Terms Used In Delaware Code > Title 18 > Chapter 69 - Captive Insurance Companies

• 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. See Delaware Code Title 18 Sec. 6902
• Agency captive insurance company: shall mean an insurance company described in paragraphs (2)a. See Delaware Code Title 18 Sec. 6902
• 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. See Delaware Code Title 18 Sec. 6902
• Alien captive insurance company: means any 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. See Delaware Code Title 18 Sec. 6972
• 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. See Delaware Code Title 18 Sec. 6902
• Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
• Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
• Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
• Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• 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. See Delaware Code Title 18 Sec. 6902

• 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. See Delaware Code Title 18 Sec. 6902
• Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
• Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. ^{Source: OCC}
• Bonds: means any bonds, interim certificates, notes, debentures or other obligations of a company issued under this chapter. See Delaware Code Title 22 Sec. 1302
• Branch business: means any insurance business transacted by a branch captive insurance company in this State. See Delaware Code Title 18 Sec. 6972
• Branch captive insurance company: means any 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. See Delaware Code Title 18 Sec. 6972
• 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. See Delaware Code Title 18 Sec. 6902
• Branch operations: means any business operations of a branch captive insurance company in this State. See Delaware Code Title 18 Sec. 6972
• 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. See Delaware Code Title 18 Sec. 6902
• Capital stock: means common or preferred stock or any hybrid security or other equity security issued by a converted stock insurer or other company or entity pursuant to the exercise of subscription rights granted pursuant to the provisions of § 4975(a)(3) of this title. See Delaware Code Title 18 Sec. 4972
• 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. See Delaware Code Title 18 Sec. 6902
• Codicil: An addition, change, or supplement to a will executed with the same formalities required for the will itself.
• Commissioner: means the State Bank Commissioner. See Delaware Code Title 5 Sec. 2701
• Commissioner: means the Insurance Commissioner of this State. See Delaware Code Title 18 Sec. 4972
• Commissioner: means the Insurance Commissioner of this State. See Delaware Code Title 18 Sec. 6902
• Committee: means the Cabinet Committee on State Planning Issues established pursuant to § 9101 of Title 29. See Delaware Code Title 22 Sec. 1902
• 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. See Delaware Code Title 18 Sec. 6902
• Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
• Continuance: Putting off of a hearing ot trial until a later time.
• Contracting municipality: means a municipality which contracts to establish an electric company under this chapter. See Delaware Code Title 22 Sec. 1302
• Controlled unaffiliated business: means any person (other than a natural person in that natural person's individual capacity):

  a. See Delaware Code Title 18 Sec. 6902

• Converted stock company: means a stock insurer that converted from a mutual insurer under this chapter, or under the laws of any other jurisdiction, or any successor thereto provided that not less than a majority of the shares of voting stock of such successor are owned by a mutual holding company. See Delaware Code Title 18 Sec. 4972
• Conviction: A judgement of guilt against a criminal defendant.
• Counterparty: means a person, other than a natural person, which may but need not be the parent or an affiliate of the special purpose financial captive insurance company, that enters into an SPFC contract with a special purpose financial captive insurance company. See Delaware Code Title 18 Sec. 6952
• Decedent: A deceased person.
• Deed: The legal instrument used to transfer title in real property from one person to another.
• Department: means the Department of Insurance of this State. See Delaware Code Title 18 Sec. 4972
• Department: has the meaning given such term in § 102 of this title. See Delaware Code Title 18 Sec. 6902
• district: means an area within a municipality or unincorporated area designated as a Downtown Development District in accordance with the provisions of this chapter. See Delaware Code Title 22 Sec. 1902
• District plan: means the strategic plan or other detailed description of the overall strategy for the development of a proposed district submitted by the municipality or unincorporated area as part of its application for district designation. See Delaware Code Title 22 Sec. 1902
• Domestic: means formed under the laws of this State. See Delaware Code Title 18 Sec. 6902
• Domestic mutual company: means a mutual insurer domiciled in this State. See Delaware Code Title 18 Sec. 4972
• Dormant captive insurance company: means a captive insurance company which meets all of the following criteria for a continuous 12-month period:

  a. See Delaware Code Title 18 Sec. 6902

• Downtown: means that portion of a city, town, or unincorporated area that traditionally comprises its downtown or central business district, as determined by such city, town, or unincorporated area in accordance with guidelines promulgated by the Office. See Delaware Code Title 22 Sec. 1902
• DSHA: means the Delaware State Housing Authority. See Delaware Code Title 22 Sec. 1902
• Eligible member: means a member of a mutual company whose policy is in force on the date the mutual company's governing body adopts a plan of conversion or such earlier date as the mutual company may establish with the consent of the Commissioner. See Delaware Code Title 18 Sec. 4972
• Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. ^{Source: U.S. Courts}
• Escrow: Money given to a third party to be held for payment until certain conditions are met.
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Executor: A male person named in a will to carry out the decedent
• Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
• Fiduciary: A trustee, executor, or administrator.
• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• Foreign: means formed under the laws of any state. See Delaware Code Title 18 Sec. 6902
• Foreign mutual insurer: means a mutual insurer domiciled in a jurisdiction other than this State. See Delaware Code Title 18 Sec. 4972
• Fraud: Intentional deception resulting in injury to another.
• Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
• Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. ^{Source: OCC}
• Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
• Income: means all income from whatever source derived including, but not limited to, realized capital gains and, in their entirety, pension, annuity, retirement and social security benefits. See Delaware Code Title 22 Sec. 1001
• Industrial insured: means an insured:

  a. See Delaware Code Title 18 Sec. 6902

• 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. See Delaware Code Title 18 Sec. 6902
• Industrial insured group: means any group of industrial insureds that collectively:

  a. See Delaware Code Title 18 Sec. 6902

• Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
• Insurance: has the meaning given such term in § 102 of this title. See Delaware Code Title 18 Sec. 6902
• Insurer: has the meaning given such term in § 102 of this title. See Delaware Code Title 18 Sec. 6902
• Joint tenancy: A form of property ownership in which two or more parties hold an undivided interest in the same property that was conveyed under the same instrument at the same time. A joint tenant can sell his (her) interest but not dispose of it by will. Upon the death of a joint tenant, his (her) undivided interest is distributed among the surviving joint tenants.
• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Licensed casher of checks: means any individual, partnership, unincorporated association or corporation duly licensed by the State Bank Commissioner to engage in business pursuant to this chapter. See Delaware Code Title 5 Sec. 2701
• Licensee: means a licensed casher of checks, drafts or money orders. See Delaware Code Title 5 Sec. 2701
• Lien: A claim against real or personal property in satisfaction of a debt.
• Limited station: means that the licensee is authorized to carry on the licensee's business of cashing checks for the employees of a single and particular business or office, and at a single location at or near such particular business or office site. See Delaware Code Title 5 Sec. 2701
• Mobile unit: means any vehicle or other movable means from which the business of cashing checks, drafts or money orders is to be conducted. See Delaware Code Title 5 Sec. 2701
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• Municipal electric company: means a public corporation created by contract between 2 or more municipalities under this chapter. See Delaware Code Title 22 Sec. 1302
• Municipality: means any incorporated town or city of this State. See Delaware Code Title 22 Sec. 1902
• Municipality: means any incorporated town or city of this State. See Delaware Code Title 22 Sec. 1001
• Municipality: means a city or town. See Delaware Code Title 22 Sec. 1302
• Mutual company: means a mutual insurer that is seeking to convert to a stock insurer under this chapter, including a captive insurance company (notwithstanding § 6916 of this title) that is incorporated as a nonstock corporation and including a foreign mutual insurer that has applied to redomesticate to this State with an intent to file an application to convert from mutual to stock form under this chapter. See Delaware Code Title 18 Sec. 4972
• Mutual holding company: means :

  1. See Delaware Code Title 18 Sec. 4972

• Mutual insurer: has the meaning given such term in § 502 of this title. See Delaware Code Title 18 Sec. 6902
• Oath: includes affirmation in all cases where an affirmation may be substituted for an oath, and "sworn" includes affirmed; and the forms shall be varied accordingly. See Delaware Code Title 1 Sec. 302
• Oath: A promise to tell the truth.
• Office: means the Office of State Planning Coordination. See Delaware Code Title 22 Sec. 1902
• 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. See Delaware Code Title 18 Sec. 6902
• Participant: means any person, including any counterparty as defined in § 6952(1) of this title, that is insured by a sponsored captive insurance company, where the losses of the participant are limited through a participant contract to the participant's pro rata share of the assets of 1 or more protected cells identified in the participant contract. See Delaware Code Title 18 Sec. 6932
• Participant contract: means a contract by which a sponsored captive insurance company insures the risks of 1 or more participants, and limits the losses of each participant to its pro rata share of the assets of 1 or more protected cells identified in the participant contract, including an SPFC contract as defined in § 6952 of this title. See Delaware Code Title 18 Sec. 6932
• Participating policy: means a policy that grants a holder the right to receive dividends if, as and when declared by the mutual company. See Delaware Code Title 18 Sec. 4972
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Permitted investments: means those investments that meet the qualifications set forth in § 6910(b) of this title. See Delaware Code Title 18 Sec. 6952
• Person: means an individual, a corporation, a limited liability company, a partnership, an association, a joint stock company, a trust, an unincorporated organization, a similar entity, or a combination of the foregoing acting in concert. See Delaware Code Title 18 Sec. 4972
• Person: means a natural person, a public agency, cooperative or private corporation, association, firm, statutory trust, partnership or business trust of any nature whatsoever, organized and existing under the laws of any state or of the United States. See Delaware Code Title 22 Sec. 1302
• 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. See Delaware Code Title 18 Sec. 6902
• Personal property: All property that is not real property.
• plan: means a plan adopted by a mutual company's governing body to convert the mutual company into a stock company in accordance with the requirements of this chapter. See Delaware Code Title 18 Sec. 4972
• Policy: means an insurance policy, including an annuity contract. See Delaware Code Title 18 Sec. 4972
• Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
• Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.
• Project: means any plant, works, system, facilities and real and personal property of any nature whatsoever, together with all parts thereof and appurtenances thereto, used or useful in the generation, production, transmission, distribution, purchase, sale, exchange or interchange of electric power and energy, or any interest therein or right to capacity thereof and the acquisition of fuel of any kind for any such purposes, including, but not limited to, the acquisition of fuel deposits and the acquisition or construction and operation of facilities for extracting fuel from natural deposits, for converting it for use in another form, for burning it in place, for transportation, storage and reprocessing or for any energy conservation measure which involves public education or the actual fitting and application of a device. See Delaware Code Title 22 Sec. 1302
• Protected cell: means a separate and distinct account established and maintained by or on behalf of a sponsored captive insurance company in which assets, including assets invested pursuant to § 6937 of this title, are accounted for and recorded for 1 or more participants in accordance with the terms of 1 or more participant contracts to fund the liability of the sponsored captive insurance company assumed on behalf of the participants as set forth in the participant contracts. See Delaware Code Title 18 Sec. 6932
• Protected cell: has the meaning given such term in § 6932(3) of this title. See Delaware Code Title 18 Sec. 6902
• Public agency: means any municipality or other municipal corporation, political subdivision, government unit or public corporation created under the laws of this State or of another state or of the United States, and any state or the United States, and any person, board or other body declared by the laws of any state or the United States to be a department, agency or instrumentality thereof. See Delaware Code Title 22 Sec. 1302
• Pure captive insurance company: means a captive insurance company that insures risks of 1 or more of the following:

