reglab/statecodes huggingface dataset:
2023 Delaware Code › Title 18 - Insurance Code › Chapter 44. DELAWARE LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT › § 4411. Duties and powers of Commissioner.

§ 4411. Duties and powers of Commissioner.
In addition to the duties and powers enumerated elsewhere in this chapter:
(1) The Commissioner shall:
a. Upon request of the Board of Directors, provide the Association with a statement of the premiums in the appropriate states for each member insurer;
b. When an impairment is declared and the amount of the impairment is determined, serve a demand upon the impaired insurer to make good the impairment within a reasonable time. Notice to the impaired insurer shall constitute notice to its shareholders, if any. The failure of the impaired insurer to promptly comply with such demand shall not excuse the Association from the performance of its powers and duties under this chapter; and
c. In any liquidation or rehabilitation proceeding involving a domestic insurer, be appointed as the liquidator or rehabilitator. If a foreign or alien member insurer is subject to a liquidation proceeding in its domiciliary jurisdiction or state of entry, the Commissioner shall be appointed conservator.
(2) The Commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact business in this State of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. Alternatively, the Commissioner may levy a forfeiture of any insurer which fails to pay an assessment when due. Such forfeiture shall not exceed 5% of the unpaid assessment per month, but no forfeiture shall be less than $100 per month.
(3) A final action of the Board of Directors or the Association may be appealed to the Commissioner by a member insurer if the appeal is taken within 60 days of its receipt of notice of the final action being appealed. A final action or order of the Commissioner shall be subject to judicial review in a court of competent jurisdiction in accordance with the laws of this State that apply to the actions or orders of the Commissioner.
(4) The liquidator, rehabilitator, or conservator of any impaired insurer may notify all interested persons of the effect of this chapter.
63 Del. Laws, c. 442, §  1;  70 Del. Laws, c. 547, §  5;  73 Del. Laws, c. 327, §  6;  82 Del. Laws, c. 113, § 6;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 44. DELAWARE LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT › § 4413. Credits for assessments paid.

§ 4413. Credits for assessments paid.
(a) A member insurer may offset against its premium tax liability to this State an assessment described in § 4409(h) of this title to the extent of 20 percent of the amount of such assessment for each of the 5 calendar years following the year in which such assessment was paid. If a member insurer should cease doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business.
(b) Any sums acquired by refund, under § 4409(f) of this title, from the Association which have theretofore been written off by contributing insurers and offset against premium, franchise, or income taxes as provided in subsection (a) of this section and are not then needed for purposes of this chapter, shall be paid by the Association to the Commissioner and deposited by the Commissioner with the State Treasurer for credit to the General Fund of this State.
63 Del. Laws, c. 442, §  1;  70 Del. Laws, c. 186, §  1;  82 Del. Laws, c. 113, § 8;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 44. DELAWARE LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT › § 4415. Annual reports by Board.

§ 4415. Annual reports by Board.
The Association shall be subject to examination and regulation by the Commissioner. The Board of Directors shall submit to the Commissioner, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved by the Commissioner and a report of its activities during the preceding calendar year.
63 Del. Laws, c. 442, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 44. DELAWARE LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT › § 4416. Tax status of Association.

§ 4416. Tax status of Association.
The Association shall be exempt from payment of all fees and all taxes levied by this State or any of its subdivisions, except taxes levied on real property.
63 Del. Laws, c. 442, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 44. DELAWARE LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT › § 4417. Immunity.

§ 4417. Immunity.
There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer or its agents or employees, the Association or its agents or employees, members of the Board of Directors or the Commissioner or the Commissioner's representatives, for any action taken by them in the performance of their powers and duties under this chapter. Such immunity shall extend to the participation in any organization of 1 or more other state associations of similar purposes and to any such organization and its agents or employees.
63 Del. Laws, c. 442, §  1;  68 Del. Laws, c. 55, §  6;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 44. DELAWARE LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT › § 4418. Stay of proceedings; reopening default judgments.

§ 4418. Stay of proceedings; reopening default judgments.
All proceedings in which the insolvent insurer is a party in any court in this State shall be stayed 180 days from the date an order of liquidation, rehabilitation or conservation is final to permit proper legal action by the Association on any matters germane to its powers or duties. As to judgment under any decision, order, verdict or finding based on default the Association may apply to have such judgment set aside by the same court that made such judgment and shall be permitted to defend against such suit on the merits.
63 Del. Laws, c. 442, §  1;  77 Del. Laws, c. 215, §  13;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 44. DELAWARE LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT › § 4419. Advertising.

