HB 272

Abstract

This Bill amends the State’s insurance holding company system registration act to designate two additional categories of documents filed under the insurance holding company system registration act as subject to confidential treatment under the law and to incorporate changes adopted by the National Association of Insurance Commissioners related to affiliated transactions for insurers in receiverships. The adopted changes to the model law were developed to address the continuation of essential services by affiliates of insurers undergoing receivership, as well as the receiver’s access to data and records held by affiliates but belonging to the insurer. The amendments, among other things, add certain standards for affiliate transactions of an insurer that is deemed to be in hazardous financial condition or subject to a supervision, conservation or delinquency proceeding, including that such transactions must: • Allow the commissioner to require a deposit or bond for the protection of the insurer in connection with affiliated transactions; • Require that all records and data of the insurer held by the affiliate are and remain the property of the insurer; and • Specify that premiums or other funds belonging to the insurer but collected or held by an affiliate are the exclusive property and subject to the control of the insurer. The amendments permit the commissioner to require that certain affiliate agreements specify that the affiliate consents to the jurisdiction of the supervision, seizure, conservatorship or receivership proceedings. The amendments also bolster the minimum required provisions that must be included in agreements for cost-sharing services and management services, including to specify that the affiliate will provide essential services for a specified period after termination of the affiliate agreement if the insurer is placed into supervision, seizure, conservatorship or receivership. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.