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2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1328. Prohibited investments and investment underwriting.

§ 1328. Prohibited investments and investment underwriting.
(a) In addition to investments excluded pursuant to other provisions of this title, an insurer shall not invest in or lend its funds upon the security of:
(1) Issued shares of its own capital stock, except:
a. For the purpose of mutualization under § 4928 of this title; and
b. Where the insurer has first submitted a plan for such investment or loan to the commissioner and the Commissioner has not, within 20 days after such submission or within such additional reasonable period as the Commissioner may request, disapproved such plan as unfair or inequitable to the insurer's policyholders or stockholders;
(2) Securities issued by any corporation or enterprise the controlling interest of which is, or will after such acquisition by the insurer be, held directly or indirectly by the insurer or any combination of the insurer and the insurer's directors, officers, subsidiaries or controlling stockholders (other than a parent corporation), and the spouses and children of any of the foregoing individuals. Investments in controlled insurance corporations or subsidiaries under §§ 1312(b) and 1313 of this title are not subject to this provision;
(3) Any note or other evidence of indebtedness of any director, officer, employee or controlling stockholder of the insurer or of the spouse, or child of any of the foregoing individuals, except as to policy loans authorized under § 1317 of this title.
(b) No insurer shall underwrite or participate in the underwriting of an offering of securities or property of any other person.
(c) No insurer shall enter into any agreement to withhold from sale any of its securities or property, and the disposition of its assets shall at all times be within the control of the insurer.
18 Del. C. 1953, §  1329;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1329. Investments of foreign insurers.

§ 1329. Investments of foreign insurers.
The investment portfolio of a foreign or alien insurer shall be as permitted by the laws of its domicile if of a quality substantially equal to that required under this chapter for similar funds of like domestic insurers.
18 Del. C. 1953, §  1330;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1330. Personal property.

§ 1330. Personal property.
An insurer may invest in tangible personal property, or interests therein evidenced by trust certificates or other instruments, and a right to receive rental, charter hire, purchase or other payments for the use or purchase of such personal property adequate to return the investment and payable or guaranteed by 1 or more governmental units or instrumentalities whose obligations would qualify for investment under § 1306 of this title (public obligations) or 1 or more institutions whose obligations would qualify for investment under § 1308(a) or under § 1308(c)(2) or (4) of this title (corporate obligations). No insurer shall make an investment pursuant to this section if the aggregate amount so invested will exceed 5% of its assets or if the aggregate amount so invested as to which such rental, charter hire, purchase or other payments are payable or guaranteed by any 1 governmental unit or instrumentality other than the United States or Canada or any 1 institution will exceed 1% of such sets.
18 Del. C. 1953, §  1331;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  30;  71 Del. Laws, c. 202, §  10;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1331. Secured obligations.

§ 1331. Secured obligations.
(a) An insurer may invest in obligations which are secured by:
(1) An assignment of a right to receive rental, charter hire, purchase or other payments for the use or purchase of real or personal property adequate to return the investment and payable or guaranteed by 1 or more governmental units or instrumentalities whose obligations would qualify for investment under § 1306 of this title (public obligations) or 1 or more institutions whose obligations would qualify for investment under § 1308(a) or under § 1308(c)(2), (4) or (5) of this title (corporate obligations); and
(2) A mortgage on or secured interest in such real or personal property.
(b) No insurer shall make an investment pursuant to this section in obligations, other than those of institutions, if the aggregate amount so invested will exceed 10% of its assets or if the aggregate amount so invested as to which such rental, charter hire, purchase or other payments are payable or guaranteed by any 1 governmental unit or instrumentality or any 1 institution will exceed 5% of such assets. No insurer shall make any investment pursuant to this section in obligations of or in any affiliate (as defined in § 5001 of this title).
18 Del. C. 1953, §  1332;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  31;  63 Del. Laws, c. 363, §  15;  71 Del. Laws, c. 202, §  11;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1332. Production payments.

§ 1332. Production payments.
Production payments, or interests therein evidenced by trust certificates or other instruments, payable from oil, gas or other hydrocarbons in producing properties located in the United States or Canada or the adjacent continental shelf if an obligation secured by and payable from such production payment or interest therein would qualify for investment under § 1308(a) or under § 1308(c)(1) of this title as an obligation which is adequately secured and has investment qualities and characteristics wherein the speculative elements are not predominant. The term “production payments” shall be deemed to mean rights to oil, gas or other hydrocarbons in place or as produced which entitle the owner thereof to a specified fraction or percentage of production until a specified sum of money has been received. No insurer shall make an investment pursuant to this section if the aggregate amount so invested will exceed 15% of its assets.
63 Del. Laws, c. 363, §  16;  71 Del. Laws, c. 202, §  12;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1333. Rules and regulations [For application of this section, see 79 Del. Laws, c. 207, § 3].

