CHAPTER 204.
MASTERS, APPRENTICES AND EMPLOYEES. INSURANCE FOR MASTERS, APPRENTICES AND EMPLOYEES.
AN ACT to regulate insurance carriers which Insure employers against the liability imposed by the Act known and cited as "The Delaware Workmen's Compensation Law of 1917," said Act being Chapter 233, Volume 29, Laws of Delaware, by requiring that premium rates for such insurance shall be reasonable and adequate; by preventing discrimination in the classification of risks and in the premiums or allowances thereon made or charged by such insurance carriers; and by providing for the determination of such discrimination; and by taxing said insurance carriers and employers carrying their own risk, for the purpose of raising revenue for the State of Delaware, and for paying the necessary expenses of the Industrial Accident Board of the State of Delaware; and providing penalties for the violation of this Act, being an Amendment to Chapter 90 of the Revised Code of Delaware, entitled "Masters, Apprentices and Employees" by the addition of a new article thereto, entitled "Masters, Apprentices and Employees, Article 6,Insurance for Masters, Apprentices and Employees."
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:
That Chapter 90 of the Revised Code of the State of Delaware be and the same is hereby amended by adding a new Article thereto, entitled, "Masters, Apprentices and Employees, Article 6, Insurance for Masters, Apprentices and Employees," and the following new sections to be styled as 3193 yy. Section 144, 3193 zz. Section 145, 3193 aaa. Section 146, 3193 bbb. Section 147, 3193 eee. Section 148, 3193 ddd. Section 149, 3193 eee. Section 150, 3193 fff. Section 151, and 3193 ggg. Section 152.
3193 yy. Section 144. That every insurance carrier which insures employers against time liability for compensation imposed by the Act known and cited as "The Delaware Workmen's Compensation Law of 1917," said Act being Chapter 233, Volume 29, Laws of Delaware, or Acts amendatory thereof, or against liability at common law on account of accidental injuries to employees, shall file with the Industrial Accident Board of the State of Delaware, its classifications of risks and normal premium rates relating thereto, and all rules governing the application of the same (including rules or practices relating to payroll audits and the collection of premiums in advance or otherwise), together with any system of schedule or merit rating which purports to provide deviations from said normal premium rates for a hazard of the individual risk greater or less than that of the classification to which such risk is assigned; none of which shall take effect until approximately the said Industrial Accident Board as adequate and reasonable for the risks to which they respectively apply.
The said Industrial Accident Board may withdraw its approval of any such classification, rule, normal premium rate, or system of schedule or merit rating, if in the judgment of said Board, such classification, rule, normal premium rate, or system of schedule or merit rating is inadequate for the risks to which it applies, or is unreasonable or discriminates unfairly between risks of a like degree of hazard.
On and after the first day of July, 1919, no such insurance carrier shall issue, renew, or carry any insurance against liability for compensation under "The Delaware Workmen's Compensation Law of 1917," or Acts amendatory thereof, or against liability at common law on account of accidental injuries to employees, except in accordance with the classifications, rules, normal premium rates, and system of schedule or permit rating approved by the said Industrial Accident Board for such carrier as adequate and reasonable for the risks to which they respectively apply.
3193 zz. Section 145. Every system of schedule or merit rating providing deviations from normal premium rates for insurance against liability under the said "The Delaware Workmen's Compensation Law of 1917," or Acts amendatory thereof, shall be uniform in its application to all the risks in the class for which the deviation is made, and no such deviation shall be applied otherwise than upon inspection of the risk and calculation of the merit deviation by a rating bureau or association approved by the said Industrial Accident Board as adequate for the uniform application of classifications, rules, normal premium rates and schedule or merit rating.
Every deviation from normal premium rates herein provided for shall be clearly set forth in the policy or contract of insurance, or endorsements attached thereto.
3193 aaa. Section 146. An attested copy of every policy, contract or endorsement which purports to give any insurance against liability under "The Delaware Workmen's Compensation Law of 1917," or Acts amendatory thereof, and an attested copy of every endorsement thereon, shall be filed with the Industrial Accident Board of the State of Delaware, or with a rating Bureau or association approved by the said Board.
3193 bbb. Section 147. No insurer against the liability provided for in the said "The Delaware Workmen's Compensation Law of 1917," or Acts amendatory thereof, or in this Act, or against liability at common law on account of accidental injuries to employees, shall fix any classification, rule or schedule or merit rating, or charge any premium for such insurance, which is unreasonable or which discriminates unfairly between risks of essentially the same hazard, and having substantially the same degree of protection against accidents.
