reglab/statecodes huggingface dataset:
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1111. Title and definitions.

§ 1111. Title and definitions.
(a) This subchapter III shall be known as the “Standard Valuation Law” (the “Act”).
(b) For purposes of the Act, the following definitions shall apply on or after the operative date of the valuation manual:
(1) “Accident and health insurance” means contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the valuation manual.
(2) “Appointed actuary” means a qualified actuary who is appointed in accordance with the valuation manual to prepare the actuarial opinion required in § 1113(b) of this title.
(3) “Company” means an entity, which (A) has written, issued, or reinsured life insurance contracts, accident and health insurance contracts or deposit-type contracts in this State and has at least 1 such policy in force or on claim or (B) has written, issued or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance or deposit-type contracts in this State.
(4) “Deposit-type contract” means contracts that do not incorporate mortality or morbidity risks and as may be specified in the valuation manual.
(5) “Life insurance” means contracts that incorporate mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual.
(6) “NAIC” means the National Association of Insurance Commissioners.
(7) “Policyholder behavior” means any action a policyholder, contract holder or any other person with the right to elect options, such as a certificate holder, may take under a policy or contract subject to this Act including, but not limited to, lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization, or benefit elections prescribed by the policy or contract but excluding events of mortality or morbidity that result in benefits prescribed in their essential aspects by the terms of the policy or contract.
(8) “Principle-based valuation” means a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer and is required to comply with § 1122 of this title as specified in the valuation manual.
(9) “Qualified actuary” means an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements and who meets the requirements specified in the valuation manual.
(10) “Tail risk” means a risk that occurs either where the frequency of low probability events is higher than expected under a normal probability distribution or where there are observed events of very significant size or magnitude.
(11) “Valuation manual” means the manual of valuation instructions adopted by the NAIC as specified in this Act or as subsequently amended.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1112. Reserve valuation.

§ 1112. Reserve valuation.
(a) Policies and contracts issued prior to the operative date of the valuation manual. — (1) The Commissioner shall annually value, or cause to be valued, the reserve liabilities (hereinafter called reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in this state issued on or after 1968 and prior to the operative date of the valuation manual, except that in the case of an alien insurer such valuation shall be limited to its insurance transactions in the United States. In calculating reserves, the Commissioner may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves required of a foreign or alien company, the Commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this Act.
(2) The provisions set forth in §§ 1114, 1114A, 1114B, 1115, 1115A, 1116, 1117, 1118, 1119, and 1120 of this title shall apply to all policies and contracts, as appropriate, subject to this Act issued on or after 1968 and prior to the operative date of the valuation manual and the provisions set forth in §§ 1121 and 1122 of this title shall not apply to any such policies and contracts.
(3) The minimum standard for the valuation of policies and contracts issued prior to 1968 shall be that provided by the laws in effect immediately prior to that date.
(b) Policies and contracts issued on or after the operative date of the valuation manual. — (1) The Commissioner shall annually value, or cause to be valued, the reserve liabilities (hereinafter called reserves) for all outstanding life insurance contracts, annuity and pure endowment contracts, accident and health contracts, and deposit-type contracts of every company issued on or after the operative date of the valuation manual. In lieu of the valuation of the reserves required of a foreign or alien company, the Commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this Act.
(2) The provisions set forth in §§ 1121 and 1122 of this title shall apply to all policies and contracts issued on or after the operative date of the valuation manual.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1115A. Reserve valuation method—Annuity and pure endowment benefits.

§ 1115A. Reserve valuation method—Annuity and pure endowment benefits.
(a) This section shall apply to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer (including a partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under § 408 of the Internal Revenue Code [26 U.S.C. § 408], as now or hereafter amended.
(b) Reserves according to the Commissioners annuity reserve method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death benefits in the contracts, shall be the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by the contracts at the end of each respective contract year, over the present value, at the date of valuation, of any future valuation considerations derived from future gross considerations, required by the terms of the contract, that become payable prior to the end of the respective contract year. The future guaranteed benefits shall be determined by using the mortality table, if any, and the interest rate, or rates, specified in the contracts for determining guaranteed benefits. The valuation considerations are the portions of the respective gross considerations applied under the terms of the contracts to determine nonforfeiture values.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1116. Minimum reserves.

