The ISO personal auto policy (PP 00 01 09 18) is explained in the national guide. Delaware's auto law combines the Motorist Protection Act (21 Del. C. 2118), which requires PIP, with the insurance code's auto chapter (18 Del. C. Chapter 39). Delaware has mandatory PIP but no tort threshold, which is an unusual mix the exam likes to test.

Required coverage

• Liability: $25,000 per person and $50,000 per accident for bodily injury, and $10,000 property damage (25/50/10) (21 Del. C. 2902(b)(2), 2118(a)(1)).
• Personal injury protection (PIP): at least $15,000 per person and $30,000 per accident (2118(a)(2)).
• Property other than vehicles: at least $10,000 per accident for damage to property other than motor vehicles, aircraft or watercraft (2118(a)(3)).
• Must be offered but may be declined: coverage for damage to the insured vehicle, and UM/UIM (Reg. 603). Choices are recorded on Form A, which the policyholder signs.
• Loss of use: vehicle damage coverage includes loss of use at $10 a day, up to $300 (2118(a)(4)).
• No registration without qualifying insurance (2118(l)).

PIP

• What PIP pays (2118(a)(2)):
  • medical, hospital and dental bills
  • net lost earnings
  • substitute services: paying for help with tasks the injured person would have done
  • funeral expenses up to $5,000
  • PIP does not pay pain and suffering.
• Time limit: PIP covers expenses incurred within two years of the accident. The only extension is for verified surgical or dental work that couldn't be done in time.
• Who PIP covers: occupants of the insured car, and others hurt in an accident involving it, except occupants of another vehicle. Pedestrians are covered when struck in Delaware.
• Deductibles: apply only to the owner and household members, and must be elected in writing after a written explanation.
• Payment: within 30 days of a demand with reasonable proof (Reg. 603). PIP and vehicle-damage disputes can go to arbitration through the Commissioner. A party may appeal de novo to Superior Court within 30 days.
• No tort threshold: an injured person may still sue the at-fault driver. However, they may not plead or introduce damages that PIP pays or could pay (2118(h)).
• Subrogation: the PIP insurer's subrogation is limited to the at-fault driver's available liability coverage (2118(g)).

Fault rule

• Modified comparative negligence (10 Del. C. 8132): a plaintiff recovers if his negligence is not greater than the defendant's. At exactly 50%, he recovers, reduced by half. At 51% or more, he recovers nothing.

Uninsured and underinsured motorist (18 Del. C. 3902)

• UM is included unless a named insured rejects it in writing on the insurer's form. UM limits are at least the financial responsibility minimums.
• Higher limits: insurers must offer UM/UIM up to $100,000/$300,000 (or $300,000 single limit), but not more than the policy's own bodily injury limits.
• Uninsured vehicles include:
  • a vehicle with no security
  • a vehicle whose insurer denies coverage or becomes insolvent
  • certain hit-and-run vehicles. A hit-and-run must be reported to police, and the insurer notified within 30 days.
• Underinsured vehicle: it has bodily injury coverage, but the limits are less than the injured person's damages. The UIM carrier pays only after the at-fault driver's limits are exhausted.
• UM property damage carries a $250 deductible unless otherwise agreed.
• Stacking: limits apply per vehicle, but no more than the highest single-vehicle limit.

Cancellation, nonrenewal and underwriting

• New policies: these rules don't apply to a new policy in force less than 60 days (3903(b)).
• Allowed cancellation reasons after 60 days (3904) include:
  • nonpayment
  • misrepresentation
  • a driver's license suspension or revocation within 36 months, with limited exceptions
  • poor records: 3+ violations totaling more than 8 points, or 3 at-fault accidents with claims over $250 each, in 36 months
  • carrying passengers for hire. A car pool is not "for hire."
• Notice periods (3905):
  • 30 days to cancel, or 15 days for nonpayment
  • 30 days to nonrenew
  • sent by certified mail or Intelligent Mail barcode, with proof kept one year
  • the notice explains the assigned risk plan and the right to appeal to the Commissioner
• Appeals: filed at least 20 days before the effective date. The Commissioner rules on the papers at least 5 days before (3906).
• Reinstatement: a policy canceled for nonpayment must be reinstated if paid within 30 days, effective on payment. There is no coverage for the gap (3903(d)).
• Transfers between companies in the same group need 20 days' notice.
• Renewal conditions: the insurer may require a physical damage deductible of no more than $100 at renewal (3910).
• Driving records: insurers look back 3 years, or only 2 years if the last two are clean (3913).
• Household drivers: instead of canceling, the insurer must offer to exclude by name a household member with a bad record (3909). An excluded driver must get other coverage or surrender the license within 30 days.
• Minor and foster children who live with the insured must be added on request (3919).
• No penalties for:
  • a lapse during military deployment (3917)
  • certain non-driving license suspensions (3912)
  • unpaid volunteer driving for a 501(c)(3) nonprofit (3912)
• Discounts:
  • a defensive driving course earns 10% for three years
  • a refresher completed within 180 days before expiration earns 15%
• Cash refund on cancellation: the insured must show other coverage is in force, the car was sold or can't be driven, or the insured is self-insured (3915).

Uninsured driving, ID cards and proof

• Driving uninsured:
  • first offense: $1,500 to $2,000 fine and a six-month license suspension
  • repeat within three years: $3,000 to $4,000 (2118(s))
• Lapse penalty: $100 for up to 30 days, then $5 a day, plus a $50 reinstatement fee.
• ID cards: carried in the vehicle and may be shown electronically with consent. A card runs 12 months if a year's premium is paid, otherwise 6 months.
• Insurers report suspected uninsured drivers to the DMV within 30 days.
• Proof of financial responsibility: an authorized insurer files a written certificate that a liability policy is in force (21 Del. C. 2948). Delaware law calls it a certificate, not an "SR-22."
• Delaware Automobile Insurance Plan (assigned risk):
  • open to someone two insurers have refused (21 Del. C. 2905)
  • policies carry an automatic 10% surcharge, rising to 50% for DWI or leaving an accident scene and 25% for injury-causing speeding or reckless driving
  • surcharges last three years

PAP points tested in Delaware

• Part D temporary transportation: $30 a day, up to $900, with no deductible.
• Supplementary payments: up to $250 for bail bonds and $250 a day in lost earnings.
• A trailer you own is a "covered auto" for liability. Part D excludes a trailer not shown in the declarations, unless it was newly acquired and reported within 14 days.

Exam traps

• Limits are 25/50/10, plus PIP of $15,000/$30,000.
• Delaware has PIP but no tort threshold. You can sue, but you can't recover what PIP pays.
• At exactly 50% fault, the plaintiff still recovers, reduced by half.
• Notice is 30 days to cancel, 15 for nonpayment, 30 to nonrenew. New policies under 60 days are exempt.