A captive insurance bill which proposes increasing the authority of the Delaware insurance commissioner (IC) has been passed by the state’s House of Representatives.
HB 334 was passed by the house on 1 May, with 40 representatives voting yes and one abstaining.
It has now been assigned to the Banking, Business and Insurance Committee of the state Senate.
The bill would amend Title 18 of the Delaware Code to authorise the IC to issue conditional certificates of authority to captive insurance candidates, which would allow them to conduct business while the IC completes the review of their application materials.
These conditional certificates of authority will only be issued once the IC has received “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 noted: “A captive insurance company granted a conditional certificate of authority must pay the IC a fee of $100.”
The bill, which was introduced to the house by representatives Trey Paradee and Jeff Spiegelman and senators Brian Bushweller and Bruce Ennis, includes technical corrections to align existing law with the standards of the Delaware Legislative Drafting Manual.
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.
