Fees and Taxes

Del. Code tit. 18, ch. 7
in effect

Del. Code tit. 18, § 701 Fee schedule.

Except as provided herein or otherwise by law, the Commissioner shall collect, in advance, fees, costs and miscellaneous charges as follows: (1) Insurer’s certificate of authority. a. For filing application for initial certificate of authority including all documents submitted as part of such application $1,000 b. Issuance of certificate of authority 150 c. Annual continuation 150 d. Reinstatement (§ 518 of this title) 150 e. Amendment to include or delete lines of authority 150 The fee for a duplicate or replacement certificate issued under this title shall be the same as required for an original certificate. (2) Dental plan organization license (§ 3804 of this title). a. Original license 150 b. Annual continuation 150 (3) Managed care organizations license (§ 6404 of this title). a. Original license 750 b. Annual continuation 500 (4) Fraternal associations (§ 6227 of this title). a. Original license 100 b. Renewal 100 c. Annual statement 100 (5) Insurance premium finance company (§ 4802 of this title). a. Original license 500 b. Annual continuation 500 (6) Rating organization license. a. Application for original license and issuance of license, if issued 150 b. Annual continuation 150 (7) Risk retention group. a. Initial registration 150 b. Annual continuation 150 (8) Risk purchasing group. a. Initial registration 150 b. Annual continuation 150 (9) Accredited reinsurer. a. Initial registration 150 b. Annual continuation 150 (10) Surplus lines insurer. a. Initial registration 150 b. Annual continuation 150 (11) Captive insurer. a. Application fee 300 b. Annual continuation 400 c. Processing fee for examining, investigating, and processing initial application 3,200 d. Application fee for conditional certificate of authority 100 (12) Reinsurance intermediary. a. Initial license 250 b. Annual continuation 100 (13) Solicitation permit application, filing. a. For initial financing 250 b. For subsequent filing 100 (14) Charter documents (other than those filed with application for certificate of authority). Filing amendments to certificate of incorporation, or articles of incorporation, or charter, or bylaws, or power of attorney (as to reciprocal insurers) or to other constituent documents of the insurer 10 (15) Annual statement filing of insurer 150 (16) Registration statement of insurance holding company or member of insurance holding company system, filing. a. Annual registration statement filing 100 b. Each amendment thereof 100 (17) Form A filing 1,000 (18) Copies of documents on file in the Department, ($.50 per page) minimum 5 (19) Certifying and affixing official seals 10 (20) Certified copy of insurer certificate of authority or of any license issued under this title 10 (21) Rate changes or deviations 100 (22) Service of process, acceptance. a. Against unauthorized persons and insurers under Chapter 21 of this title 25 b. Others under § 525(a) of this title 25 (23) “Insurance producer,” “limited line credit insurance producer,” and “limited lines producer,” (all as defined in § 1702 of this title). a. Initial license (resident and nonresident) 125 b. Resident license renewal (due biennially February 28 in even years beginning February 28, 2004) 125 c. Resident insurance producers, limited line credit insurance producers, and limited lines producers initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (23)b of this section. d. Nonresident license renewal (due biennially February 28 in odd years beginning February 28, 2003) 125 e. Nonresident producers, nonresident limited line credit insurance producers, and nonresident limited lines producers initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (23)d. of this section. f. One-time appointment of insurance producer, limited line credit insurance producer, and limited lines producer (§ 1715 of this title), each insurer 50 (24) Amendments to license issued under Chapter 17 of this title 50 (25) Surplus lines broker (§ 1912 of this title): a. Initial license (resident and nonresident) 275 b. Resident license renewal (due biennially February 28 in even years beginning February 28, 2004) 225 c. Resident surplus lines brokers initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (25)b. of this section. d. Nonresident license renewal (due biennially February 28 in odd years beginning February 28, 2003) 225 e. Nonresident surplus lines brokers initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (25)d. of this section. (26) Fraternal representative (§ 1702(g) of this title): a. Initial license (resident