§ 4419. Advertising.
No person, including a member insurer, agent or affiliate of a member insurer shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, any advertisement, announcement, or statement which uses the existence of the Insurance Guaranty Association of this State for the purpose of sales, solicitation, or inducement to purchase any form of insurance or other coverage covered by this chapter. Provided, however, that this section shall not apply to the Delaware Life and Health Insurance Guaranty Association or any other entity which does not sell or solicit insurance or coverage by a managed care organization or health maintenance organization.
63 Del. Laws, c. 442, §  1;  82 Del. Laws, c. 113, § 10;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 44. DELAWARE LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT › § 4420. Access to assets of insurer in liquidation; application for court approval of plan to disburse assets.

§ 4420. Access to assets of insurer in liquidation; application for court approval of plan to disburse assets.
Repealed by 68 Del. Laws, c. 55, § 7, effective June 25, 1991.
2023 Delaware Code › Title 18 - Insurance Code › Chapter 45. CERTIFICATES OF INSURANCE ACT › § 4502. Definitions.

§ 4502. Definitions.
For the purpose of this chapter, the following definitions apply:
(1) “Certificate of insurance” means a document or instrument, regardless of how titled or described, that is prepared or issued by an insurer or insurance producer as evidence of property or casualty insurance coverage. The term does not include a policy of insurance, insurance binder, policy endorsement, or automobile insurance identification or information card.
(2) “Commissioner” means the Insurance Commissioner of this State.
(3) “Insurance producer” means a person required to be licensed under the laws of this State to sell, solicit, or negotiate property or casualty insurance.
(4) “Insurer” means any organization that issues property or casualty insurance.
(5) “Person” means any individual, partnership, corporation, association, or other legal entity, including any government or governmental subdivision or agency.
79 Del. Laws, c. 217, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 45. CERTIFICATES OF INSURANCE ACT › § 4503. Certificate forms.

§ 4503. Certificate forms.
(a) The Commissioner shall prohibit the use of a certificate of insurance form if the form:
(1) Is unfair, misleading, or deceptive, or violates public policy; or
(2) Violates any law, including any regulation promulgated by the Commissioner of Insurance.
(b) A certificate of insurance is not a policy of insurance and does not affirmatively or negatively amend, extend, or alter the coverage afforded by the policy to which the certificate of insurance makes reference. A certificate of insurance shall not confer to any person new or additional rights beyond what the referenced policy of insurance expressly provides.
79 Del. Laws, c. 217, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 45. CERTIFICATES OF INSURANCE ACT › § 4504. Limitations on use.

§ 4504. Limitations on use.
(a) A person shall not:
(1) Prepare, issue, or request or require the issuance of a certificate of insurance that contains any false or misleading information concerning the policy of insurance to which the certificate of insurance makes reference; or
(2) Prepare, issue, request, or require the issuance of a certificate of insurance that purports to affirmatively or negatively alter, amend, or extend the coverage provided by the policy of insurance to which the certificate of insurance makes reference.
(b) A certificate of insurance shall not warrant that the policy of insurance referenced in the certificate comply with the insurance or indemnification requirements of a contract, and the inclusion of a contract number or description within a certificate of insurance shall not be interpreted as doing such.
79 Del. Laws, c. 217, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 45. CERTIFICATES OF INSURANCE ACT › § 4505. Notice requirements.

§ 4505. Notice requirements.
A person is entitled to notice of cancellation, nonrenewal, or any material change, and to any similar notice concerning a policy of insurance only if the person has such notice rights under the terms of the policy of insurance or any endorsement to the policy. The terms and conditions of the notice are governed by the policy of insurance or endorsement and may not be altered by a certificate of insurance.
79 Del. Laws, c. 217, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 45. CERTIFICATES OF INSURANCE ACT › § 4506. Applicability.

