Delaware General Assembly

Signed 6/24/15

The General Assembly has ended, the current status is the final status.

1/22/15

B. Short

Sen. Bushweller

Sen. Ennis, Lopez, McDowell
Reps. Baumbach, Carson, Q. Johnson, Keeley, Matthews

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO CAPTIVE INSURANCE.

This bill will make captive insurance companies subject to additional sections in Title 18. These additional sections will allow the Commissioner greater regulatory authority and will also clarify that those acting on behalf of the Commissioner for captive insurance have the same level of liability protection as those who act for the Commissioner in the regulation of commercial insurance. The bill adds “foreign branch captive”. The bill adds definition of a “series captive insurance company.” The bill clarifies that the Commissioner may retain legal, financial, and examination services for conducting regulatory reviews, processing, investigations, and examinations and the reasonable expense may be charged to the captive insurance company. The bill adds a new definition and licensing category for series captive insurance company so that series as established in 6 Del. C. § 17-215(b), 6 Del. C. § 218(b), and 12 Del. C. § 3804(a) can be defined as captive insurance companies. The bill makes risk retention groups subject to Article 16A of Title 18 in order to satisfy a NAIC accreditation requirement. The bill increases the captive insurance application fee from $200 to $300. It increases the captive insurance processing fee from $3,000 to $3,200. It increases the annual captive insurance license renewal fee from $300 to $400. The bill makes the premium tax caps for direct business at $200,000 and assumed business at $110,000 and sets the aggregate cap to $200,000. For each series captive insurance company, the bill adds an annual minimum aggregate tax of $3,500. The bill removes the tax benefit for common ownership and control of a captive insurance company. The bill indicates the minimum capital and surplus for a series captive insurance company. The bill makes captives subject to Chapter 3 except for §§ 331, 332, and 333, and § 2716. The bill clarifies that captive insurance companies may become members of the Federal Home Loan Bank system.

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Takes effect upon being signed into law

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