Title 18 — Insurance Code

§ 4981. Corporate existence. (a) On the effective date of the conversion, the corporate existence of the mutual company continues in the converted stock company. On the effective date of the conversion, all the assets, rights, franchises, and interests of the mutual company or th…

§ 4982. Conflict of interest. (a) A director, officer, agent, or employee of the mutual company shall not receive any fee, commission, or other valuable consideration, other than such person’s usual regular salary or compensation, for aiding, promoting, or assisting in a conversi…

§ 4983. Failure to give notice. If the mutual company complies substantially and in good faith with the notice requirements of this chapter, the mutual company’s failure to send a member the required notice does not impair the validity of any action taken under this chapter.77 De…

§ 4984. Limitation on actions. Any action challenging the validity of or arising out of acts taken or proposed to be taken under this chapter shall be commenced no later than the latter of: (1) Sixty days after the approval of the plan by the Commissioner; or (2) Thirty days afte…

§ 4985. Mutual company insolvent or in hazardous financial condition. (a) If a mutual company seeking to convert is insolvent or is in hazardous financial condition according to information supplied in its most recent annual or quarterly statement filed with the Department or as …

§ 4986. Rules and regulations. The Commissioner may promulgate rules and regulations to administer and enforce this chapter.77 Del. Laws, c. 466, § 2;

§ 4987. Laws applicable to converted stock company. (a) No mutual company shall be permitted to convert under this chapter if, as a direct result of the conversion, any person or any affiliate thereof acquires control of the converted stock company, unless that person and such pe…

§ 4988. Commencement of business as a stock insurer. No mutual company shall have the power to engage in the business of insurance as a stock company until it complies with all provisions of this chapter.77 Del. Laws, c. 466, § 2;

§ 4989. Amendment of policies. A mutual company, by endorsement or rider approved by the Commissioner and sent to the policyholder, may simultaneously with or at any time after the adoption of a plan of conversion amend any outstanding insurance policy for the purpose of extingui…

§ 4990. Prohibition on acquisitions of control. Except as otherwise specifically provided in § 4975 of this title, from the date a plan of conversion is adopted by the governing body of a mutual company until 3 years after the effective date of the plan of conversion, no person s…

§ 4991. Applicability to existing mutual insurers. (a) Except as provided in subsection (b) of this section, this chapter shall apply to all mutual insurers. (b) Section 4933 of this title as in effect prior to October 17, 2010, is hereby repealed, except as set forth in the next…

§ 5001. Definitions. For purposes of this chapter: (1) “Affiliate.” — An “affiliate” of, or person “affiliated” with, a specific person, is a person that directly, or indirectly through 1 or more intermediaries, controls, or is controlled by, or is under common control with, the …

§ 5002. Subsidiaries of insurers. Any domestic insurer, either by itself or in cooperation with 1 or more persons, may organize or acquire 1 or more subsidiaries as otherwise permitted under this title. Such subsidiaries may conduct any kind of business or businesses and their au…

§ 5003. Acquisition of control of or merger with domestic insurer. (a) Filing requirements. — No person other than the issuer shall make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities, or seek to acquire, or acquir…

§ 5003A. Acquisitions involving insurers not otherwise covered. (a) Definitions. — The following definitions shall apply for the purposes of this section only: (1) “Acquisition” means any agreement, arrangement or activity the consummation of which results in a person acquiring d…

§ 5004. Registration of insurers. (a) Registration. — Every insurer which is authorized to do business in this State and which is a member of an insurance holding company system shall register with the Commissioner, except a foreign insurer subject to registration requirements an…

§ 5005. Standards and management of an insurer within an insurance holding company system. (a) Transactions within an insurance holding company system. — (1) Transactions within an insurance holding company system to which an insurer subject to registration is a party shall be su…

§ 5006. Examination. (a) Power of Commissioner. — Subject to the limitation contained in this section and in addition to the powers which the Commissioner has under Chapter 3 of this title relating to the examination of insurers, the Commissioner shall have the power to examine a…

§ 5007. Confidential treatment. (a) Documents, materials or other information in the possession or control of the Department that are obtained by or disclosed to the Commissioner or any other person in the course of an examination or investigation made pursuant to § 5006 of this …

§ 5008. Rules and regulations. The Commissioner may, upon notice and opportunity for all interested persons to be heard, issue such rules, regulations and orders as shall be necessary to carry out the provisions of this chapter.68 Del. Laws, c. 325, § 1;

§ 5009. Injunctions, prohibitions against voting securities; sequestration of voting securities. (a) Injunctions. — Whenever it appears to the Commissioner that any insurer or any director, officer, employee or agent thereof has committed or is about to commit a violation of this…

§ 5010. Sanctions. (a) Any insurer failing, without just cause, to file any registration statement as required in this chapter shall be required, after notice and hearing, to pay a penalty of $500 for each day’s delay, to be recovered by the Commissioner of Insurance and the pena…

§ 5011. Receivership. Whenever it appears to the Commissioner that any person has committed a violation of this chapter which so impairs the financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its poli…

§ 5012. Recovery. (a) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurer: (1) From any parent corporation or holding company or person or affiliate wh…

§ 5013. Revocation, suspension or nonrenewal of insurer’s license. Whenever it appears to the Commissioner that any person has committed a violation of this chapter which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the Com…