§ 1333. Rules and regulations [For application of this section, see 79 Del. Laws, c. 207, § 3].
The Commissioner may issue such reasonable rules, regulations and orders as the Commissioner may deem necessary or desirable to effectuate the purposes of this chapter, including setting standards for the prudent use by domestic insurers of derivative instruments and other qualified financial contracts (as defined in § 5901 of this title), and setting standards (including without limitation any limits or conditions) for domestic insurers qualifying for, entering into advance agreements and reporting borrowings from any federal home loan bank, as defined in 12 U.S.C. § 1422(1)(A).
78 Del. Laws, c. 29, §  1;  79 Del. Laws, c. 207, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1334. Additional investments.

§ 1334. Additional investments.
An insurer may make additional loans or investments in excess of any aggregate investment limitation contained in this chapter in accordance with paragraph (1) of this section except for the aggregate limitations contained in §§ 1305(1) and 1313 of this title.
(1) An insurer may make additional loans or investments in accordance with the following:
a. A property and casualty insurer may invest an amount that is the lesser of:
1. Policyholder surplus less any surplus write-ins less 400% of the authorized control level risk-based capital; or
2. Ten percent of the insurer's cash and invested assets;
b. A life and health insurer may invest an amount that is the lesser of:
1. Policyholder surplus less surplus from separate accounts less any surplus write-ins less 450% of the authorized control level risk-based capital; or
2. Ten percent of the insurer's cash and invested assets.
No insurer shall make an investment pursuant to this section if the aggregate amount so invested will exceed 200% of the existing aggregate limitation stipulated in any section of this title.
(2) No such loan or investment shall be represented by:
a. Any item described in § 1102 (assets not allowed) of this title, or any loan or investment otherwise expressly prohibited in any section of this title;
b. Investments in derivatives.
(3) The insurer shall keep a separate record of all loans and investments made under this section.
(4) Unless otherwise specified, an investment limitation computed on the basis of an insurer's cash and invested assets shall relate to the amount required to be shown on the statutory balance sheet of the insurer most recently required to be filed with the Commissioner or as shown by a current financial statement resulting from merger of another insurer, bulk reinsurance, or change in capitalization. For purposes of computing any limitation based upon cash and invested assets, the insurer shall deduct from the amount of its cash and invested assets the amount of the liability recorded on its statutory balance sheet for:
a. The return of acceptable collateral received in a reverse repurchase transaction or a securities lending transaction;
b. Cash received in a dollar roll transaction; and
c. The amount reported as borrowed money in the most recently filed financial statement, to the extent not included in paragraphs (4)a. and b. of this section.
78 Del. Laws, c. 56, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1501. Authorized deposits of insurers.

§ 1501. Authorized deposits of insurers.
The following deposits of insurers, when made through the Commissioner, shall be accepted and held by the Commissioner in trust, subject to the provisions of this chapter:
(1) Deposits required under this title for authority to transact insurance in this State;
(2) Deposits of domestic insurers when made pursuant to the laws of other states, provinces and countries as requirement for authority to transact insurance in such state, province or country;
(3) Deposits in such additional amounts as are permitted to be made under § 1508 of this title.
18 Del. C. 1953, §  1501;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1502. Purpose of deposit.

§ 1502. Purpose of deposit.
(a) Deposits made in this State under § 513 (deposit requirements, in general) of this title shall be held in trust for the respective purposes stated in that section.
(b) A deposit made in this State by a domestic insurer transacting insurance in another state, province or country, and as required by the laws of such other state, province or country, shall be held for the protection of all the insurer's policyholders or all its policyholders and creditors or for such other purpose or purposes as may be specified pursuant to such laws.
(c) Deposits made by domestic life insurers in connection with registered policies and bonds shall be made and held for the special protection of the holders of such policies and bonds.
(d) Deposits required under the retaliatory law, § 532 of this title, shall be held for such purposes as is required by such law, and as specified by the Commissioner's order requiring such deposit to be made.
18 Del. C. 1953, §  1502;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1503. Securities eligible for deposit.

