Title 18 — Insurance Code

§ 5508. Certificate of authority — Revocation. The Commissioner shall forthwith revoke the certificate of authority of an association if, from an examination of the affairs of the association or for other cause and after notice to the association and a hearing before the Commissi…

§ 5509. Guaranty fund. (a) Each mutual benefit association before receiving a certificate of authority shall deposit with the Commissioner $25,000 in cash and/or securities approved by the Commissioner. (b) The deposit shall constitute a guaranty fund and shall remain in trust wi…

§ 5510. Benefit fund. (a) Every association shall deposit in a bank or trust company approved by the Commissioner a sum not less than 50% of all dues collected by the association or by any agent thereof on all certificates of membership. This shall constitute a benefit fund for t…

§ 5511. Investments. An association may invest its funds in such investments as are eligible for investment of the funds of domestic life insurers under Chapter 13 (Investments) of this title.18 Del. C. 1953, § 5511; 56 Del. Laws, c. 380, § 1;

§ 5512. Annual statement. (a) Each association shall annually on or before March 1 file with the Commissioner its financial statement on forms furnished by the Commissioner and subscribed and sworn to by its president and secretary or in their absence by 2 of its principal office…

§ 5513. Examination of association — Timing; responsibility. (a) The Commissioner shall examine the affairs of each association as to its financial condition at least once in 3 years. The commissioner shall also make an examination of any such association whenever the commissione…

§ 5514. Examination of association — Access to books and records; witnesses. For the purpose of the examination under § 5513 of this title, the person making the examination shall have free access to all the books and papers of the association relating to its business and to the …

§ 5515. Examination of association — Refusal to permit; revocation of certificate of authority. The refusal of any association to submit to and provide for the examination under § 5513 of this title or to exhibit its books and records for inspection shall be presumptive evidence …

§ 5516. Domestic associations; situs of business; reports and fees. Any mutual benefit association organized under the general corporation law of this State with its principal office situated in this State shall be regarded as doing business in this State regardless of whether or…

§ 5517. Certificate of membership — Approval; terms. (a) No certificate of membership providing for sick, accident and/or death benefits to members or their beneficiaries, as hereinafter provided, shall be issued by any association unless the form of the same shall first be filed…

§ 5518. Certificate of membership — Limitations on benefits. No certificate of membership issued by any association shall provide for death benefits in excess of $100,000 or sickness or accident disability benefits in excess of $1,000 per week. No association shall issue more tha…

§ 5519. Agreement between association and members; binding effect. The certificate of membership, the certificate of incorporation and any amendments thereto, the bylaws of the association and the provisions of this chapter shall constitute an agreement between the association as…

§ 5520. Fees; costs; in lieu of provision. (a) Each association shall pay to the Commissioner fees and costs as follows: (1) For issuance of original certificate of authority $25 (2) For each annual renewal thereof 25 (3) For filing of annual statement 25 (4) For filing, reviewin…

§ 5521. Merger; reinsurance; transfers with other associations. Every association may merge, insure, reinsure or accept the transfer of membership or funds with any other like association under such reasonable rules and regulations for the protection of members as the Commissione…

§ 5522. Dissolution. Upon the withdrawal of its guaranty fund deposit as provided in § 5509(e) of this title, the directors or governing body of the association shall forthwith cause the association to be dissolved in accordance with the applicable laws of this State and shall fi…

§ 5523. Penalties. (a) Any corporation, society, order or association which shall organize and/or transact the business of a mutual benefit association in this State contrary to the provisions of this chapter or any mutual benefit association which shall directly or indirectly tr…

§ 5524. Other provisions applicable. The following additional chapters of this title shall also apply as to mutual benefit associations to the extent so applicable and not inconsistent with the express provisions of this chapter and the reasonable implications of such express pro…

§ 5601. Short title. This chapter shall be known as the “Delaware Travel Insurance Act.” 84 Del. Laws, c. 40, § 6;

§ 5602. Scope and purposes. (a) The purpose of this chapter is to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in this State. (b) The requirements of this chapter shall apply to travel insurance that covers any r…

§ 5603. Definitions. For purposes of this chapter: (1) “Aggregator site” means a website that provides access to information regarding insurance products from more than 1 insurer, including product and insurer information, for use in comparison shopping. (2) “Blanket travel insur…

§ 5604. Premium tax. (a) A travel insurer shall pay premium tax, as provided in § 702 of this title, on travel insurance premiums paid by any of the following: (1) An individual primary policyholder who is a resident of this State. (2) A primary certificate holder who is a reside…

§ 5605. Travel protection plans. Travel protection plans may be offered for 1 price for the combined features that the travel protection plan offers in this State if: (1) The travel protection plan clearly discloses to the consumer, at or prior to the time of purchase, that it in…

§ 5606. Sales practices. (a) All persons offering travel insurance to residents of this State are subject to the Unfair Trade Practices Act at §§ 2301 et seq. of this title except as otherwise provided in this section. In the event of a conflict between this chapter and other pro…

§ 5607. Travel administrators. (a) Notwithstanding any other provisions of this title, no person shall act or represent itself as a travel administrator for travel insurance in this State unless that person meets at least 1 of the following criteria: (1) Is a licensed property an…

