reglab/housing_qa huggingface dataset:
18 DE Code § 4713. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 47. Financing of Insurers|§ 4713. Bond for permit.

§ 4713. Bond for permit. (a) The Commissioner shall not issue a solicitation permit until the applicant therefor has filed with the Commissioner a corporate surety bond in the penalty of $10,000, aggregate amount, in favor of the State and for the use and benefit of the State and of proposed Delaware investors in and creditors of the permittee. (b) The bond shall be conditioned upon the payment of costs incurred by the State in event of any proceeding for liquidation or dissolution of the proposed organization before completion of organization or if a certificate of authority to be an insurer is not granted; and upon a full accounting for funds received until the proposed insurer has been granted its certificate of authority or until the corporation, syndicate, association, firm or organization or financing has been completed within the terms of the permit. (c) In lieu of filing such bond the applicant may deposit with the State Treasurer, through the Commissioner, $10,000 in cash or a certificate of deposit issued by a bank located in Delaware or an equivalent amount in United States government bonds at market value to be held in trust under the same conditions as required of the bond. The amount so deposited may be credited toward payment of subscription to securities by founders, promoters and incorporators if required under § 4709(b)(5)a. of this title. (d) The Commissioner may waive the requirement for a bond or deposit in lieu thereof if the securities are to be issued in connection with subsequent financing as provided in § 4717 of this title. (e) The Commissioner shall release and discharge any such bond or deposit or remaining portion thereof held under this section upon written request of the person entitled thereto and upon proof to the Commissioner's satisfaction that all liabilities and obligations with respect to which the bond or deposit was filed or made have been fully settled or terminated or otherwise adequately provided for. (f) This section does not apply as to solicitation of initial qualifying applications for insurance in a domestic mutual insurer pursuant to § 4906 of this title, except as provided in such § 4906. 18 Del. C. 1953, §  4713;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4714. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 47. Financing of Insurers|§ 4714. Escrow of funds.

§ 4714. Escrow of funds. (a) The holder of the solicitation permit shall promptly deposit all funds received from an offering of securities in this State pursuant to the permit, other than advance premiums for insurance which are subject to § 4907 of this title, in escrow in a bank or trust company located in this State and under an agreement consistent with this chapter approved by the Commissioner. (b) No part of such funds shall be withdrawn from such deposit except:  (1) For payment of organization, sales and promotion expenses as earned and as authorized by the permit, and funds for such purposes may be withheld from the deposit; or (2) For the purpose of making any deposit with the Commissioner required for issuance of a certificate of authority to an insurer or, if the organization is not or is not to be, an insurer, upon completion of payments on securities subscriptions made under the permit and deposit or appropriation of such funds to the purposes specified in the permit; or (3) For the making of refunds as provided in § 4716 of this title. (c) Funds while so held in escrow may be invested in certificates of deposit or savings accounts. Interest accruing thereon shall become part of the funds released as provided in paragraph (b)(2) of this section above, or shall be applied toward the costs of making refunds under paragraph (b)(3) of this section above, or to supplement the bond or deposit in lieu thereof in the event the same is called on pursuant to § 4713 of this title. (d) When the Commissioner has issued a certificate of authority to a proposed insurer, any such funds remaining in escrow for its account shall be released to the insurer. (e) The Commissioner may waive compliance with this section as to funds to be received under a subsequent financing permit under § 4717 of this title or in other circumstances where the Commissioner deems such an escrow to be reasonably unnecessary for the protection of investors or of the public. 18 Del. C. 1953, §  4714;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4715. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 47. Financing of Insurers|§ 4715. Subscriptions.

§ 4715. Subscriptions. All subscriptions to securities under a solicitation permit shall be binding upon and enforceable against the parties thereto in accordance with the terms of the subscription contract and subject to the provisions of this chapter. No such contract shall be made conditional except upon such reasonable conditions consistent with applicable statutes as may uniformly be set forth in all such contracts with the Commissioner's approval as not being inappropriate or inequitable. 18 Del. C. 1953, §  4715;  56 Del. Laws, c. 380, §  1;
18 DE Code § 4716. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 47. Financing of Insurers|§ 4716. Failure to complete or qualify.

