Title 18 — Insurance Code

§ 2928. Provisions required by law of other jurisdiction. The policies of a foreign life insurer when issued in this State may contain any provision which the law of the state, territory, district or country under which the insurer is organized prescribes shall be in such policie…

§ 2929. Standard nonforfeiture law — Generally. (a) In the case of policies issued on and after the operative date of this section as defined in subsection (l) of this section, no policy of life insurance, except as stated in subsection (k) of this section, shall be delivered or …

§ 2929A. Standard nonforfeiture law; individual deferred annuities [For application of this section, see 83 Del. Laws, c. 105, § 2]. (a) This section shall be known as the standard nonforfeiture law for individual deferred annuities. (b) This section shall not apply to any reinsu…

§ 2930. Incontestability; limitation of liability after reinstatement. (a) A reinstated policy of life insurance or annuity contract may be contested on account of fraud or misrepresentation of facts material to the reinstatement only for the same period following reinstatement a…

§ 2931. Participating, nonparticipating policies; right to issue. A life insurer may issue policies on either the participating basis or the nonparticipating basis, or on both bases, if the right or absence of right of participation is reasonably related to the premium charged an…

§ 2932. Variable annuity contracts and life insurance policies; grace, reinstatement, nonforfeiture and reserve liability provisions. (a) A domestic life insurer, including for the purposes of this section all domestic fraternal beneficiary associations, societies or companies wh…

§ 2933. Prohibited policy plans. (a) No life insurer shall hereafter deliver or issue for delivery in this State: (1) As part of or in combination with any life insurance, endowment or annuity contract, any agreement or plan, additional to the rights, dividends and benefits arisi…

§ 2934. Registered policies, bonds; deposit. Any domestic life insurer shall deposit with the Commissioner securities of the kind required and authorized by law for the investment of life insurance funds, for the common benefit of the holders of its “registered” policies and bond…

§ 2935. Registered policies, bonds — Identification. All such registered policies or bonds of each kind and class issued shall have imprinted thereon some appropriate designating letter, combination of letters or terms identifying the special forms of contract, and whenever any c…

§ 2936. Registered policies, bonds — Records of Commissioner; valuation. (a) The Commissioner shall prepare and keep such records of all “registered” policies and bonds as will enable him or her to ascertain the reserve required thereon at any time according to the method and bas…

§ 2937. Registered policies, bonds — Additional deposits. Each insurer which shall have registered policies or bonds outstanding shall make additional deposits from time to time, as the Commissioner may prescribe, in amounts of not less than $5,000, and of such securities as dome…

§ 2938. Registered policies, bonds — Deficient deposit. The Commissioner shall keep a careful record of the securities deposited by each insurer, and when furnishing the annual certificates of value, he or she shall enter thereon the amount and value of the securities deposited b…

§ 2939. Registered policies, bonds — Effect of insolvency. In case an insurer having securities on deposit as to such registered policies or bonds shall be adjudged insolvent or be dissolved, the proper court shall make and enforce the necessary orders to place said securities, o…

§ 2940. Registered policies, bonds — Applicability of general deposit provisions. The applicable provisions of Chapter 15 (Administration of Deposits) of this title shall apply as to all deposits relating to such registered policies and bonds, where not inconsistent with the expr…

§ 2941. Notification and reasons for cancellation [For application of this section, see 79 Del. Laws, c. 390, § 8]. A notice of cancellation of life insurance coverage by an insurer due to nonpayment of premiums shall be in writing, shall be delivered to the named policyholder or…

§ 3001. Interstate Insurance Product Regulation Compact. The State hereby enters into the Interstate Insurance Product Regulation Compact (“Compact”) as set forth in this chapter. The text of the Compact is as set forth in this chapter.83 Del. Laws, c. 103, § 1;

§ 3002. Purpose and intent. The purposes of this Compact are, through means of joint and cooperative action among the compacting states, all of the following: (1) To promote and protect the interest of consumers of individual and group annuity, life insurance, disability income, …

§ 3003. Definitions. For purposes of this Compact, the following terms shall have these meanings: (1) “Advertisement” means any material designed to create public interest in a product, or induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace, …

§ 3004. Establishment of the Commission and venue. (a) The compacting states hereby create and establish a joint public agency known as the “Interstate Insurance Product Regulation Commission.” Pursuant to § 3005 of this title, the Commission will have the power to develop unifor…

§ 3005. Powers of the Commission. The Commission shall have all of the following powers: (1) To promulgate rules, pursuant to § 3008 of this title, which shall have the force and effect of law and shall be binding in the compacting states to the extent and in the manner provided …

§ 3006. Organization of the Commission. (a) Membership, voting and bylaws. — (1) Each compacting state shall have and be limited to 1 member. Each member shall be qualified to serve in that capacity pursuant to applicable law of the compacting state. Any member may be removed or …

§ 3007. Meetings and acts of the Commission. (a) The Commission shall meet and take such actions as are consistent with the provision of this Compact and the bylaws. (b) Each member of the Commission shall have the right and power to cast a vote to which that compacting state is …

§ 3008. Rules and operating procedures: rulemaking functions of the Commission and opting out of uniform standards. (a) Rulemaking authority. — The Commission shall promulgate reasonable rules, including uniform standards, and operating procedures in order to effectively and effi…

§ 3009. Commission records and enforcement. (a) The Commission shall promulgate rules establishing conditions and procedures for public inspection and copying of its information and official records, except such information and records involving the privacy of individuals’ and in…

§ 3010. Dispute resolution. The Commission shall attempt, upon the request of a member, to resolve any disputes or other issues that are subject to this Compact and which may arise between 2 or more compacting states, or between compacting states and non-compacting states, and th…

