HB318 Summary

• Increases the maximum covered claim amount from $300,000 to $500,000 per claimant, while keeping workers' compensation coverage unlimited.

• Clarifies that warranties and service contracts insurance, ocean marine insurance, and health maintenance organizations are excluded from coverage under the Delaware Insurance Guaranty Association Act.

• Grants the Association authority to bring legal action against third-party administrators or other parties refusing to release information about insolvent insurers, and permits the Association to provide claims-handling services to "run-off insurers" at full cost reimbursement.

• Establishes that all other insurance coverage must be exhausted before DIGA coverage applies, and allows the Association to request financial information from insureds to determine net worth eligibility.

• Provides the Association's Board of Directors access to records of insolvent insurers' liquidators and receivers necessary to carry out covered claims functions.