CHAPTER 266

FORMERLY

HOUSE BILL NO. 263

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLES 18 AND 19 OF THE DELAWARE CODE RELATING TO WORKERS' COMPENSATION INSURANCE.

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

Section 1. Amend Chapter 25, Title 18, Delaware Code, by adding the following new section to read as follows:

"§ 2534. Workers' Compensation and Employers' Liability Forms and Policies.

(a) Every insurer shall file with the Commissioner all forms, endorsements, contracts or policies proposed for use in Delaware in connection with workers' compensation or employers' liability insurance.

(b) As part of rate or form filing, each insurer shall file its classification of risks and all rules governing applications of classification system, including rules or practices relating to payroll audits and collection of premiums. All scheduled rating and deviation schedules shall also be filed with the Commissioner.

(c) Every rating system which provides deviations from normal premium rates shall be uniform in its application to all risks in the class for which the deviation is made. Deviations may remain in effect for more than a period of one year unless terminated by the Commissioner.".

Section 2. Amend § 2391(a), Title 19, Delaware code by deleting this subsection in its entirety and substituting in lieu thereof the following:

"(a) For the privilege of carrying on the business of workers' compensation insurance in this State, every insurance carrier shall pay the taxes imposed under the Insurance Code and every employer carrying the employer's own risk and thereby insuring the employer's own self under this chapter shall pay the taxes imposed by this section.".

Section 3. Further Amend § 2391, Title 19, Delaware Code, by deleting subsections (b), (c),(e) and (f) in their entirety and redesignating subsections (d) as subsection (b).

Section 4. Further Amend § 2391, Title 19, Delaware Code, by deleting the words "Section 2382 of this title" where they appear therein and substituting in lieu thereof "Section 2607 of Title 18".

Section 5. Amend § 704, Title 18, Delaware Code, by deleting that section in its entirety and substituting in lieu thereof the following:

"§704. Tax on Workers' Compensations; Employer's Liability Premiums.

Every insurance carrier shall pay a tax upon all workers' compensation or employer's liability premiums received in this State or on account of business done in this State at the rate of 2% of the amount of such premiums, which tax shall be in lieu of all other taxes on such premiums.

(a) . The insurance carrier shall be credited with all canceled or returned premiums actually refunded during the year on such insurance and premiums on reinsurance received from other insurance carriers, except that mutual insurance companies shall be taxed upon the gross premiums charged and collected and shall not be credited with unabsorbed premiums or dividends.

(b) The taxes imposed by this section shall be collected as provided in § 702(d) and (f) of this Title.".

Section 7. This Act shall become effective upon its enactment into law.

Approved May 21, 2002