SENATE BILL NO. 499
AN ACT TO AMEND TITLE 18, DELAWARE CODE, CHAPTER 5, SECTION 513 TO PROVIDE THAT THE STATUTORY DEPOSIT OF INSURERS FOR WORKERS' COMPENSATION INSURANCE MAY BE USED TO PAY WORKERS' COMPENSATION CLAIMS IMMEDIATELY IF THE INSURER BECOMES FINANCIALLY IMPAIRED OR INSOLVENT.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Subsection (c) of Section 513. Title 18, Chapter 5, Delaware Code, by deleting this section in its entirety and adding the following in lieu thereof.
"(c) No insurer shall transact workers' compensation insurance in this State unless it makes and thereafter maintains in this State through the Commissioner a special and additional deposit of cub or securities eligible therefor under Section 1503 of this Title, of a fair market value of not less than $100,000 for the protection of persons in this State covered under the insurance so transacted. Upon any insurer's inability to pay workers' compensation claims as a result of a court of competent Jurisdiction finding of financial impairment or insolvency, which prevents the regular payment of workers' compensation benefits, this deposit shall be immediately available upon their request to the Delaware Insurance Guaranty Association for continuation of claims benefits to eligible workers.
Section 2. This act shall become effective immediately upon its adoption.
Approved July 3, 1986.