Title 18, Insurance Code

§ 4717. Subsequent financing; penalty. (a) No person referred to in § 4702 (solicitation permit required; penalty) of this title, after receiving a certificate of authority, if an insurer in this or any other State or after completing its original organization and financing, if o…

§ 4801. Definitions. As used in this chapter, unless the context otherwise requires: (1) “Commissioner” means the Insurance Commissioner. (2) “Insurance premium finance company” means a person engaged in the business of entering into premium finance agreements or otherwise financ…

§ 4802. License required of insurance premium finance companies. (a) No person shall engage in the business of financing insurance premiums in this State without first having obtained a license as a premium finance company from the Commissioner, unless such person is exempted fro…

§ 4803. Action by Commissioner on application. (a) Upon the filing of an application and the payment of the license fee the Commissioner shall make an investigation of each applicant and shall issue a license if the applicant is qualified in accordance with this chapter. If the C…

§ 4804. Revocation and suspension of licenses. (a) The Commissioner may revoke or suspend the license of any premium finance company when and if, after investigation, it appears to the Commissioner that: (1) Any license issued to such company was obtained by fraud; (2) There was …

§ 4805. Books and records. (a) Every licensee shall maintain records of its premium finance transactions and the said records shall be open to examination and investigation by the Commissioner. The Commissioner may at any time require any licensee to bring such records as directe…

§ 4806. Form of premium finance agreement. (a) A premium finance agreement shall: (1) Be dated, signed by or on behalf of the insured and the printed portion thereof shall be in at least 8-point type; (2) Contain the name and place of business of the insurance agent negotiating t…

§ 4807. Maximum service charge. (a) A premium finance company shall not charge, contract for, receive or collect a service charge other than as permitted by this chapter. (b) The service charge is to be computed on the balance of the premiums due, after subtracting the down payme…

§ 4808. Delinquencies and cancellation charges. A premium finance agreement may provide for the payment by the insured of a delinquency charge per installment of at least $1.00 but which may not exceed a maximum charge of 5% of the delinquent installment or $5.00, whichever is le…

§ 4809. Cancellation of insurance contract upon default. (a) When in connection with a premium finance agreement, a power of attorney or other authority to cancel any insurance contract or contracts on behalf of the insured is given to a premium finance company, such insurance co…

§ 4810. Applicability. (a) The provisions of this chapter relating to licensing, the filing of reports and the keeping of books and records shall not apply with respect to: (1) Insurers, agents or brokers otherwise licensed by the Commissioner and who engage in the business of fi…

§ 4811. Exemptions. (a) No filing of the premium finance agreement shall be necessary to perfect the security interest of the premium finance company as against creditors, subsequent purchasers, pledgees and other such parties, their successors or assigns. (b) Notwithstanding Tit…

§ 4812. Rules. The Commissioner may make and enforce reasonable rules and regulations to make this chapter effective but such rules and regulations shall not be contrary to, nor inconsistent with, this chapter.60 Del. Laws, c. 406, § 1;

§ 4901. Scope of chapter. This chapter shall apply only to domestic stock insurers and domestic mutual insurers. This chapter shall apply to domestic mutual assessment property insurers only as stated in § 5306 of this title.18 Del. C. 1953, § 4901; 56 Del. Laws, c. 380, § 1;

§ 4902. “Stock,” “mutual” insurer, definitions. “Stock” insurer and “mutual” insurer are as defined in §§ 501 and 502, respectively, of this title.18 Del. C. 1953, § 4902; 56 Del. Laws, c. 380, § 1;

§ 4903. General corporation statutes; applicability. Domestic stock and mutual insurers shall be governed by the applicable provisions of the general statutes of this State relating to private corporations except where such general statutes are in conflict with the express provis…

§ 4904. Insurance business exclusive. No domestic insurer heretofore or hereafter formed shall engage directly or indirectly in any business other than the insurance business and in business activities reasonably and necessarily incidental to such insurance business, except that:…

§ 4905. Mutual insurers — Initial qualifications. (a) When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance listed in the schedule contained in subsection (b) below. (b) When applying for an original certificate of authori…

§ 4906. Mutual insurers — Permit; deposit. (a) Before soliciting any applications for insurance as required under § 4905 of this title, the incorporators of the proposed insurer shall procure a solicitation permit as required by § 4702 of this title and shall deposit with the Com…

§ 4907. Mutual insurers — Qualifying applications for insurance. (a) Upon receipt of the Commissioner’s approval of the deposit as provided in § 4906 of this title, the directors and officers of the proposed domestic mutual insurer may commence solicitation of such requisite appl…

§ 4908. Mutual insurers — Trust deposit of qualifying premiums; issuance of policies. (a) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this State …

§ 4909. Mutual insurers — Failure to qualify. If the proposed domestic mutual insurer fails to complete its organization and to secure its original certificate of authority within 1 year from and after date of its solicitation permit, the corporation shall transact no further bus…

§ 4910. Mutual insurers — Additional kinds of insurance. A domestic mutual insurer, after being authorized to transact 1 kind of insurance, may be authorized to transact such additional kinds of insurance as are permitted under § 510 of this title, while otherwise in compliance w…

