SENATE BILL NO. 233
AS AMENDED BY SENATE AMENDMENT NO. 1 AND HOUSE AMENDMENT NOS. 1 AND 2
AN ACT TO AMEND SECTION 526A, CHAPTER 5, TITLE 18, DELAWARE CODE, RELATING TO REPORTING REQUIREMENTS AND FINANCIAL DISCLOSURE OF PROPERTY OR CASUALTY INSURERS.
WHEREAS, property/casualty insurers have blamed lawsuits rather than economic forces as the cause of the monumental price hikes and widespread cancellations of liability insurance In late 1985 and early 1986; and
WHEREAS, the 133rd General Assembly enacted legislation in 1986 to require
property/casualty Insurers to disclose certain financial information to the Delaware Insurance Department in order that the true profitability of the property/casualty insurers doing business in this State could be ascertained; and
WHEREAS, recent statistics of the General Accounting Office In Washington, D. C., for calendar year 1986 indicate that property/casualty insurers' profits for 1986 were at a record high approaching a return on net worth of 18 percent; and
WHEREAS, a substantial number of property/casualty insurers doing business in Delaware have failed to file the financial data required by §526A, Chapter 5, Title 18, Delaware Code, as of the filing deadline.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §526A, Chapter 5, Title 18, Delaware Code, by adding thereto a new subsection (i) to read as follows:
"(I) The Commissioner shall impose a fine of $1,000 for each day a report required by this Section Is late. Such fine may not be suspended by the Commissioner."
Section 2. The provisions of this Act shall become effective 60 days after its
Section 3. Amend §526A, Chapter 5, Title 18, Delaware Code by striking subsection "(d)" In Its entirety and substituting in lieu thereof the following:
"(d) This report shall be due by the 1st of May of each year."
Approved July 11, 1988.