SB 36

Abstract

Section 1 of this Act revises the following definitions: (1) “Dormant captive insurance company”, to change the criteria review period from a calendar year to a continuous 12-month period. (2) "Pure captive insurance company", to clarify that a pure captive insurer may insure its parent, its parent's affiliates, or a controlled unaffiliated business. (3) “Series”, to allow a registered series to be licensed as a captive insurer. Section 2 of this Act clarifies that a pure captive insurer may insure its parent, its parent’s affiliates, or a controlled unaffiliated business. Section 2 of this Act also 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 captive insurance company. Section 3 of this Act allows certain captive insurers to select the Delaware series form of business organization. Section 4 of this Act makes the provisions of §§ 2702, 2703, and 2706 of Title 18 applicable to captive insurance companies. In addition, this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. This Substitute Bill differs from Senate Bill No. 36 as follows: (1) By removing new definitions for “policy” and “premium” and amending definitions for “dormant captive insurance company” and “series” as indicated in Section 1 of this Act. (2) By clarifying that a pure captive insurer may insure its parent, its parent’s affiliate, or a controlled unaffiliated business as indicated in Section 2 of this Act. (3) By removing authority for a series to apply for a certificate of authority as a branch or reciprocal captive insurance company. (4) By making §§ 2702 and 2703 of Title 18 applicable to captive insurance companies.