reglab/housing_qa huggingface dataset:
18 DE Code § 4920. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4920. Prohibited pecuniary interest of officials.

§ 4920. Prohibited pecuniary interest of officials. (a) Any officer or director, or any member of any committee or an employee of a domestic insurer, having the duty or power of investing or handling the insurer's funds, shall not deposit or invest such funds except in the insurer's name, shall not borrow the funds of the insurer or be pecuniarily interested in any loan, pledge, deposit, security, investment, sale, purchase, exchange, reinsurance or other similar transaction or property of the insurer, except as a stockholder, member, employee or director, unless the transaction is authorized or approved by the insurer's board of directors, with knowledge and recording of such pecuniary interest, by affirmative vote of not less than 2/3 of the directors, and shall not take or receive to his or her own use any fee, brokerage, commission, gift or other similar consideration for or on account of any such transaction made by or on behalf of the insurer. (b) No insurer shall guarantee the financial obligation of any of its officers or directors. (c) This section shall not prohibit such a director, officer, member of a committee, or employee from becoming a policyholder of the insurer and enjoying the usual rights of a policyholder, or from participating as beneficiary in any pension trust, deferred compensation plan, profit sharing plan, stock option plan or similar plan authorized by the insurer and to which such person may be eligible, or prohibit any director or member of a committee from receiving a reasonable fee for lawful services actually rendered to the insurer. (d) The Commissioner may, by regulation from time to time, define and permit additional exceptions to the prohibition contained in subsection (a) of this section solely to enable payment of a reasonable compensation to a director who is not otherwise an officer or employee of the insurer, or to a corporation or firm in which a director is interested, for necessary services performed or sales or purchases made to or for the insurer in the ordinary course of the insurer's business and in the usual private professional or business capacity of such director, corporation or firm. 18 Del. C. 1953, §  4920;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4921. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4921. Management and exclusive agency contracts.

§ 4921. Management and exclusive agency contracts. (a) No domestic insurer shall hereafter make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the material exclusion of its board of directors or to have the controlling or preemptive right to produce substantially all insurance business for the insurer, or, if an officer, director or otherwise part of the insurer's management, is to receive any commission, bonus or compensation based upon the volume of the insurer's business or transactions, unless the contract is filed with and not disapproved by the Commissioner. The contract shall become effective in accordance with its terms unless disapproved by the Commissioner within 20 days after date of filing, subject to such reasonable extension of time as the Commissioner may require by notice given within such 20 days. Any disapproval shall be delivered to the insurer in writing stating the grounds therefor. (b) Any such contract shall provide that any such manager, producer of its business, or contract holder shall within 90 days after expiration of each calendar year furnish the insurer's board of directors a written statement of amounts received under or on account of the contract and amounts expended thereunder during such calendar year, with specification of the emoluments received therefrom by the respective directors, officers and other principal management personnel of the manager or producer, and with such classification of items and further detail as the insurer's board of directors may reasonably require. (c) The Commissioner shall disapprove any such contract if the Commissioner finds that it:  (1) Subjects the insurer to excessive charges; or (2) Is to extend for an unreasonable length of time; or (3) Does not contain fair and adequate standards of performance; or (4) Contains other inequitable provision or provisions which impair the proper interests of stockholders or members of the insurer. (d) The Commissioner may, after a hearing held thereon, disapprove any such contract theretofore permitted to become effective if the Commissioner finds that the contract should be disapproved on any of the grounds referred to in subsection (c) of this section above. (e) This section does not apply as to contracts entered into prior to November 1, 1968, or to extensions or amendments of such contracts. 18 Del. C. 1953, §  4921;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4922. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4922. Dividends to stockholders.

§ 4922. Dividends to stockholders. (a) A domestic stock insurer shall not pay any cash dividend to stockholders except out of that part of its available and accumulated surplus funds which is derived from realized net operating profits on its business and realized capital gains. (b) A cash dividend otherwise lawful may be payable out of the insurer's earned surplus even though its total surplus is then less than the aggregate of its past contributed or paid-in surplus. (c) A stock dividend may be paid out of any available surplus funds. (d) The insurance department or division of a corporation established under Chapter 7 of Title 5 shall only make distributions (other than for payment of expenses) to such corporation out of that part of its available and accumulated surplus funds which is derived from realized net operating profits on its business and realized capital gains. 18 Del. C. 1953, §  4922;  56 Del. Laws, c. 380, §  1;  67 Del. Laws, c. 223, §  33;
18 DE Code § 4923. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4923. Participating policies.

