Delaware law gives some crash victims time to rethink settlements

The law allows some injured people to rescind a settlement release. This applies to an individual injured in a motor vehicle accident and a release or settlement payment related to that injury. The person must have signed the release within 30 days of the accident without a lawyer's help, power of attorney, or attorney employment contract related to recovering damages. If no release was signed, the 15-day period runs from cashing a settlement check or receiving an electronic funds transfer. To rescind, the person must send written notice and return any settlement proceeds within 10 days after the 15-day period ends, using certified mail, a certificate of mailing, ACH tracking, or another recognized method to confirm delivery or track funds. An insurer may withhold future settlement proceeds until it confirms that any earlier proceeds were returned. The law takes effect six months after enactment. The 15-day period begins on the signing date, or, if no release was signed, when the person cashes a settlement check or receives an electronic transfer. The person then has 10 days after that period ends to send notice and return any proceeds.

A release of liability signed within 30 days of an accident must clearly state the right to rescind. This applies to a release of liability for a personal injury claim signed within 30 days of the accident. The notice must appear prominently and separately on the release or settlement check. If there is no release or settlement check, the notice must be provided in writing. The law takes effect six months after enactment.