October 22, 2024 – A recently enacted statute requiring automobile insurers to disclose the bodily injury liability limits to claimants or their counsel when certain requirements are met (Title 21, Section 2907) was recently interpreted by the Delaware Superior Court. In Thompson v. Lewis & State Farm, C.A. No.: N23C-08-039 PAW (9/30/2024), the plaintiff sued the insured tortfeasor in negligence but also sued the insurer directly, claiming a violation of the disclosure requirements of the Act.

The Superior Court, in a case of first impression, held that an insurer’s failure to comply with section 2907 creates a private cause of action by an individual Plaintiff against the tort insurer. The Court noted that while the statute did not expressly provide for a private right of action, such a right was implied within the statute. The insurer’s Motion to Dismiss was denied.

Adjusters need to be aware of the disclosure requirements of the Act and possible ramifications for failing to comply.

Reger Rizzo & Darnall LLP’s Delaware attorneys can assist in advising insurers in compliance with this requirement. Please contact Arthur D. Kuhl, Esquire with any questions at akuhl@regerlaw.com or 302-477-7100