DE| The Delaware Department of Insurance Bulletin No. 150, provides guidance on the use of Unmanned Aircraft Systems (UAS) in insurance practices in Delaware. It emphasizes the importance of balancing innovation with consumer protection and regulatory compliance. The bulletin highlights the benefits of UAS in enhancing efficiency in claim processing and underwriting but notes limitations such as image distortion and weather interference.
Key points:
- Regulatory Compliance: Insurers must comply with Delaware law, including Chapter 41 governing property insurance contracts and Chapter 23 regarding unfair practices. They must provide clear explanations for policy denial or nonrenewal decisions based on UAS imagery.
- Consumer Protections: Insurers should ensure that UAS imagery is used transparently and that decisions based on it are objective and non-discriminatory. Policyholders must be given access to the imagery used in policy determinations.
- Fair Business Practices: The bulletin advises against using cosmetic issues like roof discoloration as grounds for cancellation and emphasizes the need for detailed reasons for policy actions. It recommends physical inspections if customers dispute findings based on aerial imagery.