§ 4716. Failure to complete or qualify. (a) The Commissioner shall withdraw all funds held in escrow under § 4714 of this title and refund to securities subscribers or purchasers all sums paid therein under the solicitation permit, less that part allowed and used for organization, sales and promotion expenses, if:  (1) The permit holder has failed to complete its organization or financing within the terms of the permit or if it has failed to secure its certificate of authority to be an insurer, all before expiration of the permit; or (2) The permit is revoked. (b) As to funds paid in on subscriptions by founders, promoters and incorporators and held on deposit in lieu of bond under § 4713(c) of this title, only such portion of such funds shall be refundable under this section as may remain after discharge of all liabilities against the deposit under § 4713 of this title and after the charging of such funds with a proportionate share of organization, sales and promotion expenses. 18 Del. C. 1953, §  4716;  56 Del. Laws, c. 380, §  1;
18 DE Code § 4717. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 47. Financing of Insurers|§ 4717. Subsequent financing; penalty.

§ 4717. Subsequent financing; penalty. (a) No person referred to in § 4702 (solicitation permit required; penalty) of this title, after receiving a certificate of authority, if an insurer in this or any other State or after completing its original organization and financing, if other than an insurer, shall in this State solicit or receive funds in exchange for its securities until it has applied to the Commissioner for and has been granted a solicitation permit. This provision is subject to the same exemptions as are provided by § 4704 of this title. (b) The Commissioner shall expeditiously issue such a permit unless the Commissioner finds:  (1) That the funds proposed to be secured are inadequate or excessive in amount for the purposes intended; or (2) That the proposed securities or the manner of their distribution would be unfair or inequitable to existing or proposed security holders or policyholders of the issuer. (c) Any such permit granted by the Commissioner shall be for such duration and shall contain such terms and be issued upon such conditions as the Commissioner may reasonably specify or require for the protection of existing or proposed investors. In the Commissioner's discretion, such terms and conditions may be substantially the same as or materially different from requirements made under this chapter as to solicitation permits for initial financing. (d) Violation of subsection (a) of this section shall be subject to the same penalties as prescribed by § 4702(b) (solicitation permit required; penalty) of this title. 18 Del. C. 1953, §  4717;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4801. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 48. Insurance Premium Financing|§ 4801. Definitions.

§ 4801. Definitions. As used in this chapter, unless the context otherwise requires:  (1) “Commissioner” means the Insurance Commissioner. (2) “Insurance premium finance company” means a person engaged in the business of entering into premium finance agreements or otherwise financing the payment of insurance premiums. (3) “Licensee” means a premium finance company holding a license issued by the Commissioner under this chapter. (4) “Premium finance agreement” means an agreement by which an insured or prospective insured promises to pay to an insurance premium financing company the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent or broker in payment of premiums on an insurance contract together with a service charge as authorized and limited by this chapter.60 Del. Laws, c. 406, §  1;
18 DE Code § 4802. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 48. Insurance Premium Financing|§ 4802. License required of insurance premium finance companies.

§ 4802. License required of insurance premium finance companies. (a) No person shall engage in the business of financing insurance premiums in this State without first having obtained a license as a premium finance company from the Commissioner, unless such person is exempted from obtaining such a license pursuant to § 4810 of this title. The fee for such a license shall be the sum of $ 500 per year which license shall be valid until the 1st day of January at which time it may be renewed for a full year and every year thereafter provided that the licensee shall have paid the said annual license fee of $ 500 and shall otherwise qualify for a license hereunder. All fees for licenses hereunder shall be paid to the Commissioner. The increase in fees collected in Fiscal Year 2018 pursuant to this section shall be used solely to make appropriations for certain grants-in-aid for the fiscal year ending June 30, 2018. (b) All licensees or persons applying for licenses shall file sworn answers to such questions as the Commissioner may deem appropriate. The Commissioner shall have authority at any time to require the applicant to fully disclose the identity of all stockholders, partners, officers and employees and the Commissioner may refuse to issue or renew a license in the name of any firm, partnership or corporation so long as the Commissioner remains satisfied that any officer, employee, stockholder or partner thereof who may materially influence the applicant's conduct fails to meet the standards of this chapter. 60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;  81 Del. Laws, c. 57, § 3;
18 DE Code § 4803. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 48. Insurance Premium Financing|§ 4803. Action by Commissioner on application.

