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2023 Delaware Code › Title 18 - Insurance Code › Chapter 4. Workers’ Compensation Self-insurance Groups › § 411. Financial statements and other reports.

§ 411. Financial statements and other reports.
(a) Each group shall submit to the Commissioner a statement of financial condition audited by an independent certified public accountant on or before the last day of the sixth month following the end of the group's fiscal year. The financial statement shall be on a form prescribed by the Commissioner and shall include, but not be limited to, actuarially appropriate reserves for:
(1) Known claims and expenses associated therewith;
(2) Claims incurred but not reported and expenses associated therewith;
(3) Unearned premiums; and
(4) Bad debts,
which reserves shall be shown as liabilities.
(b) An actuarial opinion regarding reserves for:
(1) Known claims and expenses associated therewith; and
(2) Claims incurred but not reported and expenses associated therewith shall be included in the audited financial statement.
The actuarial opinion shall be given by a member of the American Academy of Actuaries or other qualified loss reserve specialist as defined in the annual statement adopted by the National Association of Insurance Commissioners.
(c) No person shall make any untrue statement of a material fact, or omit to state a material fact necessary in order to make the statement made, in light of the circumstances under which it is made, not misleading, in connection with the solicitation of membership in a group.
(d) The Commissioner may prescribe the format and frequency of other reports which may include, but shall not be limited to, payroll audit reports, summary loss reports and quarterly financial statements.
70 Del. Laws, c. 540, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 4. Workers’ Compensation Self-insurance Groups › § 414. Misrepresentation prohibited.

§ 414. Misrepresentation prohibited.
No person shall make a material misrepresentation or omission of a material fact in connection with the solicitation of membership of a group nor violate any provision of Chapters 17 and 23 of this title or any regulations thereunder.
70 Del. Laws, c. 540, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 4. Workers’ Compensation Self-insurance Groups › § 416. Rates and reporting of rates.

§ 416. Rates and reporting of rates.
(a) Every workers' compensation self-insurance group shall file and adhere to rates, rules and classifications pursuant to Chapter 26 of this title.
(b) Premium contributions to the group shall be determined by applying the rates and rules to the appropriate classification of each member which may be adjusted by each member's experience credit or debit. Subject to approval by the Commissioner, premium contributions may also be reduced by an advance premium discount reflecting the group's expense levels and loss experience.
(c) A group may contract with an advisory organization approved by the Commissioner for assistance in developing appropriate rates.
(d) Each group shall be audited at least annually by an auditor acceptable to the Commissioner to verify proper classifications, experience rating, payroll and rates. A report of the audit shall be filed with the Commissioner in a form acceptable to the Commissioner. A group or any member thereof may request a hearing on any objections to the classifications. If the Commissioner determines that, as a result of an improper classification, a member's premium contribution is insufficient, the commissioner shall order the group to assess that member an amount equal to the deficiency. If the Commissioner determines that, as a result of an improper classification, a member's premium is excessive, the commissioner shall order the group to refund to the member the excess collected. The audit shall be at the expense of the group.
70 Del. Laws, c. 540, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 4. Workers’ Compensation Self-insurance Groups › § 417. Refunds.

§ 417. Refunds.
(a) Any moneys for a fund year in excess of the amount necessary to fund all obligations for that fund year may be declared to be refundable by the board of trustees not less than 12 months after the end of the fund year with the Commissioner's approval.
(b) Each member shall be given a written description of the refund plan at the time of application for membership. A refund for any fund year shall be paid only to those employers who remain participants in the group for the entire fund year. Payment of a refund based on a previous fund year shall not be contingent on continued membership in the group after that fund year.
70 Del. Laws, c. 540, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 4. Workers’ Compensation Self-insurance Groups › § 418. Premium payment; reserves.

§ 418. Premium payment; reserves.
(a) Each group shall establish to the satisfaction of the Commissioner a premium payment plan which shall include:
(1) An initial payment by each member of at least 25% of that member's annual premium before the start of the group's fund year; and
(2) Payment of the balance of each member's annual premium in monthly or quarterly installments.
(b) Each group shall establish and maintain actuarially appropriate loss reserves which shall include reserves for:
(1) Known claims and expenses associated therewith; and
(2) Claims incurred but not reported and expenses associated therewith.
(c) Each group shall establish and maintain bad debt reserves based on the historical experience of the group or other groups.
70 Del. Laws, c. 540, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 4. Workers’ Compensation Self-insurance Groups › § 419. Deficits and insolvencies.

