Title 18 — Insurance Code

§ 2602. Definitions. (a) “Accepted actuarial standards” shall mean the standards adopted by the Casualty Actuarial Society in its Statement of Principles Regarding Property and Casualty Insurance Ratemaking, and the Standards of Practice adopted by the Actuarial Standards Board. …

§ 2603. Competitive market; hearing. (a) A competitive market is presumed to exist unless the Commissioner, after a hearing, issues an order stating that a reasonable degree of competition does not exist in the market. Such order shall expire no later than 1 year after issue. (b)…

§ 2604. Ratemaking standards. (a) Rates shall not be excessive, inadequate or unfairly discriminatory. (1) Rates in a competitive market are not excessive. Rates in a noncompetitive market are excessive if they are likely to produce a long-run profit that is unreasonably high in …

§ 2605. Review by Commissioner. The Commissioner may investigate and determine whether or not rates in this State are excessive, inadequate, or unfairly discriminatory. In any such investigation and determination, the Commissioner shall give due consideration to those factors spe…

§ 2606. Rules not to affect dividends. No advisory organization shall adopt any rule that would prohibit or regulate the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers. A plan for the pay…

§ 2607. Membership in advisory organization. (a) The Commissioner shall designate an advisory organization to assist the Commissioner in gathering, compiling and reporting relevant statistical information. Every workers’ compensation insurer shall record and report its workers’ c…

§ 2608. Interchange of rating plan data; consultation; cooperative action in rate making. (a) Reasonable rules and plans may be promulgated by the Commissioner for the interchange of data necessary for the application of rating plans. (b) In order to further conform administratio…

§ 2609. Rate filings. (a) Each authorized insurer shall file with the Commissioner all rates, supplementary rate information and any changes and amendments made by it for use in this State as required in § 2610 of this title. An insurer may establish rates and supplementary rate …

§ 2610. Review of insurance filings. (a) The Commissioner shall investigate and review each insurance filing under the following guidelines: (1) The effective date of each workers’ compensation insurance filing shall be the date specified in the filing. The effective date of the …

§ 2611. Improper rates; hearing. (a) If the Commissioner finds that a rate is not in compliance with § 2604 of this title, or that a rate had been set in violation of § 2616 of this title, the Commissioner shall order that its use be discontinued for any policy issued or renewed …

§ 2612. Restrictions on certain insurers; waiting period. (a) The Commissioner may require that a particular insurer file any or all of its rates and supplementary rate information 30 days prior to their effective date, if the Commissioner finds after a hearing that the protectio…

§ 2613. Delay of rates in noncompetitive market. (a) A 30-day waiting period may be implemented or extended under the following circumstances: (1) After finding that the market is not competitive, under § 2603 of this title, the Commissioner may adopt a rule requiring that any su…

§ 2614. Challenge and review of application of rating system. (a) Each advisory organization and every insurer subject to this chapter that makes its own rates shall provide within this State reasonable means whereby any person aggrieved by the application of its rating system, i…

§ 2615. Consent to rate. Notwithstanding any other provision of this chapter, upon the written consent of the insured, filed with and approved by the Insurance Commissioner, a rate in excess of that determined in accordance with the other provisions of this chapter may be used on…

§ 2616. Acts reducing competition prohibited. (a) In this section, the word “insurer” includes 2 or more affiliated insurers: (1) Under common management; or (2) Under common controlling ownership or under other common effective legal control and in fact engaged in joint or coope…

§ 2617. Advisory organization: permitted activity. Any advisory organization, in addition to other activities not prohibited, is authorized to: (1) Develop statistical plans including class definitions; (2) Collect statistical data from members, subscribers or any other source; (…

§ 2618. Residual market mechanisms. (a) All insurers authorized to write workers’ compensation and employers’ liability insurance shall participate in a plan providing for the equitable apportionment among them of insurance which may be afforded applicants who are in good faith e…

§ 2619. Penalties. (a) The Commissioner may, upon finding that any person or organization has violated this chapter, impose a penalty of not more than $500 for each such violation. Upon finding such violation to be wilful, the Commissioner may impose a penalty of not more than $1…

§ 2620. Appeals from Commissioner. Any order, decision or act of the Commissioner under this chapter is subject to judicial review upon petition of any person aggrieved. The appeal shall be to the Court of Chancery in any county of this State. A petition for review shall be filed…

§ 2621. Transition. Insurers and the advisory organization are not required to immediately refile rates previously implemented. Any member or subscriber of an advisory organization is authorized to continue to use all rates and deviations filed or approved for its use until the i…

§ 2622. Effective date [Repealed].69 Del. Laws, c. 163, § 1; repealed by 84 Del. Laws, c. 337, § 4, effective Aug. 2, 2024.;

§ 2623. Workers’ compensation rates. The rates and rating plans submitted under this chapter for workers’ compensation shall provide for discounts on workers’ compensation premiums for those Delaware employers who meet criteria as established by the Commissioner to promote and ma…

§ 2624. Workers’ compensation and employers’ liability forms and policies. (a) Every insurer shall file with the Commissioner all forms, endorsements, contracts or policies proposed for use in Delaware in connection with workers’ compensation or employers’ liability insurance. (b…

§ 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 …