Section 6902 - DefinitionsAs used in this chapter, unless the context requires otherwise:
(1) "Affiliated company" means any person (other than a natural person in that person's individual capacity) in the same corporate system as a parent, an industrial insured, or an association member by virtue of common ownership, control, operation, or management.(2) "Agency captive insurance company" shall mean an insurance company described in paragraphs (2)a. and b. of this section:a. An insurance company that is owned or controlled by an insurance agency, brokerage or reinsurance intermediary, or an affiliate thereof, or under common ownership or control with such agency, brokerage or reinsurance intermediary, and that only insures the risks of insurance or annuity contracts placed by or through such agency, brokerage or reinsurance intermediary; orb. An insurance company that is owned or controlled by a marketer or producer of service contracts and/or warranties, and that only insures or reinsures the contractual liability arising out of such service contracts or warranties sold through such marketer or producer.c. For the purposes of this paragraph (2), "common ownership or control" shall mean ownership of 10 percent or more of the voting securities of a person or such other form of ownership or control as the Commissioner may approve.(3) "Alien" means formed under the laws of any country or jurisdiction other than the United States of America or any of its states, districts, commonwealths and possessions.(4) "Alien captive insurance company" means any captive insurance company formed to write insurance business of a nature that the Commissioner determines is otherwise permissible under this chapter and is licensed pursuant to the laws of an alien jurisdiction which imposes statutory or regulatory standards in a form acceptable to the Commissioner on companies transacting the business of insurance in such jurisdiction.(5) "Association" means any legal association of persons that has been in continuous existence for at least 1 year or such lesser period of time approved by the Commissioner, the association members of which, or which does itself, whether or not in conjunction with some or all of the association members:a. Directly or indirectly, own, control or hold with power to vote all of the outstanding voting securities or other voting interests of, or have complete voting control over, an association captive insurance company; or b. Constitute all of the subscribers of an association captive insurance company organized as a reciprocal insurer.(6) "Association captive insurance company" means any captive insurance company that insures risks of the association members of the association and any of their affiliated companies.(7) "Association member" means any person that belongs to an association.(8) "Branch business" means any insurance business transacted by a branch captive insurance company in this State.(9) "Branch captive insurance company" means any foreign captive insurance company or alien captive insurance company that has been issued a certificate of authority by the Commissioner to transact the business of insurance in this State through a business unit with a principal place of business in this State, and has not otherwise been issued a certificate of authority by the Commissioner to transact insurance under this chapter.(10) "Branch operations" means any business operations of a branch captive insurance company in this State.(11) "Capital and surplus" means the amount by which the value of all of the assets of the captive insurance company exceeds all of the liabilities of the captive insurance company, as determined under the method of accounting utilized by the captive insurance company in accordance with the applicable provisions of this chapter.(12) "Captive insurance company" means any pure captive insurance company, association captive insurance company, agency captive insurance company, sponsored captive insurance company, industrial insured captive insurance company, special purpose captive insurance company, special purpose financial captive insurance company, series captive insurance company, or risk retention group, whether domestic, foreign or alien, or branch captive insurance company, licensed under the provisions of this chapter.(13) "Commissioner" means the Insurance Commissioner of this State.(14) "Controlled unaffiliated business" means any person (other than a natural person in that natural person's individual capacity): a. That is not in the corporate system of a parent and its affiliated companies;b. That has an existing contractual relationship with such parent or any such affiliated company; andc. Whose risks are managed by a pure captive insurance company in accordance with § 6919 of this title.(15) "Department" has the meaning given such term in § 102(5) of this title.(16) "Domestic" means formed under the laws of this State.