SENATE BILL NO. 230
AN ACT TO AMEND CHAPTER 49, TITLE 18 OF THE DELAWARE CODE RELATING TO REDOMESTICATION OF INSURERS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Chapter 49, Title 18 of the Delaware Code by adding thereto a new section to read as follows:
§4946. Redomestication: Approval as a Domestic Insurer; Conversion to Foreign
Insurer: Effects of Redomestication: Authority to Promulgate Rules and Regulations.
(a) Any insurer which is organized under the laws of any other state and is admitted to do business in this State for the purpose of writing insurance may become a domestic insurer by complying with all of the requirements of law relative to the organization and licensing of a domestic insurer of the same type and by designating its principal place of business at a place in this State. Said domestic insurer will be entitled to like certificates and licenses to transact business in this State and shall be subject to the authority and jurisdiction of this State.
(b) Any domestic insurer, may upon approval of the Commissioner transfer its domicile to any other state in which it is admitted to transact the business of insurance and upon such transfer shall cease to be a domestic insurer, and shall be admitted to this State if qualified as a foreign insurer. The Commissioner shall
approve any such proposed transfer unless he shall determine such transfer is not in the interest of the policyholder of this State.
(c) The certificate of authority, agents appointments and licenses, rates, and other items which the Commissioner of Insurance allows, in his discretion, which are in existence at the time any insurer licensed to transact the business of insurance in this State transfers its corporate domicile to this or any other state by merger, consolidation or any other lawful method shall continue in full force and effect upon such transfer while the insurer remains duly qualified to transact the business of insurance in this State. All outstanding policies of any transferring insurer shall remain in full force and effect and need not be endorsed as to the new name of the company or its new location unless so ordered by the Commissioner of Insurance. Every transferring insurer shall file new policy forms with the Commissioner of Insurance on or before the effective date of the transfer, but may use existing policy forms with appropriate endorsements if allowed by, and under such conditions as approved by the Commissioner of Insurance. However, every such transferring insurer shall notify the Commissioner of the details of the proposed transfer, and shall file promptly, any resulting amendments to corporate documents filed or required to be filed with Commissioner.
(a) The Commissioner of this State may promulgate rules and regulations to carry out the purposes of the section.
Section 2. This Act shall become effective immediately.
Approved June 30, 1987.