Title 18 — Insurance Code

§ 1327. Failure to dispose of real estate or securities; effect; penalty. (a) Any real estate, personal property, or securities lawfully acquired and held by an insurer after expiration of the period for disposal thereof or any extension of such period granted by the Commissioner…

§ 1328. Prohibited investments and investment underwriting. (a) In addition to investments excluded pursuant to other provisions of this title, an insurer shall not invest in or lend its funds upon the security of: (1) Issued shares of its own capital stock, except: a. For the pu…

§ 1329. Investments of foreign insurers. The investment portfolio of a foreign or alien insurer shall be as permitted by the laws of its domicile if of a quality substantially equal to that required under this chapter for similar funds of like domestic insurers.18 Del. C. 1953, §…

§ 1330. Personal property. An insurer may invest in tangible personal property, or interests therein evidenced by trust certificates or other instruments, and a right to receive rental, charter hire, purchase or other payments for the use or purchase of such personal property ade…

§ 1331. Secured obligations. (a) An insurer may invest in obligations which are secured by: (1) An assignment of a right to receive rental, charter hire, purchase or other payments for the use or purchase of real or personal property adequate to return the investment and payable …

§ 1332. Production payments. Production payments, or interests therein evidenced by trust certificates or other instruments, payable from oil, gas or other hydrocarbons in producing properties located in the United States or Canada or the adjacent continental shelf if an obligati…

§ 1333. Rules and regulations [For application of this section, see 79 Del. Laws, c. 207, § 3]. The Commissioner may issue such reasonable rules, regulations and orders as the Commissioner may deem necessary or desirable to effectuate the purposes of this chapter, including setti…

§ 1334. Additional investments. An insurer may make additional loans or investments in excess of any aggregate investment limitation contained in this chapter in accordance with paragraph (1) of this section except for the aggregate limitations contained in §§ 1305(1) and 1313 of…

§ 1501. Authorized deposits of insurers. The following deposits of insurers, when made through the Commissioner, shall be accepted and held by the Commissioner in trust, subject to the provisions of this chapter: (1) Deposits required under this title for authority to transact in…

§ 1502. Purpose of deposit. (a) Deposits made in this State under § 513 (deposit requirements, in general) of this title shall be held in trust for the respective purposes stated in that section. (b) A deposit made in this State by a domestic insurer transacting insurance in anot…

§ 1503. Securities eligible for deposit. (a) All such deposits required under § 513 of this title for authority to transact insurance in this State shall consist of good interest-bearing or dividend-paying securities of kinds eligible for investment of the funds of domestic insur…

§ 1504. Depository; access; costs. (a) Deposits made in this State under this title shall be made through the Commissioner and kept in safe deposit with an established bank or trust company located in this State and selected by the Commissioner. (b) Wherever reasonably possible a…

§ 1505. Record of deposits. (a) The Commissioner shall give to the depositing insurer vouchers as to all assets and securities so deposited with the Commissioner. (b) The Commissioner shall keep a record of the assets and securities comprising each deposit, showing as far as prac…

§ 1506. Assignment, transfer of securities. All securities deposited by an insurer and not negotiable by delivery shall be duly registered in the name of the Commissioner and his or her successors in office, or with power of attorney as provided in § 1504 of this title. Upon rele…

§ 1507. Appraisal. The Commissioner may, in his or her discretion, prior to acceptance for deposit of any particular asset or security, or at any time thereafter while so deposited, have the same appraised or valued by competent appraisers. The reasonable costs of any such apprai…

§ 1508. Excess deposits. (a) If assets deposited by an insurer under this chapter are subject to material fluctuations in market value, the Commissioner may, in his or her discretion, require the insurer to deposit and maintain on deposit additional assets in an amount reasonably…

§ 1509. Rights of insurer during solvency. So long as the insurer remains solvent and is in compliance with this title it may: (1) Demand, receive, sue for and recover the income from the assets deposited; (2) Exchange and substitute for the deposited assets, assets of equivalent…

§ 1510. Levy upon deposit. (a) Except as provided in subsection (b) of this section below, no judgment creditor or other claimant of an insurer shall have the right to levy upon any of the assets held in this State as a deposit for the protection of the insurer’s policyholders or…

§ 1511. Deficiency of deposit. If for any reason the market value of assets of an insurer held on deposit in this State as required under this title falls below the required amount, the insurer shall promptly deposit other or additional assets eligible for deposit sufficient to c…

§ 1512. Duration and release of deposit, in general. (a) Every deposit made in this State by an insurer pursuant to the retaliatory law, § 532 of this title, shall be held for so long as the basis of such retaliation exists. (b) When an insurer determines to discontinue business …

§ 1513. Deposit for “registered” life insurance policies and bonds. (a) Deposits made with the Commissioner in connection with “registered” policies and bonds heretofore issued in this State by a life insurer shall be held as long as the policy or contract with respect to which s…

§ 1514. Commissioner’s liability. If the Commissioner wilfully fails faithfully to require, deposit, keep, account, and receipt for, or surrender in the manner by law authorized or required any assets as provided in this title, the Commissioner shall be responsible upon his or he…

§ 1601. Short title. This chapter may be cited as the “Reinsurance Intermediary Act.”68 Del. Laws, c. 69, § 1;

§ 1602. Definitions. (a) “Actuary” means a person who is a member in good standing of the American Academy of Actuaries. (b) “Controlling person” means any person, firm, association or corporation who directly or indirectly has the power to direct or cause to be directed, the man…

