CHAPTER 41

CONCERNING INSURANCE RISKS IN FOREIGN COUNTRIES

AN ACT TO AMEND TITLE 18, DELAWARE CODE OF 1953, ENTITLED "INSURANCE" BY CHANGING PARAGRAPH (12) OF § 706 RELATING TO THE INVESTMENT OF FUNDS BY DOMESTIC INSURANCE COMPANIES DOING BUSINESS IN A FOREIGN COUNTRY AND BY CHANGING § 904 RELATING TO THE RESERVES OF LIFE INSURANCE COMPANIES DOING BUSINESS ONLY IN FOREIGN COUNTRIES.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. § 706, Title 18, Delaware Code of 1953 is amended by striking out all of paragraph (12) thereof and substituting the following:

(12) A company doing business in a foreign country may invest the funds required to meet its obligations in such country and in conformity to the laws thereof in the same kinds of securities in such foreign country that such company is allowed by law to invest in the United States; and if such company is not doing business in any State, Territory or District of the United States it may invest its funds as allowed by the laws of any jurisdiction where it does business; provided, however, that negotiation and issuance of insurance on risks situated outside every such State, Territory and District, and changes in, communications concerning, and collection of premiums on, insurance so issued, shall not be deemed hereunder to be doing business in any such State, Territory or District.

Section 2. § 904, Title 18, Delaware Code of 1953 is amended by striking out all of said section and substituting the following:

§ 904. Reserves for companies doing business only in foreign countries

A company doing business in foreign countries and not doing business in any State, Territory or District of the United States may calculate its reserves on insurance written in each foreign jurisdiction in accordance with the reserve standards required by such jurisdiction; provided, however, that negotiation and issuance of insurance on risks situated outside every such State, Territory and District, and changes in, communications concerning, and collection of premiums on, insurance so issued, shall not be deemed hereunder to be doing business in any such State, Territory or District.

Approved April 28, 1953.