The Senate Banking, Business, Insurance and Technology Committee on March 26 heard testimony on House Bill 74, a measure intended to align Delaware law with model language used by other states to protect privileged communications when insurers produce files for market‑conduct examinations.

Senator Spiroz Mansovinos framed the proposal as mirroring model provisions from the National Association of Insurance Commissioners’ market conduct surveillance model. Rebecca Chidner, representing the American Property Casualty Insurance Association, said the bill clarifies that a company’s failure to redact attorney‑client privileged material when turning over files to the Department of Insurance during an examination will not be treated as a waiver of that privilege. Chidner told the committee that 19 other states and the District of Columbia have adopted similar language.

Chris Haas, speaking on behalf of Insurance Commissioner Navarro and the department, said the department does not object to the legislation but noted that if privileged communications are provided unredacted, any subsequent dispute about privilege would be resolved in court.

The bill was described as a technical change intended to streamline market‑conduct examinations and reduce the administrative burden of over‑redaction while preserving privilege protections. No formal committee vote on House Bill 74 was recorded in the transcript.