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Delaware General AssemblyDelaware RegulationsAdministrative CodeTitle 182100

2103 Delaware Insurance Authority, Joint Insurance Fund and Excess Insurance Fund [Formerly Regulation 73]

1.0 Purpose

1.1 The purpose of this Regulation is to implement 18 Del.C. Ch. 4 by adopting regulations required by that Chapter to be adopted.

2.0 Authority

2.1 This Regulation is issued pursuant to the authority vested in the Commissioner and the Insurance Department under 18 Del.C. Ch. 4 and 29 Del.C. Ch. 101. Enactment of 18 Del.C. Ch. 4 followed a legislative finding that liability and other insurance had become prohibitively expensive or impossible to obtain at any price for Delaware counties, municipalities, private occupational groups and types of enterprise. 18 Del.C. Ch. 4Section 401(a) finds that when other insurance, including worker's compensation insurance, becomes prohibitively expensive or when premium rates bear an uneconomic price, public bodies and private persons are exposed to catastrophic loss to the extent that the ability of governmental units to render services and the ability of private persons to function is severely impaired, to the grave detriment of the safety, economic stability and utility of public bodies and private persons. The Commissioner hereby finds that current worker's compensation insurance rates are "prohibitively expensive" or bear an "uneconomic price" within the meaning of 18 Del.C. 401(a).

3.0 Applicability and scope

3.1 This Regulation shall apply to all Joint Insurance Funds and Excess Funds under 18 Del.C. Ch. 4.

4.0 Effective Date

4.1 This Regulation shall be effective thirty (30) days after signature by the Commissioner in his individual capacity and on behalf of the Department.

5.0 Public Entity Joint Insurance Fund

5.1 The Commissioner has prepared the Bylaws of the Public Entity Joint Insurance Fund dated November 6, 1992 ("Public Bylaws"). Each participating Public Entity has, by resolution, adopted the Public Bylaws. The Public Bylaws are hereby adopted, and the Directors of the Public Entity Joint Insurance Fund are hereby granted the powers and authority conferred on them by the Public Bylaws. This Regulation by the Insurance Department exercises the powers conferred by 18 Del.C. 404(e)(1).

5.2 The Insurance Department hereby grants the Directors the power to invest the funds, including worker's compensation funds, utilizing prudent casualty and surety insurance company investment practices.

5.3 The Insurance Commissioner hereby approves the Bylaws and Plan of Risk Management concurrently filed by the Directors of the Public Entity Joint Insurance Fund pursuant to 18 Del.C. 404(h)(1).

5.4 The Directors of the Public Entity Joint Insurance Fund are subject to and shall operate in compliance with the provisions of the present and future regulations of the Delaware Insurance Department.

6.0 Private Entity Joint Insurance Funds

6.1 The Commissioner has prepared the Bylaws of the Private Entity Joint Insurance Fund for the General Business Affinity Group dated November 6, 1992 ("Private Bylaws"). Each participating Private Entity has, by resolution, adopted the Private Bylaws. The Private Bylaws are hereby adopted, and the Directors of the Private Entity Joint Insurance Fund are hereby granted the powers and authority conferred on them by the Private Bylaws. The Private Bylaws are hereby declared to be the model Bylaws for all affinity groups. This Regulation by the Insurance Department exercises the powers conferred by 18 Del.C. 405(c)(1).

6.2 The Insurance Department hereby grants the Directors the power to invest the funds, including worker's compensation funds, utilizing prudent casualty and surety insurance company investment practices.

6.3 The Insurance Commissioner hereby approves the Bylaws and Plan of Risk Management concurrently filed by the Directors of the Excess Insurance Fund pursuant to 18 Del.C. 405(f)(1).

6.4 "Natural affinity", within the meaning of 18 Del.C. 405(a) means a similarity among employers of loss ratios or duties performed by employees, or occupational exposure of employees, or any combination of the foregoing.

6.5 The Directors of the Private Entity Joint Insurance Fund are subject to and shall operate in compliance with the provisions of the present and future regulations of the Delaware Insurance Department.

6.6 18 Del.C. 405(a) governs creation of a Private Entity Joint Insurance Fund from private entities having a facility within local units of government which have joined the Public Entity Joint Insurance Fund. Subsequent withdrawal by the local unit of government does not affect the private entity's membership in the Private Entity Joint Insurance Fund, but new private entities within the jurisdiction of a local unit of government which has withdrawn from the Public Entity Joint Insurance Fund may not become members of the Private Entity Joint Insurance Fund.

7.0 Excess Insurance Pools

7.1 The Commissioner has prepared the Bylaws of the Excess Insurance Fund dated November 6, 1992 ("Excess Bylaws"). Each participating Joint Insurance Fund has, by resolution, adopted the Excess Bylaws. The Excess Bylaws are hereby adopted, and the Directors of the Excess Insurance Fund are hereby granted the powers and authority conferred on them by the Excess Bylaws. This Regulation by the Insurance Department exercises the powers conferred by 18 Del.C. 406(c)(1).

7.2 The Insurance Department hereby grants the Directors the power to invest the funds, including worker's compensation funds, utilizing prudent casualty and surety insurance company investment practices.

7.3 The Insurance Commissioner hereby approves the Bylaws and Plan of Risk Management concurrently filed by the Directors of the Excess Insurance Fund pursuant to 18 Del.C. 406(f)(1).

7.4 The Directors of the Excess Insurance Fund are subject to and shall operate in compliance with the provisions of the present and future regulations of the Delaware Insurance Department.

8.0 Inconsistent Regulations Repealed

8.1 In the event of conflict between this regulation and any prior regulation regulating the Delaware Insurance Authority, this regulation shall prevail and the inconsistent regulation is hereby repealed.

9.0 Purchase of Commercial Direct Insurance

9.1 For all Funds, the procedure for the purchase of commercial direct insurance or excess insurance is the procedure established by the Authority.


Last Updated: November 07 2014 16:15:06.
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