CHAPTER 270

FORMERLY

HOUSE BILL NO. 470

AS AMENDED BY HOUSE AMENDMENTS NOS. 1, 2, AND 3 AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO REPORTING REQUIREMENTS AND FINANCIAL DISCLOSURE OF PROPERTY OR CASUALTY INSURERS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 5, Title 18 of the Delaware Code by adding a new Section 526A to read as follows:

§526A. Supplement To Annual Statement

(a) Each insurer licensed to write property or casualty insurance in this State, as a supplement to Schedule T of its annual statement, shall submit a report on a form furnished by the Commissioner showing its direct writings and experience, prior to reinsurance, in this State and the United States. Al such writings and experience shall be required on a line-by-line basis both for the State of Delaware and in total, and where appropriate, on a sublime by subline basis.

(b) The supplemental report required by this Section shall include but not be limited to the following types of Insurance written by such insurer:

(1) Motor vehicle bodily injury liability insurance;

(2) Motor vehicle property liability insurance;

(3) Motor vehicle personal injury protection insurance;

(4) Uninsured motorht insurance;

(5) Underinsured motorist insurance;

(6) Products liability insurance;

(7) Medical malpractice insurance, by specialty and in total;

(8) Dental malpractice insurance;

(9) Attorneys' malpractice Insurance;

(10) Other professional malpractice insurance;

(11) Mid-wives Insurance;

(12) Political subdivision liability insurance reported separately as to municipalities, counties, school districts and other authorities;

(13) Errors and omissions liability insurance;

(14) Officers' and directors' liability insurance reported separately as to non- profit and for-profit entities;

(15) Day care facility liability insurance;

(16) Entertainment, recreational and sporting facility liability insurance, by specialty;

(17) Workers' Compensation insurance;

(18) Liquor Liability Insurance

(c) Such supplemental report shall include the following data, both specific to this State and also to the United States, by the type of insurance for the previous year ending on the thirty-first day of December:

(I) Direct premiums written; (2) Direct premiums earned;

(3) Investment Income derived from unearned premium and loss reserves reflecting the overage rate of return on Invested assets. Forms to be used in transmitting this data and the formula for the calculations shall be promulgated by the Insurance Commissioner.

(4) Incurred claims, developed as the sum of the following (the report shall Include data for each of the following categories used to develop the sum of incurred claims):

a. Dollar amount of claims closed with payment; plus

b. Reserves for reported claims at the end of the current year; minus

c. Reserves for reported claims at the end of the previous year; plus

d. Reserves for incurred but not reported claims at the end of the current year; minus

(e) Reserves for incurred but not reported claims at the end of the previous year; plus

(f) Loss adjustment expenses for claims closed; plus

(g) Reserves for loss adjustment expense at the end of the current year; minus

(h) Reserves for loss adjustment expense at the end of the previous year.

(5) Actual incurred expenses allocated separately to loss adjustment; commissions, other acquisition costs, advertising, general office expenses, taxes. licenses and fees, and all other expenses. This consolidated insurance expense exhibit must be filed in Delaware on or before April 1, of each year;

(6) Net underwriting gain or loss;

(7) Net operation gain or loss. including net investment income;

(8) The number and dollar amount of claims closed with payment, by year incurred and the amount reserved for these claims;

(9) The number of claims closed without payment and the dollar amount reserved for these claims;

(10) The number of claims pending at the end of each year and the amount reserved for these claims; and

(d) This report shall be due by the first of March of each year, and the first report shall be due March 1, 1987.

(c) For the first year only in which the insurer is required to file this supplemental report. the data required by Subsection (c) of this Section shall include the previous calendar year and each of the preceding nine calendar years.

(f) It shall be the duty of the Commissioner to annually compile and review all such supplemental report submitted by insurers pursuant to this Section to determine the appropriateness of premium rates for property or casualty insurance In this State. The Commissioner's findings and the filings shall be published and made available to any interested insured or citizen.

(g) The Commissioner may refuse to continue or may suspend or revoke the certificate of authority of any property or casualty Insurer failing to file its supplemental report when due.

(h) The Commissioner may waive, modify or defer the requirements of this Section if he determines the information required under this Section to be reported is not needed."

Section 2. Amend Section 2525, Chapter 25. Title 18 of the Delaware Code by adding a new Subparagraph (e) as follows:

"(e) This Section does not apply to property or casualty insurers to the extent it conflicts with any of the provisions of Section 526A of this Title."

Section 3. This Act shall become effective upon Its enactment Into law.

Approved May 23, 1986.