(17) "Dormant captive insurance company" means a captive insurance company which meets all of the following criteria for a continuous 12-month period:a. The company did not do all of the following: 1. Contract for, or collect, any direct premium.2. Contract for, or assume, any reinsurance premium.b. The company was not obligated as an insurance company of any type under any contract of insurance or reinsurance issued or entered into during any year in which it is a dormant captive insurance company.c. The company has provided written notice to the Commissioner of its intention to be treated as a dormant captive insurance company and certifies to the matters set forth in paragraphs (17)a. and b. of this section.(18) "Excess workers' compensation insurance" means, in the case of an employer that has insured its workers' compensation risks in accordance with applicable law, insurance in excess of a specified per-incident or aggregate limit established by the Commissioner. Notwithstanding the foregoing, the per-incident and aggregate limit to be utilized by the Commissioner in establishing the excess workers compensation threshold for employers that are authorized under applicable law to self insure their workers compensation risks shall be $0.00.(19) "Foreign" means formed under the laws of any state.(20) "Industrial insured" means an insured:a. Who procures the insurance of any risk or risks by use of the services of a full-time employee acting as an insurance manager or buyer; b. Whose aggregate annual premiums for insurance on all risks total at least $25,000; andc. Who has at least 25 full-time employees.(21) "Industrial insured captive insurance company" means any captive insurance company that insures risks of the industrial insureds that comprise the industrial insured group and any of their affiliated companies. (22) "Industrial insured group" means any group of industrial insureds that collectively: a. Directly or indirectly, own, control, or hold with power to vote all of the outstanding voting securities or other voting interests of, or have complete voting control over, an industrial insured captive insurance company; orb. Constitute all of the subscribers of an industrial insured captive insurance company organized as a reciprocal insurer.(23) "Insurance" has the meaning given such term in § 102(2) of this title.(24) "Insurer" has the meaning given such term in § 102(3) of this title.(25) "Mutual insurer" has the meaning given such term in § 502 of this title. A captive insurance company incorporated as a nonstock corporation, in which the policyholders are the members, is a mutual insurer.(26) "Parent" means a person that directly or indirectly owns, controls, or holds with power to vote more than 50 percent of the outstanding voting securities or other voting interests of a pure captive insurance company.(27) "Person" means a natural person, partnership (whether general or limited), trust, estate, association, corporation, limited liability company, statutory trust, business trust, custodian, nominee or any other individual or entity in its own or any representative capacity, in each case whether domestic, foreign, or alien.(28) "Protected cell" has the meaning given such term in § 6932(3) of this title.(29) "Pure captive insurance company" means a captive insurance company that insures risks of 1 or more of the following: b. Its parent's affiliated companies.c. A controlled unaffiliated business.(30) "Reciprocal insurer" has the meaning given such term in § 503 of this title.(31) "Risk retention group" means a risk retention group formed pursuant to the Liability Risk Retention Act of 1986, 15 U.S.C. § 3901 et seq., as amended.(32) "Series" means a series established under §§ 17-218(b), 18-215(b), or 18-218 of Title 6, § 3804 (a) of Title 12, or corresponding law of another state.(33) "Series captive insurance company" means a series which has received a certificate of authority pursuant to this chapter.(34) "Special purpose captive insurance company" means any person that is licensed under this chapter and designated as a special purpose captive insurance company by the Commissioner.(35) "Special purpose financial captive insurance company" means a captive insurance company that is granted a certificate of authority under subchapter III of this chapter of this title.(36) "Sponsored captive insurance company" has the meaning given such term in § 6932(5) of this title.(37) "State" means the State of Delaware, and "state" means any other state, district, commonwealth or possession of the United States of America.(38) "Transacting insurance" has the meaning given such term in § 103 of this title.Amended by Laws 2021, ch. 50,s 1, eff. 6/15/2021.Amended by Laws 2017, ch. 148,s 1, eff. 8/30/2017.Amended by Laws 2015, ch. 46,s 3, eff. 6/24/2015.64 Del. Laws, c. 454, §1; 70 Del. Laws, c. 186, § 1; 75 Del. Laws, c. 150, § 1; 76 Del. Laws, c. 161, § 1; 77 Del. Laws, c. 252, §§ 1 - 4.;