Title 18 — Insurance Code

§ 410. Licensing of agent. Except for a salaried employee of a group, its administrator or its service company, any person soliciting membership for a workers’ compensation self-insurance group must be licensed as provided in Chapter 17 of this title.70 Del. Laws, c. 540, § 1;

§ 411. Financial statements and other reports. (a) Each group shall submit to the Commissioner a statement of financial condition audited by an independent certified public accountant on or before the last day of the sixth month following the end of the group’s fiscal year. The f…

§ 412. Taxes. Groups shall be subject to subchapter V of Chapter 23 of Title 19 for the payment of premium tax.70 Del. Laws, c. 540, § 1;

§ 413. Fees and assessments. Groups shall be subject to subchapter V of Chapter 23 of Title 19 for the payment of fees and assessments.70 Del. Laws, c. 540, § 1;

§ 414. Misrepresentation prohibited. No person shall make a material misrepresentation or omission of a material fact in connection with the solicitation of membership of a group nor violate any provision of Chapters 17 and 23 of this title or any regulations thereunder.70 Del. L…

§ 415. Investments. Funds not needed for current obligations may be invested by the board of trustees in accordance with Chapters 11 and 13 of this title.70 Del. Laws, c. 540, § 1;

§ 416. Rates and reporting of rates. (a) Every workers’ compensation self-insurance group shall file and adhere to rates, rules and classifications pursuant to Chapter 26 of this title. (b) Premium contributions to the group shall be determined by applying the rates and rules to …

§ 417. Refunds. (a) Any moneys for a fund year in excess of the amount necessary to fund all obligations for that fund year may be declared to be refundable by the board of trustees not less than 12 months after the end of the fund year with the Commissioner’s approval. (b) Each …

§ 418. Premium payment; reserves. (a) Each group shall establish to the satisfaction of the Commissioner a premium payment plan which shall include: (1) An initial payment by each member of at least 25% of that member’s annual premium before the start of the group’s fund year; an…

§ 419. Deficits and insolvencies. (a) If the assets of a group are at any time insufficient to enable the group to discharge its legal liabilities and other obligations and to maintain the reserves required of it under this chapter, it shall forthwith make up the deficiency or le…

§ 420. Guaranty mechanism. In the event of a liquidation pursuant to § 419 of this title, after exhausting the security required pursuant to § 404(b)(2) of this title, the Commissioner may levy an assessment against all groups to assure prompt payment of benefits. The assessment …

§ 421. Monetary penalties. After notice and opportunity for a hearing, the Commissioner may impose a monetary penalty on any person or group found to be in violation of any provision of this chapter or title or of any rules or regulations pursuant to § 329 of this title and Chapt…

§ 422. Cease and desist orders. (a) After notice and opportunity for a hearing, unless there are exigent circumstances, the Commissioner may issue an order requiring a person or group to cease and desist from engaging in an act or practice found to be in violation of any provisio…

§ 423. Revocation of certificate of authority. (a) After notice and opportunity for a hearing, the Commissioner may revoke or suspend a group’s certificate of authority if it: (1) Is found to be insolvent or impaired; (2) Fails to pay any premium tax, regulatory fee or assessment…

§ 424. Notice and hearings. All notices and hearings shall be as provided in Chapter 3 of this title and Chapter 101 of Title 29.70 Del. Laws, c. 540, § 1;

§ 425. Rules and regulations. The Commissioner shall have power to make rules and regulations in order to implement this chapter.70 Del. Laws, c. 540, § 1;

§ 501. “Stock insurer” defined. A “stock insurer” is an incorporated insurer with its capital divided into shares and owned by its stockholders. Unless otherwise provided, the insurance department or division of a corporation established under Chapter 7 of Title 5 (but not the co…

§ 502. “Mutual” insurer defined. A “mutual” insurer is an incorporated insurer without capital stock and the governing body of which is elected by its policyholders. This definition shall not be deemed to exclude as “mutual” insurers certain foreign insurers found by the Commissi…

§ 503. “Reciprocal” insurer defined. A “reciprocal” insurer is an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact common to all such persons to provide reciprocal insurance among themselves.18 Del. C. 1953, § 503; 56 D…

§ 504. “Charter” defined. “Charter” means certificate of incorporation, articles of incorporation, articles of agreement, articles of association, charter granted by legislative act or other basic constituent document of a corporation or the power of attorney of the attorney-in-f…

§ 505. Certificate of authority required. (a) No person shall act as an insurer and no insurer shall transact insurance in this State by mail or otherwise, except as authorized by a subsisting certificate of authority granted to it by the Commissioner and except as to such transa…

§ 506. Exceptions to certificate of authority requirement. A certificate of authority shall not be required of an insurer with respect to the following: (1) Investigation, settlement or litigation of claims under its policies lawfully written in this State or liquidation of asset…

§ 507. General eligibility for certificate of authority. To qualify for and hold authority to transact insurance in this State, an insurer must be otherwise in compliance with this title and with its charter powers and must be an incorporated stock or mutual insurer or a reciproc…

§ 508. Ownership; management. (a) No foreign insurer which is directly or indirectly owned or controlled in whole or substantial part by any government or governmental agency shall be authorized to transact insurance in Delaware. Membership in a mutual insurer or subscribership i…

§ 509. Name of insurer. (a) No insurer shall be formed or authorized to transact insurance in this State which has or uses a name which is the same as or deceptively similar to that of another insurer already so authorized without the written consent of such other insurer. (b) No…

§ 510. Combinations of insuring powers. (a) A reciprocal insurer shall not be a life insurer. (b) A title insurer shall be a stock insurer and shall not transact any other kind of insurance. This provision shall not prohibit acceptance of reinsurance of title insurance risks by i…

