Section 511 - Capital funds required(a) To transact any 1 kind of insurance (as defined in Chapter 9 of this title), or combinations of kinds of insurance as shown below, an insurer shall possess and thereafter maintain in cash or cash equivalents unimpaired paid-in capital stock (if a stock insurer) or a capital account (if an insurance department or division of a corporation established under Chapter 7 or regulated under Chapter 9 of Title 5) or unimpaired basic surplus (if a foreign mutual or a reciprocal insurer), and when first so authorized shall possess and maintain free surplus, all in amounts not less than as follows: Kind or kinds of insurance Stock insurers | | Mutual Insurers | | Reciprocal insurers | |
Capital stock | | Free surplus | Basic surplus | | Free surplus | Basic surplus | | Free surplus |
Life | | | | | |
| | | | &.. | &.. |
$650,000 | $350,000 | $650,000 | $350,000 | | |
Health | | | | | |
| | | | | |
$650,000 | $350,000 | $650,000 | $350,000 | $650,000 | $350,000 |
Life & health | | | | | |
| | | | &.. | &.. |
$650,000 | $350,000 | $650,000 | $350,000 | | |
Property | | | | | |
| | | | | |
$650,000 | $350,000 | $650,000 | $350,000 | $650,000 | $350,000 |
Casualty | | | | | |
| | | | | |
$650,000 | $350,000 | $650,000 | $350,000 | $650,000 | $350,000 |
Marine & transportation | | | | | |
| | | | | |
$650,000 | $350,000 | $650,000 | $350,000 | $650,000 | $350,000 |
Surety | | | | | |
| | | | | |
$650,000 | $350,000 | $650,000 | $350,000 | $650,000 | $350,000 |
Multiple line | | | | | |
| | | | | |
$650,000 | $350,000 | $650,000 | $350,000 | $650,000 | $350,000 |
Title | | | | | |
| | &.. | &.. | &.. | &.. |
$650,000 | $350,000 | | | | |
Except:
(1) A domestic insurer holding a valid certificate of authority to transact insurance in this State immediately prior to January 1, 2024, may, if otherwise qualified therefor, for a period of 5 years after such date continue to be so authorized while possessing paid-in capital stock (if a stock insurer) or surplus (if a mutual insurer) as required for such authority immediately prior to such date. The Commissioner shall not authorize such an insurer to transact any other kinds of insurance unless it then complies with the requirements as to capital and surplus, as applied to all kinds of insurance it then proposes to transact, as provided by this title as to foreign insurers applying for original certificates of authority under this title.(2) An insurer which otherwise possesses funds as required under this subsection (a) above, shall at all times maintain policyholders' surplus (combined paid-in capital stock, if any, and surplus) reasonable in amount, as determined by the Commissioner, in relation to the kinds and amount of insurance it has in force, or being written and retained by it, net of applicable reinsurance. In making any such determination the Commissioner shall give due consideration to any applicable standards approved or adopted by the National Association of Insurance Commissioners and to the desirability of substantial uniformity as to such requirements among the respective states. In no event shall an insurer's surplus be less than the amount set forth under subsection (a) of this section. (b) Capital and surplus requirements are based upon all the kinds of insurance transacted by the insurer in any and all areas in which it operates or proposes to operate, whether or not only a portion of such kinds is to be transacted in this State.(c) As to surplus required for authority to transact one or more kinds of insurance and thereafter to be maintained, domestic mutual insurers shall be governed by Chapter 49 of this title.Amended by Laws 2023, ch. 34,s 1, eff. 5/25/2023.18 Del. C. 1953, § 511; 56 Del. Laws, c. 380, § 1; 67 Del. Laws, c. 223, § 19; 68 Del. Laws, c. 70, § 1.;