§ 4923. Participating policies. (a) If provided for in its certificate of incorporation or charter, a stock insurer or mutual insurer may issue any or all of its policies or contracts with or without participation in profits, savings, unabsorbed portions of premiums, or surplus, may classify policies issued and perils insured on a participating and nonparticipating basis, and may determine the right to participate and the extent of participation of any class or classes of policies. Any such classification or determination shall be reasonable and shall not unfairly discriminate as between policies so classified. (b) A life insurer may issue both participating and nonparticipating policies or contracts if the right or absence of right to participate is reasonably related to the premium charged. (c) After the first policy year, no dividend, otherwise earned, shall be made contingent upon the payment of renewal premium on any policy or contract, except, that a participating life or health insurance policy providing for participation at the end of the first and/or second policy year may provide that the dividend or dividends will be paid subject to payment of premium for the next ensuing year. 18 Del. C. 1953, §  4923;  56 Del. Laws, c. 380, §  1;
18 DE Code § 4924. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4924. Dividends to policyholders.

§ 4924. Dividends to policyholders. (a) The directors of a domestic mutual insurer may from time to time apportion and pay or credit to its members dividends only out of that part of its surplus funds which represents net realized savings, net realized earnings, and net realized capital gains, all in excess of the surplus required by law to be maintained by the insurer. (b) A dividend otherwise proper may be payable out of such savings, earnings and gains even though the insurer's total surplus is then less than the aggregate of contributed surplus remaining unpaid by the insurer. (c) A domestic stock insurer may pay dividends to holders of its participating policies out of any available surplus funds. (d) No dividend shall be paid which is inequitable or which unfairly discriminates as between classifications of policies or policies within the same classifications. 18 Del. C. 1953, §  4924;  56 Del. Laws, c. 380, §  1;
18 DE Code § 4925. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4925. Solicitation of business; issuance of policies in other jurisdictions.

§ 4925. Solicitation of business; issuance of policies in other jurisdictions. (a) No domestic insurer shall knowingly solicit insurance business in any reciprocating state in which not then licensed as an authorized insurer. This subsection shall not prohibit advertising through publications and radio, television and other media originating outside such reciprocating state, if the insurer is licensed in the state in which the advertising originates and the advertising is not specifically directed to residents of such reciprocating state. This subsection shall not apply as to surplus line insurance, or prohibit insurance covering persons or risks located in a reciprocating state, under contracts solicited and issued in states in which the insurer is then licensed, or insurance otherwise effectuated in accordance with the laws of the reciprocating state. A “reciprocating” state, as used herein, is one under the laws of which a similar prohibition is imposed upon and enforced against insurers domiciled in that state. (b) A domestic insurer duly authorized to transact insurance in another jurisdiction may frame and issue policies for delivery in such jurisdiction pursuant to applications for insurance solicited and obtained therein, in accordance with the laws thereof, subject only to such restrictions, if any, as may be contained in the insurer's certificate of incorporation or bylaws, and subject, in the case of health insurers, to the provisions of § 3330 of this title (policies issued for delivery in another state). 18 Del. C. 1953, §  4925;  56 Del. Laws, c. 380, §  1;
18 DE Code § 4926. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4926. Payment of taxes; exoneration.

§ 4926. Payment of taxes; exoneration. (a) Every domestic insurer may comply with any law of any state or political subdivision imposing any license, excise, privilege, premium, occupation or other fee or tax, and pay such fee or tax, unless prior to such payment the law shall have been expressly held invalid by the state court having final appellate jurisdiction in the premises or by the Supreme Court of the United States. (b) No officer, director or trustee of any insurer shall be subject to personal liability by reason of any payment, or determination not to contest payment, deemed by the board of directors or trustee to be in the corporate interests of the insurer, of any license, excise, privilege, premium, occupation or other fee or tax to any such state or political subdivision, unless prior to such payment the law imposing such fee or tax shall have been expressly held invalid by the state court having final appellate jurisdiction in the premises or by the Supreme Court of the United States. 18 Del. C. 1953, §  4926;  56 Del. Laws, c. 380, §  1;
18 DE Code § 4927. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4927. Impairment of capital or assets.