§ 419. Deficits and insolvencies.
(a) If the assets of a group are at any time insufficient to enable the group to discharge its legal liabilities and other obligations and to maintain the reserves required of it under this chapter, it shall forthwith make up the deficiency or levy an assessment upon its members for the amount needed to make up the deficiency.
(b) In the event of a deficiency in any fund year, the deficiency shall be made up immediately, either from:
(1) Surplus from a fund year other than the current fund year;
(2) Administrative funds;
(3) Assessment of the membership, if ordered by the group; or
(4) Such alternate method as the Commissioner may approve or direct.
The Commissioner shall be notified prior to any transfer of surplus funds from 1 fund year to another.
(c) If the group fails to assess its members or to otherwise make up such deficit within 30 days, the Commissioner may order it to do so.
(d) If the group fails to make the required assessment of its members within 30 days after the Commissioner orders it do so, or if the deficiency is not fully made up within 60 days after the date on which the assessment is made or within such longer period of time as may be specified by the Commissioner, the group shall be deemed to be insolvent or impaired.
(e) Notwithstanding subsections (a) through (d) of this section, the Commissioner may at any time proceed against an insolvent group in the same manner as the Commissioner would proceed against an insolvent or impaired domestic insurer in this State as prescribed in Chapter 59 of this title. The Commissioner shall have the same powers and limitations in such proceedings as are provided under those laws.
(f) In the event of delinquency proceedings against a group, the Commissioner may levy an assessment upon its members for such an amount as the Commissioner determines to be necessary to discharge all liabilities of the group, including the reasonable cost of liquidation or rehabilitation.
70 Del. Laws, c. 540, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 4. Workers’ Compensation Self-insurance Groups › § 420. Guaranty mechanism.

§ 420. Guaranty mechanism.
In the event of a liquidation pursuant to § 419 of this title, after exhausting the security required pursuant to § 404(b)(2) of this title, the Commissioner may levy an assessment against all groups to assure prompt payment of benefits. The assessment on each group shall be based on the proportion that the premium of each group bears to the total premium of all groups. The Commissioner may exempt a group from assessment upon finding that the payment of the assessment would render the group insolvent. The assessment shall not relieve any member of an insolvent group of its joint and several liability. After an assessment is made, the Commissioner shall take action to enforce the joint and several liability provisions of the insolvent group's indemnity agreement, and shall recoup:
(1) All costs incurred by the Commissioner in enforcing such joint and several liability provisions;
(2) Amounts that the Commissioner assessed any other groups pursuant to this section; and
(3) Any obligations included within § 419(f) of this title.
70 Del. Laws, c. 540, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 4. Workers’ Compensation Self-insurance Groups › § 421. Monetary penalties.

§ 421. Monetary penalties.
After notice and opportunity for a hearing, the Commissioner may impose a monetary penalty on any person or group found to be in violation of any provision of this chapter or title or of any rules or regulations pursuant to § 329 of this title and Chapter 101 of Title 29. The amount of any monetary penalty shall be paid to the Commissioner for the use of the State.
70 Del. Laws, c. 540, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 4. Workers’ Compensation Self-insurance Groups › § 422. Cease and desist orders.

§ 422. Cease and desist orders.
(a) After notice and opportunity for a hearing, unless there are exigent circumstances, the Commissioner may issue an order requiring a person or group to cease and desist from engaging in an act or practice found to be in violation of any provision of this chapter or title or of any rules or regulations promulgated thereunder. Unless there are exigent circumstances, a minimum of 10 days' notice will be provided prior to a hearing. If exigent circumstances are present, the person or group will be offered a hearing within 10 days after the issuance of the order.
(b) Upon a finding, after notice and opportunity for a hearing, that any person or group has violated any cease and desist order, the Commissioner may do any or all of the following:
(1) Impose a monetary penalty of not more than $15,000, in the case of an individual, or not more than $50,000, in the case of a group or corporation, for each and every act or violation of the order; or
(2) Revoke or suspend the group's certificate of authority or any insurance license held by the person; or
(3) Place the group or person under supervision; or
(4) Permanently enjoin the conduct or enter any remedial order.
70 Del. Laws, c. 540, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 4. Workers’ Compensation Self-insurance Groups › § 423. Revocation of certificate of authority.