§ 1116. Minimum reserves.
(a) In no event shall a company's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after 1968, be less than the aggregate reserves calculated in accordance with the methods set forth in §§ 1115, 1115A, 1118 and 1119 of this title and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for the policies.
(b) In no event shall the aggregate reserves for all policies, contracts, and benefits be less than the aggregate reserves determined by the appointed actuary to be necessary to render the opinion required by § 1113 of this title.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1117. Optional reserve calculation.

§ 1117. Optional reserve calculation.
(a) Reserves for any category of policies, contracts, or benefits as established by the Commissioner, issued prior to 1968, may be calculated, at the option of the company, according to any standards that produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by the laws in effect immediately prior to that date.
(b) Reserves for any category of policies, contracts or benefits established by the commissioner, issued on or after 1968, may be calculated, at the option of the company, according to any standards that produce greater aggregate reserves for the category than those calculated according to the minimum standard provided herein, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, shall not be greater than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided in the policies or contracts.
(c) A company, which adopts at any time a standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard provided under this Act, may adopt a lower standard of valuation with the approval of the Commissioner, but not lower than the minimum provided herein; provided that, for the purposes of this section, the holding of additional reserves previously determined by the appointed actuary to be necessary to render the opinion required by § 1113 of this title shall not be deemed to be the adoption of a higher standard of valuation.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1118. Reserve calculation—Valuation net premium exceeding the gross premium charged.

§ 1118. Reserve calculation—Valuation net premium exceeding the gross premium charged.
(a) If in any contract year the gross premium charged by a company on a policy or contract is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required for the policy or contract shall be the greater of either the reserve calculated according to the mortality table, rate of interest, and method actually used for the policy or contract, or the reserve calculated by the method actually used for the policy or contract but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium. The minimum valuation standards of mortality and rate of interest referred to in this section are those standards stated in §§ 1114 and 1114B of this title.
(b) Provided, that for a life insurance policy issued on or after January 1, 1987, for which the gross premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for the excess and which provides an endowment benefit or a cash surrender value or a combination in an amount greater than the excess premium, the provisions of this section shall be applied as if the method actually used in calculating the reserve for the policy were the method described in § 1115 of this title, ignoring the second paragraph of § 1115 of this title. The minimum reserve at each policy anniversary of such a policy shall be the greater of the minimum reserve calculated in accordance with § 1115 of this title, including the second paragraph of that section, and the minimum reserve calculated in accordance with this section.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1119. Reserve calculation—Indeterminate premium plans.

§ 1119. Reserve calculation—Indeterminate premium plans.
(a) In the case of a plan of life insurance that provides for future premium determination, the amounts of which are to be determined by the insurance company based on then estimates of future experience, or in the case of a plan of life insurance or annuity that is of such a nature that the minimum reserves cannot be determined by the methods described in §§ 1115, 1115A and 1118 of this title, the reserves that are held under the plan shall:
(1) Be appropriate in relation to the benefits and the pattern of premiums for that plan; and
(2) Be computed by a method that is consistent with the principles of this Standard Valuation Law, as determined by regulations promulgated by the Commissioner.
(b) Notwithstanding any other provision in the laws of this State, a policy, contract, or certificate providing life insurance under such a plan shall be affirmatively approved by the Commissioner before it can be marketed, issued, delivered, or used in this State.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1120. Minimum standard for accident and health insurance contracts.

§ 1120. Minimum standard for accident and health insurance contracts.
For accident and health insurance contracts issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under § 1112(b) of this title. For disability, accident and sickness, accident and health insurance contracts issued on or after 1968 and prior to the operative date of the valuation manual the minimum standard of valuation is the standard adopted by the Commissioner by regulation.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1122. Requirements of a principle-based valuation.

