CHAPTER 481

RELATING TO INSURANCE COMPANIES

AN ACT TO AMEND CHAPTER 5, TITLE 18, DELAWARE CODE BY PROHIBITING INSURANCE COMPANIES FROM ASSERTING THE DEFENSE OF SOVEREIGNTY WHERE EMPLOYEES OR PROPERTY OF THE STATE OF DELAWARE OR ANY POLITICAL SUBDIVISION THEREOF ARE INSURED.

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

Section 1. Chapter 5, Title 18, Delaware Code is amended by adding a new section thereto to read as follows:

§ 516. Defense of sovereignty prohibited

Every insurance contract covering persons employed by or property belonging to the State of Delaware or any political subdivision thereof shall contain a provision agreeing on behalf of the insuring company that the defense of sovereignty is waived and cannot and will not be asserted.

Approved July 18, 1955.