The Delaware Senate has passed the SB 249 bill to amend captive regulation to provide the insurance commissioner with additional flexibility.
This bill amends Chapter 69 of Title 18 relating to captive insurance to reflect the current financial environment and practices of financial institutions and captive insurers.
Assets can be safely held in financial institutions other than banks and do not need to be held in Delaware in many circumstances where the type of risk does not require it.
In addition, the commissioner will be authorised to impose additional conditions on captives related to capital and surplus to ensure the solvency and efficient operations of captives.
In October 2023, Delaware launched a series of process and regulatory improvements, including the incorporation of Side A directors and officers coverage for Delaware corporations and a more flexible approach for certain captive applicants' capitalisation requirements.
