SENATE BILL NO. 166
AS AMENDED BY SENATE AMENDMENT NO. 1
AN ACT TO AMEND TITLE 18, DELAWARE CODE TO BRING THE DELAWARE INSURANCE CODE INTO COMPLIANCE WITH NATIONAL SOLVENCY STANDARDS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §322 (a), Chapter 3, Title 18, Delaware Code, by deleting this section in its entirety and substituting the following in lieu thereof:
The Commissioner or any of his or her examiners may conduct an examination under this Act of any company as often as the Commissioner is his or her sole discretion deems appropriate but shall at a minimum, conduct an examination of every insurer licensed in this State not less frequently than every five years. In scheduling and determining the nature, scope and frequency of the examinations, the Commissioner shall consider such matters as the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports or independent Certified Public Accountants and other criteria as set forth in the Examiners' Handbook adopted by the National Association of Insurance Commissioners and in effect when the Commissioner exercises discretion under this section. Examination of an alien insurer, shall be limited to its insurance transactions, assets, trust deposits and affairs in the United States except as otherwise required by the Commissioner."
Section 2. Amend §325, Chapter 3, Title 18, Delaware Code, by renumbering the present subsections (c), (d), (e) and (f), and inserting a new subsection (c) as follows:
(c) No later than sixty days following completion of the examination, the examiner in charge shall file with the Department a verified written report of examination under oath. Upon receipt of the verified report, the Department shall transmit the report to the company examined, together with a notice which shall afford the company examined a reasonable opportunity of not more than thirty days to make a written submission or rebuttal with respect to any matters contained in the examination report. If the company so requests in writing within such thirty day period, the Commissioner shall grant a hearing as to the report and shall not file the report until after the hearing and after such modifications have been made therein as the Commissioner deems proper."
Section 3. Amend §325 (f), Chapter 3, Title 18, Delaware Code, by deleting this section in its entirety and substituting the following in lieu thereof:
(f) All working papers, recorded information, documents and copies thereof produced by, obtained by or disclosed to the Commissioner or any other person in the course of an examination made under this Chapter shall be given confidential treatment and are not subject to subpoena and may not be made public by the Commissioner or any other person except to insurance departments of any state or country, or to law enforcement officials of this or any other state or agency of the federal government at any time, so long as such agency or office receiving the report or as such agency or office receiving the report or matters relating thereto agrees in writing to hold it confidential and in a manner consistent with this Section, unless the prior written consent of the company to which it pertains has been obtained."
Section 4. Amend §1115, Chapter 11, Title 18, Delaware Code, by deleting subsection (b) in its entirety and substituting the following in lieu thereof:
"(b) Notwithstanding any other provision of this section, no bond or other evidence of debt shall be valued in excess of the value established by the National Association of Insurance Commissioners' Security Valuation Office."
Section 5. Amend Chapter 11, Title 18, Section 1117(b) Delaware Code, by deleting this subsection in its entirety and substituting the following in lieu thereof:
"(b) Real property owned by an insurer shall be valued at cost plus capital improvements less depreciation. Such a value shall not be in excess of the NAIC accounting practices and procedures manual valuation nor in excess of fair market value as determined by a recent appraisal acceptable to the Commissioner. If the valuation is based on an appraisal more than three years old, the Commissioner may require a new appraisal to determine fair market value."
Section 6. Amend §1806, Chapter 18, Title 18, Delaware Code, by adding the following at the end of this section:
An MGA shall retain all records pertaining to a specific insurer until the conclusion of the regular financial examination on that insurer by the domestic regulator."
Section 7. This Act shall become effective 30 days after enactment.
Approved July 6, 1993.