§ 423. Revocation of certificate of authority.
(a) After notice and opportunity for a hearing, the Commissioner may revoke or suspend a group's certificate of authority if it:
(1) Is found to be insolvent or impaired;
(2) Fails to pay any premium tax, regulatory fee or assessment or special fund contribution imposed upon it; or
(3) Fails to comply with any of the provisions of this chapter and title or with any rules promulgated thereunder or with any lawful order of the Commissioner within the time prescribed.
(b) In addition, the Commissioner may revoke or suspend a group's certificate of authority if, after notice and opportunity for hearing, the Commissioner finds that:
(1) Any certificate of authority that was issued to the group was obtained by fraud;
(2) There was a material misrepresentation in the application for the certificate of authority; or
(3) The group or its administrator has misappropriated, converted, illegally withheld or refused to pay over upon proper demand any moneys that belong to a member, an employee of a member or a person otherwise entitled thereto and that have been entrusted to the group or its administrator in its fiduciary capacities.
70 Del. Laws, c. 540, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 501. “Stock insurer” defined.

§ 501. “Stock insurer” defined.
A “stock insurer” is an incorporated insurer with its capital divided into shares and owned by its stockholders. Unless otherwise provided, the insurance department or division of a corporation established under Chapter 7 of Title 5 (but not the corporation itself) shall be deemed to be a stock insurer for purposes of this title, even though it has no capital divided into shares and owned by stockholders.
18 Del. C. 1953, §  501;  56 Del. Laws, c. 380, §  1;  67 Del. Laws, c. 223, §  18;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 502. “Mutual” insurer defined.

§ 502. “Mutual” insurer defined.
A “mutual” insurer is an incorporated insurer without capital stock and the governing body of which is elected by its policyholders. This definition shall not be deemed to exclude as “mutual” insurers certain foreign insurers found by the Commissioner to be organized on the mutual plan under the laws of their states of domicile but having temporary share capital or providing for election of the insurer's governing body on a reasonable basis.
18 Del. C. 1953, §  502;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 503. “Reciprocal” insurer defined.

§ 503. “Reciprocal” insurer defined.
A “reciprocal” insurer is an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact common to all such persons to provide reciprocal insurance among themselves.
18 Del. C. 1953, §  503;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 504. “Charter” defined.

§ 504. “Charter” defined.
“Charter” means certificate of incorporation, articles of incorporation, articles of agreement, articles of association, charter granted by legislative act or other basic constituent document of a corporation or the power of attorney of the attorney-in-fact of a reciprocal insurer.
18 Del. C. 1953, §  504;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 506. Exceptions to certificate of authority requirement.

§ 506. Exceptions to certificate of authority requirement.
A certificate of authority shall not be required of an insurer with respect to the following:
(1) Investigation, settlement or litigation of claims under its policies lawfully written in this State or liquidation of assets and liabilities of the insurer (other than collection of new premiums), all as resulting from its former authorized operations in this State;
(2) Transactions thereunder subsequent to issuance of a policy covering only subjects of insurance not resident, located or expressly to be performed in this State at time of issuance and lawfully solicited, written and delivered outside this State;
(3) Prosecution or defense of suits at law;
(4) Transactions pursuant to surplus lines coverages lawfully written under Chapter 19 of this title;
(5) Reinsurance, except as to domestic reinsurers;
(6) Underwriting-membership in a regulated insurance exchange.
(7) An automobile club so long as its activities are restricted to those defined in § 1707(b)(4) of this title.
18 Del. C. 1953, §  506;  56 Del. Laws, c. 380, §  1;  62 Del. Laws, c. 192, §  1;  75 Del. Laws, c. 49, §  4;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 507. General eligibility for certificate of authority.

§ 507. General eligibility for certificate of authority.
To qualify for and hold authority to transact insurance in this State, an insurer must be otherwise in compliance with this title and with its charter powers and must be an incorporated stock or mutual insurer or a reciprocal insurer of the same general type as may be formed as a domestic insurer under this title, except that:
(1) No foreign insurer shall be authorized to transact insurance in this State which does not maintain reserves as required by Chapter 11 (Assets and Liabilities) of this title, as applicable to the kind or kinds of insurance transacted by such insurer wherever transacted in the United States, or which transacts business anywhere in the United States on the assessment plan or stipulated premium plan or any similar plan;
(2) No insurer shall be authorized to transact workers' compensation insurance in this State unless approved by the Department of Labor of this State under the provisions of Part II of Title 19;
(3) No insurer shall be authorized to transact a kind of insurance in this State unless duly authorized or qualified for authorization to transact such insurance in the state or country of its domicile.
18 Del. C. 1953, §  507;  56 Del. Laws, c. 380, §  1;  71 Del. Laws, c. 84, §  25;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 508. Ownership; management.

