Delaware General Assembly


CHAPTER 84

RELATING TO CERTIFICATES OF AUTHORITY ISSUED BY INSURANCE DEPARTMENT

AN ACT TO AMEND CHAPTER 5, TITLE 18 OF THE DELAWARE CODE RELATING TO REQUIREMENTS FOR ISSUANCE OF ORIGINAL OR RENEWED CERTIFICATES OF AUTHORITY OF INSURANCE COMPANIES.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. § 504 (3) Title 18 of the Delaware Code is hereby amended by adding thereto a new sub-paragraph (E), which shall read as follows :

(E) If a domestic mutual company organized to transact the business of insuring the payment of the purchase price or proceeds of sales of farm products, including poultry and poultry products, sold to, or through the marketing facilities operated or maintained by, any agricultural organization or organizations, or farmers' association or associations organized and operated on a cooperative basis, such mutual company shall have in force, or bona fide applications for, insurance covering not less than five hundred separate sales, in not less than one hundred separate policies, issued or to be issued to not less than one hundred members of such mutual company and shall have collected in cash at least the full premium on such policies issued or to be issued pursuant to such applications. It shall also deposit with the commissioner good interest-bearing or dividend-paying securities with a market value of at least $50,000.00, said deposit to remain in trust with the commissioner to be applied toward any default of such mutual company. After such mutual company shall have a cash or invested surplus of at least $50,000.00, in excess of all liabilities, the commissioner may, upon request of such mutual company, return the deposit so made.

Approved May 10, 1955.