§ 1122. Requirements of a principle-based valuation.
(a) A company must establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the valuation manual:
(1) Quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring during the lifetime of the contracts. For polices or contracts with significant tail risk, reflects conditions appropriately adverse to quantify the tail risk.
(2) Incorporate assumptions, risk analysis methods and financial models and management techniques that are consistent with, but not necessarily identical to, those utilized within the company's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods.
(3) Incorporate assumptions that are derived in 1 of the following manners:
(A) The assumption is prescribed in the valuation manual.
(B) For assumptions that are not prescribed, the assumptions shall:
(i) Be established utilizing the company's available experience, to the extent it is relevant and statistically credible; or
(ii) To the extent that company data is not available, relevant, or statistically credible, be established utilizing other relevant, statistically credible experience.
(4) Provide margins for uncertainty including adverse deviation and estimation error, such that the greater the uncertainty the larger the margin and resulting reserve.
(b) A company using a principle-based valuation for 1 or more policies or contracts subject to this section as specified in the valuation manual shall complete all of the following:
(1) Establish procedures for corporate governance and oversight of the actuarial valuation function consistent with those described in the valuation manual.
(2) Provide to the Commissioner and the board of directors an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation. Such controls shall be designed to assure that all material risks inherent in the liabilities and associated assets subject to such valuation are included in the valuation, and that valuations are made in accordance with the valuation manual. The certification shall be based on the controls in place as of the end of the preceding calendar year.
(3) Develop, and file with the Commissioner upon request, a principle-based valuation report that complies with standards prescribed in the valuation manual.
(c) A principle-based valuation may include a prescribed formulaic reserve component.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1123. Experience reporting for policies in force on or after the operative date of the valuation manual.

§ 1123. Experience reporting for policies in force on or after the operative date of the valuation manual.
A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1125. Single state exemption.

§ 1125. Single state exemption.
(a) The Commissioner may exempt specific product forms or product lines of a domestic company that is licensed and doing business only in the State of Delaware from the requirements of § 1121 of this title, provided:
(1) The Commissioner has issued an exemption in writing to the company and has not subsequently revoked the exemption in writing; and
(2) The company computes reserves using assumptions and methods used prior to the operative date of the valuation manual in addition to any requirements established by the Commissioner and promulgated by regulation.
(b) For any company granted an exemption under this section, §§ 1113, 1114, 1114A, 1114B, 1115, 1115A, 1116, 1117, 1118, 1119 and 1120 of this title shall be applicable. With respect to any company applying this exemption, any reference to § 1121 of this title found in §§ 1113, 1114, 1114A, 1114B, 1115, 1115A, 1116, 1117, 1118, 1119 and 1120 of this title shall not be applicable.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter III. Life Insurance Reserves › § 1126. Effective date.

§ 1126. Effective date.
All acts and parts of acts inconsistent with the provisions of this Act are hereby repealed as of 1968. This Act shall take effect as of 1968.
80 Del. Laws, c. 117, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter IV. Valuation of Assets › § 1127. Valuation of bonds.

§ 1127. Valuation of bonds.
(a) All bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows:
(1) If purchased at par, at the par value;
(2) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made, or in lieu of such method, according to such accepted method of valuation as is approved by the Commissioner;
(3) Purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage or express charges paid in the acquisition of such securities;
(4) Unless otherwise provided by valuation established or approved by the Commissioner, no such security shall be carried at above the call price for the entire issue during any period within which the security may be so called.
(b) Notwithstanding any other provision of this section, no bond or other evidence of debt shall be valued in excess of the value established by the National Association of Insurance Commissioners' Capital Markets and Investment Analysis Office.
18 Del. C. 1953, §  1114;  56 Del. Laws, c. 380, §  1;  69 Del. Laws, c. 92, §  4;  80 Del. Laws, c. 117, §  2;  83 Del. Laws, c. 184, § 3;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter IV. Valuation of Assets › § 1128. Valuation of other securities.

