The Delaware State Senate has passed Senate Bill 36 (SB 36), which is an act to amend title 18 of the Delaware Code relating to captive insurance companies.
The bill is part of the State’s 2021 legislative and was introduced by Senator Trey Paradee, Representative Bill Bush.
Representative’s Ruth Briggs King, Michael Ramone, Michael Smith, and Jeffrey Spiegelman acted as co-sponsors of the bill.
In section one of the bill, one change includes adding definitions for ‘policy’ and ‘premium’.
It also revises the definition of ‘pure captive insurance company’ to clarify that a pure captive insurer may insure its parent, its parent's affiliates, or a controlled unaffiliated business.
Under section two of the bill, it expands the captive insurance licensing authority for a series as defined under chapter 69 of title 18 to allow a Delaware series to be licensed as an agency, branch, or reciprocal captive insurance company.
Section three of the bill allows certain captive insurers to select the Delaware series form of business organisation.
In section four of SB 36, it makes the insurable interest provisions of 2706 of title 18 applicable to captive insurance companies.
In addition, this bill makes technical corrections to conform existing law to the standards of the Delaware Legislative drafting manuals.
The SB passed Delaware’s Senate with 21 votes and takes effect upon being signed into law.
