reglab/housing_qa huggingface dataset:
18 DE Code § 1903A. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter I. Compliance With Federal Statutes|§ 1903A. Nonadmitted Reinsurance and Reform Act of 2010 Implementation Revenue Study.

§ 1903A. Nonadmitted Reinsurance and Reform Act of 2010 Implementation Revenue Study. (a) The Insurance Commissioner shall establish a Nonadmitted and Reinsurance Reform Act of 2010 [15 U.S.C. § 8201 et seq.] (NRRA) Implementation Revenue Study Committee to study the potential impact that would result from the State's entrance into an Agreement pursuant to § 1903 of this title in order to prevent the State from losing revenue after July 21, 2011, the effective date of the NRRA. The Committee shall determine if entering into an Agreement would result in retention of out-of-state surplus lines tax revenue for the State and, if so, which Agreement would result in the most retention of surplus lines tax revenue for the State and the most cost-efficient method of administering the collection and distribution of tax revenues. Notwithstanding subsection (b) of this section, the Committee shall report its findings and recommendations, including any proposed legislation, to the chairs of the respective Senate and House committees, the Senate Pro-Tempore, the Speaker of the House and to the Controller General no later than January 2012. (b) In the event that an interstate surplus lines tax allocation, reporting and payment system becomes operational and the Insurance Commissioner determines that the State of Delaware is likely to lose significant revenue by delaying the decision to enter into an Agreement pursuant to § 1903 of this title until after completion of the report by the NRRA Implementation Revenue Study Committee, then the Commissioner may enter into an Agreement after notice and hearing, which shall involve testimony regarding the Commissioner's determination, and the burden the tax allocation, reporting and payment system selected would impose on brokers. 78 Del. Laws, c. 176, §  1;
18 DE Code § 1905. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter I. Compliance With Federal Statutes|§ 1905. Exclusions.

§ 1905. Exclusions. (a) Unless the Commissioner rules otherwise pursuant to § 1915 of this title, life insurance and health insurance shall not be considered surplus lines insurance and shall be placed with admitted insurers licensed to write those types of insurance. (b) The provisions of this chapter shall not apply to reinsurance or to the following insurances when so placed by licensed producers or surplus lines brokers of this State:  (1) Wet marine and transportation insurance; (2) Insurance on subjects located, resident or to be performed wholly outside this State or on vehicles or aircraft owned and principally garaged outside this State; (3) Insurance on operations of railroads engaged in transportation in interstate commerce and their property used in such operations; (4) Insurance of aircraft owned or operated by manufacturers of aircraft or of aircraft operated in commercial interstate flight or cargo of such aircraft or against liability, other than workers' compensation and employer's liability, arising out of the ownership, maintenance or use of such aircraft; (5) Transactions for which a certificate of authority to do business is not required of an insurer under the insurance laws of this State.78 Del. Laws, c. 176, §  1;  80 Del. Laws, c. 47, §  1;
18 DE Code § 1911. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter II. Surplus Lines Insurance|§ 1911. Placement of insurance business.

§ 1911. Placement of insurance business. (a) An insurer shall not engage in the transaction of insurance in this State unless authorized by a certificate of authority in force pursuant to the laws of this State, or exempted by this chapter or otherwise exempted by the insurance laws of this State. (b) A person shall not engage in a transaction of insurance or in this State directly or indirectly act as agent for, or otherwise represent or aid on behalf of another, a nonadmitted insurer in the solicitation, negotiation, procurement or effectuation of insurance, or renewals thereof, or forwarding of applications, or delivery of policies or contracts or inspection of risks, or fixing of rates, or investigation or adjustment of claims or losses, or collection or forwarding of premiums, or in any other manner represent or assist the insurer in the transaction of insurance. (c) A person who represents or aids a nonadmitted insurer in violation of this section shall be subject to the penalties set forth in § 106 of this title. No insurance contract entered into in violation of this section shall preclude the insured from enforcing his or her rights under the contract in accordance with the terms and provisions of the contract of insurance and the laws of this State, to the same degree those rights would have been enforceable had the contract been lawfully procured. (d) If the nonadmitted insurer fails to pay a claim or loss within the provisions of the insurance contract and the laws of this State, a person who assisted or in any manner aided directly or indirectly in the procurement of the insurance contract, shall be liable to the insured for the full amount under the provisions of the insurance contract. (e) Subsection (b) or (d) of this section shall not apply to an insured who independently procures insurance. (f) This section shall not apply to a person, properly licensed as a producer in this State who, for a fee and pursuant to a written agreement, is engaged solely to offer to the insured advice, counsel or opinion, or service with respect to the benefits, advantages or disadvantages promised under any proposed or in-force policy of insurance if the person does not, directly or indirectly, participate in the solicitation, negotiation or procurement of insurance on behalf of the insured. (g) This section shall not apply to a surplus lines broker duly licensed in this State who is acting in material compliance with the insurance laws of this State in the placement of surplus lines insurance as provided in this chapter. 78 Del. Laws, c. 176, §  2;  70 Del. Laws, c. 186, §  1;
18 DE Code § 1912. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter II. Surplus Lines Insurance|§ 1912. Conditions for export.