and nonresident) 125 b. Resident license renewal (due biennially February 28 in even years beginning February 28, 2004) 125 c. Resident fraternal representatives initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (26)b. of this section. d. Nonresident license renewal (due biennially February 28 in odd years beginning February 28, 2003) 125 e. Nonresident fraternal representatives initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (26)d. of this section. f. One-time appointment of fraternal representative (§ 1715 of this title), each society or association 50 (27) Adjuster (§ 1702(a) of this title): a. Initial license (resident and nonresident) 125 b. Resident license renewal (due biennially February 28 in even years beginning February 28, 2004) 125 c. Resident adjusters initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (27)b. of this section. d. Nonresident license renewal (due biennially February 28 in odd years beginning February 28, 2003) 125 e. Nonresident adjusters initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (27)d. of this section. (28) Motor vehicle appraiser (§ 1702(c) of this title): a. Initial license (resident and nonresident) 125 b. Resident license renewal (due biennially February 28 in even years beginning February 28, 2004) 125 c. Resident motor vehicle appraisers initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (28)b. of this section. d. Nonresident license renewal (due biennially February 28 in odd years beginning February 28, 2003) 125 e. Nonresident motor vehicle appraisers initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (28)d. of this section. (29) Apprentices (§ 1702(d) of this title) and temporary insurance producer (§ 1711 of this title): License (initial) 75 (30) “Viatical settlement provider” and “viatical settlement broker” (§ 7502 of this title): a. Initial license (resident and nonresident) 275 b. License renewal (due annually February 28) 275 c. Viatical settlement providers and brokers initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific renewal period referenced in paragraph (30)b. of this section. d., e. [Repealed] (31) Business entity (insurance agency, § 1702(f) of this title): a. Initial license (resident and nonresident) 125 b. Resident license renewal (due biennially February 28 in even years beginning February 28, 2004) 125 c. Resident business entities initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (31)b. of this section. d. Nonresident license renewal (due biennially February 28 in odd years beginning February 28, 2003) 125 e. Nonresident business entities initially licensed within 90 days prior to the renewal deadline of February 28 (December 1-February 28) are not subject to the renewal fee for that specific biennial renewal period referenced in paragraph (31)d. of this section. (32) Vending machine, each year 100 (33) Examination of insurer, see § 322 of this title. (34) Form, advertising and/or rule filings for each insurance policy or annuity contract or application 150 (35) Bail agent, initial and renewal: Bail agent 225 (36)a. For initial licensing of a discount medical plan organization: 525 b. For renewal of discount medical plan organization license: 275 (37) Limited lines travel insurance producers (that are registering travel retailers under Chapter 17B of this title): a. For initial licensing of a limited lines travel insurance producer: 1,025 b. For renewal of a limited lines travel insurance producer license: 525 c. Licensing periods, renewal dates, and appointments for limited lines travel insurance producers are subject to paragraph (23) of this section. (38) Reciprocal jurisdiction reinsurer registration. a. Initial registration 1,000 b. Annual continuation 1,000 (39) Certified reinsurer registration. a. Initial registration 1,000 b. Annual continuation 1,000 (40) Third-party administrator certificate of authority. a. For filing application for initial certificate of authority including all documents submitted as part of an application 500 b. Issuance of a certificate of authority 100 c. Reinstatement of certificate of authority 100 d. Amendment of certificate of authority 100 e. Duplicate or replacement certificate 500 (41) Vehicle rental company limited lines producer license (§ 2006 of this title), each year 325 (42) Portable electronic device vendor limited lines license (§ 2057 of this title). a. Initial license 1025 b. License renewal 525 The increase in fees collected in Fiscal Year 2018 pursuant to this section shall be used solely to make appropriations for certain grants-in-aid for the fiscal year ending June 30, 2018.

