CHAPTER 179
FORMERLY
HOUSE BILL NO. 223
AN ACT TO AMEND CHAPTERS 13 AND 49, TITLE 18 OF THE DELAWARE CODE RELATING TO INSURANCE COMPANY SUBSIDIARIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §1313, Title 18 of the Delaware Code by striking the first sentence
thereof and substituting in lieu thereof the following:
"§1313. Stock of subsidiaries.
An insurer may invest in the stock of subsidiary insurance corporations formed or acquired by it, or, in addition to the right to own stock in other corporations given insurers in §1305(2) of this title; it may also invest in not less than a majority of the voting stock of a business corporation formed under the laws of this or another state or a foreign nation and the activities of which corporation are primarily supplementary and complementary to the convenient operation of the insurer's business or to the administration of its affairs and, corporations engaged or organized to engage in the marketing of financial, insurance or service products, the products to be subject to the approval of the Insurance Commissioner. As used in this title, a subsidiary insurance corporation shall include, in addition to those such corporations where the insurer owns a majority of their stock, those corporations formed or acquired by an insurer where it owns less than a majority of such corporation's voting stock due to the laws of a foreign nation which require the insurer to own less than a majority of the voting stock of such subsidiary insurance corporation if it is to operate in that nation. All of the insurer's investments under this section, together with its investments in insurance stock under §1312(b) of this title, shall not at any time exceed the amount of the investing insurer's surplus, if a life insurance, or its policyholders' surplus (as defined in §511(2) of this title) if other than a life insurer."
Section 2. Amend §4904, Title 18 of the Delaware Code by changing Subparagraph (3) to Subparagraph (4) and adding thereto a new subparagraph (3) which shall be as follows:
"(3) It may invest in corporations engaged or organized to engage in the marketing of financial, insurance or service products, in accordance with §1313 of this title."
Approved July 16, 1987