18 Del. Admin. Code § 2103-6.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 2103-6.0 - 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Entity Joint Insurance Fund, but new private entities within the jurisdiction of a local unit of government which has withdrawn from the Public Entity Joint Insurance Fund may not become members of the Private Entity Joint Insurance Fund.

18 Del. Admin. Code § 2103-6.0