CHAPTER 107
FORMERLY
SENATE BILL NO. 208
AN ACT TO AMEND TITLE 18, CHAPTER 69 OF THE DELAWARE CODE RELATING TO THE AUTHORITY OF AN ASSOCIATION OR INDUSTRIAL INSURED CAPTIVE INSURANCE COMPANY.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend subsection (a), §6902, Title 18 of the Delaware Code by striking in its entirety subparagraphs (2) and (3) thereof, and by substituting in lieu thereof new subparagraphs (2) and (3) to read as follows:
"(2) No association captive insurance company may insure any risks other than those of the member organizations of its association and their affiliated companies unless the insurance for non-member organizations satisfies each of the following requirements:
a. the insurance lines for non-member organizations must be the same as that authorized by the Commissioner to be written by the captive insurance company for its member organizations;
b. the insurance for non-member organizations may only be written for an individual, a corporation, a partnership, an association or any other form of entity conducting the same business as that of the member organizations of the captive insurance company; and
c. the maximum amount of premiums received in any year from such non-member organizations cannot without the express written consent of the Commissioner exceed fifty percent (50%) of the gross direct premiums received by the captive insurance company from its member organizations in its preceding financial year.
(3) No industrial insured captive insurance company may insure any risks other than those of the member organizations of its industrial insured group and their affiliated companies unless the insurance for non-member organizations satisfies each of the following requirements:
a. the insurance lines for non-member organizations must be the same as that authorized by the Commissioner to be written by the captive insurance company for its member organizations;
b. the insurance for non-member organizations may only be written for an individual, a corporation, a partnership, an association or any other form of entity conducting the same business as that of the member organizations of the captive insurance company; and
c. the maximum amount of premiums received in any year from such non-member organizations cannot without the express written consent of the Commissioner exceed fifty percent (50%) of the gross direct premiums received by the captive insurance company from its member organizations in its preceding financial year."
Approved June 26, 1995