§ 4506. Applicability.
(a) The provisions of this chapter shall apply to all certificates of insurance issued in connection with property, operations, or risks located in this State, regardless of where the policyholder, insurer, insurance producer, or person requesting or requiring the issuance of a certificate of insurance is located.
(b) A certificate of insurance or any other document or correspondence prepared, issued, requested, or required in violation of this chapter shall be null and void.
79 Del. Laws, c. 217, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 45. CERTIFICATES OF INSURANCE ACT › § 4507. Enforcement and penalties.

§ 4507. Enforcement and penalties.
(a) The Commissioner shall have the power to examine and investigate the activities of any person that the Commissioner reasonably believes has been or is engaged in an act or practice prohibited by this chapter.
(b) The Commissioner shall have the power to enforce the provisions of this chapter, including the authority to issue orders to cease and desist and to impose a fine of up to $1,000 per violation against any person who violates this chapter. This subsection shall not be construed to limit the Commissioner's authority to investigate, enforce and issue penalties pursuant to any other applicable provision in this title including, without limitation, Chapters 17, 23 and 24 of this title.
(c) The Commissioner may adopt reasonable rules and regulations as are necessary or proper to carry out the provisions of this chapter.
79 Del. Laws, c. 217, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 46. LIFE-CARE REGISTRATION ACT › § 4602. Registration.

§ 4602. Registration.
No provider shall engage in the business of providing continuing care in this State until it shall have:
(1) Filed a registration statement on a form to be prescribed by the Secretary;
(2) Filed with the Secretary the disclosure statement provided for in § 4603 of this title; and
(3) Paid a registration fee of $50 to the Secretary;
provided, however, a nonprofit continuing care facility as defined in this chapter whose facilities will not accommodate more than 100 residents shall be exempt from the provisions of this chapter, providing the facility annually submits to the Secretary of State a certified audit evidencing qualifications for this exemption.
67 Del. Laws, c. 357, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 46. LIFE-CARE REGISTRATION ACT › § 4604. False information.

§ 4604. False information.
(a) No provider shall make, publish, disseminate, circulate or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated or placed before the public, in a newspaper or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television statement, or in any other way, an advertisement, announcement or statement of any sort containing any assertion, representation or statement which is untrue, deceptive or misleading.
(b) No provider shall file with the Secretary or make, publish, disseminate, circulate or deliver to any person or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated or delivered to any person or placed before the public, any financial statement which does not accurately state its true financial condition.
67 Del. Laws, c. 357, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4701. Scope of chapter.

§ 4701. Scope of chapter.
This chapter applies as to domestic and foreign insurers of all types, and as to persons providing finances to such insurers.
18 Del. C. 1953, §  4701;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4702. Solicitation permit required; penalty.

§ 4702. Solicitation permit required; penalty.
(a) No person forming or proposing to form an insurer, or insurance holding corporation or corporation to be attorney-in-fact for a reciprocal insurer or proposing to secure funds for the formation or financing of an insurer, or production of insurance business therefor, or an insurance holding corporation or attorney-in-fact corporation of a reciprocal insurer or for the formation of a syndicate, association, firm, partnership or organization for any such purposes, whether domestic or foreign, shall in this State advertise or offer for sale any securities or solicit or receive any funds, subscriptions, applications or membership except as authorized by a currently effective permit (hereinafter sometimes referred to as a “solicitation permit”) issued by the Commissioner.
(b) Any person violating this section shall upon conviction thereof be subject to a fine of not more than $10,000 or imprisonment for not more than 10 years, or both.
18 Del. C. 1953, §  4702;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4703. Insurance holding corporation defined.

§ 4703. Insurance holding corporation defined.
Within the intent of this chapter an insurance holding corporation is one owning or proposing to own a controlling stock interest in a stock insurer. Shares owned directly or indirectly by the corporation or by its subsidiary or affiliate corporation, firm or organization or by its officers, directors or principal stockholders shall be deemed to be owned by the corporation for the purposes of this provision.
18 Del. C. 1953, §  4703;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4704. Exemptions.

