Delaware has introduced a captive insurance bill which increases the authority of the State’s insurance commissioner (IC).
House Bill 334 amends title 18 of the Delaware Code to authorise the IC to issue conditional certificates of authority to captive insurance candidates, which allows the applicant to conduct business while the IC completes the review of the application materials.
The bill was introduced to the House of Representatives on 13 March 2018 by representatives Trey Paradee and Jeff Spiegelman, alongside senators Brian Bushweller and Bruce Ennis.
According to the bill, conditional certificates of authority will only be issued “upon receipt of evidence of the minimum capital and surplus required by chapter 69 and a certification from the captive owner that the application materials comply with the requirements of chapter 69.”
The bill also notes: “A captive insurance company granted a conditional certificate of authority must pay the Insurance Commissioner a fee of $100.”
Additionally, it permits the IC to instantly revoke a conditional certificate of authority if they decide the captive has failed to comply with chapter 69 licensing requirements.
The bill also includes technical corrections to align existing law with the standards of the Delaware Legislative Drafting Manual.
It is now awaiting a hearing by the economic development/banking/insurance/commerce committee.
