Delaware Code > Title 5 > Chapter 16 – Corporation Law for State Savings Banks

		Sections
Subchapter I	General Provisions	1601 – 1604
Subchapter II	Formation of a Savings Bank	1621 – 1634
Subchapter III	Conduct of Internal Corporate Affairs	1641 – 1650
Subchapter IV	Powers and Prohibitions	1661 – 1665

Terms Used In Delaware Code > Title 5 > Chapter 16 - Corporation Law for State Savings Banks

Account: means either of the 2 accounts created under § 4406 of this title. See Delaware Code Title 18 Sec. 4405
Administrator: means the Insurance Coverage Administrator, hereinafter established by § 6505 of this title. See Delaware Code Title 18 Sec. 6501
Affiliate: means a person who directly or indirectly, through 1 or more intermediaries, controls, is controlled by or is under common control with an insolvent insurer on December 31 of the year next preceding the date the insurer becomes an insolvent insurer. See Delaware Code Title 18 Sec. 4205
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
Affirmed: In the practice of the appellate courts, the decree or order is declared valid and will stand as rendered in the lower court.
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
Allegation: something that someone says happened.
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.
Appraisal: A determination of property value.
Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
Arrest: Taking physical custody of a person by lawful authority.
Association: means the Delaware Insurance Guaranty Association created under § 4206 of this title. See Delaware Code Title 18 Sec. 4205
Association: means the Delaware Life and Health Insurance Guaranty Association created under § 4406 of this title. See Delaware Code Title 18 Sec. 4405
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
Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
authorized: when used in the context of assessments, means a resolution by the board of directors has been passed whereby an assessment will be called immediately or in the future from member insurers for a specified amount. See Delaware Code Title 18 Sec. 4405
Authorized Control Level RBC: means the number determined under the risk-based capital formula in accordance with the RBC Instructions;

d. See Delaware Code Title 18 Sec. 5801
Authorized insurer: means an insurer that is authorized by the Department to write insurance under a certificate of authority issued by the Department to transact insurance in Delaware. See Delaware Code Title 18 Sec. 4153
Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
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}
Benefit contract: shall mean the agreement for provision of benefits authorized by § 6216 of this title, as that agreement is described in § 6219(a) of this title. See Delaware Code Title 18 Sec. 6204
Benefit member: shall mean an adult member who is designated by the laws or rules of the society to be a benefit member under a benefit contract. See Delaware Code Title 18 Sec. 6204
Benefit plan: means a specific employee, union or association of natural persons benefit plan. See Delaware Code Title 18 Sec. 4405
Bona fide association: means , with respect to health insurance coverage offered in Delaware, an association which:

a. See Delaware Code Title 18 Sec. 3602
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
called: when used in the context of assessments, means that a notice has been issued by the Association to member insurers requiring that an authorized assessment be paid within the time frame set forth within the notice. See Delaware Code Title 18 Sec. 4405
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
Carrier: means an entity subject to the insurance laws and regulations of this State, or subject to the jurisdiction of the Commissioner, that contracts or offers to contract to provide, deliver, arrange for, pay for or reimburse any of the costs of health-care services, including a sickness and accident insurance company, a health maintenance organization, a nonprofit hospital and health service corporation or any other entity providing a plan of health insurance, health benefits or health services. See Delaware Code Title 18 Sec. 3602
Case law: The law as laid down in cases that have been decided in the decisions of the courts.
Certificate: shall mean the document issued as written evidence of the benefit contract. See Delaware Code Title 18 Sec. 6204
Certified mail: as used in this chapter shall refer to the following as used by the postal service:

a. See Delaware Code Title 18 Sec. 3903
Chambers: A judge's office.
Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
Church plan: has the meaning given such term under § 3(33) of the Employee Retirement Income Security Act of 1974 [29 U. See Delaware Code Title 18 Sec. 3602
Claimant: means any insured making a first-party claim or any person instituting a liability claim; provided that no person who is an affiliate of an insolvent insurer may be a claimant. See Delaware Code Title 18 Sec. 4205
Commissioner: means the Insurance Commissioner of the State of Delaware. See Delaware Code Title 18 Sec. 4153
Commissioner: means the insurance supervisory authority of the State;

(2) "Consumer credit insurance" is a general term used in this chapter to refer to any or all of credit life insurance credit accident and health insurance or any other insurance specifically defined in this chapter;

