Title 18 — Insurance Code

§ 4201. Title. This chapter shall be known and may be cited as the “Delaware Insurance Guaranty Association Act.”18 Del. C. 1953, § 4201; 57 Del. Laws, c. 437.;

§ 4202. Purpose. This chapter shall provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detec…

§ 4203. Scope. This chapter shall apply to all kinds of direct insurance but does not apply to any of the following: (1) Life, annuity, health and disability insurance; (2) Mortgage guaranty, financial guaranty and other forms of financial guarantees; (3) Fidelity and surety bond…

§ 4204. Construction. This chapter shall be liberally construed to effect the purpose specified in § 4202 of this title, which shall constitute an aid and guide to interpretation.18 Del. C. 1953, § 4204; 57 Del. Laws, c. 437.;

§ 4205. Definitions. As used in this chapter: (1) “Affiliate” means a person who directly or indirectly, through 1 or more intermediaries, controls, is controlled by or is under common control with an insolvent insurer on December 31 of the year next preceding the date the insure…

§ 4206. Creation of the Association. There is created a nonprofit unincorporated legal entity to be known as the Delaware Insurance Guaranty Association. All insurers, defined as member insurers in § 4205 of this title, shall be and remain members of the Association as a conditio…

§ 4207. Board of Directors. (a) The Board of Directors of the Association shall consist of not less than 5 nor more than 9 persons serving terms as established in the plan of operation. The members of the Board shall be selected by member insurers subject to the approval of the C…

§ 4208. Powers and duties of the Association. (a) The Association shall: (1) Be obligated to pay valid covered claims existing prior to the order of liquidation of the insolvency and arising within 30 days after the order of liquidation or before the policy expiration date if les…

§ 4209. Plan of operation. (a) (1) The Association shall submit to the Commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable and equitable administration of the Association. The plan of operation and any amendments theret…

§ 4210. Duties and powers of the Commissioner. (a) The Commissioner shall: (1) Notify the Association of the existence of an insolvent insurer not later than 3 days after he or she receives notice of the determination of the insolvency; (2) Upon request of the Board of Directors,…

§ 4211. Effect of paid claims. (a) (1) Any person recovering under this chapter shall be deemed to have assigned the rights under the policy to the Association to the extent of the person’s recovery from the Association. Every insured or claimant seeking the protection of this ch…

§ 4212. Exhaustion of other coverage. (a) Any person having a claim under an insurance policy shall first exhaust all coverage provided by any such policy, whether or not it is a policy issued by a member insurer, if the claim under such policy arises from the same facts, injury,…

§ 4213. Prevention of insolvencies. To aid in the detection and prevention of insurer insolvencies: (1) The Board of Directors may, upon majority vote, make recommendations to the Commissioner for the detection and prevention of insurer insolvencies. a., b. [Repealed.] (2) The Bo…

§ 4214. Examination of the Association. The Association shall be subject to examination and regulation by the Commissioner. The Board of Directors shall submit, not later than June 30 of each year, a financial report for the preceding calendar year in a form approved by the Commi…

§ 4215. Tax exemption. The Association shall be exempt from payment of all fees and all taxes levied by this State or any of its subdivisions, except taxes levied on real or personal property.18 Del. C. 1953, § 4215; 57 Del. Laws, c. 437.;

§ 4216. Recognition of assessments in rates. The rates and premiums charged for insurance policies to which this chapter applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the Association by the member insurer less any amounts returned to the me…

§ 4217. Immunity. There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the Association or its agents or employees, the Board of Directors or the Commissioner or the Commissioner’s representatives for any action or…

§ 4218. Stay of proceedings; reopening of default judgments. (a) All proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court in this State shall be stayed for 120 days from the date the insolvency is determined, and for such time there…

§ 4219. Recoupment of assessment. (a) Unless a longer period has been allowed by the Commissioner, a member insurer shall at its option have the right to show a certificate of contribution as an asset in the form approved by the Commissioner at percentages of the original face am…

§ 4220. Preferred creditor status. Repealed by 64 Del. Laws, c. 193, § 3, effective July 19, 1983.

§ 4221. Access to assets of insolvent insurer; application for court approval of plan to disburse assets. Repealed by 68 Del. Laws, c. 112, § 13, effective July 5, 1991.

§ 4223. Applicability. Unless otherwise provided by this chapter, 68 Del. Laws, c. 112 shall apply retroactively and/or retrospectively to all incomplete matters having arisen or arising under the Delaware Insurance Guaranty Association Act (this chapter).68 Del. Laws, c. 112, § …