Title 18 — Insurance Code

§ 4401. Short title. This chapter shall be known and may be cited as the “Delaware Life and Health Insurance Guaranty Association Act.”63 Del. Laws, c. 442, § 1;

§ 4402. Purpose. The purpose of this chapter is to protect, subject to certain limitations, the persons specified in § 4403(a) of this title against failure in the performance of contractual obligations, under life, health, and annuity policies, plans, or contracts specified in §…

§ 4403. Coverage and limitations. (a) This chapter shall provide coverage for the policies and contracts specified in subsection (b) of this section: (1) To persons who, regardless of where they reside (except for nonresident certificate holders under group policies or contracts)…

§ 4404. Construction. This chapter shall be liberally construed to effect the purpose under § 4402 of this title which shall constitute and aid and guide to interpretation.63 Del. Laws, c. 442, § 1;

§ 4405. Definitions. As used in this chapter: (1) “Account” means either of the 2 accounts created under § 4406 of this title. (2) “Association” means the Delaware Life and Health Insurance Guaranty Association created under § 4406 of this title. (3) “Authorized assessment” or “a…

§ 4406. Delaware Life and Health Insurance Guaranty Association — Created; accounts; supervision. (a) There is created a nonprofit legal entity to be known as the Delaware Life and Health Insurance Guaranty Association. All member insurers shall be and remain members of the Assoc…

§ 4407. Delaware Life and Health Insurance Guaranty Association — Board of Directors. (a) The Board of Directors of the Association shall consist of not less than 5 nor more than 9 member insurers serving terms as established in the plan of operation. The members of the Board sha…

§ 4408. Powers and duties of the Association. (a) If a member insurer is an impaired insurer, the Association may, in its discretion, and subject to any conditions imposed by the Association that do not impair the contractual obligations of the impaired insurer and that are appro…

§ 4409. Assessments. (a) For the purpose of providing the funds necessary to carry out the powers and duties of the Association, the Board of Directors shall assess the member insurers, separately for each account, at such time and for such amounts as the Board finds necessary. A…

§ 4410. 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…

§ 4411. Duties and powers of Commissioner. In addition to the duties and powers enumerated elsewhere in this chapter: (1) The Commissioner shall: a. Upon request of the Board of Directors, provide the Association with a statement of the premiums in the appropriate states for each…

§ 4412. Detection and prevention of insolvencies. To aid in the detection and prevention of member insurer insolvencies or impairments: (1) It shall be the duty of the Commissioner: a. 1. To notify the commissioners of all the other states when the Commissioner takes any of the f…

§ 4413. Credits for assessments paid. (a) A member insurer may offset against its premium tax liability to this State an assessment described in § 4409(h) of this title to the extent of 20 percent of the amount of such assessment for each of the 5 calendar years following the yea…

§ 4414. Liability for unpaid assessments; Association records; Association as creditor; liquidation proceeding. (a) Nothing in this chapter shall be construed to reduce the liability for unpaid assessments of the insureds on an impaired or insolvent insurer operating under a plan…

§ 4415. Annual reports by Board. The Association shall be subject to examination and regulation by the Commissioner. The Board of Directors shall submit to the Commissioner, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved b…

§ 4416. Tax status of Association. 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 property.63 Del. Laws, c. 442, § 1;

§ 4417. Immunity. There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer or its agents or employees, the Association or its agents or employees, members of the Board of Directors or the Commissioner or the Commission…

§ 4418. Stay of proceedings; reopening default judgments. All proceedings in which the insolvent insurer is a party in any court in this State shall be stayed 180 days from the date an order of liquidation, rehabilitation or conservation is final to permit proper legal action by …

§ 4419. Advertising. No person, including a member insurer, agent or affiliate of a member insurer shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the publ…

§ 4420. Access to assets of insurer in liquidation; application for court approval of plan to disburse assets. Repealed by 68 Del. Laws, c. 55, § 7, effective June 25, 1991.