3193 ccc. Section 148. The Industrial Accident Board of the State of Delaware, upon written complaint or upon its own information, that discrimination in the classification of risks and in the normal premiums relating thereto, or in any rule or practice governing the application of the same, or in schedule or merit rating, exists, or that any insurance carrier, as herein defined, discriminates unfairly in any respect between risks of essentially the same hazard and having substantially the same degree of protection against accident, may, after due notice to all parties concerned, order a hearing for the purpose of determining such question of discrimination, and if upon such hearing the said Board shall determine that discrimination exists, it shall have power to order such discrimination removed. Any party in interest being dissatisfied with such order of the said Industrial Accident Board may, within thirty (10) days from the issuance of such order and notice thereof, commence an action in the Superior Court of the State of Delaware against the said Board as defendant, to vacate and set aside any such order upon the ground that such order is unlawful or unreasonable; in which suit the said Industrial Accident Board shall be served with subpoena and copy of the causes of action. The said Industrial Accident Board shall file its answer, and on leave of Court, any interested party may file an answer and become a party to the suit. Upon the filing of the answer of the
said Industrial Accident Board, said action shall be at issue, and stand ready for hearing upon ten (10) days' notice by either party. The said Court is hereby given jurisdiction in such suit, and empowered to affirm, vacate, or set aside the order of the said Board in whole or in part, and to make such other order or decree as the Court shall decide to be in accordance with the facts and the law. During the pendency of such proceedings the order shall be suspended, and in event of the final determination against any insurer, any overcharge during the pendency of such proceedings shall be refunded by the insurer to the persons entitled thereto.
3193 ddd. Section 149. Every insurance corporation, mutual association Or company, or iii ten exchange, which insures employers against liability under "The Delaware Workmen's Compensation Law of 1917," or Acts amendatory thereof, or against liability at common law for accidental injuries to employees, shall annually, at such time as may be fixed by the Industrial Accident Board of the State of Delaware, file with the said Board a sworn statement of its premiums and loss experience front or on account of such insurance in the State of Delaware, together with a sworn statement of its total assets and liabilities, both of which statements shall be in such detail and form as the said Board may prescribe.
3193 eee. Section 150. For the purpose of securing to the State of Delaware the moneys necessary for paying the salaries and necessary expenses of the said Industrial Accident Board and its assistants and employees in administering and carrying out the provisions of said Act, and also for the purpose of securing other revenue for the general purposes of the State, a fund shall be created and maintained in the following manner:
(a) Every insurance carrier hereinbefore referred to, insuring employers who are or may be liable under "The Delaware Workmen's Compensation Law of 1917" to pay for compensation for personal injuries to or death of their employees, under the provision of "The Delaware Workmen's Compensation Law of 1917," and all amendments and supplements thereto, shall, as hereinafter provided, pay a tax upon all workmen's compensation or employers' liability premiums received, whether in cash or notes, in this State, or on account of business done in this State, or on account of premiums for compensation payable under said Compensation Law for such insurance in this State, at the rate of four per centum of the amount of such premiums, which tax shall be in lieu of all other taxes on such premiums, and said tax shall be assessed and collected as hereinafter provided; provided, however, that such insurance carriers shall be credited with all cancelled or returned premiums actually refunded during the year on such insurance, and with premiums on reinsurance with companies authorized and licensed to transact business in this State, which reinsurance shall be reported by the insurer; but no credit shall be allowed for reinsurance in companies not licensed to transact business in Delaware; provided, further, that mutual insurance companies shall be taxed upon the gross premium charged and collected and shall not be credited with unabsorbed premiums or dividends.
(b) Every such insurance carrier shall, between the first and fifteenth days of January, 1920, make a return verified by the affidavit of its President and Secretary, or other chief officers or agents, to the Insurance Commissioner of the State of Delaware, stating the amount of all such premiums and credits during the period covered by such return, which period shall be from and including the date of the approval of this act until and including the thirty-first day of December, 1919. Every such insurance carrier shall thereafter annually, between the first and the fifteenth days of January, make a like return verified as aforesaid, for the preceding calendar year. Every insurance carrier required to make such return shall pay to the Insurance Commissioner a tax of Four Dollars ($4.00) per hundred on such premiums ascertained as provided in sub-paragraph (a) of this Section, less returned premiums on cancelled policies and reinsurance with other companies licensed to transact business in this State, and upon payment file a statement with the Secretary of State. Upon receiving such payments the Insurance Commissioner shall pay the same to the State Treasurer.