  a. See Delaware Code Title 18 Sec. 6902

• Quorum: The number of legislators that must be present to do business.
• real property: is synonymous with the phrase "lands, tenements and hereditaments. See Delaware Code Title 1 Sec. 302
• Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
• Reciprocal insurer: has the meaning given such term in § 503 of this title. See Delaware Code Title 18 Sec. 6902
• Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. ^{Source: FDIC}
• Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
• Resident: means one legally domiciled within the municipality for the period required by this chapter. See Delaware Code Title 22 Sec. 1001
• Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
• Risk retention group: means a risk retention group formed pursuant to the Liability Risk Retention Act of 1986, 15 U. See Delaware Code Title 18 Sec. 6902
• savings bank: as used in this chapter , refers to a corporation organized under this chapter. See Delaware Code Title 5 Sec. 1601
• 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. See Delaware Code Title 18 Sec. 6902
• Series captive insurance company: means a series which has received a certificate of authority pursuant to this chapter. See Delaware Code Title 18 Sec. 6902
• Service of process: The service of writs or summonses to the appropriate party.
• 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. See Delaware Code Title 18 Sec. 6902
• Special purpose financial captive insurance company: means a captive insurance company that is granted a certificate of authority under this subchapter. See Delaware Code Title 18 Sec. 6952
• 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. See Delaware Code Title 18 Sec. 6902
• Special purpose financing transaction: means :

  1. See Delaware Code Title 18 Sec. 6952

• SPFC contract: means a contract or group of related contracts between a special purpose financial captive insurance company and a counterparty or counterparties pursuant to which insurance risk is transferred by the counterparty or counterparties to the special purpose financial captive insurance company. See Delaware Code Title 18 Sec. 6952
• Sponsor: means a person qualifying as a sponsor under § 6935 of this title. See Delaware Code Title 18 Sec. 6932
• Sponsored captive insurance company: means a captive insurance company, including a special purpose financial captive insurance company as defined in § 6952 of this title:

  a. See Delaware Code Title 18 Sec. 6932

• Sponsored captive insurance company: has the meaning given such term in § 6932(5) of this title. See Delaware Code Title 18 Sec. 6902
• Standby investor: means any person that has agreed in writing to purchase all or a portion of the capital stock to be sold in a conversion that is not subscribed by eligible members. See Delaware Code Title 18 Sec. 4972
• State: means the State of Delaware. See Delaware Code Title 23 Sec. 2112
• State: means the State of Delaware, and "state" means any other state, district, commonwealth or possession of the United States of America. See Delaware Code Title 18 Sec. 6902
• Statute: A law passed by a legislature.
• Stock company: means a stock insurer that meets all of the current requirements for admission to do business as a domestic Delaware insurer. See Delaware Code Title 18 Sec. 4972
• Subpoena: A command to a witness to appear and give testimony.
• Surplus note: means an unsecured subordinated debt obligation treated as surplus and not debt in accordance with § 6956 of this title. See Delaware Code Title 18 Sec. 6952
• Temporary restraining order: Prohibits a person from an action that is likely to cause irreparable harm. This differs from an injunction in that it may be granted immediately, without notice to the opposing party, and without a hearing. It is intended to last only until a hearing can be held.
• Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. ^{Source: OCC}
• United States: includes its territories and possessions and the District of Columbia. See Delaware Code Title 1 Sec. 302
• Voting member: means a member who is an eligible member and is also a member of the mutual insurer as of a date not more than 90 days prior to the date of the meeting at which the plan shall be voted upon by members. See Delaware Code Title 18 Sec. 4972