Title 18 — Insurance Code

§ 2901. Scope of chapter. This chapter, except as to § 2932 of this title, applies only to contracts of life insurance and annuities, other than reinsurance, group life insurance and group annuities.18 Del. C. 1953, § 2901; 56 Del. Laws, c. 380, § 1;

§ 2902. “Annuity” defined. For this title an “annuity” is a contract, issued by a person which is not classified by the Internal Revenue Service as exempt from taxation under § 501(c)(3) of the Internal Revenue Code of 1954 [26 U.S.C. § 501(c)(3)], as subsequently amended, under …

§ 2903. “Industrial life insurance” defined. For the purposes of this title “industrial life insurance” is that form of life insurance written under policies of face amount of $1,000 or less bearing the words “industrial policy” imprinted on the face thereof as part of the descri…

§ 2904. Standard provisions required. (a) No policy of life insurance, other than pure endowments with or without return of premiums or of premiums and interest, shall be delivered or issued for delivery in this State unless it contains in substance all of the applicable provisio…

§ 2905. Payment of premiums. There shall be a provision relating to the time and place of payment of premiums.18 Del. C. 1953, § 2905; 56 Del. Laws, c. 380, § 1;

§ 2906. Grace period. There shall be a provision that a grace period of 30 days or, at the option of the insurer, of 1 month of not less than 30 days, or of 4 weeks in the case of industrial life insurance policies the premiums for which are payable more frequently than monthly s…

§ 2907. Entire contract. There shall be a provision that except as otherwise expressly provided by law, the policy and the application therefor, if a copy of such application is endorsed upon or attached to the policy when issued, shall constitute the entire contract between the …

§ 2908. Incontestability. There shall be a provision that the policy shall be incontestable after it has been in force during the lifetime of the insured for a period of not more than 2 years after its date of issue, except for: (1) Nonpayment of premiums; and (2) At the insurer’…

§ 2909. Misstatement of age. There shall be a provision that if the age of the insured or of any other person whose age is considered in determining the premium or benefit has been misstated, any amount payable or benefit accruing under the policy shall be such as the premium wou…

§ 2910. Dividends. (a) There shall be a provision in participating policies that, beginning not later than the end of the third policy year, the insurer shall annually ascertain and apportion the divisible surplus, if any, that will accrue on the policy anniversary or other divid…

§ 2911. Policy loan. (a) There shall be a provision that after 3 full years’ premiums have been paid and after the policy has a cash surrender value and while no premium is in default beyond the grace period for payment, the insurer will advance, on proper assignment or pledge of…

§ 2912. Table of installments. In case the policy provides that the proceeds may be payable in installments which are determinable at issue of the policy, there shall be a table showing the amounts of the guaranteed installments.18 Del. C. 1953, § 2912; 56 Del. Laws, c. 380, § 1;

§ 2913. Reinstatement. There shall be a provision that unless: (1) The policy has been surrendered for its cash surrender value; (2) Its cash surrender value has been exhausted; or (3) The paid-up term insurance, if any, has expired; the policy will be reinstated at any time with…

§ 2914. Payment of claims. (a) There shall be a provision that when the benefits under the policy become payable by reason of the death of the insured, settlement must be made upon receipt of due proof of death, which may consist of a certified copy of the insured’s death certifi…

§ 2915. Beneficiary, industrial policies. An industrial life insurance policy shall have the name of the beneficiary designated thereon or in the application or other form if attached to the policy, with a reservation of the right to designate or change the beneficiary after the …

§ 2916. Title. There shall be a title on the policy, briefly describing the same.18 Del. C. 1953, § 2916; 56 Del. Laws, c. 380, § 1;

§ 2917. Excluded or restricted coverage. A clause in any policy of life insurance providing that such policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy and shall not preclude the assertion at any time of defenses ba…

§ 2918. Standard provisions; annuity and pure endowment contracts. (a) No annuity or pure endowment contract, other than reversionary annuities (also called survivorship annuities) or group annuities and except as stated herein, shall be delivered or issued for delivery in this S…

§ 2919. Grace period; annuities. In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that there shall be a period of grace of 1 month, but not less than 30 days, within which any stipulated payment to the …

§ 2920. Incontestability; annuities. If any statements, other than those relating to age, sex and identity are required as a condition to issuing an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, and subject to § 2922 of this title, …

§ 2921. Entire contract; annuities. In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that the contract shall constitute the entire contract between the parties or, if a copy of the application is endors…

§ 2922. Misstatement of age or sex; annuities. In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that if the age or sex of the person or persons upon whose life or lives the contract is made, or of any o…