§ 4927. Impairment of capital or assets. (a) If a domestic stock insurer's paid-in capital stock (as represented by the aggregate par value of its outstanding capital stock) or capital account (of an insurance department or division of a corporation established under Chapter 7 of Title 5) becomes impaired, or the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it under this title for authority to transact the kinds of insurance being transacted, the Commissioner shall at once determine the amount of deficiency and serve notice upon the insurer to cure the deficiency and file proof thereof with the Commissioner within the period specified in the notice, which period shall be not less than 30 nor more than 90 days from the date of the notice. Such notice may be so served by delivery to the insurer or by mailing to the insurer addressed to its registered office in this State. (b) The deficiency may be made good in cash or in assets eligible under Chapter 13 (Investments) of this title for the investment of the insurer's funds or by amendment of the insurer's certificate of authority to cover only such kind or kinds of insurance thereafter for which the insurer has sufficient paid-in capital stock (if a stock insurer) or surplus (if a mutual insurer) under this title, or, if a stock insurer, by reduction of the number of shares of the insurer's authorized capital stock or the par value thereof through amendment of its articles of incorporation, to an amount of authorized and unimpaired paid-in capital stock not below the minimum required for the kinds of insurance thereafter to be transacted. (c) If the deficiency is not made good and proof thereof filed with the Commissioner within the period required by the notice, as specified in subsection (a) of this section above, the insurer shall be deemed insolvent and the Commissioner shall institute delinquency proceedings against it under Chapter 59 of this title. 18 Del. C. 1953, §  4927;  56 Del. Laws, c. 380, §  1;  67 Del. Laws, c. 223, §  34;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4928. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4928. Mutualization of stock insurer.

§ 4928. Mutualization of stock insurer. (a) A stock insurer other than a title insurer may become a mutual insurer under such plan and procedure as may be approved by the Commissioner after a hearing thereon. (b) The Commissioner shall not approve any such plan, procedure or mutualization unless:  (1) It is equitable to stockholders and policyholders; (2) It is subject to approval by the holders of not less than 2/3 of the insurer's outstanding capital stock having voting rights, and, provided there are any qualified policyholders, by not less than 2/3 of the insurer's policyholders who vote on such plan in person, by proxy or by mail, pursuant to such notice and procedure as may be approved by the Commissioner; (3) If a life insurer, the right to vote thereon is limited to holders of policies other than term or group policies, and whose policies have been in force for more than 1 year; (4) Mutualization will result in retirement of shares of the insurer's capital stock at a price not in excess of the fair market value thereof as determined by competent disinterested appraisers; (5) The plan provides for the purchase of the shares of any nonconsenting stockholder in the same manner and subject to the same applicable conditions as provided by the general corporation law of the State as to rights of nonconsenting stockholders, with respect to consolidation or merger of private corporations; (6) The plan provides for definite conditions to be fulfilled by a designated early date upon which such mutualization will be deemed effective; and (7) The mutualization leaves the insurer with surplus funds reasonably adequate for the security of its policyholders and to enable it to continue successfully in business in the states in which it is then authorized to transact insurance, and for the kinds of insurance included in its certificates of authority in such states. (c) No director, officer, agent or employee of the insurer, or any other person, shall receive any fee, commission or other valuable consideration whatsoever, other than their customary salaries or other regular compensation, for in any manner aiding, promoting or assisting in the mutualization, except as set forth in the plan of mutualization as approved by the Commissioner. (d) This section shall not apply to mutualization under order of court pursuant to rehabilitation or reorganization of an insurer under Chapter 59 of this title. 18 Del. C. 1953, §  4928;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  36;
18 DE Code § 4929. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4929. Conversion to ordinary business corporation.