§ 508. Ownership; management.
(a) No foreign insurer which is directly or indirectly owned or controlled in whole or substantial part by any government or governmental agency shall be authorized to transact insurance in Delaware. Membership in a mutual insurer or subscribership in a reciprocal insurer or ownership of stock of an insurer by the alien property custodian or similar official of the United States or ownership of stock or other security which does not have voting rights with respect to the management of the insurer or supervision of an insurer by public authority shall not be deemed to be an ownership or control of the insurer for the purposes of this provision.
(b) The Commissioner shall not grant or continue authority to transact insurance in this State as to any insurer or proposed insurer the management of which is found by the commissioner after investigation or upon reliable information to be incompetent or dishonest or untrustworthy or of unfavorable business repute or so lacking in insurance company managerial experience in operations of the kind proposed in this State as to make such operation, currently or prospectively, hazardous to or contrary to the best interests of, the insurance-buying or investing public of this State, or which the commissioner has good reason to believe is affiliated directly or indirectly through ownership, control, reinsurance transactions or other business relations with any person or persons of unfavorable business repute or whose business operations are or have been marked, to the injury of insurers, stockholders, policyholders, creditors, or the public, by illegality, or by manipulation of assets or of accounts or of reinsurance or by bad faith.
18 Del. C. 1953, §  508;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 509. Name of insurer.

§ 509. Name of insurer.
(a) No insurer shall be formed or authorized to transact insurance in this State which has or uses a name which is the same as or deceptively similar to that of another insurer already so authorized without the written consent of such other insurer.
(b) No life insurer shall be so authorized which has or uses a name deceptively similar to that of another insurer authorized to transact insurance in this State within the preceding 10 years if life insurance policies originally issued by such other insurer are still outstanding in this State.
(c) No insurer shall be formed or authorized to transact insurance which has or uses a name the same as or deceptively similar to that of any foreign insurer not so authorized if such foreign insurer has within the next preceding 12 months signified its intention to secure an incorporation in this State under such name or to do business as a foreign insurer in this State under such name by filing notice of such intention with the Commissioner, unless the written consent to the use of such name or deceptively similar name has been given by such foreign insurer.
(d) No foreign insurer seeking admission to this State shall be authorized to transact insurance which has or uses a name the same as or deceptively similar to that of a domestic corporation which has been incorporated as an insurer but has not yet secured a certificate of authority until an expiration of 3 years from date of incorporation of such domestic corporation and of filing with the Commissioner a written notice of intent to use such name.
(e) No insurer shall be so authorized which has or uses a name which tends to deceive or mislead as to the type of organization of the insurer.
(f) In case of conflict of names between 2 insurers or a conflict otherwise prohibited under this section, the Commissioner may permit (or shall require as a condition to the issuance of an original certificate of authority to an applicant insurer) the insurer to use in this State such supplementation or modification of its name or such business name as may reasonably be necessary to avoid the conflict.
(g) Except as provided in subsection (f) above, an insurer shall conduct its business in this State in its own corporate (if incorporated) or proper (if reciprocal insurer) name.
18 Del. C. 1953, §  509;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 510. Combinations of insuring powers.

§ 510. Combinations of insuring powers.
(a) A reciprocal insurer shall not be a life insurer.
(b) A title insurer shall be a stock insurer and shall not transact any other kind of insurance. This provision shall not prohibit acceptance of reinsurance of title insurance risks by insurers not otherwise authorized to transact title insurance.
18 Del. C. 1953, §  510;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 512. Insuring combinations without additional capital funds.

§ 512. Insuring combinations without additional capital funds.
Without additional capital or additional surplus, an authorized insurer is also authorized:
(1) If a life insurer, to grant annuities or issue funding agreements;
(2) If a health insurer, to insure against congenital defects, as defined in § 906(a)(12) of this title;
(3) If a casualty insurer, to transact also health insurance. Except, that this provision shall not apply to a domestic insurer authorized to transact casualty insurance pursuant to § 511(a)(1) of this title.
18 Del. C. 1953, §  512;  56 Del. Laws, c. 380, §  1;  80 Del. Laws, c. 268, § 1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 514. Deposit requirements — Alien insurers.

