AN ACT TO AMEND CHAPTER 27, TITLE 18, 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;
Be it enacted by the General Assembly of the State of Delaware (three-fourths of all the Members elected to each House thereof concurring therein):
Section 1. Chapter 27, Title 18, Delaware Code, is amended by adding at the end thereof the following four new sections:
Section 1. § 2710, Title 18, Delaware Code, is amended to read:
§ 2710. Definitions
As used in sections 2711, 2712 and 2713 of this title "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 Police" means police in any incorporated city or town;
"Municipal" Means any incorporated city or town; and
"Police pension fund" means any pension or retirement fund established by law for and on behalf of any state, county or municipal police.
Section 2. Title 18, Delaware Code, is amended by enacting a new Section to read:
§ 2711. Special tax on gross premiums and deductions
Each insurance company doing an insurance business of any kind within this State, excepting that of workmen's compensation insurance, shall, in addition to other taxes, fees and charges required by law, on the first day of March, of each year, pay to the Insurance Commissioner, for the use of the State, 1,'47 upon the gross premiums received and assessments collected from insurance of every kind upon persons or on the lives of persons resident in, or upon real and personal property located within this State, or upon any other risks insured within this State, by any such insurance company or the authorized agent thereof, for the calendar year immediately preceding the date herein provided for such payments.
The words "gross premiums" whenever used herein in reference to premiums received by insurance companies on policies covering risks located in this State, shall mean all moneys collected, together with all notes, or credits allowed, as premiums on such policies including reinsurance premiums received. In computing taxable premiums- there may be deducted from gross premiums dividends paid to policy-holders, return premiums paid therefrom by reason of cancellation of policies, and reinsurance premiums received from other companies.
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.
Section 3. Section 2712, Title 18, Delaware Code, is amended to read:
§ 2712. Distribution of the proceeds of the special tax on gross premiums of insurance companies
Each insurance company, firm or corporation covered by the provisions of section 2711 of this title, shall at the time of making tax payments, deliver to the Insurance Commissioner a full and detailed statement showing the gross amount of premiums received and assessments collected and dividends paid to policyholders by such insurance company, firm or corporation, or the authorized agent thereof, for the calendar year immediately preceding the date provided for in section 2711 of this title for tax payments, and such statement shall be verified by the oath or affirmation of the president or secretary or other responsible officer of said company, duly administered by some person authorized to administer oaths. 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.
Section 4. Section 2713, Title 18, Delaware Code, is amended to read:
§ 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 title 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.
Approved June 27, 1966.