SENATE BILL NO. 347
AS AMENDED BY SENATE AMENDMENT NO. 1
AN ACT TO ALTER THE METHOD OF CAPITALIZATION OF THE STATE SELF-INSURANCE FUND.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Section 6531, Subchapter III, Chapter 65, Title 18, Delaware Code, is amended by striking said section in its entirety and substituting in lieu thereof a new §6531 to read as follows:
§6531. Capitalization of the State Self-Insurance Fund
(a) The Fund shall be capitalized in the following manner:
(1) The Fund shall be capitalized in the amount of $2,000,000. Each year the General Assembly shall appropriate to the Fund an amount equal to the claims and expenses paid out from the Fund for the prior year less the income derived from the investments of the Fund during the same period.
(2) In the event that payment of losses from the Fund exceeds $2,000,000 during any fiscal year, the General Assembly shall give prompt consideration to the enactment of appropriate special funding legislation. Funds derived from such special funding legislation shall be deposited in the Fund and shall be utilized for the payment of such losses.
(b) In the event that the Committee shall elect to commercially procure insurance on risks which are self-insured, they may direct that the initial premium for such commercial policies covering such risk or risks shall be paid from the Fund.
Section 2. Section 6531 A, Subchapter III, Chapter 65, Title 18, Delaware Code, is hereby amended by striking the words "The gross premium allocation, provided for in §6531 of this Title shall be determined by the Committee", and substituting in lieu thereof the following:
The amount of the appropriation necessary to sustain the Fund at $2,000,000 shall be computed by the Committee, under the formula provided in §6531 (a) (1) of this Title.
Section 3. Sections 6531 B and 6531 C, Subchapter III, Chapter 65, Title 18, Delaware Code, are hereby repealed.
Section 4. There is hereby appropriated to the Insurance Department (12-03-000) for the Self-Insurance Fund the sum of $1,000,000. This Act shall be known as a Supplementary Appropriation Act and the funds hereby appropriated shall be paid out of the funds previously set aside in the Capital Investment Fund of the State Treasury under the provisions of §6531 C, Title 18, Delaware Code. This appropriation from the Capital Investment Fund shall be permanent in order to augment the capital funding of the Self-Insurance Fund and shall not revert.
Approved March 27, 1974.