Del. Code tit. 18, § 702 General premium tax; underwriting profits tax.

(a) Each authorized insurer and each formerly authorized insurer shall file with the Commissioner, on or before March 1 each year a report in form as prescribed by the Commissioner showing, except with respect to wet marine and transportation insurance, gross direct premium income, including policy, membership and other fees, assessments and all other considerations for insurance received by it during the next preceding calendar year on account of insurance contracts, other than as to workers’ compensation and employer’s liability, covering property, subjects or risks located, resident or to be performed in this State (with proper proportionate allocation of premiums as to such persons, property, subjects or risks in this State insured under policies covering persons, property, subjects or risks located or resident in more than 1 state), after deducting from such total direct premium income (1) the amount of returned premiums on cancelled policies (but not including the return of cash surrender values of life insurance policies) and (2) the unabsorbed portion of any deposit premium and the amount returned to policyholders as dividends and similar returns, whether paid in cash or credited or applied in reduction of premiums. The report shall be verified by the oath or affirmation of the president or secretary or other responsible officer of the insurer, duly administered by a person authorized to administer oaths. Considerations received for annuity contracts or funding agreements shall not be included in gross direct premium income or be subject to taxes imposed by this section or by § 707 of this title. Any premiums received for employer-owned life insurance policies, as defined in § 2704(e) of this title, and trust-owned life insurance policies, as defined in § 2704(c)(5) of this title, shall be itemized separately in the report, except that separate itemization for a trust-owned life insurance policy shall not be required if the insurer elects to pay tax on premiums received for such policy under paragraph (c)(1) of this section. (b) For the purpose solely of the tax upon the premiums and at the rate provided under this section, a domestic insurer shall also include in the report provided for in subsection (a) of this section above, except with respect to wet marine and transportation insurance, the gross amount of premiums and other considerations for direct insurance received by it upon insurance business written pursuant to solicitation of business by mail directed to persons located in a state or province of Canada in which the insurer is not admitted to transact insurance with respect to persons, property and subjects or risks resident, located or to be performed in such state or province and on which a premium tax is not paid or surplus line tax is not payable to such state or province and shall deduct therefrom returned premiums, unabsorbed portion of deposit premiums, dividends, and similar returns paid or credited to policyholders as provided in such subsection. (c) (1) There shall be paid a tax at the rate of 1.75% on net premiums as shown on reports required to be filed under subsection (a) of this section. (2) In lieu of paragraph (c)(1) of this section, there shall be paid a tax on a graduated basis at the rates set forth in the following table on net premiums per case for employer-owned life insurance policies, as defined in § 2704(e)(3) of this title, and trust-owned life insurance policies, as defined in § 2704(e)(4) of this title, not taxed pursuant to paragraph (c)(3) of this section. For purposes of this paragraph, a “case” is: a. All contracts issued to an employer, or a trust established by an employer or an individual, as appropriate; or b. All contracts issued to all employers or trusts that participate in a private placement under federal securities laws and/or purchase with respect to at least 25 lives policies covered by registrations under such laws. Said tax shall be paid on net premiums and other considerations received on account of insurance contracts issued for delivery in this State, except that no premium tax shall be paid with respect to persons resident or located outside of this State upon whom premium tax is paid to the State of residency or location. Net Premiums Per Case Premium Tax Rate First $10,000,000 2.0% $10,000,001 to $24,999,999 1.5% $25,000,000 to $99,999,999 1.25% $100,000,000 and over 1.0% The premium tax rate shall be calculated on the basis of net premiums (upon which taxes are payable to this State) received per case in each calendar year, except that in subsequent calendar years the premium tax rate shall not be higher than the rate established for the preceding year. A reduction in the premium tax rate for a subsequent calendar year shall not apply retrospectively to any previous calendar year. The following example illustrates calculation of the tax rates under this section: Calendar Year Premiums Per Case Tax Rate 1995 $9,000,000 2% 1996 $20,000,000 2% x $10,000,000 + 1.5% x $10,000,000 1997 $30,000,000 1.5% x $25,000,000 + 1.25% x $5,000,000 1998 $9,000,000 1.25% The tax imposed by this subsection shall be the only tax imposed by this chapter on employer-owned life insurance policies and trust-owned life insurance policies. (3) In lieu of paragraphs (c)(1) and (2) of this section, the premium tax rate shall be 2% on the first $100,000 of net premiums and 0.0% for the net premium exceeding $100,000 for trust-owned life insurance policies covering the life of an individual that participate in private placement under federal securities laws. Said tax shall be paid on net premiums and other considerations received on account of insurance contracts issued for delivery in this State, except that no premium tax shall be paid with respect to persons resident or located outside of this State upon whom premium tax is paid to the State of residency or location. The premium tax rate shall be calculated on the basis of net premiums (upon which taxes are payable to this State) received per policy in each calendar year. The tax imposed by this paragraph shall be the only tax imposed by this chapter on trust-owned life insurance policies covering the life of an individual that participate in private placement under federal securities laws. (d) The taxes imposed under this section and §§ 703, 704, and 707 of this title shall be payable as follows: Fifty percent of the estimated tax liability for the current year shall be paid on April 15 of the current year, and the balance of the estimated tax shall be paid in installments as follows: 20% on June 15 of the current taxable year; 20% on September 15 of the current taxable year; 10% on December 15 of the current taxable year; and the remaining balance to be paid on March 1 of the following year. (e) Tax on wet marine and transportation insurance underwriting profits: (1) Each authorized insurer and formerly authorized