§ 1128. Valuation of other securities.
(a) Securities, other than those referred to in § 1127 of this title, held by an insurer shall be valued, in the discretion of the Commissioner, at their market value, or at their appraised value, or at prices determined by the Commissioner as representing their fair market value.
(b) Preferred or guaranteed stocks or shares while paying full dividends may be carried at a fixed value in lieu of market value, at the discretion of the Commissioner and in accordance with such method of computation as he or she may approve.
(c) Notwithstanding any other provision of this section, securities shall be valued at prices established by the National Association of Insurance Commissioners' Capital Markets and Investment Analysis Office and in accordance with procedures established by the National Association of Insurance Commissioners.
18 Del. C. 1953, §  1115;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  39;  68 Del. Laws, c. 48, §  1;  70 Del. Laws, c. 186, §  1;  80 Del. Laws, c. 117, §  2;  83 Del. Laws, c. 184, § 4;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter IV. Valuation of Assets › § 1129. Valuation of property.

§ 1129. Valuation of property.
(a) Real property acquired pursuant to a mortgage loan or contract for sale, in the absence of a recent appraisal deemed by the Commissioner to be reliable, shall not be valued at an amount greater than the unpaid principal of the defaulted loan or contract plus interest due and accrued at the date of such acquisition, together with any taxes and expenses paid or incurred in connection with such acquisition, and the cost of improvements thereafter made by the insurer and any amounts thereafter paid by the insurer on assessments levied for improvements in connection with the property.
(b) Real property owned by an insurer shall be valued at cost plus capital improvements less depreciation. Such a value shall not be in excess of the NAIC accounting practices and procedures manual valuation nor in excess of fair market value as determined by a recent appraisal acceptable to the Commissioner. If the valuation is based on an appraisal more than 3 years old, the Commissioner may require a new appraisal to determine fair market value.
18 Del. C. 1953, §  1116;  56 Del. Laws, c. 380, §  1;  69 Del. Laws, c. 92, §  5;  80 Del. Laws, c. 117, §  2;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter IV. Valuation of Assets › § 1130. Valuation of purchase money mortgages.

§ 1130. Valuation of purchase money mortgages.
Purchase money mortgages on real property referred to in § 1129(a) of this title shall be valued in an amount not exceeding the acquisition cost of the real property covered thereby or 90% of the fair value of such real property, whichever is less.
18 Del. C. 1953, §  1117;  56 Del. Laws, c. 380, §  1;  80 Del. Laws, c. 117, §  2;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter V. Property and Casualty Actuarial Opinion Law › § 1131. Title.

§ 1131. Title.
This subchapter shall be known as the “Property and Casualty Actuarial Opinion Law of 2011.”
78 Del. Laws, c. 57, §  1;  80 Del. Laws, c. 117, §  2;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 11. ASSETS AND LIABILITIES › Subchapter V. Property and Casualty Actuarial Opinion Law › § 1132. Actuarial opinion of reserves and supporting documentation.

§ 1132. Actuarial opinion of reserves and supporting documentation.
(a) This section shall become operative January 1, 2013.
(b) Every property and casualty insurance company doing business in Delaware, unless otherwise exempted by the Commissioner, shall annually submit to the Department of Insurance the opinion of an appointed actuary entitled “Statement of Actuarial Opinion.” This opinion shall be filed in accordance with the appropriate NAIC Property and Casualty Annual Statement Instructions.
(c) Every property and casualty insurance company domiciled in Delaware that is required to submit a Statement of Actuarial Opinion shall annually submit an actuarial opinion summary, written by the company's appointed actuary. This actuarial opinion summary shall be filed in accordance with the appropriate NAIC Property and Casualty Annual Statement Instructions and shall be considered as a document supporting the actuarial opinion required in subsection (b) of this section.
(d) A company licensed but not domiciled in Delaware shall provide the actuarial opinion summary upon request.
(e) An actuarial report and underlying workpapers as required by the appropriate NAIC Property and Casualty Annual Statement Instructions shall be prepared to support each actuarial opinion.
(f) If the insurance company fails to provide a supporting actuarial report and/or workpapers at the request of the Commissioner or the Commissioner determines that the supporting actuarial report or workpapers provided by the insurance company are otherwise unacceptable to the Commissioner, the Commissioner may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting actuarial report or workpapers.
(g) The appointed actuary shall not be liable for damages to any person (other than the insurance company and the Commissioner) for any act, error, omission, decision or conduct with respect to the actuary's opinion, except in cases of fraud or wilful misconduct on the part of the appointed actuary.
78 Del. Laws, c. 57, §  1;  80 Del. Laws, c. 117, §  2;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1302. Eligible investments.