§ 1503. Securities eligible for deposit.
(a) All such deposits required under § 513 of this title for authority to transact insurance in this State shall consist of good interest-bearing or dividend-paying securities of kinds eligible for investment of the funds of domestic insurers under Chapter 13 of this title.
(b) All other deposits of a domestic insurer held in this State pursuant to the laws of another state, province or country shall be comprised of securities of the kinds described in subsection (a) of this section above, and of such additional kind or kinds of securities required or permitted by the laws of such state, province or country.
(c) Deposits of foreign insurers made in this State under the retaliatory law, § 532 of this title, shall consist of such assets as are required by the Commissioner pursuant to such law.
(d) All securities placed on deposit on and after July 1, 1973, shall be of such a nature that the interest or dividends are payable without the necessity of access to the depository.
18 Del. C. 1953, §  1503;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  35;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1504. Depository; access; costs.

§ 1504. Depository; access; costs.
(a) Deposits made in this State under this title shall be made through the Commissioner and kept in safe deposit with an established bank or trust company located in this State and selected by the Commissioner.
(b) Wherever reasonably possible all deposited securities shall be registered in the name of the Insurance Commissioner, State of Delaware, in trust for the depositing insurer, or registered in the insurer's name and be accompanied by a duly executed power of attorney in favor of the Commissioner. The State shall be responsible for the safekeeping of all securities deposited under this subsection and shall charge the costs of maintaining these deposits to the insurer.
(c) If securities for deposit are submitted in form other than as provided in subsection (b) of this section above or in connection with “registered” policies or bonds, the Commissioner or his or her representative shall forthwith deposit the same in the presence of the president, vice-president or authorized agent of the insurer, in a strong metal box, which shall require 2 distinct and different keys to unlock the same, 1 key to be kept by the Commissioner and the other by the insurer. The box shall not be opened except in the presence of the Commissioner or duly authorized representative, and the president, vice-president or authorized agent of the insurer. The insurer shall bear the costs of the depository.
(d) In addition to the manner of making deposits under this title provided for above, any such deposits may also be made by sufficient securities or cash being deposited directly with any established bank or trust company located in this State pursuant to an escrow agreement entered into between the person making such deposits and the bank receiving them which agreement has first been approved in writing by the Commissioner. If deposits are made in this manner, the provisions of subsections (a), (b) and (c) of this section above shall not apply to such deposits, except as required by the Commissioner in granting approval of such escrow agreement and the arrangements made pursuant thereto.
18 Del. C. 1953, §  1504;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  40;  65 Del. Laws, c. 419, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1505. Record of deposits.

§ 1505. Record of deposits.
(a) The Commissioner shall give to the depositing insurer vouchers as to all assets and securities so deposited with the Commissioner.
(b) The Commissioner shall keep a record of the assets and securities comprising each deposit, showing as far as practical the amount and market value of each item, and all the Commissioner's transactions relative thereto.
18 Del. C. 1953, §  1505;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1506. Assignment, transfer of securities.

§ 1506. Assignment, transfer of securities.
All securities deposited by an insurer and not negotiable by delivery shall be duly registered in the name of the Commissioner and his or her successors in office, or with power of attorney as provided in § 1504 of this title. Upon release of any such security to the insurer, the Commissioner shall reassign or surrender the power of attorney to the insurer.
18 Del. C. 1953, §  1507;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1507. Appraisal.

§ 1507. Appraisal.
The Commissioner may, in his or her discretion, prior to acceptance for deposit of any particular asset or security, or at any time thereafter while so deposited, have the same appraised or valued by competent appraisers. The reasonable costs of any such appraisal or valuation shall be borne by the insurer.
18 Del. C. 1953, §  1508;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1508. Excess deposits.

§ 1508. Excess deposits.
(a) If assets deposited by an insurer under this chapter are subject to material fluctuations in market value, the Commissioner may, in his or her discretion, require the insurer to deposit and maintain on deposit additional assets in an amount reasonably necessary to assure that the deposit at all times has a market value of not less than the amount specified under the law by which the deposit is required.
(b) An insurer may otherwise at its option deposit assets in an amount exceeding its deposit required or otherwise permitted under this title by not more than 20% of such required or permitted deposit, or $20,000, whichever is the larger amount, for the purpose of absorbing fluctuations in the value of assets deposited and to facilitate exchange and substitution of such assets. During the solvency of the insurer any such excess shall be released to the insurer upon its request. During the insolvency of the insurer, such excess deposit shall be released only as provided in § 1512(e) of this title.
18 Del. C. 1953, §  1509;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1509. Rights of insurer during solvency.

