Delaware Code Title 18 Sec. 6906 – Formation of captive insurance companies
(a) A pure captive insurance company may be any of the following:
(1) Incorporated as a stock corporation or as a nonstock corporation.
(2) Formed as a limited liability company, partnership, limited partnership, series, or statutory trust, including a limited liability company, limited partnership, or statutory trust having 1 or more series.
Terms Used In Delaware Code Title 18 Sec. 6906
- Agency captive insurance company: shall mean an insurance company described in paragraphs (2)a. See Delaware Code Title 18 Sec. 6902
- 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
- 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
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Industrial insured: means an insured:
- Insurance: has the meaning given such term in § 102 of this title. See Delaware Code Title 18 Sec. 6902
- Insurer: has the meaning given such term in § 102 of this title. See Delaware Code Title 18 Sec. 6902
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means a natural person, partnership (whether general or limited), trust, estate, association, corporation, limited liability company, statutory trust, business trust, custodian, nominee or any other individual or entity in its own or any representative capacity, in each case whether domestic, foreign, or alien. See Delaware Code Title 18 Sec. 6902
- Reciprocal insurer: has the meaning given such term in § 503 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
- Trustee: A person or institution holding and administering property in trust.
(b) An association captive insurance company or an industrial insured captive insurance company may be any of the following:
(1) Incorporated as a stock corporation or as a nonstock corporation.
(2) Formed as a limited liability company, partnership, limited partnership, statutory trust, or series.
(3) Organized as a reciprocal insurer.
(c) A special purpose captive insurance company, special purpose financial captive insurance company, agency captive insurance company, or branch captive insurance company may be any of the following:
(1) Incorporated as a stock corporation or as a nonstock corporation.
(2) Formed as a limited liability company, partnership, limited partnership, or statutory trust, including a limited liability company, limited partnership, or statutory trust having 1 or more series.
(3) Such other person, other than a natural person in that natural person’s individual capacity, approved by the Commissioner.
(d) A sponsored captive insurance company, including a sponsored captive insurance company that is also a special purpose financial captive insurance company, may be any of the following:
(1) Incorporated as a stock corporation or as a nonstock corporation.
(2) Formed as a limited liability company, partnership, limited partnership, or statutory trust, including a limited liability company, limited partnership, or statutory trust having 1 or more series.
(e) A risk retention group may take any form permitted under the Liability Risk Retention Act of 1986, 15 U.S.C. § 3901 et seq., as amended.
(f) In the case of a captive insurance company other than a branch captive insurance company:
(1) Formed as a corporation, at least 1 of the members of the board of directors or other governing body shall be a resident of, or have that member’s principal place of business in, this State;
(2) Formed as a reciprocal insurer, at least 1 of the members of the subscribers’ advisory committee shall be a resident of, or have its principal place of business in, this State;
(3) Formed as a limited liability company, at least 1 member, manager or person in whom management of the limited liability company is vested or to whom rights and powers to manage and control the business and affairs of the limited liability company have been delegated shall be a resident of, or have its principal place of business in, this State;
(4) Formed as a partnership, at least 1 partner or person in whom management of the partnership is vested or to whom rights and powers to manage and control the business and affairs of the partnership have been delegated shall be a resident of, or have its principal place of business in, this State;
(5) Formed as a limited partnership, at least 1 general partner or person in whom management of the limited partnership is vested or to whom rights and powers to manage and control the business and affairs of the limited partnership have been delegated shall be a resident of, or have its principal place of business in, this State; and
(6) Formed as a statutory trust, at least 1 trustee or person in whom management of the statutory trust is vested or to whom rights and powers to manage and control the business and affairs of the statutory trust have been delegated shall be a resident of, or have its principal place of business in, this State.
(g) A captive insurance company incorporated, formed or organized under the laws of this State or under the laws of another jurisdiction that is licensed under the provisions of this chapter shall have the privileges and be subject to the provisions of the laws of this State or the laws of such other jurisdiction, as applicable, under which such captive insurance company is incorporated, formed or organized as well as the applicable provisions contained in this chapter. In the event of conflict between the provisions of the laws of this State or the laws of such other jurisdiction, as applicable, under which such captive insurance company is incorporated, formed or organized, and the provisions of this chapter, the latter shall control.
64 Del. Laws, c. 454, § ?1; 66 Del. Laws, c. 223, § ?1; 70 Del. Laws, c. 186, § ?1; 75 Del. Laws, c. 150, § ?1; 76 Del. Laws, c. 161, § ?6; 77 Del. Laws, c. 252, §§ ?8, 9; 80 Del. Laws, c. 46, § ?8; 83 Del. Laws, c. 50, § 3; 83 Del. Laws, c. 283, § 30;