§ 4704. Exemptions.
Section 4702 of this title shall not apply to:
(1) Sales of securities not involving a public offering, that is, sales on which no commission is payable resulting from offers privately made to not over 20 persons (other than banks, savings associations, investment companies registered as such under the Investment Companies Act of 1940 [15 U.S.C. § 80a-1 et seq.], registered securities dealers, investment houses and other financial institutions) within a 12-month period and where all persons (including such banks, associations, companies, dealers, houses and institutions) so acquiring such securities do so for investment purposes only and not with a view to further distribution.
(2) Sales of securities by an insurance holding corporation for purposes which do not include that of financing, directly or indirectly, an insurer.
(3) Stock of the insurer or insurance holding corporation to be offered and sold without payment of commission thereon exclusively to directors, employees and agents of the insurer or corporation or any of them under stock options granted pursuant to a written lawful plan therefor adopted by the board of directors and approved by a majority of the stock of the issuer corporation having voting rights, and which plan has been filed with the Commissioner.
(4) Securities issued or proposed to be issued pursuant to any merger, consolidation, bulk reinsurance, conversion, mutualization or corporate affiliation approved by the Commissioner pursuant to Chapter 49 of this title.
(5) Securities issued in exchange for outstanding securities of the issuer or partly in exchange for such outstanding securities and partly for cash in connection with a recapitalization of the issuer or the exercise of conversion or exchange rights under such outstanding securities.
(6) Fractional share interests in stock of the issuer offered and sold for the purpose of rounding out to whole shares in connection with any stock dividend or other distribution of shares to existing security holders of the issuer.
(7) Sales of securities of a corporation established under Chapter 7 or regulated under Chapter 9 of Title 5 which maintains an insurance department or division.
18 Del. C. 1953, §  4704;  56 Del. Laws, c. 380, §  1;  67 Del. Laws, c. 223, §  30;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4705. Application for permit.

§ 4705. Application for permit.
(a) Written application for any permit required under § 4702 of this title shall be filed with the Commissioner. The application shall show or be accompanied by:
(1) The name, type and purpose of the insurer, corporation, syndicate, association, firm or organization formed or proposed to be formed or financed;
(2) The name, residential address, business background and qualifications of each person associated or to be associated in the enterprise or in the formation of the proposed insurer, corporation, syndicate, association, firm or organization or in the proposed financing;
(3) Full disclosure of the terms of all pertinent understandings and agreements existing or proposed among persons so associated or to be associated, and a copy of each such agreement relating to the proposed financing or insurer, corporation, syndicate, association, firm or organization or the formation thereof;
(4) The plan according to which solicitations are to be made;
(5) A copy of any security, receipt or certificate proposed to be issued and a copy of any proposed application or subscription agreement;
(6) A copy of any prospectus, offering circular, advertising or sales literature or material proposed to be used;
(7) A copy of the proposed form of any escrow agreement required;
(8) Irrevocable appointment of the Commissioner as process agent to receive service of process issued in this State and arising out of any transaction under the permit, if issued. The Commissioner shall prescribe and furnish the form of such appointment;
(9) A copy of the certificate of incorporation or charter of the insurer or proposed insurer or of any other corporation proposing to offer its securities, certified by the public official having custody of the original thereof, and a copy of any syndicate, association, firm, organization or other similar agreement by whatever name called if funds for any of the purposes referred to in § 4702 of this title are to be secured through the sale of any security, interest or right in or relative to such syndicate, association, firm or organization, and, if the insurer is or is to be a reciprocal insurer, a copy of the power of attorney and of other agreements existing or proposed affecting subscribers, investors, the attorney-in-fact or the insurer; and
(10) Such additional pertinent information as the Commissioner may reasonably require.
(b) The application shall be accompanied by deposit of the fees required under § 701 (fee schedule) of this title for the filing of the application and for issuance of the permit, if granted.
(c) In lieu of a special filing thereof of information called for in subsection (a) of this section, the Commissioner may, in his or her discretion, accept a copy of any pertinent filing made with the Securities and Exchange Commission relative to the same offering.
18 Del. C. 1953, §  4705;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4706. Application for permit required by § 4702 of this title.

§ 4706. Application for permit required by § 4702 of this title.
Written application for any permit required under § 4702 of this title, in connection with the formation of a domestic mutual insurer by the securing of qualifying applications for insurance as provided in § 4905 of this title, shall be filed with the Commissioner. The application shall contain such information and be accompanied by such of the documents and the fees as required under § 4705 of this title as may be applicable and shall be accompanied by:
(1) A copy of the policy for which applications are proposed to be solicited;
(2) A copy of the proposed insurance application form, consistent with the requirements of § 4907 (qualifying application for insurance) of this title;
(3) A schedule of the premiums or premium rates proposed to be charged in connection with such insurance applications; and
(4) A copy of the bylaws of the proposed insurer.
18 Del. C. 1953, §  4706;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4707. Investigation.