§ 1509. Rights of insurer during solvency.
So long as the insurer remains solvent and is in compliance with this title it may:
(1) Demand, receive, sue for and recover the income from the assets deposited;
(2) Exchange and substitute for the deposited assets, assets of equivalent or greater fair market value; and
(3) At any reasonable time inspect any such deposit.
18 Del. C. 1953, §  1510;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1510. Levy upon deposit.

§ 1510. Levy upon deposit.
(a) Except as provided in subsection (b) of this section below, no judgment creditor or other claimant of an insurer shall have the right to levy upon any of the assets held in this State as a deposit for the protection of the insurer's policyholders or policyholders and creditors. As to deposits made pursuant to the retaliatory provision, § 532 of this title, levy thereupon shall be permitted if so provided in the Commissioner's order under which the deposit is required.
(b) Securities comprising the special deposit of a surety insurer required under § 513(b) of this title shall not be subject to levy under any writ of attachment, but shall be subject to process against the insurer, by final judgment and execution issued against the insurer on account of its default upon any surety contract issued by it in this State, upon 30 days written notice to the insurer specifying the time, place and manner of sale and the process under which and purposes for which the securities are to be sold and accompanied by a copy of such process.
18 Del. C. 1953, §  1511;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1511. Deficiency of deposit.

§ 1511. Deficiency of deposit.
If for any reason the market value of assets of an insurer held on deposit in this State as required under this title falls below the required amount, the insurer shall promptly deposit other or additional assets eligible for deposit sufficient to cure the deficiency. If the insurer has failed to cure the deficiency within 20 days after receipt of notice thereof by registered mail from the Commissioner, the Commissioner shall forthwith revoke the insurer's certificate of authority.
18 Del. C. 1953, §  1512;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1512. Duration and release of deposit, in general.

§ 1512. Duration and release of deposit, in general.
(a) Every deposit made in this State by an insurer pursuant to the retaliatory law, § 532 of this title, shall be held for so long as the basis of such retaliation exists.
(b) When an insurer determines to discontinue business in this State, whether through merger, bulk reinsurance, or otherwise, and desires to withdraw its deposit, upon the insurer's application and at its expense the Commissioner shall publish notice of such intention in a newspaper of general circulation in the State once a week for 4 weeks. After such publication the Commissioner shall deliver the securities remaining on deposit to the insurer or its assigns when the Commissioner is satisfied, upon examination and the oaths of the president and secretary or other chief officers of the insurer, that all debts and liabilities of every kind due or to become due which the deposit was made to secure are paid or extinguished or otherwise adequately provided for.
(c) If the insurer has reinsured all its outstanding risks in another insurer or insurers, the Commissioner shall deliver such assets and securities to such insurer or insurers so assuming such risks, after publication of the notice required under subsection (b) of this section above, and upon proof to the Commissioner's satisfaction that:
(1) The assuming insurer has assumed and agreed to discharge all liabilities of every kind due and to become due which the deposit was to secure;
(2) The assuming insurer has on deposit in this State or with a state official in the United States, securities of a quality and in an amount and value not less than the deposit required of the reinsured insurer under this title and which will subsist for the security of the obligations of the reinsured insurer so assumed; and
(3) Such assets and securities have been duly assigned, transferred and set over to such assuming insurer or insurers.
(d) If such a withdrawal of deposit is desired by a foreign insurer, in addition to other requirements therefor the insurer shall notify its domiciliary state or province of the intended withdrawal and furnish to the Commissioner written acknowledgment by such state of such notification, in form satisfactory to the Commissioner.
(e) If the insurer is subject to delinquency proceedings as defined in § 5901 of this title, upon the order of a court of competent jurisdiction, the Commissioner shall yield the insurer's assets held on deposit to the receiver, conservator, rehabilitator or liquidator of the insurer, or to any other properly designated official or officials who succeed to the management and control of the insurer's assets.
(f) No release of deposited assets shall be made except upon application to and the written order of the Commissioner. The Commissioner shall have no personal liability for any release of any such deposit or part thereof so made by him or her in good faith.
18 Del. C. 1953, §  1513;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1513. Deposit for “registered” life insurance policies and bonds.