§ 4911. Membership in mutual. (a) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer during the period of the insurance with all rights and obligations of such membership, and the policy shall so specify. (b) Any perso…

§ 4912. Bylaws of mutual insurer. Every domestic mutual insurer shall promptly file with the Commissioner a copy, certified by the insurer’s secretary, of its bylaws and of every modification thereof or addition thereto. The bylaws and modifications thereof shall be subject to th…

§ 4913. Minutes of corporate meetings of mutual insurers. A domestic mutual insurer upon the Commissioner’s written request therefor shall promptly file with the Commissioner a copy, certified by the insurer’s secretary, of the notice, minutes and other record of every meeting of…

§ 4914. Contingent liability of mutual members. (a) Except as provided otherwise in § 4916 of this title with respect to nonassessable policies, each member of a domestic mutual insurer shall have a contingent liability, pro rata and not one for another, for the discharge of its …

§ 4915. Levy of contingent liability. (a) If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it under this title for authority to transact the kinds of insurance being transacted and …

§ 4916. Enforcement of contingent liability. (a) The insurer shall notify each member of the amount of the assessment to be paid by written notice mailed to the address of the member last of record with the insurer. Failure of the member to receive the notice so mailed, within th…

§ 4917. Nonassessable policies, mutual insurers; revocation of authority. (a) A domestic mutual insurer, by depositing through the Commissioner and thereafter maintaining unimpaired surplus funds not less in amount than the minimum paid-in capital stock required of a domestic sto…

§ 4918. Information to stockholders and proxy regulations. (a) This section shall apply to all domestic stock insurers except: (1) A domestic stock insurer having less than 100 stockholders, except, that if 95% or more of the insurer’s stock is owned or controlled by a parent or …

§ 4919. Change of directors, officers; notice. Every domestic stock or mutual insurer shall promptly notify the Commissioner in writing of any change of personnel among its directors or principal officers.18 Del. C. 1953, § 4919; 56 Del. Laws, c. 380, § 1;

§ 4920. Prohibited pecuniary interest of officials. (a) Any officer or director, or any member of any committee or an employee of a domestic insurer, having the duty or power of investing or handling the insurer’s funds, shall not deposit or invest such funds except in the insure…

§ 4921. Management and exclusive agency contracts. (a) No domestic insurer shall hereafter make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the material exclusion of its board of directors or to have the controlling or preemp…

§ 4922. Dividends to stockholders. (a) A domestic stock insurer shall not pay any cash dividend to stockholders except out of that part of its available and accumulated surplus funds which is derived from realized net operating profits on its business and realized capital gains. …

§ 4923. Participating policies. (a) If provided for in its certificate of incorporation or charter, a stock insurer or mutual insurer may issue any or all of its policies or contracts with or without participation in profits, savings, unabsorbed portions of premiums, or surplus, …

§ 4924. Dividends to policyholders. (a) The directors of a domestic mutual insurer may from time to time apportion and pay or credit to its members dividends only out of that part of its surplus funds which represents net realized savings, net realized earnings, and net realized …

§ 4925. Solicitation of business; issuance of policies in other jurisdictions. (a) No domestic insurer shall knowingly solicit insurance business in any reciprocating state in which not then licensed as an authorized insurer. This subsection shall not prohibit advertising through…

§ 4926. Payment of taxes; exoneration. (a) Every domestic insurer may comply with any law of any state or political subdivision imposing any license, excise, privilege, premium, occupation or other fee or tax, and pay such fee or tax, unless prior to such payment the law shall ha…

§ 4927. Impairment of capital or assets. (a) If a domestic stock insurer’s paid-in capital stock (as represented by the aggregate par value of its outstanding capital stock) or capital account (of an insurance department or division of a corporation established under Chapter 7 of…

§ 4928. Mutualization of stock insurer. (a) A stock insurer other than a title insurer may become a mutual insurer under such plan and procedure as may be approved by the Commissioner after a hearing thereon. (b) The Commissioner shall not approve any such plan, procedure or mutu…

§ 4929. Conversion to ordinary business corporation. (a) A domestic stock insurer may convert to a Delaware ordinary business corporation through the following procedures: (1) The insurer must give the Commissioner written notice of its intent to convert to an ordinary business c…

§ 4930. Merger, consolidation of stock insurers. (a) A domestic stock insurer may merge or consolidate with 1 or more domestic or foreign stock insurers by complying with the applicable provisions of the statutes of this State governing the merger or consolidation of stock corpor…

§ 4931. Affiliation of stock insurers. (a) A domestic stock insurer shall not acquire a controlling interest in the shares of another stock insurer by an exchange of securities or partly in exchange for securities and partly for cash or property, unless the insurer has first subm…

§ 4932. Acquisition of controlling stock. Repealed by 68 Del. Laws, c. 325, § 3, effective Aug. 7, 1992.

§ 4933. Converting mutual insurer. Repealed by 77 Del. Laws, c. 466, § 1, effective Oct. 17, 2010.