Title 18 — Insurance Code

§ 7404. Disclosure limitations. (a) In addition to the disclosure provided for in § 7405 of this title, or Subsection (b) of this section, on the basis of the applicant’s written informed consent as specified in § 7403 of this title, an insurer may also disclose an applicant’s HI…

§ 7405. Notification. An insurer who fails to issue a policy an applicant due to the results of HIV testing shall notify the applicant in writing of an adverse underwriting decision based upon the results of such applicant’s medical examination and testing but shall not disclose …

§ 7501. Short title. This chapter may be cited as the “Delaware Viatical Settlements Act.”72 Del. Laws, c. 132, § 1; 81 Del. Laws, c. 172, § 1;

§ 7502. Definitions. As used in this chapter: (1) “Advertising” means any written, electronic or printed communication, or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet, or similar communications media, including film …

§ 7503. License and bond requirements. (a) A person may not operate as a viatical settlement provider or viatical settlement broker without first obtaining a license from the Commissioner of the state of residence of the viator. (b) A life insurance producer who has been duly lic…

§ 7504. License revocation and denial. (a) The Commissioner may refuse to issue, suspend, revoke or refuse to renew the license of a viatical settlement provider or viatical settlement broker if the Commissioner finds any of the following: (1) There was a material misrepresentati…

§ 7505. Approval of viatical settlement contracts and disclosure statements. A person may not use a viatical settlement contract form or provide to a viator a disclosure statement form in this State unless it is first filed with and approved by the Commissioner. The Commissioner …

§ 7506. Reporting requirements and privacy. (a) Each viatical settlement provider shall file with the Commissioner on or before March 1 of each year an annual statement containing such information as the Commissioner may prescribe by regulation. Such information is limited to onl…

§ 7507. Examination or investigations. (a) Authority, scope and scheduling of examinations. — (1) The Commissioner may conduct an examination under this Act of a licensee as often as the Commissioner, in the Commissioner’s discretion, deems appropriate after considering the facto…

§ 7508. Disclosure to viator. (a) With each application for a viatical settlement, a viatical settlement provider or viatical settlement broker shall provide the viator with at least the following disclosures no later than the time the application for the viatical settlement cont…

§ 7509. Disclosure to insurer. Prior to the initiation of a plan, transaction, or series of transactions, a viatical settlement broker or viatical settlement provider shall fully disclose to an insurer a plan, transaction, or series of transactions, to which the viatical settleme…

§ 7510. General rules. (a) A viatical settlement provider entering into a viatical settlement contract shall first obtain the following: (1) If the viator is the insured, a written statement from a licensed attending physician that the viator is of sound mind and under no constra…

§ 7511. Prohibited practices. (a) It is a violation of this Act for any person to enter into a viatical settlement contract at any time prior to the application or issuance of a policy which is the subject of viatical settlement contract or within a 5-year period commencing with …

§ 7512. Prohibited practices and conflicts of interest. (a) With respect to any viatical settlement contract or insurance policy, a viatical settlement broker may not knowingly solicit an offer from, effectuate a viatical settlement with, or make a sale to any viatical settlement…

§ 7513. Advertising for viatical settlements. (a) The purpose of this section is to provide prospective viators with clear and unambiguous statements in the advertisement of viatical settlements and to assure the clear, truthful, and adequate disclosure of the benefits, risks, li…

§ 7514. Fraud prevention and control. (a) Fraudulent viatical settlement acts, interference, and participation of convicted felons prohibited. — (1) A person may not commit a fraudulent viatical settlement act. (2) A person may not knowingly or intentionally interfere with the en…

§ 7515. Injunctions; civil remedies; cease and desist. (a) In addition to the penalties and other enforcement provisions of this Act, if any person violates this Act or any regulation implementing this Act, the Commissioner, through the Attorney General, may seek an injunction in…

§ 7516. Authority to promulgate regulations. The Commissioner has the authority to: (1) Promulgate regulations implementing this chapter. (2) Establish standards for evaluating reasonableness of payments under viatical settlement contracts for persons who are terminally or chroni…

§ 7517. Unfair trade practices. A violation of this Act, including the commission of a fraudulent viatical settlement act, is an unfair or deceptive act or practice in the business of insurance under § 2304 of this title, subject to the penalties contained in Chapter 23 of this t…

§ 7518. Nonpreemption of requirements under the Delaware Securities Act. Nothing in this chapter preempts any provision set forth in Chapter 73 of Title 6, as amended, including the regulation of securities transactions in viatical settlement investments and the licensing of any …

§ 7519. Severability. If any portion of this Act or any amendments thereto, or its applicability to any person or circumstance is held invalid by a court, the remainder of this Act or its applicability to other persons or circumstances are not affected.81 Del. Laws, c. 172, § 1;

§ 7520. Effective date. A viatical settlement provider or viatical settlement broker transacting business in this State may continue to do so pending approval or disapproval of the provider or broker’s application for a license as long as the application is filed with the Commiss…

§ 7601. Definitions. For purposes of this chapter: (1) The terms “affiliate,” “control,” and “subsidiary” shall have the meanings ascribed to them in § 5001 of this title. (2) “Ancillary services” includes, but is not limited to, audiology, dental, vision, mental health, substanc…

§ 7602. Applicability and scope. (a) This chapter applies to all discount medical plan organizations doing business in Delaware. (b) A discount medical plan organization that is a health carrier licensed pursuant to Chapter 5 of this title, a health service corporation subject to…