§ 4707. Investigation.
(a) Upon completion of the application for a permit under §§ 4705 and 4706 of this title, the Commissioner shall promptly cause an investigation to be made of:
(1) The identity, character, reputation, financial standing and motives of the persons proposing to organize or promote and manage the proposed insurer or organization;
(2) The character, financial responsibility, insurance management experience and business qualifications of the officers, directors and managers of the insurer or proposed insurer or organization; and
(3) Such other aspects of the proposed insurer or financing as the Commissioner deems advisable.
(b) The Commissioner may waive such an investigation of an insurer already duly authorized to transact insurance in this State.
18 Del. C. 1953, §  4707;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4708. Grant, denial of permit.

§ 4708. Grant, denial of permit.
(a) The Commissioner shall expeditiously examine an application for a solicitation permit as soon as it is completed and complete the investigation as called for. Subject to subsection (b) of this section below, if the Commissioner finds on such examination and investigation that:
(1) The application is complete; and
(2) The documents therewith filed are proper in form; and
(3) That the proposed finances are reasonable and adequate in amount for the purposes intended, the Commissioner shall give notice to the applicant that he or she will issue the permit upon the filing of any bond required by § 4713 of this title or deposit required by § 4906 of this title and the filing of an executed copy of any escrow agreement required in connection therewith.
(b) If the Commissioner does not so find or finds that:
(1) The proposed sale of securities would be or tend to be unfair or inequitable as to present or proposed security holders or investors; or
(2) Any of the individuals associated or to be associated in the insurer, corporation, syndicate, association, firm, organization or financing are not of good reputation as to business affairs; or
(3) The insurer or proposed insurer would not be able to qualify for a certificate of authority in this State by virtue of the provisions of § 508(b) of this title,
the Commissioner shall give notice to the applicant that a permit will not be granted, stating the particulars of the grounds therefor, and refund to the applicant all sums deposited in connection with the application except the fee for filing the application for a permit.
18 Del. C. 1953, §  4708;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4710. Permit as inducement.

§ 4710. Permit as inducement.
The granting of a solicitation permit is permissive only and shall not constitute an endorsement by the Commissioner of any person or thing related to any such insurer, corporation, syndicate, association, firm, organization or financing nor constitute evidence of the completeness or accuracy of information presented in any prospectus or other sales literature, and the existence of the permit shall not be advertised or used as an inducement in any solicitation. The Commissioner shall place the substance of this section in conspicuous type at the top of each such permit issued.
18 Del. C. 1953, §  4710;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4711. Prospectus required; other literature.

§ 4711. Prospectus required; other literature.
(a) An offering of securities under a solicitation permit shall be made only by a written prospectus delivered to the prospective investor.
(b) The prospectus shall make a disclosure of all facts relative to the issuer and the offered security which are reasonably material to the offered investment and shall not omit a material fact necessary to make the statements clear, in the light of the circumstances under which they are made. The Commissioner may make reasonable rules and regulations concerning the form and contents of prospectuses not inconsistent with the provisions of this chapter.
(c) The Commissioner may accept, as a compliance with this section, a prospectus or offering circular covering securities to be offered in this State under an existing registration thereof with the Securities and Exchange Commission or under an existing exemption from such registration pursuant to “Regulation A” of the general rules and regulations of the Securities and Exchange Commission under the Securities Act of 1933, as amended [15 U.S.C. § 77a et seq.].
(d) As to securities covered by a solicitation permit, no sales literature or other visual sales material, other than the prospectus or offering circular, shall be used in solicitations unless a copy of the same has been filed with the Commissioner in advance of such use and not disapproved by the Commissioner in writing, mailed or delivered to the filing party within 10 days after the date of such filing. The Commissioner shall disapprove any such literature or material found to be untrue or misleading. This provision shall not be deemed to modify or affect any applicable requirement or prohibition under or pursuant to the Securities Act of 1933 [15 U.S.C. § 77a et seq.], as amended.
18 Del. C. 1953, §  4711;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4712. Modification or revocation of permit.

