Del. Laws, c. 160, § 5] (a) (1) An insurer licensed to do business in Delaware may not cancel mid-term any commercial automobile policy except for any of the following reasons: a. Nonpayment of premium. b. Material misrepresentation or nondisclosure to the insurer of a material fact at the time of acceptance of the risk. c. Increased hazard or material change in the risk assumed, where the increased hazard or material change could not have been reasonably contemplated by the parties at the time of the assumption of the risk. d. Substantial breaches of contractual duties, conditions, or warranties, which materially affect the nature or insurability of the risk. e. Fraudulent acts against the insurer by the insured or its representatives, which materially affect the nature of the risk insured. f. Lack of cooperation from the insured on loss control matters affecting insurability of the risk. g. Bona fide loss of or substantial changes in applicable reinsurance if the insurer gives 60 days' written notice to both the insured and the Commissioner and submits a statement outlining the measures taken by the insurer to retain reinsurance and to obtain alternative sources of reinsurance in a form promulgated by the Commissioner. h. Material increase in exposure arising out of changes in statutory or case law after the issuance of the insurance contract if the insurer gives 60 days' written notice to the insured and the Commissioner. i. Bona fide loss of or reduction in available insurance capacity if the insurer gives 60 days' written notice to the insured and Commissioner. (2) Except as otherwise provided in paragraph (a)(3) of this section, an insurer may not cancel a commercial automobile policy unless notice of the cancellation is mailed or delivered by the insurer to the named insured, at the insured's last address of record with the insurer, at least 60 days before the effective date of cancellation and accompanied by the reason for the cancellation. If the cancellation is for nonpayment of premium, the insurer shall give at least 10 days' notice of cancellation accompanied by the reason for the cancellation. (3) Nothing in this section prohibits an insurer from issuing a notice of cancellation regarding a commercial automobile policy that has been in effect for less than 60 days at the time the notice is mailed or delivered. (b) An insurer shall renew a commercial automobile policy unless the insurer mails or delivers to the named insured, at the insured's last address of record with the insurer, at least 60 days' advance notice of its intention to nonrenew accompanied by the reason or reasons for the nonrenewal. This subsection does not apply in case of nonpayment of premium or if the insurer has manifested its willingness to renew. Notwithstanding the failure of an insurer to comply with this subsection, the commercial automobile policy must terminate on the effective date of any other commercial automobile policy procured by the insured with respect to any automobile designated in both policies. Renewal of a commercial automobile policy shall not constitute a waiver or estoppel with respect to grounds for cancellation or nonrenewal which existed before the effective date of the renewal. (c) The mailing of the notice of cancellation or of intention to nonrenew to the named insured, at the last address of record with the insurer, must be by certified mail or by USPS Intelligent Mail barcode (IMb). Proof of mailing of such notice must be retained by the insurer for a period of not less than 1 year. This subsection does not apply in case of nonpayment of premium. (d) When a policy is cancelled or nonrenewed, other than for nonpayment of premium, the insurer shall notify the named insured of any possible eligibility for insurance through an automobile assigned risk plan. The notice of availability of insurance through an automobile assigned risk plan must accompany or be included in the notice of cancellation or the notice of intent not to renew, and must state that the notice is given pursuant to this section.
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