§ 4803. Action by Commissioner on application. (a) Upon the filing of an application and the payment of the license fee the Commissioner shall make an investigation of each applicant and shall issue a license if the applicant is qualified in accordance with this chapter. If the Commissioner does not so find, he or she shall, within 30 days after receipt of such application, if so requested by the applicant, give the applicant a full hearing on its application. (b) The Commissioner shall issue or renew a license as may be applied for when the Commissioner is satisfied that the person to be licensed:  (1) Is competent and trustworthy and intends to act in good faith in the capacity required by the license applied for; (2) Has a good business reputation and has sufficient experience, training or education to be qualified in the business represented by the license applied for; (3) If a corporation, is a corporation incorporated under the laws of this State or is a foreign corporation authorized to transact business in this State; and (4) Has the necessary financial resources available to enter in the business for which such person is asking to be licensed or as to which such person is requesting renewal of his or her license.60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4804. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 48. Insurance Premium Financing|§ 4804. Revocation and suspension of licenses.

§ 4804. Revocation and suspension of licenses. (a) The Commissioner may revoke or suspend the license of any premium finance company when and if, after investigation, it appears to the Commissioner that:  (1) Any license issued to such company was obtained by fraud; (2) There was any material misrepresentation in the application for the license; (3) The holder of such license has otherwise shown himself or herself untrustworthy or incompetent to act as a premium finance company; or (4) Such company has violated this chapter. (b) Before the Commissioner shall revoke, suspend or refuse to renew the license of any premium finance company, the Commissioner shall give to such person an opportunity to be fully heard and to introduce evidence in his or her behalf and, in lieu of revoking or suspending his or her license for any of the causes enumerated in this section, after hearing as herein provided, the Commissioner may, for each of the first and second such offenses, subject such company to an administrative penalty of not less than $25 nor more than $500 for each such offense when in the Commissioner's judgment the public interest would not be harmed by the continued operation of such company. The amount of any such administrative penalty shall be paid by such company to the Commissioner within 30 days of the date such a penalty is levied. (c) If the Commissioner refuses to issue or renew any license or if the applicant or licensee is aggrieved by any action of the Commissioner, such applicant or licensee shall have the same right to a hearing and appeal as provided for other aggrieved parties in this title. (d) At any hearing provided for by this chapter the Commissioner shall have all such authority as the Commissioner otherwise has under this title to conduct hearings. 60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4805. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 48. Insurance Premium Financing|§ 4805. Books and records.

§ 4805. Books and records. (a) Every licensee shall maintain records of its premium finance transactions and the said records shall be open to examination and investigation by the Commissioner. The Commissioner may at any time require any licensee to bring such records as directed to the Commissioner's office for examination provided that this can be done without causing that licensee undue hardship and further provided that the Commissioner shall give reasonable notice for the bringing of such records to the Commissioner's office for examination. (b) Every licensee shall preserve its records of such premium finance transactions, including cards used in any card system, for at least 3 years after making the final entry in respect to any premium finance agreement. The preservation of records in photographic form shall constitute compliance with this requirement. 60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4806. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 48. Insurance Premium Financing|§ 4806. Form of premium finance agreement.

§ 4806. Form of premium finance agreement. (a) A premium finance agreement shall:  (1) Be dated, signed by or on behalf of the insured and the printed portion thereof shall be in at least 8-point type; (2) Contain the name and place of business of the insurance agent negotiating the related insurance contract, the name and residence or the place of business of the insured as specified by the insured, the name and place of business of the premium finance company to which payments are to be made, a description of the insurance contracts involved and the amount of the premium therefor; and (3) Set forth the following items where applicable:  a. The total amount of the premiums; b. The amount of the down payment; c. The principal balance (the difference between paragraphs (a)(3)a. and b.); d. The amount of the service charge; e. The balance payable by the insured (sum of paragraphs (a)(3)c. and d.); and f. The number of installments required, the amount of each installment, expressed in dollars, and the due date or period thereof. (b) The items set out in paragraph (a)(3) of this section need not be stated in the sequence or order in which they appear in such paragraph, and additional items may be included to explain the computations made in determining the amount to be paid by the insured. 60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4807. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 48. Insurance Premium Financing|§ 4807. Maximum service charge.