§ 4712. Modification or revocation of permit.
The Commissioner may, for cause, modify a solicitation permit theretofore issued, or may, after a hearing thereon, revoke the permit for violation of law or of the terms of the permit or any proper order of the Commissioner or for material misrepresentation in the offering or sale of securities or policies under the permit.
18 Del. C. 1953, §  4712;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4713. Bond for permit.

§ 4713. Bond for permit.
(a) The Commissioner shall not issue a solicitation permit until the applicant therefor has filed with the Commissioner a corporate surety bond in the penalty of $10,000, aggregate amount, in favor of the State and for the use and benefit of the State and of proposed Delaware investors in and creditors of the permittee.
(b) The bond shall be conditioned upon the payment of costs incurred by the State in event of any proceeding for liquidation or dissolution of the proposed organization before completion of organization or if a certificate of authority to be an insurer is not granted; and upon a full accounting for funds received until the proposed insurer has been granted its certificate of authority or until the corporation, syndicate, association, firm or organization or financing has been completed within the terms of the permit.
(c) In lieu of filing such bond the applicant may deposit with the State Treasurer, through the Commissioner, $10,000 in cash or a certificate of deposit issued by a bank located in Delaware or an equivalent amount in United States government bonds at market value to be held in trust under the same conditions as required of the bond. The amount so deposited may be credited toward payment of subscription to securities by founders, promoters and incorporators if required under § 4709(b)(5)a. of this title.
(d) The Commissioner may waive the requirement for a bond or deposit in lieu thereof if the securities are to be issued in connection with subsequent financing as provided in § 4717 of this title.
(e) The Commissioner shall release and discharge any such bond or deposit or remaining portion thereof held under this section upon written request of the person entitled thereto and upon proof to the Commissioner's satisfaction that all liabilities and obligations with respect to which the bond or deposit was filed or made have been fully settled or terminated or otherwise adequately provided for.
(f) This section does not apply as to solicitation of initial qualifying applications for insurance in a domestic mutual insurer pursuant to § 4906 of this title, except as provided in such § 4906.
18 Del. C. 1953, §  4713;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4714. Escrow of funds.

§ 4714. Escrow of funds.
(a) The holder of the solicitation permit shall promptly deposit all funds received from an offering of securities in this State pursuant to the permit, other than advance premiums for insurance which are subject to § 4907 of this title, in escrow in a bank or trust company located in this State and under an agreement consistent with this chapter approved by the Commissioner.
(b) No part of such funds shall be withdrawn from such deposit except:
(1) For payment of organization, sales and promotion expenses as earned and as authorized by the permit, and funds for such purposes may be withheld from the deposit; or
(2) For the purpose of making any deposit with the Commissioner required for issuance of a certificate of authority to an insurer or, if the organization is not or is not to be, an insurer, upon completion of payments on securities subscriptions made under the permit and deposit or appropriation of such funds to the purposes specified in the permit; or
(3) For the making of refunds as provided in § 4716 of this title.
(c) Funds while so held in escrow may be invested in certificates of deposit or savings accounts. Interest accruing thereon shall become part of the funds released as provided in paragraph (b)(2) of this section above, or shall be applied toward the costs of making refunds under paragraph (b)(3) of this section above, or to supplement the bond or deposit in lieu thereof in the event the same is called on pursuant to § 4713 of this title.
(d) When the Commissioner has issued a certificate of authority to a proposed insurer, any such funds remaining in escrow for its account shall be released to the insurer.
(e) The Commissioner may waive compliance with this section as to funds to be received under a subsequent financing permit under § 4717 of this title or in other circumstances where the Commissioner deems such an escrow to be reasonably unnecessary for the protection of investors or of the public.
18 Del. C. 1953, §  4714;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4715. Subscriptions.

§ 4715. Subscriptions.
All subscriptions to securities under a solicitation permit shall be binding upon and enforceable against the parties thereto in accordance with the terms of the subscription contract and subject to the provisions of this chapter. No such contract shall be made conditional except upon such reasonable conditions consistent with applicable statutes as may uniformly be set forth in all such contracts with the Commissioner's approval as not being inappropriate or inequitable.
18 Del. C. 1953, §  4715;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4716. Failure to complete or qualify.