§ 1302. Eligible investments.
(a) Insurers shall invest in or lend their funds on the security of, and shall hold as invested assets, only eligible investments as prescribed in this chapter.
(b) Any particular investment held by an insurer on November 1, 1968, which was a legal investment at the time it was made, and which the insurer was legally entitled to possess immediately prior to such date, shall be deemed to be an eligible investment.
(c) An investment qualified, in whole or in part, for acquisition or holding as an eligible investment may be qualified or requalified at the time of acquisition or at a later date, in whole or in part, under any section of this chapter, if the relevant conditions contained in the section are satisfied at the time of qualification or requalification. In order for an investment, subsequent to the time of its acquisition, to be qualified or requalified, prior written approval of the Commissioner must be obtained.
(d) Unless otherwise specified, an investment limitation computed on the basis of an insurer's admitted assets or capital and surplus shall relate to the amount required to be shown on the statutory balance sheet of the insurer most recently required to be filed with the Commissioner or as shown by a current financial statement resulting from merger of another insurer, bulk reinsurance, or change in capitalization. For purposes of computing any limitation based upon admitted assets, the insurer shall deduct from the amount of its admitted assets the amount of the liability recorded on its statutory balance sheet for:
(1) The return of acceptable collateral received in a reverse repurchase transaction or a securities lending transaction;
(2) Cash received in a dollar roll transaction; and
(3) The amount reported as borrowed money in the most recently filed financial statement, to the extent not included in paragraphs (d)(1) and (2) of this section.
(e) An insurer shall not invest in:
(1) Corporate obligations under § 1308 (c)(5) of this title;
(2) Bonds, notes or other evidences of indebtedness secured by second mortgages or deeds of trust under § 1323(a) of this title;
(3) Participations under § 1323(e) of this title;
(4) Secured obligations of institutions under § 1331 of this title; or
(5) Production payments under § 1332 of this title;
Unless such insurer possesses unimpaired capital and surplus (contributed and assigned) of not less than $7,500,000 (as shown by the insurer's annual statement as of December 31 next preceding the date of acquisition), which amount shall be invested in investments permitted under this chapter other than those specified in this subsection or § 1320 (miscellaneous investments) of this title.
18 Del. C. 1953, §  1302;  56 Del. Laws, c. 380, §  1;  63 Del. Laws, c. 363, §  19;  70 Del. Laws, c. 108, §§  1, 2;  71 Del. Laws, c. 202, §§  1, 2;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1304. Authorization; record of investments.

§ 1304. Authorization; record of investments.
An insurer shall not make any investment or loan (other than policy loans or annuity contract loans of a life insurer) unless the same is authorized or approved by the insurer's board of directors or by a committee thereof charged with supervision of investments and loans. The insurer shall maintain a full record of each investment.
18 Del. C. 1953, §  1304;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  3;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1306. Public obligations.

§ 1306. Public obligations.
An insurer may invest in bonds or other evidences of indebtedness, not in default as to principal or interest, which are valid and legally authorized obligations issued, assumed or guaranteed by the United States or by any state thereof, or by Canada or any of the provinces thereof, or by any county, city town, village, municipality or district therein or by any political subdivision thereof or by a public instrumentality of 1 or more of the foregoing, and in any such obligations issued, assumed or guaranteed by the federal government of Mexico, if, by statutory or other legal requirements applicable thereto, such obligations are payable, as to both principal and interest, from (1) taxes levied or required to be levied upon all taxable property or all taxable income within the jurisdiction of such governmental unit, or from (2) adequate special revenues pledged or otherwise appropriated or by law required to be provided for the purpose of such payment; but not including any obligation payable solely out of special assessments on properties benefited by local improvements, unless adequate security is evidenced by the ratio of assessment to the value of the property or the obligation is additionally secured by an adequate guaranty fund required by law.
18 Del. C. 1953, §  1306;  56 Del. Laws, c. 380, §  1;  63 Del. Laws, c. 363, §  17;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1307. Obligations and stock of certain federal and international agencies.