§ 1513. Deposit for “registered” life insurance policies and bonds.
(a) Deposits made with the Commissioner in connection with “registered” policies and bonds heretofore issued in this State by a life insurer shall be held as long as the policy or contract with respect to which such deposit was made continues in force.
(b) Deposits held with respect to policies and bonds still in force shall not be released, whether or not such policies and bonds have been reinsured or the entire liability thereunder assumed by another insurer, or the issuing insurer has become insolvent, subject to delinquency proceedings, or dissolved.
(c) Upon proof satisfactory to the Commissioner that certain of such policies or bonds have lapsed, been surrendered for cash value, matured, or otherwise terminated, and that all liabilities of the insurer to policyholders and beneficiaries or bondholders with respect thereto have been fully paid and discharged, the Commissioner may release any applicable portion of the deposit if the deposit is then in excess of the amount otherwise required. The Commissioner may accept and rely upon the records of the insurer, as kept, summarized, and reported to him or her in regular course of its business, as to any such payment and discharge.
18 Del. C. 1953, §  1514;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 15. ADMINISTRATION OF DEPOSITS › § 1514. Commissioner's liability.

§ 1514. Commissioner's liability.
If the Commissioner wilfully fails faithfully to require, deposit, keep, account, and receipt for, or surrender in the manner by law authorized or required any assets as provided in this title, the Commissioner shall be responsible upon his or her official bond therefor and suit may be brought upon his or her bond by any person injured by such failure; and the Commissioner so offending shall be guilty of a felony, and fined not more than $10,000 and imprisoned not less than 2 years or more than 10 years.
18 Del. C. 1953, §  1515;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16. REINSURANCE INTERMEDIARY ACT › § 1604. Required contract provisions; reinsurance intermediary-brokers.

§ 1604. Required contract provisions; reinsurance intermediary-brokers.
Transactions between an RB and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall, at a minimum, contain provisions that:
(1) The insurer may terminate the RB's authority at any time.
(2) The RB will render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing to, the RB, and remit all funds due to the insurer within 30 days of receipt.
(3) All funds collected for the insurer's account will be held by the RB in a fiduciary capacity in a bank which is a qualified United States financial institution as defined herein.
(4) The RB will comply with § 1605 of this title.
(5) The RB will comply with the written standards established by the insurer for the cession or retrocession of all risks.
(6) The RB will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
68 Del. Laws, c. 69, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16. REINSURANCE INTERMEDIARY ACT › § 1605. Books and records; reinsurance intermediary-brokers.

§ 1605. Books and records; reinsurance intermediary-brokers.
(a) For at least 10 years after expiration of each contract of reinsurance transacted by the RB, the RB will keep a complete record for each transaction showing:
(1) The type of contract, limits, underwriting restrictions, classes or risks and territory;
(2) Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation;
(3) Reporting and settlement requirements of balances;
(4) Rate used to compute the reinsurance premium;
(5) Names and addresses of assuming reinsurers;
(6) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the RB;
(7) Related correspondence and memoranda;
(8) Proof of placement;
(9) Details regarding retrocessions handled by the RB including the identity of retrocessionaires and percentage of each contract assumed or ceded;
(10) Financial records, including but not limited to, premium and loss accounts; and
(11) When the RB procures a reinsurance contract on behalf of a licensed ceding insurer:
a. Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
b. If placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative.
(b) The insurer will have access and the right to copy and audit all accounts and records maintained by the RB related to its business in a form usable by the insurer.
68 Del. Laws, c. 69, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16. REINSURANCE INTERMEDIARY ACT › § 1606. Duties of insurers utilizing services of reinsurance intermediary-broker.

§ 1606. Duties of insurers utilizing services of reinsurance intermediary-broker.
(a) An insurer shall not engage the services of any person, firm, association or corporation to act as an RB on its behalf unless such person is licensed as required by § 1603(a) of this title.
(b) An insurer may not employ an individual who is employed by an RB with which it transacts business, unless such RB is under common control with the insurer and subject to the Holding Company Act.
(c) The insurer shall annually obtain a copy of statements of the financial condition of each RB with which it transacts business.
68 Del. Laws, c. 69, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16. REINSURANCE INTERMEDIARY ACT › § 1608. Prohibited acts.