§ 4716. Failure to complete or qualify.
(a) The Commissioner shall withdraw all funds held in escrow under § 4714 of this title and refund to securities subscribers or purchasers all sums paid therein under the solicitation permit, less that part allowed and used for organization, sales and promotion expenses, if:
(1) The permit holder has failed to complete its organization or financing within the terms of the permit or if it has failed to secure its certificate of authority to be an insurer, all before expiration of the permit; or
(2) The permit is revoked.
(b) As to funds paid in on subscriptions by founders, promoters and incorporators and held on deposit in lieu of bond under § 4713(c) of this title, only such portion of such funds shall be refundable under this section as may remain after discharge of all liabilities against the deposit under § 4713 of this title and after the charging of such funds with a proportionate share of organization, sales and promotion expenses.
18 Del. C. 1953, §  4716;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 47. FINANCING OF INSURERS › § 4717. Subsequent financing; penalty.

§ 4717. Subsequent financing; penalty.
(a) No person referred to in § 4702 (solicitation permit required; penalty) of this title, after receiving a certificate of authority, if an insurer in this or any other State or after completing its original organization and financing, if other than an insurer, shall in this State solicit or receive funds in exchange for its securities until it has applied to the Commissioner for and has been granted a solicitation permit. This provision is subject to the same exemptions as are provided by § 4704 of this title.
(b) The Commissioner shall expeditiously issue such a permit unless the Commissioner finds:
(1) That the funds proposed to be secured are inadequate or excessive in amount for the purposes intended; or
(2) That the proposed securities or the manner of their distribution would be unfair or inequitable to existing or proposed security holders or policyholders of the issuer.
(c) Any such permit granted by the Commissioner shall be for such duration and shall contain such terms and be issued upon such conditions as the Commissioner may reasonably specify or require for the protection of existing or proposed investors. In the Commissioner's discretion, such terms and conditions may be substantially the same as or materially different from requirements made under this chapter as to solicitation permits for initial financing.
(d) Violation of subsection (a) of this section shall be subject to the same penalties as prescribed by § 4702(b) (solicitation permit required; penalty) of this title.
18 Del. C. 1953, §  4717;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 48. INSURANCE PREMIUM FINANCING › § 4801. Definitions.

§ 4801. Definitions.
As used in this chapter, unless the context otherwise requires:
(1) “Commissioner” means the Insurance Commissioner.
(2) “Insurance premium finance company” means a person engaged in the business of entering into premium finance agreements or otherwise financing the payment of insurance premiums.
(3) “Licensee” means a premium finance company holding a license issued by the Commissioner under this chapter.
(4) “Premium finance agreement” means an agreement by which an insured or prospective insured promises to pay to an insurance premium financing company the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent or broker in payment of premiums on an insurance contract together with a service charge as authorized and limited by this chapter.
60 Del. Laws, c. 406, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 48. INSURANCE PREMIUM FINANCING › § 4802. License required of insurance premium finance companies.

§ 4802. License required of insurance premium finance companies.
(a) No person shall engage in the business of financing insurance premiums in this State without first having obtained a license as a premium finance company from the Commissioner, unless such person is exempted from obtaining such a license pursuant to § 4810 of this title. The fee for such a license shall be the sum of $ 500 per year which license shall be valid until the 1st day of January at which time it may be renewed for a full year and every year thereafter provided that the licensee shall have paid the said annual license fee of $ 500 and shall otherwise qualify for a license hereunder. All fees for licenses hereunder shall be paid to the Commissioner. The increase in fees collected in Fiscal Year 2018 pursuant to this section shall be used solely to make appropriations for certain grants-in-aid for the fiscal year ending June 30, 2018.
(b) All licensees or persons applying for licenses shall file sworn answers to such questions as the Commissioner may deem appropriate. The Commissioner shall have authority at any time to require the applicant to fully disclose the identity of all stockholders, partners, officers and employees and the Commissioner may refuse to issue or renew a license in the name of any firm, partnership or corporation so long as the Commissioner remains satisfied that any officer, employee, stockholder or partner thereof who may materially influence the applicant's conduct fails to meet the standards of this chapter.
60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;  81 Del. Laws, c. 57, § 3;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 48. INSURANCE PREMIUM FINANCING › § 4803. Action by Commissioner on application.

