CHAPTER 417

FORMERLY SENATE BILL

NO. 324 AS AMENDED

BY SENATE AMENDMENT

NO. 1

AN ACT TO AMEND TITLE 18, DELAWARE CODE BY AMENDING CHAPTER 31 TO STRIKE THE GRANDFATHER CLAUSE PROVISION FOR GROUP INSURANCE AND PROHIBITING FICTITIOUS GROUPS; AMENDING CHAPTER 35 TO STRIKE THE GRANDFATHER CLAUSE RELATING TO GROUP AND BLANKET HEALTH INSURANCE CONTRACTS.

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

Section 1. § 3101 (c), Chapter 31, Title 18, Delaware Code, shall be stricken in its entirety.

Section 2. § 3111, Chapter 31, Title 18, Delaware Code, is amended by designating the existing first paragraph as "(a)" and adding new subsections to read:

§ 3111 (b) No group life insurance certificate or solicitation thereof shall be delivered to any person in this State unless it shall state prominently and in bold print on its face or an addenum attached thereto:

(1) This insurance is cancellable without the certificate holder's consent.

(c) In addition, it shall be stated, if applicable, in identical fashion and in the same location on the same page:

(1) Future premium amounts are not guaranteed.

(2) Benefit amounts under this insurance may be increased or decreased without the certificate holder's consent.

(3) The conversion privileges under this insurance are less than the face amount.

(d) Any written deviation to the requirements of this Section shall be submitted to the Commissioner for review. In addition to Subsection (c)(3) above there shall be a full explanation in any certificate or solicitation delivered to a person in this State of the exact conversion privileges available and the minimum dollar amounts thereof.

Section 3. Chapter 31, Title 18, Delaware Code, is hereby amended by • adding thereto a new Section to be known and designated as follows:

§ 3127. Fictitious groups prohibited

(a) No insurer, whether an authorized insurer or an unauthorized insurer, shall make available through any form, group life insurance to any firm, corporation, or association of individuals, any preferred premium based upon any grouping of such firm, corporation or association except as permitted under this Chapter.

(b) No form or plan of insurance covering any group or combination of persons shall be written or delivered within or outside this State to cover persons in this State at any preferred premium or on any form other than as offered to persons not in such group or combination and to the public generally, unless such form, plan of insurance, and the premiums to be charged therefor have been submitted to a reviewed by the Commissioner to determine they are not unfairly discriminatory and as not otherwise being in conflict with subsection (a) above.

Section 4. § 3501 (c), Chapter 35, Title 18, Delaware Code, shall be stricken in its entirety.

Approved June 11, 1972.