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 Back | 144th General Assembly
House Bill # 214 |
| Primary Sponsor: | Stone | Additional Sponsor(s): Sen. Blevins |
| CoSponsors: | { NONE...} |
| Introduced on : | 06/14/2007 | |
| Long Title: | AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO CAPTIVE INSURANCE COMPANIES. |
| Synopsis: | Section 1 adds the definition of a special purpose financial captive insurance company to the chapter.
Section 2 requires that the costs for experts retained by the Commissioner are paid for by the insurer.
Section 3 removes a duplicate license fee that is unnecessary.
Section 4 adds new minimum surplus requirements for special purpose financial captive insurance companies.
Section 5 provides for the renumbering of a subsection required by other amendments.
Section 6 allows a special purpose captive insurance company or a special purpose financial captive insurance company to use certain business organization forms permitted by Delaware law.
Section 7 amends §6909 relating to activities of captive insurers under suspension.
Section 8 makes the investment restrictions applicable to special purpose financial captive insurance companies.
Section 9 amends §6914 to add special purpose financial captive insurance companies.
Section 10 amends the confidentiality provisions based on the addition of new subchapter III.
Section 11 adds new § 6923 governing the management and location of an insurer’s books and records.
Section 12 rewrites §6932 based on the addition of new subchapter III.
Section 13 rewrites §6937 based on the addition of new subchapter III.
Section 14 redesignates subchapter III as subchapter IV and renumbers the sections of the subchapter accordingly.
Section 15 adds new subchapter III to provide for special purpose financial captive insurance companies as part of the chapter. Special purpose financial captive insurance companies are specialized captive insurers typically designed to act as special reinsurance vehicles for life or property and casualty insurers whereby insurance business transferred to such special purpose captive insurance companies can be funded through capital markets offerings. Significant growth in the number of these captive insurance companies has occurred in other jurisdictions; however, Delaware’s position as the domicile of choice for business entities makes Delaware an ideal domicile for special purpose financial captive insurance companies. Delaware corporate entity law has been used as the basis for forming many of the special purpose financial captive insurance companies in these other jurisdictions. This is a key consideration for the market participants because the agreements are written for terms up to 30 years. This legislation will permit the transfer of insurance risk and associated premium to a special purpose captive insurance company, which will be authorized to fund its obligations with respect to such risk by means of appropriately structured capital markets transactions. This legislation will further provide a detailed description of the requirements for application and approval for a special purpose financial captive insurance company and will provide certainty as to the treatment for accounting and regulatory purposes of certain assets involved in the special purpose captive insurance company’s insurance securitization transaction. Accordingly, this legislation will enhance Delaware’s position as a captive insurance domicile by aligning its existing financial services capabilities to meet insurance market needs while providing appropriate regulatory oversight.
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| Committee Reports: |
House Committee Report 06/20/07 F=0 M=11 U=0----> |
| Voting Reports: |
House vote: () Passed 6/26/07 7:49:43 PM------->
Senate vote: () Passed 7/1/07 12:27:28 AM-------> |
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Actions History:
| Jul 18, 2007 - Signed by Governor
Jul 01, 2007 - Passed by Senate. Votes: 18 YES 0 NO 0 NOT VOTING 3 ABSENT
Jul 01, 2007 - Necessary rules are suspended in Senate
Jun 26, 2007 - Passed by House of Representatives. Votes: 41 YES 0 NO 0 NOT VOTING 0 ABSENT
Jun 20, 2007 - Reported Out of Committee (ECONOMIC DEVELOPMENT/BANKING & INSURANCE) in House with 11 On Its Merits
Jun 14, 2007 - Introduced and Assigned to Economic Development/Banking & Insurance Committee in House |
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