§ 1608. Prohibited acts.
The RM shall not:
(1) Bind retrocessions on behalf of the reinsurer, except that the RM may bind facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. Such guidelines shall include a list of reinsurers with which such automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.
(2) Commit the reinsurer to participate in reinsurance syndicates.
(3) Appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which the producer is appointed.
(4) Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or 1 percent of the reinsurer's policyholder's surplus as of December 31 of the last complete calendar year.
(5) Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to the reinsurer.
(6) Jointly employ an individual who is employed by the reinsurer.
(7) Appoint a sub-RM.
68 Del. Laws, c. 69, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16. REINSURANCE INTERMEDIARY ACT › § 1609. Duties of reinsurers utilizing services of reinsurance intermediary-manager.

§ 1609. Duties of reinsurers utilizing services of reinsurance intermediary-manager.
(a) A reinsurer shall not engage the services of any person, firm, association or corporation to act as an RM on its behalf unless such person is licensed as required by § 1603(b) of this title.
(b) The reinsurer shall annually obtain a copy of statements of the financial condition of each RM which such reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the Commissioner.
(c) If an RM establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the RM. This opinion shall be in addition to any other required loss reserve certification.
(d) Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the RM.
(e) Within 30 days of termination of a contract with an RM, the reinsurer shall provide written notification of such termination to the Commissioner.
(f) A reinsurer shall not appoint to its board of directors any officer, director, employee, controlling shareholder or subproducer of its RM. This subsection shall not apply to relationships governed by the Holding Company Act or, if applicable, the Broker Controlled Insurer Act.
68 Del. Laws, c. 69, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16. REINSURANCE INTERMEDIARY ACT › § 1610. Examination authority.

§ 1610. Examination authority.
(a) A reinsurance intermediary shall be subject to examination by the Commissioner. The Commissioner shall have access to all books, bank accounts and records of the reinsurance intermediary in a form usable to the Commissioner.
(b) An RM may be examined as if it were the reinsurer.
68 Del. Laws, c. 69, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16. REINSURANCE INTERMEDIARY ACT › § 1611. Penalties and liabilities.

§ 1611. Penalties and liabilities.
(a) A reinsurance intermediary, insurer or reinsurer found by the Commissioner after a hearing conducted in accordance with the Administrative Procedures Act [Chapter 101 of Title 29] to be in violation of any provision(s) of this chapter shall:
(1) For each separate violation, pay a penalty in an amount not exceeding $15,000;
(2) Be subject to revocation or suspension of its license; and
(3) If a violation was committed by the reinsurance intermediary, such reinsurance intermediary shall make restitution to the insurer, reinsurer, rehabilitator or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to such violation.
(b) The decision, determination or order of the Commissioner pursuant to subsection (a) of this section shall be subject to judicial review pursuant to the Administrative Procedures Act [Chapter 101 of Title 29].
(c) Nothing contained in this section shall affect the right of the Commissioner to impose any other penalties provided in the Insurance Law.
(d) Nothing contained in this chapter is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, creditors or other third parties or confer any rights to such persons.
68 Del. Laws, c. 69, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16. REINSURANCE INTERMEDIARY ACT › § 1613. Effective date.

§ 1613. Effective date.
This chapter shall take effect on January 1, 1992. No insurer or reinsurer may continue to utilize the services of a reinsurance intermediary on and after January 1, 1992, unless utilization is in compliance with this chapter.
68 Del. Laws, c. 69, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16A. BUSINESS TRANSACTED WITH PRODUCER CONTROLLED INSURER ACT › § 1650. Definitions.