§ 514. Deposit requirements — Alien insurers.
The Commissioner shall not authorize an alien insurer to transact insurance in this State unless it makes and thereafter continuously maintains on deposit in this State through the Commissioner, or in another state, a surplus of assets in cash or securities eligible for such deposit under the laws of this State or such other state of a value not less than the combined capital and surplus initially required of a like foreign insurer transacting like kinds of insurance in this State. The deposit shall be held in trust for the benefit and security of all the insurer's policyholders and creditors in the United States or of all the insurer's policyholders in the United States.
18 Del. C. 1953, §  514;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 516. Issuance, refusal of authority; ownership of certificate.

§ 516. Issuance, refusal of authority; ownership of certificate.
(a) If upon completion of its application the Commissioner finds that the insurer has met the requirements therefor under this title, the Commissioner shall issue to the insurer a proper certificate of authority; if he or she does not so find, the Commissioner shall issue his or her order refusing such certificate. The Commissioner shall act upon an application for certificate of authority within a reasonable period after its completion.
(b) The Commissioner shall issue certificates of authority under his or her seal of office, showing the date of actual issuance, the kinds of insurance the insurer is authorized to transact in this State, and such other matters as the Commissioner deems necessary. At the insurer's request, the Commissioner may issue a certificate of authority limited to particular types of insurance or coverages within a kind of insurance as defined in Chapter 9 of this title.
(c) Although issued and delivered to the insurer, the certificate of authority at all times shall be the property of the State. Upon any expiration, suspension or termination thereof the insurer shall promptly deliver the certificate to the Commissioner.
18 Del. C. 1953, §  516;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 517. Authority conferred; surety insurers; certificate as evidence.

§ 517. Authority conferred; surety insurers; certificate as evidence.
(a) The certificate of authority confers upon the insurer authority to transact in this State only the kind or kinds of insurance therein specified. No surety insurer shall be deemed thereby to possess power to act in capacity of executor, administrator, guardian, trustee, receiver, assignee, or agent, or in any other capacity than that of surety, notwithstanding contrary provisions in its charter.
(b) An insurer's valid and subsisting certificate of authority shall be prima facie evidence of its right to transact in this State the kind or kinds of insurance specified therein.
18 Del. C. 1953, §  517;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 518. Continuance, expiration, reinstatement of certificate of authority.

§ 518. Continuance, expiration, reinstatement of certificate of authority.
(a) A certificate of authority shall continue in force as long as the insurer is entitled thereto under this title, and until suspended or revoked by the Commissioner or terminated at the insurer's request; subject, however, to continuance of the certificate by the insurer each year by:
(1) Payment on or before March 1 of the continuation fee provided in § 701 (fee schedule) of this title;
(2) Due filing by the insurer of its annual statement for the next preceding calendar year as required by § 526 of this title; and
(3) Payment by the insurer of premium taxes with respect to the preceding calendar year.
(b) If not so continued by the insurer, its certificate of authority shall expire as of midnight on the May 31 next following such failure of the insurer to continue it in force, unless earlier revoked for failure to pay taxes as provided in § 519 of this title. The Commissioner shall promptly notify the insurer of the occurrence of any failure resulting in impending expiration of its certificate of authority.
(c) The Commissioner may, in his or her discretion, upon the insurer's request made within 3 months after expiration, reinstate a certificate of authority which the insurer has inadvertently permitted to expire after the insurer has fully cured all its failures which resulted in the expiration, and upon payment by the insurer of the fee for reinstatement specified in § 701(1) (fee schedule) of this title. Otherwise the insurer shall be granted another certificate of authority only after filing application therefor and meeting all other requirements as for an original certificate of authority in this State.
18 Del. C. 1953, §  518;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 519. Suspension or revocation of certificate of authority — Mandatory grounds.