§ 1912. Conditions for export. (a) If certain insurance coverage cannot be procured from authorized insurers, such coverage, hereinafter designated “surplus lines,” may be procured from nonadmitted insurers, subject to the following conditions:  (1) Each insurer is an eligible surplus lines insurer; and (2) Each insurer is authorized to write the type of insurance in its domiciliary jurisdiction; and (3) The full amount of insurance required must not be procurable, after diligent effort has been made to do so, from among the insurers authorized to transact and actually writing that kind and class of insurance in this State, and the amount of insurance exported shall be only the excess over or other than the amount procurable from authorized insurers; and (4) The insurance must not be so exported for the purpose of securing advantages either as to:  a. A lower premium rate than would be accepted by an authorized insurer; or b. Terms of the insurance contract. (5) All other requirements of this chapter are met. (b) For purposes of this section, “type of insurance” means the hazard or combination of hazards covered by a contract of insurance. (c) Each surplus line broker shall be responsible to ensure that a diligent effort is made among insurers that are admitted to transact and are actually writing the particular type of insurance in this State before procuring the insurance for a home state insured from a nonadmitted insurer. (1) A diligent search shall only be performed by a surplus lines broker or a producer licensed in this State that holds an active property and casualty insurance producer license. (2) An insurance producer or surplus lines broker is exempt from the diligent effort requirements of this section if the producer or surplus lines broker is procuring insurance for a risk purchasing group as provided in Chapter 80 of this title. (d) Except as provided in paragraph (c)(2) of this section and § 1914 of this title, the Commissioner shall by regulation establish the degree of effort required to comply with paragraphs (a)(3) and (4) of this section and the means to certify to the accuracy of the facts supporting the surplus line broker's diligent search effort. 18 Del. C. 1953, §  1904;  56 Del. Laws, c. 380, §  1;  78 Del. Laws, c. 176, §  2;
18 DE Code § 1913. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter II. Surplus Lines Insurance|§ 1913. Duty of inquiry by surplus lines broker.

§ 1913. Duty of inquiry by surplus lines broker. (a) The surplus lines broker shall be responsible for determining whether an applicant for nonadmitted insurance is a Delaware home state insured. A surplus lines broker who reasonably relies on information provided in good faith by the applicant, whether directly or through the producer, shall be deemed to be in compliance with this requirement. (b) A broker shall not knowingly place surplus lines insurance with an insurer that is unsound financially or that does not meet the eligibility requirements under subchapter III of this chapter. (c) Before placing insurance with a nonadmitted insurer, all surplus lines brokers shall make a thorough inquiry into the financial condition and operating history of such insurer in order that the interests of the citizens of Delaware may be protected. (d) During the course of placing business with a nonadmitted insurer, either foreign or alien, each surplus lines broker shall be under a continuous duty to apprise himself or herself that such insurer maintains a condition of solvency and general financial health, and that the company processes claims and pays losses expeditiously. (e) Whenever any reasonable doubt arises as to the capacity, competence, stability or good faith of a nonadmitted insurer with which a surplus lines broker places insurance on behalf of the public of Delaware, the broker is under a further duty to inform the Insurance Commissioner of the basis of such doubt. Any broker in a position of doubt shall immediately cease and desist placing further business with such insurer. 78 Del. Laws, c. 176, §  2;  70 Del. Laws, c. 186, §  1;
18 DE Code § 1914. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter II. Surplus Lines Insurance|§ 1914. Streamlined application for commercial purchasers.