§ 1307. Obligations and stock of certain federal and international agencies.
An insurer may invest in the obligations and/or stock where stated, issued, assumed or guaranteed by the following agencies of the government of the United States of America, or in which such government is a participant, whether or not such obligations are guaranteed by such government:
(1) Farm Loan Bank.
(2) Commodity Credit Corporation.
(3) Federal intermediate credit banks.
(4) Federal land banks.
(5) Central Bank for Cooperatives.
(6) Federal home loan banks, and stock thereof.
(7) Federal National Mortgage Association, and stock thereof.
(8) International Bank for Reconstruction and Development.
(9) Inter-American Development Bank.
(10) Asian Development Bank.
(11) African Development Bank.
(12) Any other similar agency of, or participated in by, the government of the United States of America and of similar financial quality.
18 Del. C. 1953, §  1307;  56 Del. Laws, c. 380, §  1;  58 Del. Laws, c. 158;  59 Del. Laws, c. 79, §  7;  66 Del. Laws, c. 20, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1310. Preferred or guaranteed stocks.

§ 1310. Preferred or guaranteed stocks.
An insurer may invest in preferred or guaranteed stocks or shares of any solvent institution existing under the laws of the United States or of Canada, or of any state or province thereof, if all of the prior obligations and prior preferred stocks, if any, of such institution at the date of acquisition of the investment by the insurer are eligible as investments under this chapter and are rated 1 or 2 by the SVO or if the net earnings of such institution available for its fixed charges during either of the last 2 years have been, and during each of the last 5 years have averaged, not less than 11/2 times the sum of its average annual fixed charges, if any, its average annual maximum contingent interest, if any, and its average annual preferred dividend requirements. For the purposes of this section such computation shall refer to the fiscal years immediately preceding the date of acquisition of the investment by the insurer, and the term “preferred dividend requirement” shall be deemed to mean cumulative or noncumulative dividends, whether paid or not.
18 Del. C. 1953, §  1310;  56 Del. Laws, c. 380, §  1;  71 Del. Laws, c. 202, §  8;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1311. Common stocks; limited partnerships.

§ 1311. Common stocks; limited partnerships.
An insurer may invest in common stocks, other than insurance stocks, of any solvent institution organized and existing under the laws of the United States or Canada, or of any state or province thereof, if during a period of 7 fiscal years next preceding the date of acquisition by such insurer the institution had aggregate net earnings available for the payment of dividends upon its common stock of no less than the aggregate sum which would have been sufficient to pay dividends of 4% per annum upon the par value (or in the case of common stocks without par value, upon the stated capital) of all of its shares of common stock outstanding during such period. As used in this section the term “common stock” includes transferable certificates of participation in business trusts and statutory trusts. An insurer may invest in or otherwise acquire and hold a limited partnership interest in any limited partnership formed pursuant to the laws of any state or the United States of America. No limited partnership interest shall be acquired under this section if the cost thereof would exceed 2% of the assets of such insurer nor if such cost, plus the book value on the date of such acquisition of all limited partnership interest then held by such insurer and acquired under this section, would exceed 10% of such assets.
18 Del. C. 1953, §  1311;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  14;  63 Del. Laws, c. 363, §  8;  73 Del. Laws, c. 329, §  62;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1312. Insurance stocks.

§ 1312. Insurance stocks.
(a) An insurer may invest in the stocks of other solvent insurers formed under the laws of this or another state, which stocks meet the applicable requirements of §§ 1310 (preferred or guaranteed stock) and 1311 (common stocks) of this title.
(b) With the Commissioner's advance written consent an insurer may acquire and hold the controlling interest in the outstanding voting stock of another stock insurer formed under the laws of this or another state. All stocks under this subsection shall be subject to the limitation as to amount as provided in § 1313 of this title. The Commissioner shall not give his or her consent to any such acquisition if the Commissioner finds that it would not be in the best interests of the insurers involved, or of their respective policyholders or stockholders, or that such acquisition would materially tend to lessen competition or to result in any monopoly in the insurance business.
18 Del. C. 1953, §  1312;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1314. Common trust funds; mutual funds.