§ 1603. Licensure. (a) No person, firm, association or corporation shall act as an RB in this State if the RB maintains an office either directly or as a member or employee of a firm or association, or an officer, director or employee of a corporation: (1) In this State, unless s…

§ 1604. Required contract provisions; reinsurance intermediary-brokers. Transactions between an RB and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall…

§ 1605. Books and records; reinsurance intermediary-brokers. (a) For at least 10 years after expiration of each contract of reinsurance transacted by the RB, the RB will keep a complete record for each transaction showing: (1) The type of contract, limits, underwriting restrictio…

§ 1606. Duties of insurers utilizing services of reinsurance intermediary-broker. (a) An insurer shall not engage the services of any person, firm, association or corporation to act as an RB on its behalf unless such person is licensed as required by § 1603(a) of this title. (b) …

§ 1607. Required contract provisions; reinsurance intermediary-managers. Transactions between an RM and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party, which shall be approved b…

§ 1608. Prohibited acts. The RM shall not: (1) Bind retrocessions on behalf of the reinsurer, except that the RM may bind facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for su…

§ 1609. Duties of reinsurers utilizing services of reinsurance intermediary-manager. (a) A reinsurer shall not engage the services of any person, firm, association or corporation to act as an RM on its behalf unless such person is licensed as required by § 1603(b) of this title. …

§ 1610. Examination authority. (a) A reinsurance intermediary shall be subject to examination by the Commissioner. The Commissioner shall have access to all books, bank accounts and records of the reinsurance intermediary in a form usable to the Commissioner. (b) An RM may be exa…

§ 1611. Penalties and liabilities. (a) A reinsurance intermediary, insurer or reinsurer found by the Commissioner after a hearing conducted in accordance with the Administrative Procedures Act [Chapter 101 of Title 29] to be in violation of any provision(s) of this chapter shall:…

§ 1612. Rules and regulations. The Commissioner may adopt reasonable rules and regulations for the implementation and administration of this chapter.68 Del. Laws, c. 69, § 1;

§ 1613. Effective date. This chapter shall take effect on January 1, 1992. No insurer or reinsurer may continue to utilize the services of a reinsurance intermediary on and after January 1, 1992, unless utilization is in compliance with this chapter.68 Del. Laws, c. 69, § 1;

§ 1650. Definitions. (a) “Accredited state” means a state in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated and established from time to time by the National Association of Insurance Commissioner…

§ 1651. Applicability. This chapter shall apply to licensed insurers as defined in § 1650 of this title, whether domiciled in this State or domiciled in a state that is not an accredited state having in effect a substantially similar law. All provisions of the Insurance Holding C…

§ 1652. Minimum standards. (a) Applicability of section. — (1) The provisions of this section shall apply if, in any calendar year, the aggregate amount of gross written premium on business placed with a controlled insurer by a controlling producer is equal to or greater than 5 p…

§ 1653. Disclosure. The producer, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer; except that, if the business is placed through a subproducer who is no…

§ 1654. Penalties. (a) (1) If the Commissioner believes that the controlling producer or any other person has not materially complied with this chapter, or any regulation or order promulgated hereunder, after notice and opportunity to be heard, the Commissioner may order the cont…

§ 1701. Purpose and scope. (a) This chapter governs the qualifications and procedures for the licensing of insurance producers, surplus lines brokers, fraternal representatives, adjusters, apprentice adjusters, property damage appraisers, apprentice property damage appraisers and…

§ 1702. Definitions. For purposes of this chapter: (1) “Adjuster” means a licensee of the Department who, as an independent contractor or on behalf of an independent contractor, insurer, self-insurer, producer or managing general agent, investigates and/or negotiates settlement o…

§ 1703. License required. A person shall not transact insurance in this State for any class or classes of insurance unless the person is licensed as an insurance producer, adjuster or appraiser for that line of authority in accordance with this chapter.59 Del. Laws, c. 577, § 1; …

§ 1704. Exceptions to licensing. (a) Nothing in this chapter shall be construed to require an insurer to obtain a license pursuant to this chapter. In this section, the term “insurer” does not include an insurer’s officers, directors, employees, subsidiaries or affiliates. (b) A …

§ 1705. Application for examination. (a) A resident individual applying for a license shall pass a written examination unless exempt pursuant to § 1709 of this title. The examination shall test the knowledge of the individual concerning the lines of authority for which applicatio…

§ 1706. Application for license [For application of this section, see 83 Del. Laws, c. 297, § 2]. (a) A person applying for a resident license shall make application to the Insurance Commissioner on the Uniform Application or on forms prescribed by the Commissioner for license ty…

§ 1707. License. (a) Unless denied licensure pursuant to § 1712 of this title, persons who have met the requirements of §§ 1705 and 1706 of this title shall be issued a license. An insurance producer may receive qualification for a license in 1 or more of the following lines of a…

§ 1708. Nonresident licensing. (a) Unless denied licensure pursuant to § 1712 of this title, a nonresident person shall receive a nonresident license if: (1) The person is currently licensed as a resident and in good standing in that person’s home state; and (2) The person has su…

§ 1709. Exemption from examination. (a) An individual who applies for a license in this State who was previously licensed for the same lines of authority in another state shall not be required to complete any prelicensing education or examination. This exemption is only available…

§ 1710. Assumed names. A licensee doing business under any name other than the licensee’s legal name is required to notify and receive the approval of the Insurance Commissioner prior to using the assumed name. Such notification shall include proof that the licensee has registere…