Title 18 — Insurance Code

§ 4419. Advertising. No person, including a member insurer, agent or affiliate of a member insurer shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the publ…

§ 4420. Access to assets of insurer in liquidation; application for court approval of plan to disburse assets. Repealed by 68 Del. Laws, c. 55, § 7, effective June 25, 1991.

§ 4501. Title. This chapter may be cited as the “Certificates of Insurance Act.”79 Del. Laws, c. 217, § 1;

§ 4502. Definitions. For the purpose of this chapter, the following definitions apply: (1) “Certificate of insurance” means a document or instrument, regardless of how titled or described, that is prepared or issued by an insurer or insurance producer as evidence of property or c…

§ 4503. Certificate forms. (a) The Commissioner shall prohibit the use of a certificate of insurance form if the form: (1) Is unfair, misleading, or deceptive, or violates public policy; or (2) Violates any law, including any regulation promulgated by the Commissioner of Insuranc…

§ 4504. Limitations on use. (a) A person shall not: (1) Prepare, issue, or request or require the issuance of a certificate of insurance that contains any false or misleading information concerning the policy of insurance to which the certificate of insurance makes reference; or …

§ 4505. Notice requirements. A person is entitled to notice of cancellation, nonrenewal, or any material change, and to any similar notice concerning a policy of insurance only if the person has such notice rights under the terms of the policy of insurance or any endorsement to t…

§ 4506. Applicability. (a) The provisions of this chapter shall apply to all certificates of insurance issued in connection with property, operations, or risks located in this State, regardless of where the policyholder, insurer, insurance producer, or person requesting or requir…

§ 4507. Enforcement and penalties. (a) The Commissioner shall have the power to examine and investigate the activities of any person that the Commissioner reasonably believes has been or is engaged in an act or practice prohibited by this chapter. (b) The Commissioner shall have …

§ 4601. Definitions. The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: (1) “Continuing care.” — The furnishing to an individual, other than an individual related by consa…

§ 4602. Registration. No provider shall engage in the business of providing continuing care in this State until it shall have: (1) Filed a registration statement on a form to be prescribed by the Secretary; (2) Filed with the Secretary the disclosure statement provided for in § 4…

§ 4603. Disclosure statement. (a) Prior to the execution of a contract to provide continuing care or prior to the transfer of any money or other property (other than an application fee not to exceed $1,500) to a provider by or on behalf of a prospective resident, whichever shall …

§ 4604. False information. (a) No provider shall make, publish, disseminate, circulate or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated or placed before the public, in a newspaper or other publication, or in the form of…

§ 4605. Civil liability. (a) Any person who, as a provider or manager, or on behalf of the provider or manager has not filed the registration statement and disclosure statement with the Secretary and paid the fee required by § 4602 of this title: (1) Enters into a contract for co…

§ 4701. Scope of chapter. This chapter applies as to domestic and foreign insurers of all types, and as to persons providing finances to such insurers.18 Del. C. 1953, § 4701; 56 Del. Laws, c. 380, § 1;

§ 4702. Solicitation permit required; penalty. (a) No person forming or proposing to form an insurer, or insurance holding corporation or corporation to be attorney-in-fact for a reciprocal insurer or proposing to secure funds for the formation or financing of an insurer, or prod…

§ 4703. Insurance holding corporation defined. Within the intent of this chapter an insurance holding corporation is one owning or proposing to own a controlling stock interest in a stock insurer. Shares owned directly or indirectly by the corporation or by its subsidiary or affi…

§ 4704. Exemptions. Section 4702 of this title shall not apply to: (1) Sales of securities not involving a public offering, that is, sales on which no commission is payable resulting from offers privately made to not over 20 persons (other than banks, savings associations, invest…

§ 4705. Application for permit. (a) Written application for any permit required under § 4702 of this title shall be filed with the Commissioner. The application shall show or be accompanied by: (1) The name, type and purpose of the insurer, corporation, syndicate, association, fi…

§ 4706. Application for permit required by § 4702 of this title. Written application for any permit required under § 4702 of this title, in connection with the formation of a domestic mutual insurer by the securing of qualifying applications for insurance as provided in § 4905 of…

§ 4707. Investigation. (a) Upon completion of the application for a permit under §§ 4705 and 4706 of this title, the Commissioner shall promptly cause an investigation to be made of: (1) The identity, character, reputation, financial standing and motives of the persons proposing …

§ 4708. Grant, denial of permit. (a) The Commissioner shall expeditiously examine an application for a solicitation permit as soon as it is completed and complete the investigation as called for. Subject to subsection (b) of this section below, if the Commissioner finds on such e…

§ 4709. Terms of permit; compliance. (a) Upon filing any bond required by § 4713 or deposit required by § 4906 of this title or upon decision to grant the permit if such a bond is not so required and upon filing an executed copy of any required escrow agreement, the Commissioner …

§ 4710. Permit as inducement. The granting of a solicitation permit is permissive only and shall not constitute an endorsement by the Commissioner of any person or thing related to any such insurer, corporation, syndicate, association, firm, organization or financing nor constitu…

§ 4711. Prospectus required; other literature. (a) An offering of securities under a solicitation permit shall be made only by a written prospectus delivered to the prospective investor. (b) The prospectus shall make a disclosure of all facts relative to the issuer and the offere…

§ 4712. Modification or revocation of permit. The Commissioner may, for cause, modify a solicitation permit theretofore issued, or may, after a hearing thereon, revoke the permit for violation of law or of the terms of the permit or any proper order of the Commissioner or for mat…

§ 4713. Bond for permit. (a) The Commissioner shall not issue a solicitation permit until the applicant therefor has filed with the Commissioner a corporate surety bond in the penalty of $10,000, aggregate amount, in favor of the State and for the use and benefit of the State and…

§ 4714. Escrow of funds. (a) The holder of the solicitation permit shall promptly deposit all funds received from an offering of securities in this State pursuant to the permit, other than advance premiums for insurance which are subject to § 4907 of this title, in escrow in a ba…

§ 4715. Subscriptions. All subscriptions to securities under a solicitation permit shall be binding upon and enforceable against the parties thereto in accordance with the terms of the subscription contract and subject to the provisions of this chapter. No such contract shall be …

§ 4716. Failure to complete or qualify. (a) The Commissioner shall withdraw all funds held in escrow under § 4714 of this title and refund to securities subscribers or purchasers all sums paid therein under the solicitation permit, less that part allowed and used for organization…

§ 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…