(c) If any such insurance carrier shall fail to make the return required by this Act, the said insurance Commissioner shall assess the tax against such insurance carrier at the rate herein provided for, on such amount of premiums as he may deem just, and the proceedings thereon shall be the same as if the return had been made.
(d) If any such insurance carrier shall withdraw from business in this State before the tax shall fall due, as herein provided, or shall fail or neglect to pay such tax, the Insurance Commissioner shall at once proceed to collect the same, and when so collected he shall pay the same into the State Treasury. The suit may be brought by the Insurance Commissioner in his official capacity in any Court having jurisdiction; reasonable attorneys' fees may be taxed by the Court as costs in such suit.
(e) Whenever any officer of the State of Delaware is required to give any notice to an insurance carrier, same may be given by personal delivery, or by mailed registered letter properly addressed and stamped, to the principal office or chief agent of such Insurance carrier within this State, or to its home office, or to the secretary, general agent, or chief officer thereof in the United States, or to the Insurance Commissioner of the State of Delaware.
(f) Any insurance carrier liable to pay a tax upon premiums under this Act shall not be liable to pay any other or further and its assistants and employees in administering and carrying out the provisions of said Act, and also for the purpose of securing other revenue for the general purposes of the State, a fund shall be created and maintained in the following manner:
(a) Every insurance carrier herein before referred to, insuring employers who are or may be liable under "The Delaware Workmen's Compensation Law of 1917" to pay for compensation for personal injuries to or death of their employees, under the provision of The Delaware 'Workmen's Compensation Law of 1917," and all amendments and supplements thereto, shall, as hereinafter provided, pay a tax upon all workmen's compensation or employers' liability premiums received, whether in cash or notes, in this State, or on account of business done in this State, or on account of premiums for compensation payable under said Compensation Law for such insurance in this State, at the rate of four per centum of the amount of such premiums, which tax shall be in lieu of all other taxes on such premiums, and said tax shall be assessed and collected as hereinafter provided; provided, however, that such insurance carriers shall be credited with all cancelled or returned premiums actually refunded during the year on such insurance, and with premiums on reinsurance with companies authorized and licensed to transact business in this State, which reinsurance shall be reported by the insurer; but no credit shall be allowed for reinsurance in companies not licensed to transact business in Delaware; provided, further, that mutual insurance companies shall be taxed upon the gross premium charged and collected and shall not be credited with unabsorbed premiums or dividends.
(b) Every such insurance carrier shall, between the first and fifteenth days of January, 1920, make a return verified by the affidavit of its President and Secretary, or other chief officers or agents, to the Insurance Commissioner of the State of Delaware, stating the amount of all such premiums and credits during the period covered by such return, which period ,shall be from and including the date of the approval of this act until and including the thirty-first day of December, 1919. Every such insurance carrier 'shall thereafter annually, between the first and the fifteenth days of January, make a like return verified as aforesaid, for the preceding calendar year. Every insurance carrier required to make such return shall pay to the Insurance Commissioner a tax of Pour Dollars ($4.00) per hundred on such premiums ascertained as provided in sub-paragraph (a) of this Section, less returned premiums on cancelled policies and reinsurance with other companies licensed to transact business in this State, and upon payment file a statement with the Secretary of State. Upon receiving such payments the Insurance Commissioner shall pay the same to the State Treasurer.
(c) If any such insurance carrier shall fail to make the return required by this Act, the said, insurance Commissioner shall assess the tax against such insurance carrier at the rate herein provided for, on such amount of premiums as he may deem just, and the proceedings thereon shall be the same as if the return had been made.
(d) If any such insurance earlier shall withdraw from business in this State before the tax shall fall due, as herein provided, or shall fail or neglect to pay such tax, the Insurance Commissioner shall at once proceed to collect the same, and when so collected he shall pay the same into the State Treasury. The suit may be brought by the Insurance Commissioner in his official capacity in any Court having jurisdiction; reasonable attorneys' fees may be taxed by the Court as costs in such suit.
(e) Whenever any officer of the State of Delaware is required to give any notice to an insurance carrier, same may be given by personal delivery, or by mailed registered letter properly addressed and stamped, to the principal office or chief agent of such Insurance carrier within this State, or to its home office, or to the secretary, general agent, or chief officer thereof in the United States, or to the Insurance Commissioner of the, State of Delaware.