§ 5608. Policy. (a) Notwithstanding any other provision of this title, travel insurance shall be classified and filed for purposes of rates and forms under an inland marine line of insurance, provided, however, that travel insurance that provides coverage for sickness, accident, …

§ 5609. Regulations. The Commissioner may promulgate regulations to implement the provisions of this chapter.84 Del. Laws, c. 40, § 6;

§ 5701. “Reciprocal” insurance defined. “Reciprocal” insurance is that resulting from an interchange among persons, known as subscribers, of reciprocal agreements of indemnity, the interchange being effectuated through an attorney-in-fact common to all such persons.18 Del. C. 195…

§ 5702. Scope of chapter; existing insurers. (a) All authorized reciprocal insurers shall be governed by those sections of this chapter not expressly made applicable to domestic reciprocals. (b) Existing authorized reciprocal insurers shall, after November 1, 1968, comply with th…

§ 5703. Insuring powers of reciprocals. (a) A reciprocal insurer may, upon qualifying therefor as provided for by this title, transact any kind or kinds of insurance defined by this title, other than life or title insurances. (b) Such an insurer may purchase reinsurance upon the …

§ 5704. Name; suits. A reciprocal insurer shall: (1) Have and use a business name. The name shall include the word “reciprocal” or “interinsurer” or “interinsurance” or “exchange” or “underwriters” or “underwriting” or “association.” (2) Sue and be sued in its own name.18 Del. C.…

§ 5705. Attorney; attorney, subscribers and reciprocal insurer a single entity. (a) “Attorney,” as used in this chapter, refers to the attorney-in-fact of a reciprocal insurer. The attorney may be an individual, firm or corporation. (b) The attorney of a foreign reciprocal insure…

§ 5706. Organization of reciprocal insurer. (a) Twenty-five or more persons domiciled in this State may organize a domestic reciprocal insurer and make application to the Commissioner for a certificate of authority to transact insurance. (b) (1) The proposed attorney shall fulfil…

§ 5707. Certificate of authority. (a) The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer. (b) The Commissioner may refuse, suspend or revoke the certificate of authority, in addition to other grounds therefor, for failu…

§ 5708. Power of attorney. (a) The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers. (b) The power of attorney must set forth: (1) The powers of the attorney; (2) The general services to be perform…

§ 5709. Modifications. Modifications of the terms of the subscribers’ agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers’ advisory committee. No such modification shall be effective retroactively nor as…

§ 5710. Attorney’s bond. (a) Concurrently with the filing of the declaration provided for in § 5706 of this title, the attorney of a domestic reciprocal insurer shall file with the Commissioner a bond in favor of this State for the benefit of all persons damaged as a result of br…

§ 5711. Deposit in lieu of bond. In lieu of the bond required under § 5710 of this title, the attorney may maintain on deposit, through the office of the Commissioner, a like amount in cash or in value of securities qualified under this title as insurers’ investments and subject …

§ 5712. Action on bond. Action on the attorney’s bond or to recover against any such deposit made in lieu thereof may be brought at any time by 1 or more subscribers suffering loss through a violation of its conditions or by a receiver or liquidator of the insurer. Amounts recove…

§ 5713. Service of process; judgment. (a) Legal process shall be served upon a domestic reciprocal insurer by serving the insurer’s attorney at the attorney’s principal offices or by serving the Commissioner as the insurer’s process agent under §§ 524 and 525 of this title. (b) A…

§ 5714. Contributions to insurer. The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer and, except upo…

§ 5715. Financial condition; method of determining. In determining the financial condition of a reciprocal insurer, the Commissioner shall apply the following rules: (1) The Commissioner shall charge as liabilities the same reserves as are required of incorporated insurers issuin…

§ 5716. Subscribers. Individuals, partnerships and corporations of this State may make application, enter into agreement for and hold policies or contracts in or with and be a subscriber of any domestic, foreign or alien reciprocal insurer. Any corporation now or hereafter organi…

§ 5717. Subscribers’ advisory committee. (a) The advisory committee of a domestic reciprocal insurer exercising the subscribers’ rights shall be selected under such rules as the subscribers adopt. (b) Not less than 2/3 of such committee shall be subscribers other than the attorne…

§ 5718. Subscribers’ liability generally. (a) The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several and proportionate liability, and not joint. (b) Except as to a nonassessable poli…

§ 5719. Subscribers’ liability on judgment. (a) No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for 30 days. (b) Any such judgment shall be binding upon…

§ 5720. Assessments. (a) Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by the attorney upon approval in advance by the subscribers’ advisory committee and the Commissioner or by the …

§ 5721. Time limit for assessments. Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for and shall pay his or her share of any assessment, as computed and limited in accordance with this chapter, if: (1) While his or her policy is in f…

§ 5722. Aggregate or contingent liability. No 1 policy or subscriber as to such policy shall be assessed or charged with an aggregate or contingent liability as to obligations incurred by a domestic reciprocal insurer in any 1 calendar year in excess of the amount provided for in…

§ 5723. Nonassessable policies. (a) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock and surplus required to be maintained by a domestic stock insurer authorized to transact like kinds of insurance, upon application …

§ 5724. Subscribers’ share in assets. Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus and the return of any unus…