RELATING TO INSURANCE DEPARTMENT
AN ACT TO AMEND CHAPTER 21, TITLE 18 OF THE DELAWARE CODE RELATING TO AGENTS AND BROKERS, BY PROVIDING FOR REGULATIONS AND EXAMINATIONS IN LICENSING OF AGENTS AND BROKERS; NON-RESIDENT BROKERS: APPROPRIATION.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. § 2101, Title 18 of the Delaware Code is amended by changing the title thereof to read as indicated below and by adding at the end thereof the following new sub-sections to read as follows:
§ 2101. Certificate of authority; necessity for applications; number of applications; examination; examinations waived; temporary licenses
(d) Any person desiring a license to act as agent or broker shall file with the Commissioner his written application upon such form as shall be prescribed under rules and regulations promulgated by the Commissioner. If the applicant is a partnership or corporation, the application shall show the names of all members and employees with respect to partnerships, or the names of all officers and employees with respect to corporations who are to exercise the powers to be conferred by the license upon such partnership or corporation. Each such partnership or corporation shall be required to furnish the same information and meet the same qualifications and requirements as required of an individual applicant. The filing of one application shall be sufficient regardless of the number of companies to be represented by the agent or broker for which the applicant shall pay a fee of $1.00.
(e) If satisfied that the applicant meets the requirements of subsection (d) of this section, the Commissioner, or his deputy, or any salaried employee of the department designated by the Commissioner, shall, subject the applicant to a written
examination for any kind or kinds of insurance, or sub-division thereof, for which he wishes to be licensed, provided that applicants shall be permitted to take such examination at least once in each month.
Such examination shall cover the insurance laws with which the applicant should be familiar and the fundamental principles of the kind or kinds of insurance, or sub-division thereof, which such applicant proposes to transact or negotiate. The Commissioner shall prepare suitable printed material which in his judgment adequately covers the above subject matter for the instruction of applicants and which shall be furnished to them. The examination shall be based upon such instruction material.
If the Commissioner is satisfied from the examination that the applicant is reasonably familiar with such laws and principles of insurance, the Commissioner shall issue a license in accordance with sub-sections (a) and (b) of this section for the kind or kinds of insurance, or any sub-division thereof, for which the applicant has been examined.
Each applicant shall be advised of the result of his examination within thirty days after taking the same.
An applicant who has failed an examination shall be entitled to take any subsequent examination given, but the Commissioner may require a waiting period of not more than six months before authorizing an examination to an applicant who has failed at least twice to pass previous similar examinations.
(f) No examination shall be required of :
(1) An applicant for a license who is a ticket selling agent of a common carrier, and who shall act thereunder only in reference to the issuance of accident insurance tickets or insurance on personal effects while being carried as baggage in connection with the transportation provided by any such transportation ticket;
(2) An applicant for the same kind of license as he now holds ;
(3) An applicant for the same kind of license which he has previously held in this state for at least one year within the three years immediately preceding the date of application, and who is deemed by the Commissioner to be fully qualified and competent.
(g) The Commissioner may issue an agent's or broker's temporary license, at a cost of one dollar ($1.00), without requiring the applicant to pass a written examination in the following circumstances :
(1) To the surviving spouse or next of kin or to the administrator or executor of a deceased licensed insurance agent or broker or to the spouse, next of kin, employee or legal guardian of a licensed agent or broker becoming disabled because of sickness, insanity or injury, if in the Commissioner's opinion such temporary license is necessary for the continuation of the business thereby affected. Such license may be issued for a term not exceeding ninety days and the Commissioner may, in his discretion, upon receipt of one dollar ($1.00) renew such license for an additional term or terms of ninety days each, not exceeding in the aggregate fifteen months.
(2) To an applicant while taking an approved course of study, instruction and field training under the supervision of his insurer which shall be responsible for all acts or omissions of such applicant within the scope of his appointment. Ninety days after the date of such temporary license, the applicant shall submit to an examination and temporary license shall remain in force until he has been advised of the result of said examination.
Section 2. There is appropriated to the Insurance Commissioner the sum of five thousand dollars ($5,000.00) for each of the fiscal years beginning July 1, A. D., 1955, and beginning July 1, A. D., 1956, for the purpose of carrying out the provisions of this act.
out of the general fund of the State Treasury, not otherwise appropriated.
Approved April 20, 1955.