§ 519. Suspension or revocation of certificate of authority — Mandatory grounds.
(a) The Commissioner shall refuse to continue or shall suspend or revoke an insurer's certificate of authority:
(1) If such action is required by any provision of this title;
(2) If a foreign insurer and it no longer meets the requirements for a certificate of authority, on account of deficiency of assets or otherwise;
(3) If a domestic insurer and it has failed to cure an impairment of capital or surplus within the time allowed therefor by the Commissioner under this title, or is otherwise no longer qualified for the certificate of authority;
(4) If the insurer's certificate of authority to transact insurance therein is suspended or revoked by its state of domicile, or state of entry into the United States (if an alien insurer); or
(5) For failure of the insurer to pay taxes on its premiums as required by the laws of this State.
(b) Except in case of insolvency or impairment of required capital or surplus, or suspension or revocation by another state as referred to in paragraph (a)(4) of this section above, the Commissioner shall give the insurer at least 10 days notice in advance of any such refusal, suspension or revocation under this section, and of the particulars of the reasons therefor. If the insurer requests a hearing thereon within such 10 days, such request shall automatically stay the Commissioner's proposed action until his or her order is made on such hearing.
18 Del. C. 1953, §  519;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 521. Order and notice of suspension, revocation; effect upon agents' authority.

§ 521. Order and notice of suspension, revocation; effect upon agents' authority.
(a) All suspensions or revocations of or refusals to continue an insurer's certificate of authority shall be, by the Commissioner's order, given to the insurer.
(b) Upon issuance of the order, the Commissioner shall forthwith give notice thereof to the insurer's agents in this State of record in the Department, and shall likewise suspend or revoke the authority of such agents to represent the insurer.
18 Del. C. 1953, §  521;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 522. Duration of suspension; insurer's obligations during suspension period; reinstatement.

§ 522. Duration of suspension; insurer's obligations during suspension period; reinstatement.
(a) Suspension of an insurer's certificate of authority shall be for such period as the Commissioner specifies in the order of suspension, but not to exceed 1 year. During the suspension period the Commissioner may rescind or shorten the suspension by his or her further order.
(b) During the suspension period the insurer shall not solicit or write any new business in this State, but shall file its annual statement, pay fees, licenses and taxes as required under this title, and may service its business already in force in this State, as if the certificate of authority had continued in full force.
(c) Upon expiration of the suspension period, if within such period the certificate of authority has not terminated, the insurer's certificate of authority shall automatically reinstate, unless the Commissioner finds that the causes of the suspension, being other than a past event, are continuing, or that the insurer is otherwise not in compliance with the requirements of this title, and of which the Commissioner shall give the insurer notice not less than 30 days in advance of expiration of the suspension period. If not so automatically reinstated, the certificate of authority shall be deemed to have terminated as of the end of the suspension period.
(d) Upon reinstatement of the insurer's certificate of authority, the authority of its agents in this State to represent the insurer shall likewise reinstate. The Commissioner shall promptly notify the insurer and its agents in this State, of record in the Department, of such reinstatement.
18 Del. C. 1953, §  522;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 523. General corporation laws inapplicable to foreign insurers.

§ 523. General corporation laws inapplicable to foreign insurers.
The general corporation laws of this State as contained in Title 8 of the Delaware Code shall not apply as to foreign insurers holding certificates of authority to transact insurance in this State.
18 Del. C. 1953, §  523;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 524. Commissioner as process agent for certain insurers.

§ 524. Commissioner as process agent for certain insurers.
(a) Before the Commissioner shall authorize it to transact insurance in this State, each insurer shall appoint the Commissioner, and his or her successors in office, as its attorney to receive service of legal process issued against the insurer in this State. The appointment shall be made on a form as designated and furnished by the Commissioner, and shall be accompanied by a copy of a resolution of the board of directors or like governing body of the insurer, if an incorporated insurer, showing that those officers who executed the appointment were duly authorized to do so on behalf of the insurer.
(b) The appointment shall be irrevocable, shall bind the insurer and any successor in interest or to the assets or liabilities of the insurer, and shall remain in effect as long as there is in force any contract of the insurer in this State or any obligation of the insurer arising out of its transactions in this State.
(c) Service of such process against a foreign or alien insurer shall be made only by service thereof upon the Commissioner.
(d) Service of such process against a domestic insurer may be made as provided hereunder, or in any other manner provided by law.
(e) At the time of application for a certificate of authority the insurer shall file the appointment with the Commissioner, together with designation of the person to whom process against it served upon the Commissioner is to be forwarded. The insurer may change such designation by a new filing.
18 Del. C. 1953, §  524;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 525. Serving process.