§ 1314. Common trust funds; mutual funds.
An insurer may invest in:
(1) A bank's common trust fund as defined in § 584 of the United States Internal Revenue Code of 1954 [26 U.S.C. § 584]; and
(2) The securities of any open-end or closed-end management type investment company or investment trust registered with the Federal Securities and Exchange Commission under the Investment Company Act of 1940 [15 U.S.C. § 80a-1 et seq.] as from time to time amended, if such investment company or trust has assets of not less than $25,000,000 as at date of investment by the insurer.
18 Del. C. 1953, §  1314;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  16;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1315. Bankers' acceptances; bills of exchange.

§ 1315. Bankers' acceptances; bills of exchange.
An insurer may invest in bankers' acceptances and bills of exchange of the kinds and maturities made eligible by law for rediscount with Federal Reserve Banks, and generally accepted by banks or trust companies which are members of the Federal Reserve System.
18 Del. C. 1953, §  1315;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1316. Equipment trust certificates.

§ 1316. Equipment trust certificates.
An insurer may invest in equipment trust obligations or certificates adequately secured and evidencing an interest in transportation equipment used wholly or in part within the United States of America or Canada, which obligations or certificates carry the right to receive determined portions of rental, purchase or other fixed obligatory payments to be made for the use or purchase of such transportation equipment.
18 Del. C. 1953, §  1316;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  17;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1317. Policy loans.

§ 1317. Policy loans.
A life insurer may lend to its policyholder upon pledge of the policy as collateral security any sum not exceeding the cash surrender value of the policy, or may lend against pledge or assignment of any of its supplementary contracts or other contracts or obligations, so long as the loan is adequately secured by such pledge or assignment. Loans so made are eligible investments of the insurer.
18 Del. C. 1953, §  1317;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1318. Collateral loans.

§ 1318. Collateral loans.
An insurer may lend and thereby invest its funds upon the pledge of securities eligible for investment under this chapter. As at date made, no such loan shall exceed in amount 100% of the market value of such collateral pledged. The amount so loaned shall be included pro rata in determining the maximum percentage of funds permitted under this chapter to be invested in the respective categories of securities so pledged.
18 Del. C. 1953, §  1318;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  18;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1319. Savings and share accounts.

§ 1319. Savings and share accounts.
An insurer may invest in share or savings accounts of savings and loan or building and loan associations, or in savings accounts of banks; and in any 1 such institution only to the extent that the investment is insured by the federal savings and loan insurance corporation or the federal deposit insurance corporation.
18 Del. C. 1953, §  1319;  56 Del. Laws, c. 380, §  1;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1320. Miscellaneous investments.

§ 1320. Miscellaneous investments.
(a) An insurer may make loans or investments not otherwise expressly permitted under this chapter, in an aggregate amount not over 10% of the insurer's assets, if such loan or investment fulfills the requirements of § 1303 of this title and otherwise qualifies as a sound investment. No such loan or investment shall be represented by:
(1) Any item described in § 1102 (assets not allowed) of this title, or any loan or investment otherwise expressly prohibited;
(2) Agents' balances or amounts advanced to or owing by agents, except as to policy loans, mortgage loans and collateral loans otherwise authorized under this chapter;
(3) Loans or investments expressly eligible under any other provision of this chapter;
(4) Any asset theretofore acquired or held by the insurer under any other category of loans or investments eligible under this chapter.
(b) The insurer shall keep a separate record of all loans and investments made under this section.
18 Del. C. 1953, §  1320;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §§  19, 20;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1324. Real estate.

