Section 4905 - Mutual insurers - Initial qualifications(a) When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance listed in the schedule contained in subsection (b) below.(b) When applying for an original certificate of authority, the insurer must be otherwise qualified therefor under this title and must have received and accepted bona fide applications as to substantial insurable subjects for insurance coverage of a substantial character of the kind of insurance proposed to be transacted, must have collected in cash the full premium therefor at a rate not less than that usually charged by other insurers for comparable coverages, must have surplus funds on hand and deposited as of the date such insurance coverages are to become effective or, in lieu of such applications, premiums and surplus, may deposit and thereafter maintain surplus, all in accordance with that part of the following schedule which applies to the 1 kind of insurance the insurer proposed to transact: | (A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) |
| Kind of Ins. | Min. No. Apps. Accepte | Min. No Subjects Covered | Minimum Premium Collected | Minimum Amt. Ins. Ea. Subj. | Max. Amt. Ins. Ea. Subject | Deposit Min. Surplus Fund | Deposit Surplus in lieu |
| Life(i) | 500 | 500 | Annual | $2,000 | $5,000 | $100,000 | $200,000 |
| Health(ii) | 500 | 500 | Quarterly | $ 25 | $ 50 | $100,000 | $200,000 |
| | | | (weekly indem.) | (weekly indem.) | Subjects | Covered |
| | | | | |
| Property (iii) | 100 | 250 | Annual | $3,000 | $ 7,000 | $100,000 | $200,000 |
| | | | | | |
| Casualty (iv) | 250 | 250 | Annual | $5,000 | $25,000 | $200,000 | $300,000 |
| | | | | | |
Expendable surplus: In addition to surplus deposited and thereafter to be maintained as shown in columns (G) or (H) above, the insurer when first authorized must have on hand surplus funds, which it can thereafter expend in the conduct of its business, in amount not less than 50% of the applicable deposited and maintained surplus required of it under the above schedule. The following provisos are respectively applicable to the foregoing schedule and provisions as indicated by like Roman numerals appearing in such schedule:
(i) No group insurance or term policies for terms of less than 10 years shall be included.(ii) No group, blanket or family plans of insurance shall be included. In lieu of weekly indemnity a like premium value in medical, surgical and hospital benefits may be provided. Any accidental death or dismemberment benefit provided shall not exceed $5,000.(iii) Only insurance of the owner's interest in real property may be included.(iv) Insurance of legal liability for bodily injury and property damage, to which the maximum and minimum insured amounts apply, must be included.(v) The maximums provided for in column (F) are the net of applicable reinsurance.(vi) The deposit of surplus in the amount specified in columns (G) and (H) must thereafter be maintained unimpaired. The deposit is subject to the provisions of Chapter 15 (Administration of Deposits) of this title. 18 Del. C. 1953, § 4905; 56 Del. Laws, c. 380, § 1.;