§ 4807. Maximum service charge. (a) A premium finance company shall not charge, contract for, receive or collect a service charge other than as permitted by this chapter. (b) The service charge is to be computed on the balance of the premiums due, after subtracting the down payment made by the insured in accordance with the premium finance agreement, from the effective date of the insurance coverage for which the premiums are being advanced to and including the date when the final installment is payable under the premium finance agreement. (c) The maximum service charge permissible shall be $9.00 per $100 per year plus an additional nonrefundable initial charge of $10 per premium finance contract and the said maximum service charge shall include any interest charged on such loans within the limitations thereon stated above. Any service charge, including interest, which exceeds the said permissible maximum rate limitation, shall be considered usurious and any person paying such usurious rate shall be entitled to all the remedies permitted under § 2304 of Title 6 for recovery of funds in an usurious loan. (d) Notwithstanding any provisions to the contrary within any premium finance agreements, any insured may prepay obligations under any such agreement in full at any time. In such event the insured shall receive a refund credit. The amount of such refund credit shall represent at least as great a proportion of the service charge as the sum of the periodic balances after the month in which prepayment is made bears to the sum of all periodic balances under the schedule of installments in the agreement. Where the amount of the refund credit is less than $1.00, no refund need be made. If in addition to the service charge, an additional, nonrefundable initial charge as permitted in subsection (c) of this section was imposed, such additional charge need not be refunded nor taken into consideration in computing the refund credit. (e) No premium finance company shall induce an insured to become obligated under more than 1 premium finance agreement for the purpose of obtaining more than 1 additional nonrefundable initial charge. 60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 4808. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 48. Insurance Premium Financing|§ 4808. Delinquencies and cancellation charges.

§ 4808. Delinquencies and cancellation charges. A premium finance agreement may provide for the payment by the insured of a delinquency charge per installment of at least $1.00 but which may not exceed a maximum charge of 5% of the delinquent installment or $5.00, whichever is less, for each installment which is in default for a period of 10 days or more. Further, if the default results in the cancellation of any insurance contract listed in the agreement, the agreement may provide for the payment by the insured of a cancellation charge equal to the difference between any delinquency charge imposed in respect to the installment in default as permitted hereinabove and the sum of $5.00. 60 Del. Laws, c. 406, §  1;
18 DE Code § 4809. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 48. Insurance Premium Financing|§ 4809. Cancellation of insurance contract upon default.

§ 4809. Cancellation of insurance contract upon default. (a) When in connection with a premium finance agreement, a power of attorney or other authority to cancel any insurance contract or contracts on behalf of the insured is given to a premium finance company, such insurance contract or contracts may not be cancelled by the premium finance company unless such cancellation is effectuated in accordance with this section; provided, however, that cancellation of automobile casualty insurance contracts pursuant to this section may be made only in a manner which is consistent with Chapter 39 of this title and the method of such cancellation shall be consistent with the time periods and be subject to the rights of reinstatement provided in that chapter for cancellation on the basis of nonpayment of premium. (b) Not less than 10 days' written notice shall be mailed to the insured at the insured's last known address of the intent of the premium finance company to cancel the insurance contract unless a default is cured within such 10-day period. (c) After the expiration of such 10-day period, the premium finance company may thereafter cancel in the name of the insured such insurance contract or contracts by mailing to the insurer a notice of cancellation, and the insurance contract shall be cancelled as if notice of cancellation had been submitted by the insured but without requiring the return of the insurance contract or contracts. The premium finance company shall also mail notice of cancellation to the insured at the insured's last known address. (d) No policy may be cancelled by a premium finance company solely because of nonpayment of a delinquency or collection charge provided for in this chapter. (e) All statutory, regulatory and contractual restrictions providing that the insurance contract may not be cancelled unless notice is given to a government agency, mortgagee or other third party shall apply where cancellation is effected under this section. The insurer, in accordance with the said prescribed notice, any time it is required to give such notice on behalf of itself or the insured, shall give notice to such governmental agency, mortgagee or other person before the end of the second business day after the day it receives the notice of cancellation from the premium finance company and shall determine the effective date of cancellation, taking into consideration the number of days' notice required to complete the cancellation. (f) Whenever an insurance contract is cancelled in accordance with this section, the insurer shall return whatever gross unearned premiums are due under the contract to the premium finance company effecting the cancellation for the account of the insured or insureds as soon as reasonably possible, but in no event shall the period for such payment exceed 90 days after the effective date of the cancellation. 60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;