(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 free surplus, all in amounts not less than as follows:
Except:
(1) A domestic insurer holding a valid certificate of authority to transact insurance in this State immediately prior to November 1, 1968, 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.
(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.
Structure Delaware Code
Chapter 5. AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS
§ 501. “Stock insurer” defined.
§ 502. “Mutual” insurer defined.
§ 503. “Reciprocal” insurer defined.
§ 505. Certificate of authority required.
§ 506. Exceptions to certificate of authority requirement.
§ 507. General eligibility for certificate of authority.
§ 510. Combinations of insuring powers.
§ 511. Capital funds required.
§ 512. Insuring combinations without additional capital funds.
§ 513. Deposit requirements — In general.
§ 514. Deposit requirements — Alien insurers.
§ 515. Application for certificate of authority.
§ 516. Issuance, refusal of authority; ownership of certificate.
§ 517. Authority conferred; surety insurers; certificate as evidence.
§ 518. Continuance, expiration, reinstatement of certificate of authority.
§ 519. Suspension or revocation of certificate of authority — Mandatory grounds.
§ 520. Suspension or revocation of certificate of authority — Discretionary and special grounds.
§ 521. Order and notice of suspension, revocation; effect upon agents' authority.
§ 522. Duration of suspension; insurer's obligations during suspension period; reinstatement.
§ 523. General corporation laws inapplicable to foreign insurers.
§ 524. Commissioner as process agent for certain insurers.
§ 526. Annual statement and other required filings.
§ 529. Cancellation of insurance agency contracts; arbitration.
§ 530. Emergency requirements.
§ 531. Emergency powers to regulate liability insurance cancellations and nonrenewals.
§ 533. Immunity from liability for reporting fraudulent practices.
§ 534. Location of headquarters.
§ 535. Nondisclosure of nonpublic personal information; adoption of regulations.