§ 5014. Supervisory colleges. (a) Power of Commissioner. — With respect to any insurer registered under § 5004 of this title, and in accordance with subsection (c) of this section below, the Commissioner shall also have the power to participate in a supervisory college for any do…

§ 5015. Group-wide supervision of internationally active insurance group. (a) The Commissioner is authorized to act as the group-wide supervisor for any internationally active insurance group in accordance with the provisions of this section. However, the Commissioner may otherwi…

§ 5016. Conflict with other laws. All laws and parts of laws of this State inconsistent with this chapter are hereby superseded with respect to matters covered by this chapter.68 Del. Laws, c. 325, § 1; 80 Del. Laws, c. 118, § 1;

§ 5101. Scope of chapter. This chapter shall apply only with respect to securities issued by domestic stock insurers.18 Del. C. 1953, § 5101; 56 Del. Laws, c. 380, § 1;

§ 5102. “Equity security” defined. The term “equity security” when used in this chapter means any stock or similar security or any security convertible, with or without consideration, into such a security or carrying any warrant or right to subscribe to or purchase such a securit…

§ 5103. Statement of ownership. Every person who is directly or indirectly the beneficial owner of more than 10 percent of any class of any equity security of a domestic stock insurer or who is a director or an officer of such insurer shall file with the Commissioner within 10 da…

§ 5104. Recovery of profits. (a) For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director or officer by reason of such person’s relationship to such insurer, any profit realized by such person from any purchase an…

§ 5105. Unlawful sale of securities. No such beneficial owner, director or officer, directly or indirectly, shall sell any equity security of such insurer if the person selling the security or principal: (1) Does not own the security sold; or (2) If owning the security does not d…

§ 5106. Excepted securities; dealers. (a) Section 5104 of this title shall not apply to any purchase and sale and § 5105 of this title shall not apply to any sale, of an equity security of a domestic stock insurer not then or theretofore held by such insurer in an investment acco…

§ 5107. Arbitrage transactions. Sections 5103, 5104 and 5105 of this title shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the Commissioner may adopt in order to carry out the purposes of this chapter.18 …

§ 5108. Registered or closely held securities. Sections 5103, 5104 and 5105 of this title shall not apply to equity securities of a domestic stock insurer if: (1) Such securities shall be registered or shall be required to be registered, pursuant to § 12 of the Securities Exchang…

§ 5109. Rules and regulations. The Commissioner may make such rules and regulations as may be necessary for the execution of the functions vested in the Commissioner by this chapter and may for such purpose classify domestic stock insurers, securities and other persons or matters…

§ 5301. Scope of chapter; definition. (a) This chapter shall apply only to domestic mutual fire insurers heretofore and now doing business on the assessment premium plan. (b) For the purposes of this chapter an insurer “doing business on the assessment premium plan” is one which …

§ 5302. Continuation of existing insurers. (a) All such insurers holding subsisting certificates of authority from the Commissioner immediately prior to November 1, 1968, may continue to be so authorized so long as qualified therefor under this title. (b) No new such insurers sha…

§ 5303. Insuring powers. (a) Such insurers shall have power to insure only real property and personal property incidental to such real property against the perils of fire, lightning and windstorm, together with perils customarily included under extended coverages. (b) The maximum…

§ 5304. Reinsurance. Such an insurer may cede reinsurance to any insurer authorized to transact property insurance in this State other than on the assessment premium plan. An insurer doing business on the assessment premium plan shall not accept reinsurance from other insurers.18…

§ 5305. Records. Every such insurer, through its president and secretary, shall keep or cause to be kept accurate records and accounts of its transactions. The books, files and records of the insurer shall be located at its principal place of business in this State or at such pla…

§ 5306. Subject to other provisions. (a) Such insurers shall be subject to all reasonably applicable provisions of this title except provisions requiring the possession, maintenance or deposit of surplus. (b) Such insurers shall expressly be subject to the following provisions of…

§ 5501. Scope of chapter; provisions exclusive. (a) This chapter applies only to domestic mutual benefit associations as defined in § 5502 of this title. (b) This title shall not apply to such associations unless contained or referred to in this chapter.18 Del. C. 1953, § 5501; 5…

§ 5502. “Mutual benefit association” defined. As used in this chapter: (1) “Association” means a mutual benefit association as defined in this section. (2) “Mutual benefit association” means a corporation, society, order or association which has no capital stock, which issues cer…

§ 5503. Exempt associations. A mutual benefit association whose membership is confined to employees or former employees of common carriers engaged in interstate commerce or any association which administers 2 or more such associations is not subject to the provisions of this chap…

§ 5504. Incorporation; prerequisites. The Secretary of State shall not file a certificate of incorporation for any mutual benefit association unless accompanied by a certificate duly signed by the Commissioner setting forth that a deposit of $25,000 has been made with the Commiss…

§ 5505. Certificate of authority required; foreign operations. (a) No association shall directly or indirectly issue any certificate of membership without being so authorized by a valid and subsisting certificate of authority issued to it by the Commissioner. (b) No association s…

§ 5506. Certificate of authority — Application. (a) No certificate of authority shall be issued to any association unless it files with the Commissioner: (1) A certified copy of its certificate of incorporation or charter; (2) A copy of its constitution and bylaws; (3) A copy of …

§ 5507. Certificate of authority — Issuance; renewal. (a) The Commissioner shall issue a certificate of authority to every mutual benefit association complying with this chapter upon payment of the fee therefor in the amount specified in § 5520 of this title. (b) The certificate …