Title 18, Insurance Code

§ 1904. Definitions. (a) For the purposes of this chapter the following definitions shall apply: (1) Admitted insurer. — The term “admitted insurer” means an insurer authorized to engage in the business of insurance in this State. (2) Affiliate. — The term “affiliate” means, with…

§ 1905. Exclusions. (a) Unless the Commissioner rules otherwise pursuant to § 1915 of this title, life insurance and health insurance shall not be considered surplus lines insurance and shall be placed with admitted insurers licensed to write those types of insurance. (b) The pro…

§ 1911. Placement of insurance business. (a) An insurer shall not engage in the transaction of insurance in this State unless authorized by a certificate of authority in force pursuant to the laws of this State, or exempted by this chapter or otherwise exempted by the insurance l…

§ 1912. Conditions for export. (a) If certain insurance coverage cannot be procured from authorized insurers, such coverage, hereinafter designated “surplus lines,” may be procured from nonadmitted insurers, subject to the following conditions: (1) Each insurer is an eligible sur…

§ 1913. Duty of inquiry by surplus lines broker. (a) The surplus lines broker shall be responsible for determining whether an applicant for nonadmitted insurance is a Delaware home state insured. A surplus lines broker who reasonably relies on information provided in good faith b…

§ 1914. Streamlined application for commercial purchasers. (a) A surplus lines broker seeking to procure or place nonadmitted insurance in this State for an exempt commercial purchaser whose home state is this State shall not be required to satisfy any requirement to make a dilig…

§ 1915. Open lines for export. (a) The Commissioner may by order declare eligible for export for a home state insured, generally and without compliance with the provisions of § 1912 of this title, any class or classes of insurance coverage or risk for which the Commissioner finds…

§ 1916. Evidence of the insurance; changes; penalty. (a) Upon placing a surplus lines coverage for a home state insured, the broker shall promptly issue and deliver to the insured evidence of the insurance consisting either of the policy as issued by the insurer or, if such polic…

§ 1917. Endorsement of contract. (a) Licensee’s duty to notify insured. — (1) No contract of insurance placed by a surplus lines broker under this chapter for a home state insured shall be binding upon the insured and no premium charged shall be due and payable until the surplus …

§ 1918. Surplus line insurance valid. Insurance contracts procured as surplus lines coverage from nonadmitted insurers in accordance with this law, whether so procured by a surplus lines broker or directly by the insured by means of independent procurement, shall be fully valid a…

§ 1919. Liability of insurer. (a) A payment of premium to a surplus lines broker acting for a person other than himself or herself in procuring, continuing or renewing any policy of insurance procured under this law shall be deemed to be payment to the insurer, whatever condition…

§ 1920. Surplus line brokers; licensing. (a) No individual is required to be licensed pursuant to this chapter as a surplus lines broker if the home state of the insured is a state other than Delaware. (b) The penalty in Chapter 17 of this title for selling, soliciting, negotiati…

§ 1921. Suspension, revocation, of broker’s license. (a) Subject to § 1712 of this title, the Commissioner may also suspend or revoke any surplus line broker’s license: (1) If the broker fails to file the annual statement as required by § 1924 of this title, or to remit the tax a…

§ 1922. Broker may compensate agents and other licensed producers. A licensed surplus lines broker may accept and place surplus lines business for any insurance producer licensed in this State for the kind of insurance involved, and may compensate the producer for the business.18…

§ 1923. Records of broker. (a) Each broker shall keep in his or her office a full and true record of each surplus lines coverage procured by him or her for a home state insured, including a copy of each daily report, if any, a copy of each certificate of insurance issued by him o…

§ 1924. Annual statement of broker. (a) Unless the Commissioner determines that more frequent reporting is necessary, each broker shall on or before March 1 of each year file with the Commissioner a statement verified by the broker of all surplus lines insurance transacted by him…

§ 1925. Tax on surplus lines. (a) The Commissioner shall ensure that reasonable measures are developed to recover insurance taxes and other amounts due this State during each year. (b) Every surplus lines broker shall collect and pay to the State Treasurer through the Commissione…

§ 1926. Independently procured insurance. (a) Any person whose home state is this State may directly procure or directly renew insurance with a nonadmitted insurer, as defined in § 1904 of this title, without the involvement of a surplus lines licensee, on a risk located or to be…

§ 1927. Failure to file statement or remit tax; penalty. (a) If any broker fails to file his or her annual statement or fails to remit the tax as required in §§ 1924 and 1925 of this title, or if any insured who independently procured insurance fails to file the report and remit …

§ 1928. Distribution of proceeds of special revenue for benefit of police retiree health insurance [For application of this section, see 79 Del. Laws, c. 373, § 3]. (a) (1) The payments to the Board of Pension Trustees referred to in § 1925(f) of this title for a county or munici…

§ 1931. Minimum financial eligibility standards for surplus line insurers. (a) The Commissioner may consider a surplus lines insurer to be eligible if the nonadmitted insurer: (1) If a United States domestic insurer has capital and surplus or its equivalent under the laws of its …

§ 1932. Domestic surplus lines insurers. (a) A Delaware domestic insurer possessing policyholder surplus of at least $15,000,000 may, pursuant to a resolution by its board of directors, and with the written approval of the Insurance Commissioner, be designated as a domestic surpl…

§ 1933. Withdrawal of eligibility as a surplus lines insurer. (a) If at any time the Commissioner has reason to believe that a nonadmitted insurer currently eligible as a surplus lines insurer: (1) Is in unsound financial condition or has acted in an untrustworthy manner; or (2) …

§ 1934. Legal process against surplus line insurer. (a) A nonadmitted insurer shall be sued, upon any cause of action arising in this State under any contract issued by it as a surplus line contract pursuant to this law, in the Superior Court of this State. (b) Service of legal p…

§ 1935. Requirements for eligible surplus lines insurers. (a) An eligible surplus lines insurer shall furnish at least annually to the Commissioner an annual financial statement in a form acceptable to the Commissioner. (b) An eligible surplus lines insurer shall pay annual fees …

§ 1936. Application and qualifications for approval. (a) The Commissioner shall from time to time publish a list of surplus lines insurers deemed by him or her eligible to place business on Delaware risks currently. (b) No foreign or alien insurer shall become listed as a surplus…

§ 1941. Applicability. This chapter shall apply to all nonadmitted insurance business in which this State is the home state of the insured as defined in this chapter.78 Del. Laws, c. 176, § 5;

§ 1942. Reserved power of this State to alter or repeal chapter. All provisions of this chapter may be altered from time to time or repealed.78 Del. Laws, c. 176, § 5;

§ 1943. Short title. This chapter constitutes and may be cited as the “Delaware Nonadmitted Insurance Act.”78 Del. Laws, c. 176, § 5;

§ 1944. Penalties and violations. (a) Penalties cited in this chapter are not exclusive remedies. In addition to any penalty provided herein, including any suspension, revocation or refusal to renew a license, any person, firm, association or corporation violating any provision o…

§ 1945. Urgency. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety, and support of the state government and its existing institutions, and shall go into immediate effect. The facts constituting the necessity are: In ord…