RELATING TO GROSS PREMIUMS OF INSURANCE
AN ACT TO AMEND CHAPTER 27, TITLE 18 OF THE DELAWARE CODE BY PROVIDING FOR A SPECIAL TAX ON CERTAIN GROSS PREMIUMS OF INSURANCE COMPANIES, THE DISTRIBUTION THEREOF, AND REQUIRING CERTAIN POLICE' DEPARTMENTS OR BUREAUS TO MAKE CERTAIN REGISTRATIONS WITH THE STATE TREASURER.
WHEREAS, it is imperative for the public safety that State, County and Municipal police forces be maintained with proper and efficient personnel and such personnel can only be attracted to employment in State, County, Municipal police work by the assurance of an adequate pension system ; and
WHEREAS, it is necessary to provide the means of assisting the financing of State, County and Municipal police pension funds ; NOW, THEREFORE,
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Chapter 27, Title 18, Delaware Code, is amended by adding at the end thereof the following four new sections:
§ 2710. Definitions
As used in sections 2711, 2712 and 2713 of this chapter "State Police" means that police agency of the State acting under the direction of the State Highway Department ;
"County Police" means any police under the control and direction of the Levy Court of the three counties of this State which are separate and apart from any State or Municipal Police;
"Municipal" means any incorporated city or town ; and
"Police pension fund" means any pension or retirement fund established by Iaw for and on behalf of any state, county or municipal police.
§ 2711. Special tax on gross premiums of insurance companies
Every insurance company doing business in this State shall annally pay to the Insurance Commissioner on or before the first day of March, in addition to other taxes, fees and charges required by law, a tax equal to two per cent of the gross premiums, less return and reinsurance premiums received from other companies or by an agent or agents of such company for such company, in cash or otherwise from the insurance on insurable risks, covering burglary, robbery, theft, automotive personal and property damage liability, automotive medical payments, automotive collision, and automotive comprehensive within the limits of this State during the preceding calendar year. In case of mutual companies the dividends paid or credited to members on such premiums shall be construed to be return premiums. No insurance company affected by provisions of this section shall increase the rate of insurance premiums upon any insurable risk affected by this section because of the tax provided for in this section, unless the Insurance Commissioner after hearing on the matter shall be satisfied that an increase is necessary, and in the event that the Insurance Commissioner shall be satisfied after such hearing that an increase in the premium rate is necessary, he shall authorize such reasonable increase as he deems fair and equitable.
§ 2712. Distribution of the proceeds of the special tax on gross premiums of insurance companies
Every insurance company doing business in the State shall annually, at the same time that such company files its annual report now required by law, deliver to the Insurance Commissioner a full, detailed statement of all burglary, robbery, theft, automotive personal and property damage liability, automotive medical payments, automotive collision and automotive comprehensive business done by such company in this State, for the
year ending on the previous 31st day of December, which statement shall be verified by the oath or affirmation of the President or Vice-President and Secretary or other officer of such company. Said statement shall be on the blanks prepared and furnished by the Insurance Commissioner for the purpose of carrying out the provisions of this section and section 2711 of this chapter. The money received by the Insurance Commissioner in accordance with the provisions of sections 2711 and 2712 of this chapter shall be paid to the State Treasurer and shall be set aside as a special fund and shall be paid out by the State Treasurer to the proper officers in charge of any State, County or Municipal police department or bureau having a pension fund, or which shall hereafter by law have a police pension fund. The State Treasurer shall determine the total number of State, County and Municipal police entitled to benefits under the provisions of sections 2711 and 2712 of this chapter from an annual registry in accordance with section 2713 of this chapter and shall make distribution proportionately and on a per capita basis to the proper officers of any State, County or Municipal police department or bureau complying with the provisions of sections 2711 and 2712 of this chapter.
§ 2713. Registering information
It shall be the duty of the officer in charge of any State, County or Municipal police department or bureau participating in the provisions of sections 2711 and 2712 of this chapter to register with the State Treasurer on or before the first day of April in each year, and to provide the State Treasurer with the following information : The location, jurisdiction and average number of paid, full time, sworn policemen employed for 'the year ending on the previous 31st day of December.
NOTE : This bill became a law on June 21, 1955 without the approval of the Governor and in accordance with Section 18, Article 3 of the Constitution of Delaware.