Delaware General Assembly


CHAPTER 77 - INSURANCE DEPARTMENT EMPOWERING DOMESTIC COMPANIES TO. PAY STATE FEES AND EXEMPTING COMPANIES FROM PERSONAL LIABILITY

AN ACT TO AMEND CHAPTER 20 OF THE REVISED CODE OF DELAWARE, 1935, AS AMENDED, ENTITLED "INSURANCE DEPARTMENT", BY EMPOWERING "DOMESTIC COMPANIES" TO PAY FEES AND TAXES IMPOSED BY ANY LAWS OF ANY STATE, TERRITORY, OR POLITICAL SUBDIVISION THEREOF, THAT HAVE NOT BEEN FINALLY HELD INVALID AND EXEMPTING OFFICERS, DIRECTORS OR TRUSTEES OF "INSURANCE COMPANIES" FROM PERSONAL LIABILITY FOR PAYMENTS OF SUCH FEES OR TAXES UNDER CERTAIN CIRCUMSTANCES.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Chapter 20 of the Revised Code of Delaware, 1935, as amended, be and the same is hereby amended by adding to "Article 2" thereof two new paragraphs to be numbered and identified as 492A. Sec. 31A and 492B. Sec. 31B and reading as follows:

492A. Sec. 31A. Every "Domestic Company" shall have power to comply with any statute, ordinance or other law of any state, territory, or political subdivision thereof (including the District of Columbia), imposing any license, excise, privilege, premium, occupation or other fee or tax and to pay such fee or tax unless prior to such payment such statute, ordinance or other law shall have been expressly held invalid by the state court having final appellate jurisdiction in the premises or by the Supreme Court of the United States.

492B. Sec. 31B. No officer, director or trustee of any "Insurance Company" shall be subject to any personal liability by reason of any payment, or determination not to contest payment, deemed by the board of directors or trustees to be in the corporate interests of such "Insurance Company", of any license, excise, privilege, premium, occupation or other fee or tax, to any state, territory, or political subdivision thereof (including the District of Columbia), unless prior to such payment the statute, ordinance or other law imposing such fee or tax shall have been expressly held invalid by the state court having final appellate jurisdiction in the premises or by the Supreme Court of the United States.

Section 2. This Act shall take effect from its passage and all acts and parts of acts inconsistent with the provisions of this Act are hereby repealed.

Approved February 20, 1945.