insurer shall, with respect to all wet marine and transportation insurance written within this State, pay a tax of 5% upon its taxable underwriting profit, ascertained as, hereinafter provided, from such insurance written within this State; (2) The underwriting profit on such insurance written within this State shall be that proportion of the total underwriting profit of such insurer from such insurance written within the United States which the amount of net premiums of such insurer from such insurance written within this State bears to the amount of net premiums of such insurer from such insurance written within the United States; (3) The underwriting profit of such insurer on such insurance written within the United States shall be determined by deducting from the net earned premiums on such wet marine and transportation insurance written within the United States during the taxable year, meaning thereby the calendar year next preceding the date on which such tax is due, the following items: a. Net losses incurred, meaning gross losses incurred during such calendar year under such wet marine and transportation insurance contracts written within the United States, less reinsurance claims collected or collectible and less net salvages or recoveries collected or collectible from any source applicable to the corresponding losses under such contracts; b. Net expenses incurred in connection with such wet marine and transportation insurance contracts, including all state and federal taxes in connection therewith, but in no event shall the aggregate amount of such net expenses deducted exceed 40% of the net premiums on such wet marine and transportation insurance contracts, ascertained as hereinafter provided; and c. Net dividends paid or credited to policyholders on such wet marine and transportation insurance contracts; (4) In determining the amount of such tax, net earned premiums on such wet marine and transportation insurance contracts written within the United States during the taxable year shall be arrived at as follows: From gross premiums written on such contracts during the taxable year deduct any and all return premiums, premiums on policies not taken, premiums paid for reinsurance of such contracts and net unearned premiums on all such outstanding contracts at the end of the taxable year and add to such amount net unearned premiums on such outstanding wet marine and transportation insurance contracts at the end of the calendar year next preceding the taxable calendar year; (5) In determining the amount of such tax, net expenses incurred shall be determined as the sum of the following: a. Specific expenses incurred on such wet marine and transportation insurance business, consisting of all commissions, agency expenses, taxes, licenses, fees, loss adjustment expenses and all other expenses incurred directly and specifically in connection with such business, less recoveries or reimbursements on account of or in connection with such commissions or other expenses collected or collectible because of reinsurance or from any other source; b. General expenses incurred on such wet marine and transportation insurance business, consisting of that proportion of general or overhead expenses incurred in connection with such business which the net premiums on such wet marine and transportation insurance written during the taxable year bear to the total net premiums written by such insurer from all classes of insurance written by it during the taxable year. Within the meaning of this paragraph, general or overhead expenses shall include salaries of officers and employees, printing and stationery, all taxes of this State and of the United States, except as included in subparagraph a. above, and all other expenses of such insurer not included in paragraph (e)(5)a. of this section above, after deducting expenses specifically chargeable to any or all other classes of insurance business; (6) In determining the amount of such tax, the taxable underwriting profit of such insurer on such wet marine and transportation insurance business written within this State shall be ascertained as follows: a. In the case of every such insurer which has written any such business within this State during 3 calendar years immediately preceding the year in which such taxes were payable, the taxable underwriting profit shall be determined by adding or subtracting, as the case may be, the underwriting profit or loss on all such insurance written within the United States, ascertained as hereinbefore provided, for each of such 3 years, and dividing by 3; b. In the case of every such insurer other than as specified in paragraph (e)(6)a. of this section, such taxable underwriting profit, if any, shall be the underwriting profit, if any, on such wet marine and transportation insurance business written within this State during the taxable year ascertained as hereinbefore provided; but after such insurer has written such wet marine and transportation insurance business within this State during 3 calendar years, an adjustment shall be made on the 3 year average basis by ascertaining the amount of tax payable in accordance with paragraph (e)(6)a. of this section above, but no refunds of all or any part of such payments shall be made, except as provided in § 707 of this title; (7) The tax hereinbefore provided shall be paid annually, on or before June 1, by every insurer authorized to do in this State the business of wet marine and transportation insurance during any 1 or more of the next preceding 3 calendar years, and the calendar year next preceding such June 1 shall be deemed the taxable year within the meaning of this section; (8) Every insurer liable to pay the tax hereinbefore provided under this subsection (e) shall, on or before June 1 of each year, file with the Commissioner a tax return in form prescribed by the Commissioner; (9) The tax provided for in this subsection (e) shall apply to the business of the year ending December 31, 1968, and to subsequent years, and for such purpose the underwriting profits or losses of prior years shall be taken into account, as hereinbefore provided. Section 2702 of this title and in force immediately prior to November 1, 1968, shall continue to be effective with respect to all taxes due under such section, but this provision shall not be construed as imposing any duplication of taxes for any of such years. (f) In case of any underpayment of estimated tax required by this section, there shall be added to the tax for the taxable year an amount determined at the rate of 1 1 / 2 % per month, or fraction thereof, upon the amount of the underpayment for the period of the underpayment. The period of the underpayment shall run from the date the estimated tax or installment was required to be paid to the date on which actually paid. No penalty for underpayment shall be imposed if the quarterly estimated tax payments equal 100% of the total tax due and paid for the previous tax year.

