State Farm Mutual Automobile Insurance v. Mundorf

WALSH, Justice:

In this appeal from the Superior Court, we consider the requirements of the Delaware Assigned Risk Plan (the “Plan”) with respect to the sending of notice of cancellation of a motor vehicle insurance policy by insurance companies to policyholders. Specifically, we hold that an insurer is required to send notice of cancellation where the assigned risk policy expires or lapses according to its terms by reason of the policyholder’s failure to pay the premium to renew coverage. We view the Plan’s explicit provisions as mandating such notice. Accordingly, we affirm the ruling of the…