Delaware Code Title 18 Sec. 6905 – Minimum capital and surplus; letter of credit
(a) No captive insurance company shall be issued a certificate of authority unless it shall possess and thereafter maintain capital and surplus of:
(1) In the case of a pure captive insurance company, not less than $250,000;
(2) In the case of an association captive insurance company, not less than $750,000;
(3) In the case of an industrial insured captive insurance company, not less than $500,000;
(4) In the case of an agency captive insurance company, not less than $250,000;
(5) In the case of a risk retention group, not less than $1,000,000;
(6) In the case of a sponsored captive insurance company, not less than $500,000;
(7) In the case of a special purpose captive insurance company, not less than $250,000 or such other amount determined by the Commissioner;
(8) In the case of a branch captive insurance company, not less than $250,000 or such other amount determined by the Commissioner;
(9) In the case of a special purpose financial captive insurance company that is also a sponsored captive insurance company, not less than $500,000, and in the case of a special purpose financial captive insurance company that is not also a sponsored captive insurance company, not less than $250,000; and
(10) In the case of a series captive insurance company, the minimum capital and surplus shall be an amount as specified by the Commissioner.
Terms Used In Delaware Code Title 18 Sec. 6905
- Agency captive insurance company: shall mean an insurance company described in paragraphs (2)a. See Delaware Code Title 18 Sec. 6902
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Association: means any legal association of persons that has been in continuous existence for at least 1 year or such lesser period of time approved by the Commissioner, the association members of which, or which does itself, whether or not in conjunction with some or all of the association members:
- Branch captive insurance company: means any foreign captive insurance company or alien captive insurance company that has been issued a certificate of authority by the Commissioner to transact the business of insurance in this State through a business unit with a principal place of business in this State, and has not otherwise been issued a certificate of authority by the Commissioner to transact insurance under this chapter. See Delaware Code Title 18 Sec. 6902
- Capital and surplus: means the amount by which the value of all of the assets of the captive insurance company exceeds all of the liabilities of the captive insurance company, as determined under the method of accounting utilized by the captive insurance company in accordance with the applicable provisions of this chapter. See Delaware Code Title 18 Sec. 6902
- Captive insurance company: means any pure captive insurance company, association captive insurance company, agency captive insurance company, sponsored captive insurance company, industrial insured captive insurance company, special purpose captive insurance company, special purpose financial captive insurance company, series captive insurance company, or risk retention group, whether domestic, foreign or alien, or branch captive insurance company, licensed under the provisions of this chapter. See Delaware Code Title 18 Sec. 6902
- Commissioner: means the Insurance Commissioner of this State. See Delaware Code Title 18 Sec. 6902
- Industrial insured: means an insured:
- Insurance: has the meaning given such term in § 102 of this title. See Delaware Code Title 18 Sec. 6902
- Risk retention group: means a risk retention group formed pursuant to the Liability Risk Retention Act of 1986, 15 U. See Delaware Code Title 18 Sec. 6902
- Series: means a series established under § 17-218(b), § 18-215(b), or § 18-218 of Title 6, § 3804(a) of Title 12, or corresponding law of another state. See Delaware Code Title 18 Sec. 6902
- Special purpose captive insurance company: means any person that is licensed under this chapter and designated as a special purpose captive insurance company by the Commissioner. See Delaware Code Title 18 Sec. 6902
- Special purpose financial captive insurance company: means a captive insurance company that is granted a certificate of authority under subchapter III of this chapter of this title. See Delaware Code Title 18 Sec. 6902
- Sponsored captive insurance company: has the meaning given such term in § 6932(5) of this title. See Delaware Code Title 18 Sec. 6902
- State: means the State of Delaware, and "state" means any other state, district, commonwealth or possession of the United States of America. See Delaware Code Title 18 Sec. 6902
(b) In connection with the issuance of a certificate of authority, the Commissioner may prescribe additional minimum capital and surplus based upon the type, volume, and nature of insurance business transacted.
(c) Minimum capital and surplus described in paragraphs (a)(1)-(9) of this section shall be maintained in this State and may be in the form of cash, an irrevocable letter of credit issued by a financial institution chartered by or licensed or otherwise authorized to do banking business in this State, or by any other financial institution approved by the Commissioner, or such other assets as may be approved by the Commissioner.
(d) Notwithstanding the foregoing, the minimum capital and surplus funds may be proceeds received by the captive insurance company resulting from the issuance by the captive insurance company of a surplus note as approved by the Commissioner.
64 Del. Laws, c. 454, § ?1; 75 Del. Laws, c. 150, § ?1; 76 Del. Laws, c. 161, §§ ?4, 5; 77 Del. Laws, c. 252, §§ ?6, 7; 80 Del. Laws, c. 46, § ?7;