§ 1914. Streamlined application for commercial purchasers. (a) A surplus lines broker seeking to procure or place nonadmitted insurance in this State for an exempt commercial purchaser whose home state is this State shall not be required to satisfy any requirement to make a diligent effort to determine whether the full amount or type of insurance sought by such exempt commercial purchaser can be obtained from admitted insurers if:  (1) The broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that such insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and (2) The exempt commercial purchaser has subsequently requested in writing the broker to procure or place such insurance from a nonadmitted insurer. (b) For purposes of this section, the term “exempt commercial purchaser” means any person purchasing commercial insurance that, at the time of placement, meets the following requirements:  (1) The person employs or retains a qualified risk manager to negotiate insurance coverage. (2) The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of $100,000 in the immediately preceding 12 months. (3) The person meets at least 1 of the following criteria:  a. The person possesses a net worth in excess of $20,000,000; as such amount is adjusted pursuant to subsection (c) of this section. b. The person generates annual revenues in excess of $50,000,000; as such amount is adjusted pursuant to subsection (c) of this section. c. The person employs more than 500 full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than 1,000 employees in the aggregate. d. The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least $30,000,000; as such amount is adjusted pursuant to subsection (c) of this section. e. The person is a municipality with a population in excess of 50,000 persons. (c) Effective January 1, 2016, and each fifth January 1 occurring thereafter, the amounts in paragraphs (b)(3)a., b. and d. of this section shall be adjusted to reflect the percentage change for such 5-year period in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. 78 Del. Laws, c. 176, §  2;
18 DE Code § 1915. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter II. Surplus Lines Insurance|§ 1915. Open lines for export.

§ 1915. Open lines for export. (a) The Commissioner may by order declare eligible for export for a home state insured, generally and without compliance with the provisions of § 1912 of this title, any class or classes of insurance coverage or risk for which the Commissioner finds, after a hearing of which notice was given to each insurer authorized to transact such class or classes in this State, that there is not a reasonable or adequate market among authorized insurers either as to acceptance of the risk, contract terms, or premium rate. Any such order shall continue in effect during the existence of the conditions upon which predicated, but subject to earlier termination by the Commissioner. (b) The broker shall file as directed by the Commissioner a memorandum as to each such coverage placed by him or her in a nonadmitted insurer for a home state insured, in such form and context as the Commissioner may reasonably require for the identification of the coverage and determination of the tax payable to the state relative thereto. (c) The broker or a licensed Delaware producer of the authorized insurer may also place with authorized insurers any insurance coverage made eligible for export generally under subsection (a) of this section above, and without regard to rate or form filings which may otherwise be applicable as to the authorized insurer. As to coverage so placed in an authorized insurer, the premium tax thereon shall be reported and paid by the insurer as required generally under Chapter 7 of this title. 18 Del. C. 1953, §  1906;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;  78 Del. Laws, c. 176, §  2;
18 DE Code § 1916. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter II. Surplus Lines Insurance|§ 1916. Evidence of the insurance; changes; penalty.

§ 1916. Evidence of the insurance; changes; penalty. (a) Upon placing a surplus lines coverage for a home state insured, the broker shall promptly issue and deliver to the insured evidence of the insurance consisting either of the policy as issued by the insurer or, if such policy is not then available, the surplus line broker's certificate. Such a certificate shall be executed by the broker and shall show the name and license number of the individual surplus lines broker, the description and location of the subject of the insurance, coverage, conditions and term of the insurance, the premium and rate charged, taxes collected from the insured, and the name and address of the insured and insurer. If the risk is assumed by more than 1 insurer, the certificate shall state the name and address and proportion of the entire risk assumed by each such insurer. (b) No broker shall issue any such certificate or any cover note, or purport to insure or represent that insurance will be or has been granted by any nonadmitted insurer, unless he or she has prior written authority from the insurer for the insurance, or has received information from the insurer in the regular course of business that such insurance has been granted, or an insurance policy providing the insurance actually has been issued by the insurer and delivered to the insured. (c) If after the issuance and delivery of any such certificate there is any change as to the identity of the insurers, or the proportion of the direct risk assumed by an insurer as stated in the broker's original certificate, or in any other material respect as to the insurance evidenced by the certificate, the broker shall promptly issue and deliver to the insured or the original producing agent a substitute for, or endorsement of, the original document, accurately showing the current status of the coverage and the insurers responsible for the coverage. (d) As soon as reasonably possible after the placement of the insurance, the surplus lines broker shall deliver a copy of the policy or, if not available, a certificate of insurance to the insured or producing agent to replace any evidence of insurance previously issued. Each certificate or policy of insurance shall contain or have attached a complete record of all policy insuring agreements, conditions, exclusions, clauses, endorsements or any other material facts that would regularly be included in the policy. (e) Any surplus lines broker, who knowingly or negligently issues a false certificate of insurance or who fails promptly to notify the insured of any material change with respect to such insurance by delivery to the insured of a substitute certificate as provided in subsection (c) of this section, shall, upon conviction, be subject to the penalty provided by § 106 of this title or to any greater applicable penalty otherwise provided by law. 18 Del. C. 1953, §  1908;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;  78 Del. Laws, c. 176, §  2;
18 DE Code § 1917. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter II. Surplus Lines Insurance|§ 1917. Endorsement of contract.