(3) "Credit accident and health insurance" means insurance on a debtor or debtors to provide indemnity for payments or debt becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy;

(4) "Credit life insurance" means insurance on a debtor or debtors, pursuant to or in connection with a specific loan or other credit transaction, to provide for satisfaction of a debt, in whole or in part, upon the death of an insured debtor;

(5) "Credit transaction" means any transaction by the terms of which the repayment of money loaned or loan commitment made or payment for goods, services or properties sold or leased is to be made at a future date or dates;

(6) "Creditor" means the lender of money or vendor or lessor of goods, services or property, rights or privileges for which payment is arranged through a credit transaction or any successor to the right, title or interest of any such lender, vendor or lessor and an affiliate, associate or subsidiary of any of them or any director, officer or employee of any of them or any other person in any way associated with any of them;

(7) "Debtor" means a borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction;

(8) "Gross debt" means the sum of the remaining payments owed to the creditor by the debtor;

(9) "Identifiable charge" means a charge for a type of consumer credit insurance that is made to debtors having such insurance and not made to debtors not having such insurance; it includes a charge for insurance that is disclosed in the credit or other instrument furnished to the debtor which sets out the financial elements of the credit transaction and any difference in the finance, interest, service or other similar charge made to debtors who are in like circumstances except for the insured or noninsured status of the debtor or of the property used as security for the credit transaction; and

(10) "Open-end credit" means credit extended by a creditor under an agreement in which:

a. See Delaware Code Title 18 Sec. 3702
Commissioner: means the Commissioner of Insurance of this State. See Delaware Code Title 18 Sec. 4205
Commissioner: means the Commissioner of Insurance of this State. See Delaware Code Title 18 Sec. 4405
Commissioner: means the Insurance Commissioner. See Delaware Code Title 18 Sec. 4801
Commissioner: means the Insurance Commissioner of this State. See Delaware Code Title 18 Sec. 4972
Commissioner: shall mean the Commissioner of Insurance of this State. See Delaware Code Title 18 Sec. 6204
Commissioner: means the Insurance Commissioner of this State. See Delaware Code Title 18 Sec. 6902
Committee: means the Insurance Coverage Determination Committee, hereinafter established by § 6502 of this title. See Delaware Code Title 18 Sec. 6501
Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
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
Company Action Level RBC: means , with respect to any insurer, the product of 2. See Delaware Code Title 18 Sec. 5801
Comprehensive community forestry plan: is a document that describes how a government or other organization will manage the tree resources located on publicly owned lands within its jurisdiction. See Delaware Code Title 3 Sec. 1032
Consumer credit insurance: is a general term used in this chapter to refer to any or all of credit life insurance credit accident and health insurance or any other insurance specifically defined in this chapter;

(3) "Credit accident and health insurance" means insurance on a debtor or debtors to provide indemnity for payments or debt becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy;

(4) "Credit life insurance" means insurance on a debtor or debtors, pursuant to or in connection with a specific loan or other credit transaction, to provide for satisfaction of a debt, in whole or in part, upon the death of an insured debtor;

(5) "Credit transaction" means any transaction by the terms of which the repayment of money loaned or loan commitment made or payment for goods, services or properties sold or leased is to be made at a future date or dates;

(6) "Creditor" means the lender of money or vendor or lessor of goods, services or property, rights or privileges for which payment is arranged through a credit transaction or any successor to the right, title or interest of any such lender, vendor or lessor and an affiliate, associate or subsidiary of any of them or any director, officer or employee of any of them or any other person in any way associated with any of them;

(7) "Debtor" means a borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction;

(8) "Gross debt" means the sum of the remaining payments owed to the creditor by the debtor;

(9) "Identifiable charge" means a charge for a type of consumer credit insurance that is made to debtors having such insurance and not made to debtors not having such insurance; it includes a charge for insurance that is disclosed in the credit or other instrument furnished to the debtor which sets out the financial elements of the credit transaction and any difference in the finance, interest, service or other similar charge made to debtors who are in like circumstances except for the insured or noninsured status of the debtor or of the property used as security for the credit transaction; and