§ 2923. Dividends; annuities. If an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, is participating, there shall be a provision that the insurer shall annually ascertain and apportion any divisible surplus accruing on the contract.18…

§ 2924. Reinstatement; annuities. In an annuity or pure endowment contract, other than a reversionary or group annuity, there shall be a provision that the contract may be reinstated at any time within 1 year from the default in making stipulated payments to the insurer, unless t…

§ 2925. Standard provisions; reversionary annuities. (a) Except as stated herein, no contract for a reversionary annuity shall be delivered or issued for delivery in this State unless it contains in substance each of the following provisions: (1) Any such reversionary annuity con…

§ 2926. Limitation of liability. (a) No policy of life insurance shall be delivered or issued for delivery in this State if it contains any of the following provisions: (1) A provision limiting the time within which an action at law or in equity may be commenced on such a policy …

§ 2927. Prohibited provisions. (a) No life insurance policy, other than industrial life insurance, shall be delivered or issued for delivery in this State, if it contains any of the following provisions: (1) A provision by which the policy purports to be issued or to take effect …

§ 2928. Provisions required by law of other jurisdiction. The policies of a foreign life insurer when issued in this State may contain any provision which the law of the state, territory, district or country under which the insurer is organized prescribes shall be in such policie…

§ 2929. Standard nonforfeiture law — Generally. (a) In the case of policies issued on and after the operative date of this section as defined in subsection (l) of this section, no policy of life insurance, except as stated in subsection (k) of this section, shall be delivered or …

§ 2929A. Standard nonforfeiture law; individual deferred annuities [For application of this section, see 83 Del. Laws, c. 105, § 2]. (a) This section shall be known as the standard nonforfeiture law for individual deferred annuities. (b) This section shall not apply to any reinsu…

§ 2930. Incontestability; limitation of liability after reinstatement. (a) A reinstated policy of life insurance or annuity contract may be contested on account of fraud or misrepresentation of facts material to the reinstatement only for the same period following reinstatement a…

§ 2931. Participating, nonparticipating policies; right to issue. A life insurer may issue policies on either the participating basis or the nonparticipating basis, or on both bases, if the right or absence of right of participation is reasonably related to the premium charged an…

§ 2932. Variable annuity contracts and life insurance policies; grace, reinstatement, nonforfeiture and reserve liability provisions. (a) A domestic life insurer, including for the purposes of this section all domestic fraternal beneficiary associations, societies or companies wh…

§ 2933. Prohibited policy plans. (a) No life insurer shall hereafter deliver or issue for delivery in this State: (1) As part of or in combination with any life insurance, endowment or annuity contract, any agreement or plan, additional to the rights, dividends and benefits arisi…

§ 2934. Registered policies, bonds; deposit. Any domestic life insurer shall deposit with the Commissioner securities of the kind required and authorized by law for the investment of life insurance funds, for the common benefit of the holders of its “registered” policies and bond…

§ 2935. Registered policies, bonds — Identification. All such registered policies or bonds of each kind and class issued shall have imprinted thereon some appropriate designating letter, combination of letters or terms identifying the special forms of contract, and whenever any c…

§ 2936. Registered policies, bonds — Records of Commissioner; valuation. (a) The Commissioner shall prepare and keep such records of all “registered” policies and bonds as will enable him or her to ascertain the reserve required thereon at any time according to the method and bas…

§ 2937. Registered policies, bonds — Additional deposits. Each insurer which shall have registered policies or bonds outstanding shall make additional deposits from time to time, as the Commissioner may prescribe, in amounts of not less than $5,000, and of such securities as dome…

§ 2938. Registered policies, bonds — Deficient deposit. The Commissioner shall keep a careful record of the securities deposited by each insurer, and when furnishing the annual certificates of value, he or she shall enter thereon the amount and value of the securities deposited b…

§ 2939. Registered policies, bonds — Effect of insolvency. In case an insurer having securities on deposit as to such registered policies or bonds shall be adjudged insolvent or be dissolved, the proper court shall make and enforce the necessary orders to place said securities, o…

§ 2940. Registered policies, bonds — Applicability of general deposit provisions. The applicable provisions of Chapter 15 (Administration of Deposits) of this title shall apply as to all deposits relating to such registered policies and bonds, where not inconsistent with the expr…

§ 2941. Notification and reasons for cancellation [For application of this section, see 79 Del. Laws, c. 390, § 8]. A notice of cancellation of life insurance coverage by an insurer due to nonpayment of premiums shall be in writing, shall be delivered to the named policyholder or…