§ 525. Serving process.
(a) Service of process against an insurer for whom the Commissioner is attorney shall be made by delivering to and leaving with the Commissioner, his or her deputy, or a person in apparent charge of the Commissioner's office during the Commissioner's absence, 2 copies of the process, together with fee prescribed in § 701 of this title.
(b) Upon such service the Commissioner shall forthwith mail by certified mail 1 of the copies of such process to the person currently designated by the insurer to receive the same as provided in § 524(e) of this title. Service of such process shall not be complete until 3 days after the same has been so mailed.
(c) Service of process in the manner provided by this section shall for all purposes constitute valid and binding personal service upon the insurer within this State.
(d) The Commissioner shall keep a record of the day of service upon him or her of all legal process.
18 Del. C. 1953, §  525;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;  73 Del. Laws, c. 90, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 527, 528. Resident agent, countersignature law; exceptions to resident agent, countersignature law.

§§ 527, 528. Resident agent, countersignature law; exceptions to resident agent, countersignature law.
Repealed by 70 Del. Laws, c. 376, §§ 1, 2, effective June 21, 1996.
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 529. Cancellation of insurance agency contracts; arbitration.

§ 529. Cancellation of insurance agency contracts; arbitration.
(a) Every insurance company shall notify the Insurance Commissioner or the Commissioner's successor and the agency involved of the intent to cancel any written or verbal agency contract, except life insurance contracts, 30 days prior to issuance of the notice of cancellation.
(b) No insurance company may cancel an agency without giving 12 months notice, except where fraud exists or where an agency is more than 60 days in arrears of money owed to the insurance company in question. This notice shall be in writing and, upon the option of the company, may prohibit the agency from writing any new business for this particular company, but will allow the agency to renew all existing business in this 12-month period and will allow the agency to have binding authority to make endorsements or other changes to existing business and will provide for the same rate of commission for the 12-month period.
(c) The Insurance Commissioner shall appoint an arbitration board to arbitrate the cancellation of agency contracts. This board shall consist of 3 arbitrators, 1 of whom shall be from the Insurance Department, and 2 of whom shall be from the insurance industry.
(d) The purpose of this board is to determine whether an agency cancellation will adversely affect the public interest. If such a determination is made, the board shall prescribe a method of cancellation to be followed by both parties. The decision of the board of arbitration shall be binding upon the company and agency involved.
(e) (1) This subsection shall not apply in an instance where such company:
a. Employs an agent directly; or
b. Has an exclusive business arrangement with an agent.
(2) Notwithstanding any other provision of this section, a company may not cancel the contract of an independent agent for property and casualty insurance solely because of adverse underwriting experience in the line of private passenger insurance to the extent losses incurred by the insurer were not the fault of the insured.
(3) This subsection does not apply to adverse underwriting experience on losses incurred by the company on:
a. Bodily injury coverage;
b. Property damage coverage;
c. Collision coverage; or
d. To the extent that the losses incurred by the insurer were the fault of the insured, personal injury protection coverage and comprehensive coverage.
18 Del. C. 1953, §  529;  56 Del. Laws, c. 380, §  1;  58 Del. Laws, c. 184;  70 Del. Laws, c. 186, §  1;  71 Del. Laws, c. 161, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 530. Emergency requirements.

§ 530. Emergency requirements.
Whenever in the Commissioner's opinion a public emergency exists by reason of an abnormal disruption of economic and financial processes which affects the conduct of the business of insurance in a normal and ordinary manner, the Commissioner, with the concurrence of the Governor and the General Assembly, may declare the existence of a public emergency. During such emergency the Commissioner may make, alter, amend, revise and rescind rules and regulations, imposing any condition upon the conduct of the business of any insurer which may be necessary or desirable to maintain sound methods of insurance and to safeguard the interests of policyholders, beneficiaries and the public generally during the period of such emergency, which rules and regulations shall become inoperative when such emergency ceases, and an order to that effect shall be made by the Commissioner.
18 Del. C. 1953, §  530;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 534. Location of headquarters.

§ 534. Location of headquarters.
(a) The headquarters of day-to-day corporate activity and management of any insurer engaged in the business of insurance as a subsidiary or division of a bank or trust company, which bank or trust company is authorized to act as an insurer and transact the business of insurance pursuant to authority granted by § 761(a)(14) of Title 5, shall be located within this State, and the principal books and records of each such insurer shall be located within this State.
(b) The Commissioner shall, by regulation promulgated after consultation with the Bank Commissioner, define the term “headquarters of day-to-day corporate activity and management,” and provide for the maintenance and inspection of such headquarters and books and records to assure compliance with the provisions of §§ 929, 930 and 931 of Title 5, and § 2304(23) of this title.
67 Del. Laws, c. 223, §  20;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 535. Nondisclosure of nonpublic personal information; adoption of regulations.