(10) "Open-end credit" means credit extended by a creditor under an agreement in which:

a. See Delaware Code Title 18 Sec. 3702
Continuance: Putting off of a hearing ot trial until a later time.
Contractual obligation: means an obligation under a policy or contract or certificate under a group policy or contract, or portion thereof, for which coverage is provided under § 4403 of this title. See Delaware Code Title 18 Sec. 4405
Control: means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services or otherwise, unless the power is the result of an official position with or corporate office held by the person. See Delaware Code Title 18 Sec. 4205
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.
Corrective order: means an order issued by the Commissioner specifying corrective actions which the Commissioner has determined are required. See Delaware Code Title 18 Sec. 5801
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
Covered claim: means an unpaid claim, including one for unearned premiums, submitted by a claimant, which arises out of and is within the coverage, and subject to the applicable limits, of an insurance policy to which this chapter applies, issued by an insurer, if such insurer becomes an insolvent insurer after July 5, 1991, and:

1. See Delaware Code Title 18 Sec. 4205
covered policy: means a policy or contract or portion of a policy or contract for which coverage is provided under § 4403 of this title. See Delaware Code Title 18 Sec. 4405
Creditable coverage: means , with respect to an individual, health benefits or coverage provided under any of the following:

a. See Delaware Code Title 18 Sec. 3602
Decedent: A deceased person.
Dental plan: means any contractual arrangement for dental services provided directly or arranged for or administered directly on a prepaid or postpaid individual or group capitation basis. See Delaware Code Title 18 Sec. 3802
Dental plan organization: means any person who undertakes to provide directly or to arrange for or administer 1 or more dental plans providing dental services. See Delaware Code Title 18 Sec. 3802
Dental services: means services included in the practice of dentistry as defined in § 1121 of Title 24. See Delaware Code Title 18 Sec. 3802
Department: means the Delaware Department of Insurance. See Delaware Code Title 18 Sec. 4153
Department: means the Delaware Department of Health and Social Services. See Delaware Code Title 18 Sec. 4004
Department: means the Department of Insurance of this State. See Delaware Code Title 18 Sec. 4972
Department: shall mean the Department of Agriculture. See Delaware Code Title 3 Sec. 1032
Department: has the meaning given such term in § 102 of this title. See Delaware Code Title 18 Sec. 6902
Dependent: means a spouse, an enrollee's child by blood or law who is less than 26 years of age and an unmarried child of any age who is medically certified as totally disabled and dependent upon the enrollee. See Delaware Code Title 18 Sec. 3602
Dismissal: The dropping of a case by the judge without further consideration or hearing. ^Source:
dollars: means lawful money of the United States. See Delaware Code Title 1 Sec. 302
Domestic: means formed under the laws of this State. See Delaware Code Title 18 Sec. 6902
domestic health organization: means a health organization domiciled in this State. See Delaware Code Title 18 Sec. 5820
Domestic insurer: means any insurance company domiciled in this State, except insurers not doing business with citizens or residents of the United States or organized or located within the United States. See Delaware Code Title 18 Sec. 5801
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
Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) ^{Source: OCC}
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
Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. ^{Source: OCC}
Enrollee: means an individual and that individual's dependents who are enrolled in a dental plan organization. See Delaware Code Title 18 Sec. 3802
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 of coverage: means any certificate, agreement or contract issued to an enrollee setting out the dental services to which the enrollee is entitled. See Delaware Code Title 18 Sec. 3802
Ex officio: Literally, by virtue of one's office.
Executor: A male person named in a will to carry out the decedent
Extracontractual claims: includes claims relating to bad faith in the payment of claims, punitive or exemplary damages, or attorneys' fees and costs. See Delaware Code Title 18 Sec. 4405
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.
Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. ^{Source: OCC}
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.
Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. ^{Source: OCC}
Foreign: means formed under the laws of any state. See Delaware Code Title 18 Sec. 6902
foreign health organization: means a health organization that is licensed to do business in this State under this title but is not domiciled in this State. See Delaware Code Title 18 Sec. 5820
Foreign insurer: means any insurance company which is licensed to do business in this State under § 516 of this title, but is not domiciled in this State. See Delaware Code Title 18 Sec. 5801
Foreign mutual insurer: means a mutual insurer domiciled in a jurisdiction other than this State. See Delaware Code Title 18 Sec. 4972
Form: means policies, contracts, riders, endorsements and applications required to be filed with the Commissioner pursuant to §§ 2712 and 6306 of this title. See Delaware Code Title 18 Sec. 3602
Fraud: Intentional deception resulting in injury to another.
Freedom of Information Act: A federal law that mandates that all the records created and kept by federal agencies in the executive branch of government must be open for public inspection and copying. The only exceptions are those records that fall into one of nine exempted categories listed in the statute. ^{Source: OCC}
Fund: means the State Self-Insurance Fund as provided for by subchapter III of this chapter. See Delaware Code Title 18 Sec. 6501
Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
Germane: On the subject of the pending bill or other business; a strict standard of relevance.
Governmental plan: has the meaning given such term under § 3(32) of the Employee Retirement Income Security Act of 1974 [29 U. See Delaware Code Title 18 Sec. 3602
Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. ^{Source: Federal Reserve}
Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. ^{Source: OCC}
Health benefit plan: means any hospital or medical expense policy or certificate, major medical expense insurance policy or certificate, any hospital or medical service plan contract, health maintenance organization or health service corporation subscriber contract or any other similar health contract subject to the jurisdiction of the Commissioner. See Delaware Code Title 18 Sec. 3602
Health insurance: means insurance permitted to be written in accordance with § 903 of this title, other than credit health insurance, and coverages written under Chapter 63 of this title, Health Service Corporations. See Delaware Code Title 18 Sec. 3602
Health insurer: includes all of the following:

a. See Delaware Code Title 18 Sec. 4004
health organization: means a health maintenance organization, limited health service organization, health service corporation, dental or vision plan, hospital, medical and dental indemnity or service corporation or other managed care organization licensed under this title. See Delaware Code Title 18 Sec. 5820
Health status-related factor: means any of the following factors:

a. See Delaware Code Title 18 Sec. 3602
Impaired insurer: means a member insurer which, after the effective date of this chapter, is not an insolvent insurer, and is placed under an order of rehabilitation or conservation by a court of competent jurisdiction. See Delaware Code Title 18 Sec. 4405
Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. ^{Source: FDIC}
Indictment: The formal charge issued by a grand jury stating that there is enough evidence that the defendant committed the crime to justify having a trial; it is used primarily for felonies.
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
Infant: means a person who has not reached the age of 18 years. See Delaware Code Title 1 Sec. 302
Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
Insolvent insurer: means an insurer licensed to transact insurance in this State, either at the time the policy was issued or when the insured event occurred, and against whom an order of liquidation with a finding of insolvency has been entered after July 5, 1991, by a court of competent jurisdiction in the state of domicile or in this State under Chapter 59 of this title and which order of liquidation has not been stayed or been the subject of a writ of supersedeas or other comparable order. See Delaware Code Title 18 Sec. 4205
Insolvent insurer: means a member insurer which after the effective date of this chapter, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency. See Delaware Code Title 18 Sec. 4405
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
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
Lawful age: means the age of 18 years or older. See Delaware Code Title 1 Sec. 302
Laws: shall mean the society's certificate of incorporation, constitution and bylaws, however designated. See Delaware Code Title 18 Sec. 6204
Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
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.
Licensee: means a premium finance company holding a license issued by the Commissioner under this chapter. See Delaware Code Title 18 Sec. 4801
Lien: A claim against real or personal property in satisfaction of a debt.
Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
Local government: shall mean a municipality, county or other political subdivision of the State or any agency thereof. See Delaware Code Title 3 Sec. 1032
Lodge: shall mean subordinate member units of the society, known as camps, courts, councils, branches or by any other designation. See Delaware Code Title 18 Sec. 6204
Mandatory Control Level RBC: means the product of . See Delaware Code Title 18 Sec. 5801
Medical care: means amounts paid for:

a. See Delaware Code Title 18 Sec. 3602
Member insurer: means any person who:

a. See Delaware Code Title 18 Sec. 4205
Member insurer: means an insurer, managed care organization, or health maintenance organization licensed or that holds a certificate of authority to transact in this State any kind of insurance, managed care organization, or health maintenance organization business for which coverage is provided under § 4403 of this title, and includes an insurer, managed care organization, or health maintenance organization whose license or certificate of authority in this State may have been suspended, revoked, not renewed or voluntarily withdrawn, but does not include:

a. See Delaware Code Title 18 Sec. 4405
minor child: means a person who has not reached the age of 18 years. See Delaware Code Title 1 Sec. 302
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
Mortgage loan: A loan made by a lender to a borrower for the financing of real property. ^{Source: OCC}
Mortgagee: The person to whom property is mortgaged and who has loaned the money.
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
NAIC: means the National Association of Insurance Commissioners. See Delaware Code Title 18 Sec. 5801
Negative trend: means , with respect to a life and/or health insurer, negative trend over a period of time, as determined in accordance with the Trend Test Calculation included in the RBC Instructions. See Delaware Code Title 18 Sec. 5801
Net direct written premiums: means direct gross premiums written in this State on insurance policies to which this chapter applies, less return premiums thereon and dividends paid or credited to policyholders on such direct business. See Delaware Code Title 18 Sec. 4205
Network plan: means health insurance coverage offered by a health carrier under which the financing and delivery of medical care including items and services paid for as medical care are provided, in whole or in part, through a defined set of providers under contract with the carrier. See Delaware Code Title 18 Sec. 3602
NFIP: means the program of flood insurance coverage and floodplain management administered under the National Flood Insurance Act of 1968 (42 U. See Delaware Code Title 18 Sec. 4153
Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
Nonpayment of premium: means failure of the named insured to discharge when due any of his or her obligations in connection with the payment of premiums on a policy or any installment of such premium, whether the premium is payable directly to the insurer or its agent or indirectly under any premium finance plan or extension of credit. See Delaware Code Title 18 Sec. 3903
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.
Ocean marine insurance: includes any form of insurance, regardless of the name, label, or marketing designation of the insurance policy, which insures against maritime perils or risks and other related perils or risks, which are usually insured against by traditional marine insurance, such as hull and machinery, marine builders risk, and marine protection and indemnity. See Delaware Code Title 18 Sec. 4205
Open-end credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.) ^{Source: OCC}
Oversight: Committee review of the activities of a Federal agency or program.
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
payment network: as used in this chapter means a nonstock member corporation incorporated under Title 8 which has 50 percent or more of its members organized as:

(1) Banks, thrifts, credit unions or other financial institutions, under the laws of this State, any other state, the laws of a foreign country, the United States of America, a territory of the United States, Puerto Rico, Guam, American Samoa or the Virgin Islands; or

(2) Organizations whose direct or indirect owners or members are financial institutions described in paragraph (1) of this section above, and which has as its principal business the provision of payment network services. See Delaware Code Title 5 Sec. 5001
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 any individual, corporation, partnership, association, governmental entity or voluntary organization. See Delaware Code Title 18 Sec. 4205
Person: means an individual, corporation, limited liability company, partnership, association, governmental body or entity or voluntary organization. See Delaware Code Title 18 Sec. 4405
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, 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.
Pine: shall mean any loblolly pine (Pinus taeda), shortleaf pine (Pinus echinata) or pond pine (Pinus serotina). See Delaware Code Title 3 Sec. 1052
Plaintiff: The person who files the complaint in a civil lawsuit.
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
Plan sponsor: means :

a. See Delaware Code Title 18 Sec. 4405
Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
Policy: means the entire contract between the insurer and the insured, including the policy riders, endorsements and the application, if attached, and also includes subscriber contracts issued by health service corporations. See Delaware Code Title 18 Sec. 3602
Policy: means any 1 or more of the following portions of an automobile insurance policy:

a. See Delaware Code Title 18 Sec. 3903
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.
Premium finance agreement: means an agreement by which an insured or prospective insured promises to pay to an insurance premium financing company the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent or broker in payment of premiums on an insurance contract together with a service charge as authorized and limited by this chapter. See Delaware Code Title 18 Sec. 4801
Premiums: means amounts or considerations (by whatever name called) received on covered policies or contracts less returned premiums, considerations and deposits and less dividends and experience credits. See Delaware Code Title 18 Sec. 4405
Premiums: shall mean premiums, rates, dues or other required contributions by whatever name known, which are payable under the certificate. See Delaware Code Title 18 Sec. 6204
Primary residential flood insurance: means an insurance policy covering losses from flood to residential property, other than commercial property, written in Delaware by any insurer authorized to do business that is not written to apply coverage in excess of the coverage provided under another flood insurance policy, whether issued by a private insurer or the National Flood Insurance Program. See Delaware Code Title 18 Sec. 4153
Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.
Property and casualty insurer: means any insurance company licensed under § 516 of this title, but shall not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers. See Delaware Code Title 18 Sec. 5801
Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
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 law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
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.
RBC instructions: means the RBC report including risk-based capital instructions adopted by the NAIC; as such, RBC instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC. See Delaware Code Title 18 Sec. 5801
RBC plan: means a comprehensive financial plan containing the elements specified in § 5803(b) of this title. See Delaware Code Title 18 Sec. 5801
RBC report: means the report required in § 5802 of this title. See Delaware Code Title 18 Sec. 5801
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.
Receivership court: means the court in the insolvent or impaired insurer's state having jurisdiction over the conservation, rehabilitation or liquidation of the member insurer. See Delaware Code Title 18 Sec. 4405
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}
Regulatory Action Level RBC: means the product of 1. See Delaware Code Title 18 Sec. 5801
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.
Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
Resident: means a person to whom a contractual obligation is owed and who resides in this State on the date of entry of a court order that determines a member insurer to be an impaired insurer or a court order that determines a member insurer to be an insolvent insurer. See Delaware Code Title 18 Sec. 4405
Right of offset: Banks' legal right to seize funds that a guarantor or debtor may have on deposit to cover a loan in default. It is also known as the right of set-off. ^{Source: OCC}
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
Rules: shall mean all rules, regulations or resolutions adopted by the supreme governing body or board of directors, which are intended to have general application to the members of the society. See Delaware Code Title 18 Sec. 6204
savings bank: as used in this chapter , refers to a corporation organized under this chapter. See Delaware Code Title 5 Sec. 1601
Secretary: shall mean the Secretary of Agriculture. See Delaware Code Title 3 Sec. 1032
Sequester: To separate. Sometimes juries are sequestered from outside influences during their deliberations.
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.
Society: shall mean fraternal benefit society, unless otherwise indicated. See Delaware Code Title 18 Sec. 6204
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 a state, the District of Columbia, Puerto Rico, or a United States possession, territory or protectorate. See Delaware Code Title 18 Sec. 4405
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.
Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
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
Structured settlement annuity: means an annuity purchased in order to fund periodic payments for a plaintiff or other claimant in payment for or with respect to personal injury suffered by the plaintiff or other claimant. See Delaware Code Title 18 Sec. 4405
subsidiaries: shall include , in addition to those such corporations where the insurer owns a majority of their stock, those corporations formed or acquired by an insurer where it owns less than a majority of such corporation's voting stock due to the laws of a foreign national which require the insurer to own less than a majority of the voting stock of such subsidiary insurance corporation if it is to operate in that nation. See Delaware Code Title 18 Sec. 1313
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.
to renew: means the issuance and delivery by an insurer of a policy superseding at the end of the policy period a policy previously issued and delivered by the same insurer, or the issuance and delivery of a certificate or notice extending the term of a policy beyond its policy period or term. See Delaware Code Title 18 Sec. 3903
Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
Total adjusted capital: means the sum of:

a. See Delaware Code Title 18 Sec. 5801
Transcript: A written, word-for-word record of what was said, either in a proceeding such as a trial or during some other conversation, as in a transcript of a hearing or oral deposition.
Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. ^{Source: OCC}
Trustee: A person or institution holding and administering property in trust.
Unallocated annuity contract: means an annuity contract or group annuity certificate which is not issued to and owned by an individual, except to the extent of any annuity benefits guaranteed to an individual by an insurer under the contract or certificate. See Delaware Code Title 18 Sec. 4405
Under age: means an age of less than 18 years. See Delaware Code Title 1 Sec. 302
Urban and community forestry: shall mean the planting, protection, care and management of trees and other related natural resources located on publicly owned lands within a city, town or municipality. See Delaware Code Title 3 Sec. 1032
Venue: The geographical location in which a case is tried.
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
Waiting period: means , with respect to an individual who is a potential participant or beneficiary in the plan, the period that must pass with respect to the individual before the individual is eligible for benefits under the terms of the plan. See Delaware Code Title 18 Sec. 3602

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Delaware Code > Title 5 > Chapter 16 – Corporation Law for State Savings Banks

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