§ 1650. Definitions.
(a) “Accredited state” means a state in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated and established from time to time by the National Association of Insurance Commissioners (NAIC).
(b) “Control” or “controlled” has the meaning ascribed in Chapter 50 of this title.
(c) “Controlled insurer” means a licensed insurer which is controlled, directly or indirectly, by a producer.
(d) “Controlling producer” means a producer who, directly or indirectly, controls an insurer.
(e) “Licensed insurer” or “insurer” means any person, firm, association or corporation duly licensed to transact a property/casualty insurance business in this State. The following, inter alia, are not licensed insurers for the purposes of this chapter:
(1) All risk retention groups as defined in the Superfund Amendments [and] Reauthorization Act of 1986, Pub. L. No. 99-499, 100 Stat. 1613 (1986) [29 U.S.C. § 655; 42 U.S.C. §§ 9601 note, 9611, 9671-9675], the Risk Retention Act, 15 U.S.C. § 3901 et seq. (1982 & Supp. 1986) and Chapter 80 of this title;
(2) All residual market pools and joint underwriting authorities or associations; and
(3) All captive insurers (for the purposes of this chapter, captive insurers are insurance companies owned by another organization whose exclusive purpose is to insure risks of the parent organization and affiliated companies or, in the case of groups and associations, insurance organizations owned by the insureds whose exclusive purpose is to insure risks to member organizations and/or group members and their affiliates).
(f) “Producer” means an insurance broker or brokers or any other person, firm, association or corporation, when, for any compensation, commission or other thing of value, such person, firm, association or corporation acts or aids in any manner in soliciting, negotiating or procuring the making of any insurance contract on behalf of an insured other than the person, firm, association or corporation.
68 Del. Laws, c. 334, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16A. BUSINESS TRANSACTED WITH PRODUCER CONTROLLED INSURER ACT › § 1651. Applicability.

§ 1651. Applicability.
This chapter shall apply to licensed insurers as defined in § 1650 of this title, whether domiciled in this State or domiciled in a state that is not an accredited state having in effect a substantially similar law. All provisions of the Insurance Holding Company Act, to the extent they are not superseded by this chapter, shall continue to apply to all parties within holding company systems subject to this chapter.
68 Del. Laws, c. 334, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16A. BUSINESS TRANSACTED WITH PRODUCER CONTROLLED INSURER ACT › § 1653. Disclosure.

§ 1653. Disclosure.
The producer, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer; except that, if the business is placed through a subproducer who is not a controlling producer, the controlling producer shall retain in the producer's records a signed commitment from the subproducer that the subproducer is aware of the relationship between the insurer and the producer and that the subproducer has or will notify the insured.
68 Del. Laws, c. 334, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 16A. BUSINESS TRANSACTED WITH PRODUCER CONTROLLED INSURER ACT › § 1654. Penalties.

§ 1654. Penalties.
(a) (1) If the Commissioner believes that the controlling producer or any other person has not materially complied with this chapter, or any regulation or order promulgated hereunder, after notice and opportunity to be heard, the Commissioner may order the controlling producer to cease placing business with the controlled insurer; and
(2) If it is found that because of such material noncompliance that the controlled insurer or any policyholder thereof has suffered any loss or damage, the Commissioner may maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for recovery of compensatory damages for the benefit of the insurer or policyholder or other appropriate relief.
(b) If an order for liquidation or rehabilitation of the controlled insurer has been entered pursuant to Chapter 59 of this title, and the receiver appointed under that order believes that the controlling producer or any other person has not materially complied with this chapter, or any regulation or order promulgated hereunder, and the insurer suffered any loss or damage therefrom, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
(c) Nothing contained in this section shall affect the right of the Commissioner to impose any other penalties provided for in the Insurance Law.
(d) Nothing contained in this section is intended to or shall in any manner alter or affect the rights of policyholders, claimants, creditors or other 3rd parties.
68 Del. Laws, c. 334, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 17. LICENSING OF PROFESSIONAL INSURANCE PERSONNEL › § 1701. Purpose and scope.

§ 1701. Purpose and scope.
(a) This chapter governs the qualifications and procedures for the licensing of insurance producers, surplus lines brokers, fraternal representatives, adjusters, apprentice adjusters, property damage appraisers, apprentice property damage appraisers and temporary licensees. This chapter shall apply to all lines of insurance, including, but not limited to, life, health, variable annuity and variable life, property, casualty, surety, title, credit, personal lines, travel, transportation and marine, and to all types of insurers, whether operating on a mutual, stock, reciprocal, fraternal, group or other plan. It simplifies and organizes some statutory language to improve efficiency, permits the use of new technology, and reduces costs associated with issuing and renewing insurance licenses.
(b) This chapter shall establish the qualifications for granting licenses to professional insurance personnel; establish the procedures to be followed in determining the initial and continuing qualifications for such personnel; and provide definitions of such personnel's authorities, duties, responsibilities and prohibitions in a manner that will provide guidance to such personnel and control over such personnel by the Commissioner of Insurance for the benefit and protection of the citizens of the State.
(c) All transactions entered into by a surplus lines broker shall also be subject to Chapter 19 of this title.
18 Del. C. 1953, §  1701;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 577, §  1;  65 Del. Laws, c. 142, §  3;  70 Del. Laws, c. 424, §  1;  73 Del. Laws, c. 80, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 17. LICENSING OF PROFESSIONAL INSURANCE PERSONNEL › § 1703. License required.