§ 535. Nondisclosure of nonpublic personal information; adoption of regulations.
No person regulated pursuant to this title shall disclose any nonpublic personal information contrary to the provisions of Title V of the Gramm Leach Bliley Act of 1999 (Public Law 106-002; [15 U.S.C. § 6801 et seq.]). The Commissioner may adopt rules and regulations necessary to carry out this section. Such rules and regulations shall be consistent with the provisions of Title V of the Gramm Leach Bliley Act of 1999. Nothing in this section shall be construed to create a private cause of action.
73 Del. Laws, c. 53, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS › § 536. “Funding agreement” defined.

§ 536. “Funding agreement” defined.
A “funding agreement” is an agreement for an insurer to accept and accumulate funds and to make 1 or more payments at future dates in amounts that are not based on mortality or morbidity contingencies (of the holder of the funding agreement).
80 Del. Laws, c. 268, § 1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5A. PORT-OF-ENTRY FOR FOREIGN INSURANCE COMPANIES › § 560. Definitions.

§ 560. Definitions.
As used in this part.
(1) “Non-U.S. insurer” means an insurer or reinsurer organized under the laws of a foreign country.
(2) “United States branch” or “U.S. branch” means the business unit through which business is transacted within the United States by a non-U.S. insurer and the assets and liabilities of the non-U.S. insurer within the United States pertaining to such business.
80 Del. Laws, c. 159, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5A. PORT-OF-ENTRY FOR FOREIGN INSURANCE COMPANIES › § 561. Scope.

§ 561. Scope.
This chapter applies to a U.S. branch using this State as a state of entry to transact insurance in the United States. The U.S. branch shall also be subject to all state laws applicable to an insurer domiciled in this State with the exception of Chapter 50 of this title, and unless otherwise provided.
80 Del. Laws, c. 159, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5A. PORT-OF-ENTRY FOR FOREIGN INSURANCE COMPANIES › § 562. Authorization of entry.

§ 562. Authorization of entry.
(a) A non-U.S. insurer may use this State as a state of entry to transact insurance in the United States through a U.S. branch by:
(1) Qualifying as an insurer licensed to do business in this State; and
(2) Establishing a trust account, pursuant to a trust agreement approved by the Commissioner with a U.S. bank approved by the Commissioner, in an amount at least equal to the minimum capital and surplus or authorized control level risk based capital, whichever is greater, required to be maintained by a domestic insurer licensed to do the same kind or kinds of insurance.
(b) Before authorizing the entry through this State of a U.S. branch of any non-U.S. insurer, the Commissioner shall require the non-U.S. insurer, in addition to any other requirement of the Insurance Law:
(1) To submit a copy of its charter and by-laws, if any, currently in force, and such other documents necessary to show the kinds of business which it is empowered to do in its domiciliary jurisdiction, attested to as accurate and complete by the insurance supervisory official in its home jurisdiction, and a full statement, subscribed and affirmed as true under the penalties of perjury by 2 officers or equivalent responsible representatives in such manner as the Commissioner shall prescribe, of its financial condition as of the close of its latest fiscal year, showing its assets, liabilities, income, disbursements, business transacted and other facts required to be shown in its annual statement, as reported to the insurance supervisory official in its home jurisdiction; such submission shall include an English language translation, as required by the Commissioner, of each of the documents required herein; and
(2) To submit to an examination of the insurer's affairs at its or its United States manager's principal office within the United States. However, the Commissioner may instead accept a report of the insurance supervisory official of the insurer's home jurisdiction.
80 Del. Laws, c. 159, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 5A. PORT-OF-ENTRY FOR FOREIGN INSURANCE COMPANIES › § 563. Maintenance of trust account.

§ 563. Maintenance of trust account.
The assets in the trust account shall be known as “trusteed assets” and shall at all times be in an amount equal to the U.S. branch's reserves and other liabilities plus the minimum capital and surplus or authorized control level risk based capital, whichever is greater, required to be maintained by a domestic insurer licensed to do the same kind or kinds of insurance.
80 Del. Laws, c. 159, §  1;