§ 3011. Product filing and approval. (a) Insurers and third-party filers seeking to have a product approved by the Commission shall file the product with, and pay applicable filing fees to, the Commission. Nothing in this chapter shall be construed to restrict or otherwise preven…

§ 3012. Review of Commission decisions regarding filings. (a) Not later than 30 days after the Commission has given notice of a disapproved product or advertisement filed with the Commission, the insurer or third-party filer whose filing was disapproved may appeal the determinati…

§ 3013. Finance. (a) The Commission shall pay or provide for the payment of the reasonable expenses of its establishment and organization. To fund the cost of its initial operations, the Commission may accept contributions and other forms of funding from the NAIC, compacting stat…

§ 3014. Compacting states, effective date and amendment. (a) Any state is eligible to become a compacting state. (b) The Compact shall become effective and binding upon legislative enactment of the Compact into law by 2 compacting states; provided, the Commission shall become eff…

§ 3015. Withdrawal, default and termination. (a) Withdrawal. — (1) Once effective, the Compact shall continue in force and remain binding upon each and every compacting state; provided, that a compacting state may withdraw from the Compact by enacting a statute specifically repea…

§ 3016. Severability and construction. (a) The provisions of this Compact shall be severable, and if any phrase, clause, sentence, or provision is deemed unenforceable, the remaining provisions of the Compact shall be enforceable. (b) The provisions of this Compact shall be liber…

§ 3017. Binding effect of Compact and other laws. (a) Other laws. — (1) Nothing herein prevents the enforcement of any other law of a compacting state, except as provided in paragraph (a)(2) of this section. (2) For any product approved or certified to the Commission, the rules, …

§ 3018. Appointment of state representative. The Insurance Commissioner of the State of Delaware is hereby designated to serve as the representative of this State to the Commission.83 Del. Laws, c. 103, § 1;

§ 3101. Group policies must meet group requirements. Except as provided in § 3109 of this title, no policy of group life insurance shall be delivered in this State unless it conforms to 1 of the descriptions contained in §§ 3102-3108 of this title.18 Del. C. 1953, § 3102; 56 Del.…

§ 3102. Employee groups. A policy may be issued to an employer, or to the trustees of a fund established by an employer, which employer or trustees shall be deemed the policyholder, to insure employees of the employer for the benefit of persons other than the employer, subject to…

§ 3103. Debtor groups. A policy may be issued to a creditor or its parent holding company or to a trustee or trustees or agent designated by 2 or more creditors, which creditor, holding company, affiliate, trustee, trustees or agent shall be deemed the policyholder, to insure deb…

§ 3104. Labor union, employee organization groups. A policy may be issued to a labor union, or similar employee organization, which shall be deemed to be the policyholder, to insure members of such union or organization for the benefit of persons other than the union or organizat…

§ 3105. Trustee groups. A policy may be issued to a trust, or to the trustee or trustees of a fund, established or adopted by 2 or more employers, or by 1 or more labor unions or similar employee organizations, or by 1 or more employers and 1 or more labor unions or similar emplo…

§ 3106. Association groups. A policy may be issued to an association or to a trust or to the trustee or trustees of a fund established, created or maintained for the benefit of members of 1 or more associations. The association or associations shall have at the outset a minimum o…

§ 3107. Credit union groups. A policy may be issued to a credit union or to a trustee or trustees or agent designated by 2 or more credit unions, which credit union, trustee, trustees or agent shall be deemed the policyholder, to insure members of such credit unions for the benef…

§ 3108. Discretionary groups. A policy may be issued to any other substantially similar group which, in the discretion of the Commissioner, may be subject to the issuance of a group life policy or contract.65 Del. Laws, c. 480, § 1;

§ 3109. Requirements for other groups; out-of-state groups. (a) Group life insurance offered to a resident of this State under a group life insurance policy issued to a group other than those described in §§ 3102-3108 of this title shall be subject, where applicable, to the requi…

§ 3110. Disclosure requirements for other groups. (a) With respect to a program of insurance which if issued on a group basis would not qualify under §§ 3102-3108 of this title, if compensation of any kind will or may be paid to: (1) A policyholder or sponsoring or endorsing enti…

§ 3111. Dependents’ coverage. Except for a policy issued under § 3103 of this title, a group life insurance policy may be extended to insure the employees or members with respect to their family members or dependents, or any class or classes thereof, subject to the following: (1)…

§ 3112. Group life insurance standard provisions. No policy of group life insurance shall be delivered in this State unless it contains in substance the provisions set forth in §§ 3113-3127 of this title or provisions which in the opinion of the Commissioner are more favorable to…

§ 3113. Grace period. A group life insurance policy shall contain a provision that the policyholder is entitled to a grace period of 31 days for the payment of any premium due except the first, during which grace period the death benefit coverage shall continue in force, unless t…

§ 3114. Incontestability. A group life insurance policy shall contain a provision that the validity of the policy shall not be contested except for nonpayment of premiums, after it has been in force for 2 years from its date of issue; and that no statement made by any person insu…

§ 3115. Application; statements deemed representations. A group life insurance policy shall contain a provision that a copy of the application, if any, of the policyholder shall be attached to the policy when issued, that all statements made by the policyholder or by the persons …

§ 3116. Insurability. A group life insurance policy shall contain a provision setting forth the conditions, if any, under which the insurer reserves the right to require a person eligible for insurance to furnish evidence of individual insurability satisfactory to the insurer as …

§ 3117. Misstatement of age. A group life insurance policy shall contain a provision specifying an equitable adjustment of premiums or of benefits or of both to be made in the event the age of a person insured has been misstated, such provision to contain a clear statement of the…