§ 511. Capital funds required. (a) To transact any 1 kind of insurance (as defined in Chapter 9 of this title), or combinations of kinds of insurance as shown below, an insurer shall possess and thereafter maintain in cash or cash equivalents unimpaired paid-in capital stock (if …

§ 512. Insuring combinations without additional capital funds. Without additional capital or additional surplus, an authorized insurer is also authorized: (1) If a life insurer, to grant annuities or issue funding agreements; (2) If a health insurer, to insure against congenital …

§ 513. Deposit requirements — In general. (a) The Commissioner shall not authorize a foreign insurer (other than an alien insurer) to transact insurance in this State unless it makes and thereafter continuously maintains on deposit in this State through the Commissioner, or in an…

§ 514. Deposit requirements — Alien insurers. The Commissioner shall not authorize an alien insurer to transact insurance in this State unless it makes and thereafter continuously maintains on deposit in this State through the Commissioner, or in another state, a surplus of asset…

§ 515. Application for certificate of authority. To apply for an original certificate of authority an insurer shall file with the Commissioner its written application therefor, accompanied by the applicable fees specified in § 701 of this title, stating under the oath of the pres…

§ 516. Issuance, refusal of authority; ownership of certificate. (a) If upon completion of its application the Commissioner finds that the insurer has met the requirements therefor under this title, the Commissioner shall issue to the insurer a proper certificate of authority; if…

§ 517. Authority conferred; surety insurers; certificate as evidence. (a) The certificate of authority confers upon the insurer authority to transact in this State only the kind or kinds of insurance therein specified. No surety insurer shall be deemed thereby to possess power to…

§ 518. Continuance, expiration, reinstatement of certificate of authority. (a) A certificate of authority shall continue in force as long as the insurer is entitled thereto under this title, and until suspended or revoked by the Commissioner or terminated at the insurer’s request…

§ 519. Suspension or revocation of certificate of authority — Mandatory grounds. (a) The Commissioner shall refuse to continue or shall suspend or revoke an insurer’s certificate of authority: (1) If such action is required by any provision of this title; (2) If a foreign insurer…

§ 520. Suspension or revocation of certificate of authority — Discretionary and special grounds. (a) The Commissioner may, in his or her discretion, refuse to continue or may suspend or revoke an insurer’s certificate of authority if he or she finds after a hearing thereon, or up…

§ 521. Order and notice of suspension, revocation; effect upon agents’ authority. (a) All suspensions or revocations of or refusals to continue an insurer’s certificate of authority shall be, by the Commissioner’s order, given to the insurer. (b) Upon issuance of the order, the C…

§ 522. Duration of suspension; insurer’s obligations during suspension period; reinstatement. (a) Suspension of an insurer’s certificate of authority shall be for such period as the Commissioner specifies in the order of suspension, but not to exceed 1 year. During the suspension…

§ 523. General corporation laws inapplicable to foreign insurers. The general corporation laws of this State as contained in Title 8 of the Delaware Code shall not apply as to foreign insurers holding certificates of authority to transact insurance in this State.18 Del. C. 1953, …

§ 524. Commissioner as process agent for certain insurers. (a) Before the Commissioner shall authorize it to transact insurance in this State, each insurer shall appoint the Commissioner, and his or her successors in office, as its attorney to receive service of legal process iss…

§ 525. Serving process. (a) Service of process against an insurer for whom the Commissioner is attorney shall be made by delivering to and leaving with the Commissioner, his or her deputy, or a person in apparent charge of the Commissioner’s office during the Commissioner’s absen…

§ 526. Annual statement and other required filings. (a) Each authorized insurer shall annually on or before March 1, or within any reasonable extension of time therefor which the Commissioner for good cause may have granted, file with the Commissioner a full and true statement of…

§ 526A. Supplement to annual statement [Repealed].65 Del. Laws, c. 270, § 1; 66 Del. Laws, c. 328, §§ 1, 3; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 373, § 3; repealed by 83 Del. Laws, c. 184, § 2, effective Sept. 17, 2021.;

§§ 527, 528. Resident agent, countersignature law; exceptions to resident agent, countersignature law. Repealed by 70 Del. Laws, c. 376, §§ 1, 2, effective June 21, 1996.

§ 529. Cancellation of insurance agency contracts; arbitration. (a) Every insurance company shall notify the Insurance Commissioner or the Commissioner’s successor and the agency involved of the intent to cancel any written or verbal agency contract, except life insurance contrac…

§ 530. Emergency requirements. Whenever in the Commissioner’s opinion a public emergency exists by reason of an abnormal disruption of economic and financial processes which affects the conduct of the business of insurance in a normal and ordinary manner, the Commissioner, with t…

§ 531. Emergency powers to regulate liability insurance cancellations and nonrenewals. (a) (1) Whenever the Insurance Commissioner in his or her discretion finds that an abnormal disruption has occurred or is occurring in the liability insurance market, which has created or will …

§ 532. Retaliatory provision. (a) When by or pursuant to the laws of any other state or foreign country or province any taxes, licenses and other fees, in the aggregate, and any fines, penalties, deposit requirements or other material requirements, obligations, prohibitions or re…

§ 533. Immunity from liability for reporting fraudulent practices. Repealed by 69 Del. Laws, c. 463, § 3, effective July 22, 1994.

§ 534. Location of headquarters. (a) The headquarters of day-to-day corporate activity and management of any insurer engaged in the business of insurance as a subsidiary or division of a bank or trust company, which bank or trust company is authorized to act as an insurer and tra…