Terms Used In Delaware Code > Title 18 > Chapter 69 > Subchapter I - General Provisions

• 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 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.
• 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
• 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}
• 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
• 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
• 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
• Commissioner: means the Insurance Commissioner of this State. See Delaware Code Title 18 Sec. 6902
• 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
• Contract: A legal written agreement that becomes binding when signed.
• 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

• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Department: has the meaning given such term in § 102 of this title. See Delaware Code Title 18 Sec. 6902
• Domestic: means formed under the laws of this State. See Delaware Code Title 18 Sec. 6902
• 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

• 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}
• 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.
• 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
• Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
• 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

• 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
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• 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.
• Lien: A claim against real or personal property in satisfaction of a debt.
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• 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.
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• 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
• 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.
• 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.
• Protected cell: has the meaning given such term in § 6932(3) of this title. See Delaware Code Title 18 Sec. 6902
• 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

• 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}
• 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
• 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 subchapter III of this chapter of this title. See Delaware Code Title 18 Sec. 6902
• Sponsored captive insurance company: has the meaning given such term in § 6932(5) of this title. See Delaware Code Title 18 Sec. 6902
• State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 1 Sec. 302
• 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
• Subpoena: A command to a witness to appear and give testimony.
• Trustee: A person or institution holding and administering property in trust.
• United States: includes its territories and possessions and the District of Columbia. See Delaware Code Title 1 Sec. 302
• Year: means a calendar year, and is equivalent to the words "year of our Lord. See Delaware Code Title 1 Sec. 302