§ 1324. Real estate.
(a) A domestic insurer may invest in real estate only if used for the purposes or acquired in the manners, and within the limits, as follows:
(1) The building in which it has its principal office, the land upon which the building stands, and such other real estate as may be requisite for the insurer's convenient accommodation in the transaction of its business. The amount so invested and apportioned as to space actually so occupied or used shall not aggregate more than 10% of the insurer's assets;
(2) Real estate acquired in satisfaction of loans, mortgages, liens, judgments, decrees or debts previously owing to the insurer in the due course of its business;
(3) Real estate acquired in part payment of the consideration on the sale of other real estate owned by it, if such transaction shall have effected a net reduction in the insurer's investments in real estate;
(4) Real estate acquired by gift or devise, or through merger, consolidation or bulk reinsurance of another insurer under this title;
(5) The seller's interest in real estate subject to an agreement of purchase or sale, but the sum invested in any such interest shall not exceed 2/3 of the fair value of such parcel;
(6) Additional real estate and equipment incident thereto, if necessary or convenient for the purpose of enhancing the sale or other value of real estate previously acquired or held under this section. Such real estate and equipment, together with the real estate for the enhancement of which it was acquired, shall be included, for the purpose of applicable investment limits, and shall be subject to disposal under § 1325 of this title at the same time and under the same conditions as apply to such enhanced real estate;
(7) Real estate, or any interest therein, acquired or held by purchase, lease or otherwise, acquired as an investment for production of income, or acquired to be improved or developed for such investment purposes pursuant to an existing program therefor. The insurer may hold, mortgage, improve, develop, maintain, manage, lease, sell, convey and otherwise dispose of real estate acquired by it under this provision. An insurer shall not have at any 1 time invested in real estate under this paragraph more than 15% of its assets. Real estate to be used primarily for agricultural, ranch, mining, development of oil and mineral resources, recreational, amusement, hotel, motel or club purposes shall in total not exceed 10% of an insurer's assets.
(b) All real estate owned by a domestic insurer under this section, other than as to seller's interest specified in paragraph (a)(5) of this section, shall not at any 1 time exceed 25% of the insurer's assets.
18 Del. C. 1953, §  1325;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §§  25, 26;  63 Del. Laws, c. 363, §  14;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1325. Time limit for disposal of real estate.

§ 1325. Time limit for disposal of real estate.
(a) Except as stated in subsection (b) of this section, or unless the insurer elects to hold the real estate as an investment under § 1324(a)(7) of this title:
(1) An insurer shall dispose of real estate acquired under § 1324(a)(1) of this title within 5 years after it has ceased to be necessary for the convenient accommodation of the insurer in the transaction of its business;
(2) An insurer shall dispose of real estate acquired under § 1324(a)(2), (3) and (4) of this title within 5 years after the date of acquisition, unless used or to be used for the insurer's accommodation under § 1324 (a)(1) of this title.
(b) The Commissioner may by order grant, from time to time, reasonable extensions of the period, as specified in any such order, within which an insurer shall dispose of any particular parcel of such real estate.
18 Del. C. 1953, §  1326;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §  27;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1326. Time limit for disposal of other ineligible property and securities.

§ 1326. Time limit for disposal of other ineligible property and securities.
Any personal property or securities lawfully acquired by an insurer, which it could not otherwise have invested in or loaned its funds upon at the time of such acquisition, shall be disposed of within 5 years from date of acquisition, unless within such period the security has attained to the standard of eligibility; except, that any security or personal property acquired under any agreement of bulk reinsurance, merger or consolidation may be retained for a longer period if so provided in the plan for such reinsurance, merger or consolidation as approved by the Commissioner under Chapter 49 of this title. The Commissioner may by order grant, from time to time, reasonable extensions of the period, as specified in any such order, within which an insurer shall dispose of any such property or security.
18 Del. C. 1953, §  1327;  56 Del. Laws, c. 380, §  1;  59 Del. Laws, c. 79, §§  28, 29;
2023 Delaware Code › Title 18 - Insurance Code › Chapter 13. INVESTMENTS › § 1327. Failure to dispose of real estate or securities; effect; penalty.

§ 1327. Failure to dispose of real estate or securities; effect; penalty.
(a) Any real estate, personal property, or securities lawfully acquired and held by an insurer after expiration of the period for disposal thereof or any extension of such period granted by the Commissioner as provided in §§ 1325 and 1326 of this title, shall not be allowed as an asset of the insurer.
(b) The insurer shall forthwith dispose of any ineligible investment unlawfully acquired by it, and the Commissioner shall suspend or revoke the insurer's certificate of authority if the insurer fails to dispose of the investment within such reasonable time as the Commissioner may, by his or her order, specify.
18 Del. C. 1953, §  1328;  56 Del. Laws, c. 380, §  1;  70 Del. Laws, c. 186, §  1;