§ 1703. License required.
A person shall not transact insurance in this State for any class or classes of insurance unless the person is licensed as an insurance producer, adjuster or appraiser for that line of authority in accordance with this chapter.
59 Del. Laws, c. 577, §  1;  61 Del. Laws, c. 64, §  1;  65 Del. Laws, c. 142, §§  5, 6;  70 Del. Laws, c. 186, §  1;  70 Del. Laws, c. 424, §  1;  73 Del. Laws, c. 80, §  1;  80 Del. Laws, c. 215, § 2;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 17. LICENSING OF PROFESSIONAL INSURANCE PERSONNEL › § 1705. Application for examination.

§ 1705. Application for examination.
(a) A resident individual applying for a license shall pass a written examination unless exempt pursuant to § 1709 of this title. The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer, adjuster or appraiser, as applicable, general insurance knowledge, insurance ethics as established by the Commissioner, and the insurance laws and regulations of this State.
(b) The Insurance Commissioner may make arrangements for administration and grading by an independent testing service as specified by contract.
(c) An individual who fails to appear for the examination as scheduled or fails to pass the examination shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination.
(d) Reexamination. — The failure of an applicant to pass an examination or the failure to appear for the examination or to take or complete the examination does not preclude the applicant from taking subsequent examinations.
(e) All examination score reports are valid for a period of 12 months from the date of examination.
18 Del. C. 1953, §§  1714, 1716, 1717;  56 Del. Laws, c. 380, §  1;  58 Del. Laws, c. 279, §  10;  59 Del. Laws, c. 577, §  1;  64 Del. Laws, c. 230, §  1;  70 Del. Laws, c. 424, §  1;  71 Del. Laws, c. 381, §  3;  73 Del. Laws, c. 80, §  1;  80 Del. Laws, c. 215, § 4;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 17. LICENSING OF PROFESSIONAL INSURANCE PERSONNEL › § 1709. Exemption from examination.

§ 1709. Exemption from examination.
(a) An individual who applies for a license in this State who was previously licensed for the same lines of authority in another state shall not be required to complete any prelicensing education or examination. This exemption is only available if the person is currently licensed in that state or if the application is received within 90 days of the cancellation of the applicant's previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state's Producer Database records maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries indicate that the individual is or was licensed in good standing for the line of authority requested.
(b) A person licensed as an insurance producer, adjuster or appraiser in another state who moves to this State shall make application within 90 days of establishing legal residence to become a resident licensee pursuant to § 1706 of this title. No prelicensing education or examination shall be required of that person to obtain any line of authority previously held in the prior state except where the Insurance Commissioner determines otherwise by regulation.
(c) An applicant for a license as a producer for title insurance who is an attorney licensed to practice law in this State shall not be required to complete any prelicensing education or examination.
(d) An applicant for a license as a travel insurance licensee shall not be required to complete any prelicensing education or examination.
(e) An applicant for a license as an automobile club licensee shall not be required to complete any prelicensing education or examination.
(f) An applicant for a license as a self-service storage producer shall not be required to complete any prelicensing education or examination.
18 Del. C. 1953, §  1715;  56 Del. Laws, c. 380, §  1;  58 Del. Laws, c. 279, §  9;  59 Del. Laws, c. 577, §  1;  64 Del. Laws, c. 230, §  3;  65 Del. Laws, c. 142, §  16;  70 Del. Laws, c. 424, §  1;  70 Del. Laws, c. 533, §  3;  73 Del. Laws, c. 80, §  1;  75 Del. Laws, c. 49, §  3;  79 Del. Laws, c. 428, §  4;  80 Del. Laws, c. 215, § 8;  81 Del. Laws, c. 437, § 3;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 17. LICENSING OF PROFESSIONAL INSURANCE PERSONNEL › § 1710. Assumed names.

§ 1710. Assumed names.
A licensee doing business under any name other than the licensee's legal name is required to notify and receive the approval of the Insurance Commissioner prior to using the assumed name. Such notification shall include proof that the licensee has registered the assumed name with the appropriate state authority.
73 Del. Laws, c. 80, §  1;  80 Del. Laws, c. 215, § 9;