§ 7603. Licensing requirements. (a) Before doing business in this State as a discount medical plan organization, a person shall obtain a license from the Commissioner to operate as a discount medical plan organization. (b) Each application for a license to operate as a discount m…

§ 7604. Surety bond or deposit requirements. (a) Each licensed discount medical plan organization shall maintain in force a surety bond in its own name in an amount not less than $50,000 to be used in the discretion of the Commissioner to protect the financial interest of members…

§ 7605. Examinations and investigations. (a) The Commissioner may examine or investigate the business and affairs of any discount medical plan organization to protect the interests of the residents of Delaware. (b) An examination or investigation conducted as provided in subsecti…

§ 7606. Fees; refund requirements; bundling of services. (a) A discount medical plan organization may charge a periodic charge as well as a reasonable 1-time processing fee for a discount medical plan. (b) If a member cancels his or her membership in the discount medical plan org…

§ 7607. Form filing requirements. A discount medical plan organization shall file the initial written materials sent to new members, as described under § 7610(d) of this title, with the Delaware Insurance Commissioner prior to use. If a discount medical plan organization uses a f…

§ 7608. Provider agreements; provider listing requirements. (a) A discount medical plan organization shall have a written provider agreement with all providers offering medical or ancillary services to its members. The written provider agreement may be entered into directly with …

§ 7609. Marketing requirements. (a) A discount medical plan organization may market directly or contract with other marketers for the distribution of its product. (b) The discount medical plan organization shall have an executed written agreement with a marketer prior to the mark…

§ 7610. Marketing restrictions and disclosure requirements. (a) All advertisements, marketing materials, brochures, discount medical plan cards and any other communications of a discount medical plan organization provided to purchasers, prospective purchasers and members shall be…

§ 7611. Notice of change in name or address. Each discount medical plan organization shall provide the Commissioner at least 30 days notice of any change in the discount medical plan organization’s name, address, principal business address or mailing address or Internet website a…

§ 7612. Annual reports. (a) If the information required in subsection (b) of this section is not provided at the time of renewal of a license under § 7603(e) of this title, a discount medical plan organization shall file an annual report with the Commissioner in the form prescrib…

§ 7613. Penalties. Section 329 and Chapter 24 of this title, relating to administrative penalties and fraud, shall apply to discount medical plan organizations.77 Del. Laws, c. 470, § 1;

§ 7614. Injunctions. (a) In addition to the penalties and other enforcement provisions of this chapter, the Commissioner may seek both temporary and permanent injunctive relief when: (1) A discount medical plan is being operated by a person or entity that is not licensed pursuant…

§ 8001. Purpose. The purpose of this chapter is to regulate the formation and/or operation of risk retention groups and purchasing groups in this State formed pursuant to the provisions of the federal Liability Risk Retention Act of 1986 (“RRA 1986”) [15 U.S.C. § 3901 et seq.], t…

§ 8002. Definitions. As used in this chapter: (1) “Commissioner” means the Insurance Commissioner of Delaware or the commissioner, director or superintendent of insurance in any other state; (2) “Completed operations liability” means liability arising out of the installation, mai…

§ 8003. Risk retention groups chartered in this State. (a) A risk retention group shall, pursuant to this chapter, be chartered and licensed to write only liability insurance pursuant to this chapter and, except as provided elsewhere in this chapter, must comply with all of the l…

§ 8004. Risk retention groups not chartered in this State. Risk retention groups chartered and licensed in states other than this State and seeking to do business as a risk retention group in this State shall comply with the laws of this State as follows: (1) Notice of operations…

§ 8005. Compulsory associations. (a) No risk retention group shall be required or permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this State, nor shall any risk retention group, or its insureds or claimants against i…

§ 8006. Countersignatures not required. A policy of insurance issued to a risk retention group or any member of that group shall not be required to be countersigned as otherwise provided in Chapter 17 of this title.68 Del. Laws, c. 57, § 1;

§ 8007. Purchasing groups — Exemption from certain laws. A purchasing group and its insurer or insurers shall be subject to all applicable laws of this State, except that a purchasing group and its insurer or insurers shall be exempt, in regard to liability insurance for the purc…

§ 8008. Notice and registration requirements of purchasing groups. (a) A purchasing group which intends to do business in this State shall, prior to doing business, furnish notice to the Commissioner which shall: (1) Identify the state in which the group is domiciled; (2) Identif…

§ 8009. Restrictions on insurance purchased by purchasing groups. (a) A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purch…

§ 8010. Purchasing group taxation. Premium taxes and taxes on premiums paid for coverage of risks resident or located in this State by a purchasing group or any members of the purchasing groups shall be: (1) Imposed at the same rate and subject to the same interest, fines and pen…

§ 8011. Administrative and procedural authority regarding risk retention groups and purchasing groups. The Commissioner is authorized to make use of any of the powers established under the Insurance Code of this State to enforce the laws of this State not specifically preempted b…

§ 8012. Duty of agents or brokers to obtain license. (a) No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance in this State from a risk retention group unless such person, firm, association or corpo…

§ 8013. Binding effect of orders issued in United States District Court. An order issued by any District Court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating in any state (or in all states or in any territory or possession…

§ 8014. Rules and regulations. The Commissioner may establish and from time to time amend such rules relating to risk retention groups as may be necessary or desirable to carry out the provisions of this chapter.68 Del. Laws, c. 57, § 1;