Del. Code tit. 18, § 703 Privilege tax on certain domestic insurers.

(a) Except as provided in subsection (e) of this section, a domestic insurer, other than a mutual insurer doing business on the assessment premium plan, shall pay to the Commissioner for the use of the State an annual privilege tax in the amount determined in accordance with subsections (b) and (c) of this section, due and payable at the same time as the premium tax and estimated payments as provided in § 702 of this title. The payment of such privilege tax shall accompany a form as designated and furnished by the Commissioner, together with such information required thereon relating to the provisions of this section. (b) (1) For purposes of subsection (a) of this section, the privilege tax with respect to each year shall be an amount determined in accordance with the following table, less any credits provided in subsection (c) of this section: If annual gross receipts are: The annual privilege tax shall be: Under $1,000,000 Exempt $1,000,000 to $5,000,000 $10,000 $5,000,001 to $10,000,000 $25,000 $10,000,001 to $20,000,000 $45,000 $20,000,001 to $30,000,000 $65,000 $30,000,001 to $40,000,000 $85,000 over $40,000,000 $95,000 (2) For purposes of the foregoing table and subsection (e) of this section, the “annual gross receipts” of a domestic insurance company shall consist of its net premium income and its investment income. As the terms are used herein: a. The term “net premium income” shall mean an amount determined by taking the domestic insurer’s gross direct premium income and all other considerations for insurance received by the domestic insurer on account of insurance contracts, but excluding considerations received for annuity contracts and funding agreements, and subtracting therefrom the amount of any returned premiums on cancelled policies (but not including the return of cash surrender values of life insurance policies) and the unabsorbed portion of any deposit premium and the amount returned to policyholders as dividends and similar returns, whether paid in cash or credited or applied in reduction of premiums; and b. The term “investment income” shall mean the amount shown on the line for investment income on the annual statement filed in accordance with § 526(a) of this title. (c) In determining the annual privilege tax under subsection (a) of this section, the amount of tax determined in the table provided in subsection (b) of this section shall be reduced, but with respect to domestic insurers that do not maintain their principal offices in the State to an amount not less than $15,000, by the credits with respect to such year provided in this subsection. Except as limited by subsection (d) of this section, the domestic insurer subject to tax under this section is entitled to credits against annual privilege tax liability as follows: For each $100,000 of gross salaries, wages and other compensation paid by the domestic insurer and its affiliates for employee services performed within Delaware, the domestic insurer shall be entitled to a credit of $1,500 for such year. Notwithstanding the above, any insurer which writes 50 percent or more of its total premium on property or persons residing within this State shall be exempt from application and payment of the privilege tax. (d) Domestic insurers shall not be entitled to carry-over or carry back or otherwise apply a credit to any year other than the year to which the credit originally applies. (e) In the case of domestic insurers with 1, 2 or 3 domestic insurer affiliates, only the affiliate with the largest gross receipts as defined herein shall be subject to the annual privilege tax imposed pursuant to subsection (b) of this section. Any affiliates exceeding 3 in number shall each be subject to the annual privilege tax. (f) For purposes of subsections (c) and (e) of this section, “affiliate” shall: (i) have the same meaning as provided in subchapter V of Chapter 7 of Title 5, and (ii) shall mean any corporation which is a member of a controlled group of corporations as defined in § 1563(a) of the Internal Revenue Code of 1986 (“IRC”) [26 U.S.C. § 1563(a)], without regard to subsections (a)(4) and (b)(2)(D) of IRC § 1563 [26 U.S.C. § 1563(a)(4) and (b)(2)(D)], except that “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears in IRC § 1563(a) [26 U.S.C. § 1563(a)]; provided further that “affiliate” shall also include the insurance division of a bank created pursuant to 5 Del. C. § 767(a).

Del. Code tit. 18, § 704 Tax on workers’ compensation; employer’s liability premiums.

(a) Every insurance carrier shall pay a tax upon all workers’ compensation or employer’s liability premiums received in this State or on account of business done in this State at the rate of 2% of the amount of such premiums, which tax shall be in lieu of all other taxes on such premiums. (b) The insurance carrier shall be credited with all canceled or returned premiums actually refunded during the year on such insurance and premiums on reinsurance received from other insurance carriers, except that mutual insurance companies shall be taxed upon the gross premiums charged and collected and shall not be credited with unabsorbed premiums or dividends. (c) The taxes imposed by this section shall be collected as provided in § 702(d) and (f) of this title.

Del. Code tit. 18, § 705 Reporting by insurers of gross premiums; payments to fire companies or departments and the State Insurance Coverage Office based on the Insurance Commissioner’s reports.