(f) Any insurance carrier liable to pay a tax upon premiums under this Act shall not be liable to pay any other or further tax upon such premiums or on account thereof, under any other Law of this State.
(g) Every employer carrying his own risk, and thereby insuring himself, under the provisions of "The Delaware Workmen's Compensation Law of 1917," or Acts amendatory thereof, shall annually on or before the thirtieth day of January, report under oath to the Industrial Accident Board the total amount of his payroll for the preceding calendar year, classified in accordance with classifications approved by the Industrial Accident Board for the purpose of fixing compensation insurance rates. The Industrial Accident Board shall have power to verify such classifications and such statement of payroll by inspection and audit at the expense of the employer, and such verification shall be made by the Bating Bureau or Association provided for in 3193 zz. Section 145 of this Act, and the charges to self-insurers shall be the same charges which other insurance carriers shall be required to pay under the provisions of this Act. The said Board shall assess against such payroll a maintenance fund tax computed by taking four per centum of the amount of premium payable upon the payroll so ascertained in accordance with the classifications and premium rates approved by the said Board for insurance against liability under the said "The Delaware Workmen's Compensation Law of 1917" and Acts amendatory thereof. On and after the first day of January, 1920, no employer shall become or continue a self-insurer under the provisions of 'Me Delaware 'Workmen's Compensation Law of 1917" and Acts amendatory thereof, except upon the payment of the said tax for the preceding calendar year. The moneys so assessed against and paid by said insurers who carry their own risks shall be paid to the State Treasurer.
(h) All fines and forfeitures collected under the provisions of 3193 fff. Section 151 of this Act shall be paid into the maintenance fund herein provided for.
(i) All moneys received by the State Treasurer under the provisions of this Act are hereby appropriated for the purpose of paying the salaries and other expenses of the Industrial Accident Board of the State of Delaware during and for the year in which such moneys are received by the State Treasurer. Any money appropriated herein or received to the credit of the said Board or otherwise appropriated for said Board in any one year, if unexpended during said year, shall be turned into the general funds of the State at the expiration of such year. The State Treasurer is hereby authorized and directed to disburse moneys in the State Treasury to the credit of the Industrial Accident Board upon its warrants signed by any two members of said Board stating the use of the moneys for which such warrant calls. All such bills other than salaries of the members of the Board and of its Secretary shall be presented, approved and paid in substantial compliance with the provisions of Section 20, Chapter 15, Revised Code of Delaware.
After the year 1919, the Industrial Accident Board of the State of Delaware shall not be authorized to incur expenses or indebtedness in any calendar year in excess of the maintenance fund created by the premium tax and the tax against self-insurers and the times and forfeitures on hand or chargeable to such fund for the same period.
3193 fff. Section 151. (a) Any insurance corporation, mutual association or company, or inter-insurance exchange, which violates any provision of this Act, or which shall neglect or refuse to comply with any of the provisions of this Act, or which shall willfully make any false or fraudulent statement of its business or condition, or a false or fraudulent return as herein provided, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a tine of not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00) for each such offense; provided, that in the case of continuing violation, each day's continuance shall constitute a separate offense; and provided further that the Insurance Commissioner of the State of Delaware shall have power, upon complaint of the Industrial Accident Board of the State of Delaware, after notice and hearing, to suspend or revoke the license of any insurance corporation, mutual association or company, or inter-insurance exchange, which violates any of the provisions of this Act.
(b) Any person or persons who shall in this State act or assume to act as an agent in any capacity whatsoever for any insurance corporation, mutual association or company, or interinsurance exchange, which is not authorized to do business in this State, or whose authority to do business in this State has been suspended, while such suspension is in force, or who shall neglect or refuse to comply with any provision of this Section obligatory upon such person or persons, or who shall willfully make any false or fraudulent statement of the business or condition of any such insurance carrier false or fraudulent return as herein provided, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000) or by imprisonment for not more than ninety (90) days, or both, such fine and imprisonment to be in the discretion of the Court.
3193 ggg. Section 152. If any clause, sentence, paragraph or part of this Act shall for any reason be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder of this Act, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy in which such judgment shall have been rendered unless such judgment of invalidity shall prevent the effective execution of the provisions of this Act, in which event this Act shall become and be wholly invalid and void.
Approved March 20, A. D. 1919.