§ 4929. Conversion to ordinary business corporation. (a) A domestic stock insurer may convert to a Delaware ordinary business corporation through the following procedures:  (1) The insurer must give the Commissioner written notice of its intent to convert to an ordinary business corporation; (2) The insurer must bulk reinsure all of its insurance in force, if any, with another authorized insurer under a bulk reinsurance agreement approved by the Commissioner as provided in § 4944 of this title. The agreement of bulk reinsurance may be made contingent upon approval of stockholders as provided in paragraph (a)(4) of this section below; (3) The insurer must set aside in a special reserve fund, in such amount and subject to such administration as may be found by the Commissioner to be adequate and reasonable for the purpose, for payment of all obligations, if any, of the insurer incurred by it under its insurance contracts prior to the effective date of such bulk reinsurance and remaining unpaid or make other reasonable disposition satisfactory to the Commissioner for such payment; (4) The proposed conversion must be approved by affirmative vote of not less than 2/3 of the holders of each class of the outstanding securities of the insurer having voting rights at a special meeting of holders of such securities called for the purpose. At such meeting and by a like vote the certificate of incorporation of the corporation must be amended to remove therefrom the power to transact an insurance business as an insurer and to provide for such new powers and purposes as may be consistent with the purposes for which the corporation is thereafter to exist; (5) Security holders of the corporation who dissent from such proposed conversion shall have the same applicable rights as exist under the general corporation laws of this State with respect to dissent from a proposed merger of the corporation; (6) Upon compliance with paragraphs (a)(1) through (4) of this section above, and upon filing of the amendment of the certificate of incorporation as required by law, the conversion shall thereupon become effective. (b) An insurer which has once converted to an ordinary business corporation shall not have the power thereafter to reconvert to an insurer. 18 Del. C. 1953, §  4929;  56 Del. Laws, c. 380, §  1;
18 DE Code § 4930. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4930. Merger, consolidation of stock insurers.

§ 4930. Merger, consolidation of stock insurers. (a) A domestic stock insurer may merge or consolidate with 1 or more domestic or foreign stock insurers by complying with the applicable provisions of the statutes of this State governing the merger or consolidation of stock corporations formed for profit but subject to subsections (b) and (c) of this section below. A domestic stock insurer shall not merge or consolidate with any corporation not formed for the purpose of transacting insurance as an insurer. (b) No such merger or consolidation shall be effectuated unless in advance thereof the plan and agreement therefor have been filed with the Commissioner and approved in writing by the Commissioner after a hearing thereon after notice to the stockholders of each insurer involved. The Commissioner shall give such approval within a reasonable time after such filing unless the Commissioner finds such plan or agreement:  (1) Is contrary to law; or (2) Unfair or inequitable to the stockholders of any insurer involved; or (3) Would substantially reduce the security of and service to be rendered to policyholders of the domestic insurer in this State or elsewhere; or (4) Would materially tend to lessen competition in the insurance business in this State or elsewhere as to the kinds of insurance involved or would materially tend to create a monopoly as to such business; or (5) Is subject to other material and reasonable objections. (c) No director, officer, agent or employee of any insurer party to such merger or consolidation shall receive any fee, commission, compensation or other valuable consideration, whatsoever for, in any manner aiding, promoting or assisting therein except as set forth in such plan or agreement. (d) If the Commissioner does not approve any such plan or agreement the Commissioner shall so notify the insurer in writing specifying reasons therefor. 18 Del. C. 1953, §  4930;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4931. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4931. Affiliation of stock insurers.

§ 4931. Affiliation of stock insurers. (a) A domestic stock insurer shall not acquire a controlling interest in the shares of another stock insurer by an exchange of securities or partly in exchange for securities and partly for cash or property, unless the insurer has first submitted the plan for such acquisition and exchange to the Commissioner and the Commissioner has approved the same. (b) The Commissioner shall not so approve unless the Commissioner finds the plan for such acquisition and the terms and conditions thereof to be fair and equitable to all parties concerned therein after a hearing to which all persons to whom it is proposed to issue securities in such exchange shall have the right to appear. (c) Notice and conduct of such hearing shall be as provided in Chapter 3 of this title. 18 Del. C. 1953, §  4931;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4932. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4932. Acquisition of controlling stock.

§ 4932. Acquisition of controlling stock. Repealed by 68 Del. Laws, c. 325, § 3, effective Aug. 7, 1992.
18 DE Code § 4933. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49. Organization and Corporate Powers; Procedures of Domestic Stock and Mutual Insurers|§ 4933. Converting mutual insurer.

§ 4933. Converting mutual insurer. Repealed by 77 Del. Laws, c. 466, § 1, effective Oct. 17, 2010.