(a) (1) Every insurance company receiving premiums for covering risks of loss on any real or personal property within the limits of this State from fire, other allied lines, homeowners multiple peril, commercial multiple peril (nonliability portion), multiple peril crop, farmowners multiple peril, federal flood, ocean marine, inland marine, earthquake, private passenger automobile physical damage, commercial automobile physical damage and aircraft (all perils) shall annually, at the same time that the insurance company files the insurance company’s annual report as required by law, deliver to the Insurance Commissioner a full detailed statement of the amount of gross premiums of all such business done by the insurance company in the City of Wilmington, in the County of New Castle outside the City of Wilmington, in Kent County, and in Sussex County, less return and reinsurance premiums received from other companies or by any agent or agents of the insurance company, in cash or otherwise, for the year ending on the previous December 31. (2) For purposes of this section, “City of Wilmington” means the area consisting of zip codes 19801, 19802, 19805, and 19806. (3) The insurance company must include in its statement an allocation of the portion of the gross premiums coverage allocable to the City of Wilmington, the County of New Castle outside the City of Wilmington, Kent County, and Sussex County. (4) The statement must be verified by the oath or affirmation of the insurance company’s president or vice-president and secretary or other officer, and the statement must be on a form prepared and furnished by the Insurance Commissioner for that purpose. (5) The Insurance Commissioner may request and receive additional information regarding any insurance company’s business of covering the types of risks of loss stated in paragraph (a)(1) of this section. Failure to give the Insurance Commissioner the requested information is good cause, under § 520 of this title, for revocation of any certificate of authority of any insurance company so ignoring the request. (b) The Insurance Commissioner shall ascertain and report to the State Treasurer, on or before May 15 of each year, the following information: (1) The information contained in the statements under paragraph (a)(1) of this section and such other information as the Insurance Commissioner has obtained from the insurance companies under subsection (a) of this section. (2) The proportions in which the sum described in subsection (c) of this section is to be allocated among, and the actual amounts due to, the Treasurer of the City of Wilmington and to the member fire companies or departments of this State. The allocations and amounts must be calculated as follows: a. The sum of the premiums attributable to the City of Wilmington is to be allocated to the Treasurer of the City of Wilmington. b. The sum of the premiums attributable to the County of New Castle, outside the City of Wilmington, is to be divided and allocated equally among the fire companies or departments in the County of New Castle outside of the City of Wilmington. c. The sum of the premiums attributable to Kent County is to be divided and allocated equally among the fire companies or departments in Kent County. d. The sum of the premiums attributable to Sussex County is to be divided and allocated equally among the fire companies or departments in Sussex County. (c) (1) After receipt of the report under subsection (b) of this section, and not later than July 15 of each year, the State Treasurer shall pay, in the proportions stated in paragraph (b)(2) of this section, the total sum in the special fund established under paragraph (c)(2) of this section to the Treasurer of the City of Wilmington and to the fire companies or departments of this State. (2) The special fund is to consist of a sum equivalent to 3¾% of all the premiums obtained for writing in Delaware during the preceding year the types of coverage stated in paragraph (a)(1) of this section. Payments to the special fund are to be made out of taxes deposited with the State Treasurer by the Insurance Commissioner, not including those funds received under § 707 of this title. (d) Payments made from the special fund under paragraph (c)(1) of this section are to be used as follows: (1) For the City of Wilmington, for the Firemen’s Pension Fund of the Bureau of Fire in the City of Wilmington. (2) For the County of New Castle outside the City of Wilmington, Kent County, and Sussex County, for assisting and maintaining the fire companies or departments in each of these areas. (e) The Delaware Volunteer Firefighter’s Association shall annually submit to the Insurance Commissioner and the State Fire Prevention Commission a report giving their location, apparatus and equipment maintained for its member fire companies or departments. (f) All future rate filings covering the types of coverage described in subsection (a) of this section within this State shall make allowance for no more than 2% premium tax, unless the premium tax shall be changed after January 1, 2025, in which case the insurance companies may make allowance in the rate filings for no more than the then effective premium tax. (g) (1) On or before May 15 of each year, the Insurance Commissioner shall ascertain and report to the State Treasurer, based on information contained in statements filed under this section, the amount which equals 0.08% of the amount reflected in the statements as to the total premium obtained during the preceding calendar year for writing in Delaware the types of coverage stated in subsection (a) of this section. (2) After receipt of the report under paragraph (g)(1) of this section, the State Treasurer shall pay the reported amount to the State Insurance Coverage Office for purposes of funding the premium payment required to be paid by the State Insurance Coverage Office under § 6707B of this title. (3) Payments to the State Insurance Coverage Office under this section are to be paid out of taxes deposited with the State Treasurer by the Insurance Commissioner, not including those funds received under § 707 of this title.

Del. Code tit. 18, § 706 Definitions of terms used in §§ 707-709 of this title.

As used in §§ 707-709 of this title: (1) “County police” means any police under the control and direction of the Levy Court or County Council of the 3 counties of this State which are separate and apart from any state or municipal police. (2) “Municipal” means any incorporated city or town. (3) “Municipal police” means police in any incorporated city or town. (4) “Police pension fund” means any pension or retirement fund established by law for and on behalf of any state, county or municipal police. (5) “State police” means that police agency of the State acting under the direction of the State Department of Safety and Homeland Security.

Del. Code tit. 18, § 707 Special tax on gross premiums for benefit of police.

(a) Every insurer transacting insurance within this State, other than workers’ compensation insurance and wet marine and transportation insurance, shall, in addition to other taxes, fees and charges required by law, at the same time as the premium tax and estimated payments as provided in § 702 of this title pay to the Commissioner, for the use of the State, 1 / 4 % upon the gross premiums received and assessments collected from insurance of every kind upon persons or on the lives of persons resident in or upon real and personal property located within this State, or upon any other risks insured within this State, by any such insurer or the authorized agent thereof for the calendar year immediately preceding the date herein provided for such payments. (b) “Gross premiums” whenever used in this section in reference to premiums received by insurers on policies covering risks located in this State shall mean all moneys collected, together with all notes or credits allowed, as premiums on such policies including reinsurance premiums received. In computing taxable premiums there may be deducted from gross premiums dividends and similar returns paid or credited to policyholders, return premiums paid by reason of cancellation of policies, and reinsurance premiums received from other insurers. (c) No insurer affected by provisions of this section shall increase the rate of insurance premiums upon any insurable risk affected by this section because of the tax provided for in this section, unless the Commissioner after a hearing on the matter is satisfied that an increase is necessary; and in the event the Commissioner is satisfied after such hearing that an increase in the premium rate is necessary, the Commissioner shall authorize such reasonable increase as he or she deems fair and equitable.

Del. Code tit. 18, § 708 Distribution of proceeds of tax.

