CHAPTER 79 - INSURANCE DEPARTMENT PROVIDING ADDITIONAL REQUIREMENTS FOR CERTIFICATE OF AUTHORITY
AN ACT TO AMEND CHAPTER 20, OF THE REVISED CODE OF DELAWARE, 1935, RELATING TO INSURANCE DEPARTMENT, AND PROVIDING ADDITIONAL REQUIREMENTS FOR CERTIFICATE OF AUTHORITY.
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:
Section 1. That sub-paragraphs (a) and (b) of paragraph 3, of 470. Sec. 9, of Chapter 20, of the Revised Code of Delaware, 1935, be and the same are hereby amended to read as follows, to wit:
(a) If a capital stock company, it shall have a full paid capital stock of at least One Hundred Thousand Dollars and a surplus of at least Fifty Thousand Dollars; provided, however, that if its charter or certificate of incorporation permits it to transact what is commonly known as marine insurance, or workmen's compensation insurance, or public liability insurance, or to guarantee the fidelity of persons holding positions of trust, or guaranteeing the obligations of others, it shall have a full paid capital stock of at least Two Hundred and Fifty Thousand Dollars and a surplus of at least One Hundred and Twenty-five Thousand Dollars.
(b) If a domestic mutual company, it shall have in force, or bona fide applications for, insurance covering not less than one hundred separate risks in not less than one hundred policies issued or to be issued to not less than one hundred members and shall have collected in cash at least one full annual premium on such policies. It shall also deposit with the Insurance Commissioner good interest bearing or dividend-paying securities with a market value of at least Twenty-five Thousand Dollars; said deposit to remain in trust with the Insurance Commissioner to be applied toward any default of such mutual company. After said mutual company shall have a cash or invested surplus of at least One Hundred and Fifty Thousand Dollars in excess of all liabilities, the Insurance Commissioner may, upon request of the company, return the deposit so made; and if a foreign or alien mutual company it shall have a cash or invested surplus of at least One Hundred and Fifty Thousand Dollars in excess of all liabilities; provided, however, that no mutual company shall issue policies guaranteeing the fidelity of persons holding positions of trust unless such company shall have a cash or invested surplus of at least Three Hundred and Seventy-five Thousand Dollars in excess of all liabilities.
If a mutual company for reinsurance, it shall have in force, or bona fide applications for, insurance covering not less than one hundred separate risks to be issued to not less than three members, which members shall be insurance companies authorized to do business in the State of Delaware or in any other State of the United States, and shall have collected in cash at least one full annual premium; on such insurance or the policies to be issued pursuant to such applications.
Approved May 20, 1937