No person shall commit or perform with such frequency as to indicate a general business practice any of the following: a. Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue;”

• 18 Del. C. § 2304 (Unfair discrimination; life insurance, annuities, and health insurance)

  “No person shall make or permit any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of such contract.”

• 18 Del. C. § 2304(8) (Insurance as inducement to purchase)

  “No person shall directly or indirectly participate in any plan to offer or effect any kind or kinds of life or health insurance or annuities as an inducement to or in connection with the purchase by the public of any goods, securities, commodities, services or subscriptions to periodicals. This...”

• 18 Del. C. § 2304(16)(b) (Unfair Claim Settlement Practices)

  “Failing to acknowledge and act reasonably promptly upon communication with respect to claims arising under insurance policies;”

• 18 Del. C. § 2304(2) (False information and advertising generally)

  “No person shall make, publish, disseminate, circulate or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated or placed before the public, in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or...”

• 18 Del. C. § 2304(16) (Unfair Claim Settlement Practices)

  “(16) Unfair claim settlement practices. - No person shall commit or perform with such frequency as to indicate a general business practice any of the following:”

• 18 Del. C. § 2304(1)(f) (Misrepresentation to induce lapse or surrender)

  “No person shall make, issue, circulate or cause to be made, issued or circulated any estimate, circular, statement, sales presentation, omission or comparison which: a. Misrepresents the benefits, advantages, conditions or terms of any insurance policy; b. Misrepresents the dividends or share of...”

• 18 Del. C. § 2304(1)(a) (Misrepresentation of policy benefits and terms)

  “No person shall make, issue, circulate or cause to be made, issued or circulated any estimate, circular, statement, sales presentation, omission or comparison which: a. Misrepresents the benefits, advantages, conditions or terms of any insurance policy;”

• 18 Del. C. § 2304(7)a. (Illegal dealing in premiums; excess charges for insurance)

  “No person shall wilfully collect any sum as premium or charge for insurance, which insurance is not then provided or is not in due course to be provided (subject to acceptance of the risk by the insurer) by an insurance policy issued by an insurer as authorized by this title.”

Practice this material

Questions about this source

More Delaware sources

• Del. Code tit. 18, ch. 29: Life insurance contracts - standard policy provisionsState statute
• Delaware Code Title 18, Ch. 017 - Licensing of Professional Insurance PersonnelState statute
• Delaware Code Title 18, Ch. 29 - Life Insurance and Annuity ContractsState statute
• Delaware Code Title 18, Ch. 031 - Life Insurance ContractsState statute
• Delaware Code Title 18, Ch. 035 - Group and Blanket Health InsuranceState statute
• Delaware Code Title 18 Chapter 17 - Licensing of Professional Insurance Personnel (Secs. 1701-1724)State statute
• Delaware Code Title 18 Chapter 17A - Licensing of Public Adjusters (Secs. 1750-1761)State statute
• Delaware Code Title 18 Chapter 23 - Unfair Practices in the Insurance Business (Secs. 2301-2318)State statute