§ 4803. Action by Commissioner on application.
(a) Upon the filing of an application and the payment of the license fee the Commissioner shall make an investigation of each applicant and shall issue a license if the applicant is qualified in accordance with this chapter. If the Commissioner does not so find, he or she shall, within 30 days after receipt of such application, if so requested by the applicant, give the applicant a full hearing on its application.
(b) The Commissioner shall issue or renew a license as may be applied for when the Commissioner is satisfied that the person to be licensed:
(1) Is competent and trustworthy and intends to act in good faith in the capacity required by the license applied for;
(2) Has a good business reputation and has sufficient experience, training or education to be qualified in the business represented by the license applied for;
(3) If a corporation, is a corporation incorporated under the laws of this State or is a foreign corporation authorized to transact business in this State; and
(4) Has the necessary financial resources available to enter in the business for which such person is asking to be licensed or as to which such person is requesting renewal of his or her license.
60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 48. INSURANCE PREMIUM FINANCING › § 4804. Revocation and suspension of licenses.

§ 4804. Revocation and suspension of licenses.
(a) The Commissioner may revoke or suspend the license of any premium finance company when and if, after investigation, it appears to the Commissioner that:
(1) Any license issued to such company was obtained by fraud;
(2) There was any material misrepresentation in the application for the license;
(3) The holder of such license has otherwise shown himself or herself untrustworthy or incompetent to act as a premium finance company; or
(4) Such company has violated this chapter.
(b) Before the Commissioner shall revoke, suspend or refuse to renew the license of any premium finance company, the Commissioner shall give to such person an opportunity to be fully heard and to introduce evidence in his or her behalf and, in lieu of revoking or suspending his or her license for any of the causes enumerated in this section, after hearing as herein provided, the Commissioner may, for each of the first and second such offenses, subject such company to an administrative penalty of not less than $25 nor more than $500 for each such offense when in the Commissioner's judgment the public interest would not be harmed by the continued operation of such company. The amount of any such administrative penalty shall be paid by such company to the Commissioner within 30 days of the date such a penalty is levied.
(c) If the Commissioner refuses to issue or renew any license or if the applicant or licensee is aggrieved by any action of the Commissioner, such applicant or licensee shall have the same right to a hearing and appeal as provided for other aggrieved parties in this title.
(d) At any hearing provided for by this chapter the Commissioner shall have all such authority as the Commissioner otherwise has under this title to conduct hearings.
60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 48. INSURANCE PREMIUM FINANCING › § 4805. Books and records.

§ 4805. Books and records.
(a) Every licensee shall maintain records of its premium finance transactions and the said records shall be open to examination and investigation by the Commissioner. The Commissioner may at any time require any licensee to bring such records as directed to the Commissioner's office for examination provided that this can be done without causing that licensee undue hardship and further provided that the Commissioner shall give reasonable notice for the bringing of such records to the Commissioner's office for examination.
(b) Every licensee shall preserve its records of such premium finance transactions, including cards used in any card system, for at least 3 years after making the final entry in respect to any premium finance agreement. The preservation of records in photographic form shall constitute compliance with this requirement.
60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 48. INSURANCE PREMIUM FINANCING › § 4806. Form of premium finance agreement.

§ 4806. Form of premium finance agreement.
(a) A premium finance agreement shall:
(1) Be dated, signed by or on behalf of the insured and the printed portion thereof shall be in at least 8-point type;
(2) Contain the name and place of business of the insurance agent negotiating the related insurance contract, the name and residence or the place of business of the insured as specified by the insured, the name and place of business of the premium finance company to which payments are to be made, a description of the insurance contracts involved and the amount of the premium therefor; and
(3) Set forth the following items where applicable:
a. The total amount of the premiums;
b. The amount of the down payment;
c. The principal balance (the difference between paragraphs (a)(3)a. and b.);
d. The amount of the service charge;
e. The balance payable by the insured (sum of paragraphs (a)(3)c. and d.); and
f. The number of installments required, the amount of each installment, expressed in dollars, and the due date or period thereof.
(b) The items set out in paragraph (a)(3) of this section need not be stated in the sequence or order in which they appear in such paragraph, and additional items may be included to explain the computations made in determining the amount to be paid by the insured.
60 Del. Laws, c. 406, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 48. INSURANCE PREMIUM FINANCING › § 4807. Maximum service charge.

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