(a) Each insurance company, firm or corporation covered by the provisions of § 707 of this title shall, at the time of making tax payments, deliver to the Insurance Commissioner a full and detailed statement showing the gross amount of premiums received and assessments collected and dividends paid to policy holders by such insurance company, firm or corporation or the authorized agent thereof for the calendar year immediately preceding the date provided for in § 707 of this title for tax payments, and such statement shall be verified by the oath or affirmation of the president or secretary or other responsible officer of said company, duly administered by some person authorized to administer oaths. Said statement shall be on the blanks prepared and furnished by the Insurance Commissioner for the purpose of carrying out the provisions of this section and § 707 of this title. (b) The money received by the Insurance Commissioner in accordance with the provisions of § 707 of this title shall be paid to the State Treasurer and shall be set aside as a special fund and shall be paid out by the State Treasurer, subject to the provisions of subsection (c) of this section, to the proper officers in charge of any state, county or municipal police department or bureau having a pension fund, or which shall hereafter by law have a police pension fund. The State Treasurer shall determine the total number of state, county and municipal police entitled to benefits under the provisions of this section and § 707 of this title from an annual registry in accordance with § 709(a) of this title, and shall make distribution proportionately and on a per capita basis, subject to the provisions of subsection (c) of this section, to the proper officers of any state, county or municipal police department or bureau complying with the provisions of this section and § 707 of this title. Distribution under this section shall take place twice annually, on or before June 30 and December 31. (c) (1) The payments to the State referred to in this section for “state police,” as defined in § 706 of this title, shall be deposited into a special fund, to be managed by the State Board of Pension Trustees, to provide post-retirement increases for retired county and municipal police and firefighters. The State Board of Pension Trustees shall allocate the funds deposited in this special fund on a per capita basis to the account of each eligible county or municipality based upon the annual registry in accordance with § 709(b) of this title, provided that the eligible county or municipality has elected to participate in the State-administered County and Municipal Police/Firefighter Pension Plan for all new hires after the time a municipality or county elects into that plan in accordance with Chapter 88 of Title 11. No funds shall be disbursed from this special fund without the prior approval of the Board of Pension Trustees. (2) Any county or municipality wishing to grant a post-retirement increase from this fund shall submit a proposal to the State Board of Pension Trustees outlining the proposal in such detail as the State Board of Pension Trustees may require. The State Board of Pension Trustees shall not approve any proposal for a post-retirement increase unless the county or municipality requesting such increase agrees to deposit into this special fund, prior to the implementation of such increase, sufficient funds to cover 25% of the total actuarial cost of such increase. (3) Any funds on deposit in this special fund, including accumulated income, shall revert to the General Fund, if such funds are not utilized for a post-retirement increase by the eligible counties or municipalities within 10 years from the date of deposit into the special fund. (4) If a county or municipality does not submit a proposal to the State Board of Pension Trustees, the State Board of Pension Trustees shall distribute funds from the account within this special fund to the county or municipality for the benefit of all eligible individuals who started receiving a normal retirement, disability, or survivor pension. The State Board of Pension Trustees shall distribute the funds consistent with the following: a. For purposes of this section, “eligible retiree” means an individual who retired before June 30, 2025; a surviving beneficiary; or an individual receiving a disability pension. Eligible retirees must be alive on July 1 of each biennial payout year to receive payment. b. Eligible retirees must be placed into 1 of the following 3 categories: 1. Category 1, consisting of individuals who are 1 of the following: A. Retired for greater than or equal to 20 years. B. A surviving beneficiary. C. Receiving a disability pension. 2. Category 2, consisting of individuals who have been retired for greater than or equal to 10 years but less than 20 years. 3. Category 3, consisting of individuals who have been retired for less than 10 years. c. On each biennial anniversary starting from July 1, 2025, and each biennial anniversary thereafter, the State Board of Pension Trustees shall make funds available for distribution from this special fund, as follows: 1. At least $500,000 must remain in this special fund after distributions are made to eligible retirees. 2. Payments to eligible retirees in Category 3 must not exceed $3,000 to each individual. 3. The amount of the payment to each individual in Category 1 shall be 3 times the amount of the payment to each individual in Category 3 and the amount of the payment to each individual in Category 2 shall be 2 times the amount of the payment to each individual in Category 3. 4. A payment may not be made to any individual who receives an annual pension of more than $55,000. d. The State Board of Pension Trustees shall determine the total amount available for distribution in any given year by July 1 of such year based upon the category information received from the county or municipality before July 1 of such year. e. A county or municipality must disperse payments to eligible retirees within 30 days of receiving the funds under paragraph (c)(4)c. of this section.

Del. Code tit. 18, § 709 Registering information.

(a) It shall be the duty of the officer in charge of any state, county or municipal police department or bureau participating in the provisions of §§ 707 and 708 of this title to register with the State Treasurer on or before the 1st day of April in each year, and to provide the State Treasurer with the following information: the location, jurisdiction and average number of paid, full-time, sworn police officers employed for the year ending on the previous December 31. (b) It shall be the duty of the officer in charge of any county or municipal police/fire department or bureau participating in the provisions of §§ 707 and 708 of this title to register with the State Board of Pension Trustees on or before April 1 in each year, and to provide the State Board of Pension Trustees with a listing of the number of retired police officers or firefighters receiving benefits as of December 31 of the preceding year excluding those covered by the County and Municipal Police/Firefighter Pension Plan as contained in Chapter 88 of Title 11.