§ 1917. Endorsement of contract. (a) Licensee's duty to notify insured. — (1) No contract of insurance placed by a surplus lines broker under this chapter for a home state insured shall be binding upon the insured and no premium charged shall be due and payable until the surplus lines broker shall have notified the insured in writing, in a form acceptable to the Commissioner, a copy of which shall be maintained by the surplus lines broker with the records of the contract and available for possible examination, that:  a. The insurer with which the broker places the insurance is not licensed by this State and is not subject to its supervision; and b. In the event of the insolvency of the surplus lines insurer, losses will not be paid by the state insurance guaranty fund. (2) Nothing herein contained shall nullify any agreement by any insurer to provide insurance. (3) This subsection shall not apply to an insured in this State who independently procures insurance. (b) Every insurance contract procured and delivered as surplus lines coverage pursuant to this law shall have stamped or printed upon it, initialed by and bearing the name of the individual surplus lines broker who procured it, the following disclosure statement:  “This insurance contract is issued pursuant to the Delaware Insurance Laws by an insurer neither licensed by nor under the jurisdiction of the Delaware Insurance Department. This insurer does not participate in insurance guaranty funds created by state law. In the event of the insolvency of the surplus lines insurer, losses will not be paid by the state insurance guaranty fund.” (c) When a contract is issued to an exempt commercial purchaser as described in § 1914 of this title, neither the nonadmitted insurer nor the surplus line broker is required to provide the notice required in this section except on the confirmation of insurance, the certificate of placement, or the policy, whichever is first provided to the insured, nor is the insurer or surplus line broker required to obtain the insured's signature. The producer shall ensure that the notice affixed to the confirmation of insurance, certificate of placement, or the policy is provided to the insured. (d) Paragraph (a)(1)a. and subsection (b) of this section shall not apply when the surplus lines coverage is procured from a domestic surplus lines insurer pursuant to § 1932 of this title. 18 Del. C. 1953, §  1909;  56 Del. Laws, c. 380, §  1;  78 Del. Laws, c. 176, §  2;  80 Del. Laws, c. 30, §  1;
18 DE Code § 1918. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter II. Surplus Lines Insurance|§ 1918. Surplus line insurance valid.

§ 1918. Surplus line insurance valid. Insurance contracts procured as surplus lines coverage from nonadmitted insurers in accordance with this law, whether so procured by a surplus lines broker or directly by the insured by means of independent procurement, shall be fully valid and enforceable as to all parties, and shall be given recognition in all matters and respects to the same effect as like contracts issued by authorized insurers. 18 Del. C. 1953, §  1910;  56 Del. Laws, c. 380, §  1;  78 Del. Laws, c. 176, §  2;
18 DE Code § 1919. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 19. Delaware Nonadmitted Insurance Act|Subchapter II. Surplus Lines Insurance|§ 1919. Liability of insurer.

§ 1919. Liability of insurer. (a) A payment of premium to a surplus lines broker acting for a person other than himself or herself in procuring, continuing or renewing any policy of insurance procured under this law shall be deemed to be payment to the insurer, whatever conditions or stipulations may be inserted in the policy or contract notwithstanding. (b) As to a surplus lines risk which has been assumed by a nonadmitted insurer pursuant to this surplus lines insurance law, and if the premium thereon has been received by the surplus line broker who placed such insurance, in all questions thereafter arising under the coverage as between the insurer and the insured the insurer shall be deemed to have received the premium due to it for such coverage, and the insurer shall be liable to the insured as to losses covered by such insurance and for unearned premiums which may become payable to the insured upon cancellation of such insurance, whether or not in fact the broker is indebted to the insurer with respect to such insurance or for any other cause. (c) Each nonadmitted insurer assuming a surplus lines risk under this surplus lines insurance law shall be deemed thereby to have subjected itself to the terms of this section. 18 Del. C. 1953, §  1911;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;  78 Del. Laws, c. 176, §  2;