Del. Code tit. 18, § 710 Purpose, receipt, deposit of fees, fines and taxes.

(a) All fees, charges, administrative fines and taxes payable under this title shall be paid to and collected by the Commissioner. (b) The Commissioner shall give to any person paying cash a prenumbered, itemized receipt for fees, charges, administrative fines and taxes paid under this title. (c) Except as otherwise expressly provided, the Commissioner shall promptly deposit to the credit of the General Fund all fees, charges, administrative fines, taxes and other funds collected by him or her for the use of this State, and shall promptly report the same to the State Treasurer as provided in Chapter 61 of Title 29.

Del. Code tit. 18, § 711 Refund of overpayments.

(a) Any person from whom fees, charges or taxes imposed by this title have been erroneously collected may apply to the Commissioner for refund at any time within 1 year from the date such fees, charges or taxes were originally required to be paid or within 30 days from the date of payment of any additional tax, charge or fee. (b) If the amount of taxes, charges or fees found due are less than the amount paid, either by examination of the return by the Commissioner or by allowance of a claim for overpayment filed by the payer with the Commissioner, the State Treasurer shall refund the excess out of the General Fund of this State upon certification and approval by the Commissioner. (c) No such refund shall be made unless the amount to be so refunded is $10 or more.

Del. Code tit. 18, § 712 In lieu; preemption provision.

(a) The fees, charges and premium taxes imposed by the State shall be in lieu of all county and municipal license fees and taxes upon the business of insurance in this State, excepting property taxes. (b) The State hereby preempts the field of regulating or of imposing excise, privilege, franchise, income, license, permit, registration and similar taxes, licenses and fees upon insurers and their general agents, agents and other representatives as such, and on the intangible property of insurers or such representatives, and all political subdivisions or agencies thereof in this State are prohibited from regulating insurers or their general agents, agents and other representatives as such, and from imposing upon them any such tax, license or fee. However, this provision shall not prohibit the imposition by political subdivisions of taxes upon real and tangible personal property.

Del. Code tit. 18, § 713 Reporting gross premiums received by life and health insurers; special fund for payments to all volunteer ambulance companies or rescue services.

(a) The Insurance Commissioner each year shall ascertain the total amount of gross premiums received by insurance companies and agents thereof as payment for all types of life and/or health insurance coverage within this State. The Insurance Commissioner shall then notify the State Treasurer of the total amount of such gross premiums and also the names and addresses of each volunteer ambulance company or volunteer rescue service in this State. After the Insurance Commissioner so informs the State Treasurer, the State Treasurer shall: (1) Establish a special fund each year. This special fund shall be created out of the existing annual premium taxes paid by insurance companies and agents thereof pursuant to this chapter on all types of life and/or health insurance coverage within this State. The special fund shall be created out of the aforesaid premium taxes, and shall be equal to 2 0 / 1 0 0 of 1% of the gross premiums received by insurance companies and agents thereof for all types of life and/or health insurance coverage within this State. (2) Distribute on a pro rata basis the proceeds of the special fund to the aforementioned nonprofit organizations within this State that are engaged in providing ambulance and/or rescue services. (b) The Insurance Commissioner shall have the authority to request and receive any information regarding any insurance company’s business relating to any type of life and/or health insurance coverage sold or offered for sale within this State for the purpose of determining the gross premiums received for such insurance coverage in order to determine the amount of the special fund. (c) For the purpose of implementing this section, the Insurance Commissioner is authorized to promulgate rules and regulations that are consistent with this section. (d) For the purpose of this section: (1) “Basic life support (BLS)” shall have the same meaning as set forth in § 9702 of Title 16. (2) “Volunteer ambulance company” shall mean a nonprofit ambulance company that is certified by the State Fire Prevention Commission and is providing basic life support (BLS) services.

Del. Code tit. 18, § 714 Expenses and fees for form and rate filings.

(a) In addition to a filing fee as set forth in § 701 of this title, the expenses and fees of the Department of Insurance for the review and determination of a form and rate filing by an insurer shall be assessed to and paid by the insurer and shall include the reasonable and proper expenses of the Commissioner and the Commissioner’s examiners and assistants, including expert assistance contracted for by the Commissioner. Such insurer shall promptly pay the form and rate filing review expense upon presentation by the Commissioner or the Commissioner’s examiners of a reasonably detailed written account thereof. (b) No insurer shall be required to pay a form filing fee pursuant to § 701(34) of this title that exceeds $2,000 per filing. For form filings that are made on a group-wide basis, the $2,000 filing cap shall be applied to each insurer within the filing.
Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title18/c007/index.htmlFetched: 10/4/2026