Statutory Amendments Relating to Fees and Charges Collected by the Delaware Department of Insurance

Trinidad Navarro Commissioner [LOGO] Delaware Department of Insurance # UNIVERSALLY APPLICABLE BULLETIN NO. 2 TO: ANYONE ENGAGED IN ANY ASPECT OF THE BUSINESS OF INSURANCE IN DELAWARE INCLUDING BUT NOT LIMITED TO INSURERS, INTERMEDIARIES INCLUDING PRODUCERS (AGENTS, BROKERS AND DIRECT WRITERS), AND UNDERWRITERS RE: STATUTORY AMENDMENTS RELATING TO FEES AND CHARGES COLLECTED BY THE DELAWARE DEPARTMENT OF INSURANCE DATED: July 5, 2017 The purpose of Universally Applicable Bulletin No. 2 is to inform the insurance community that on July 1, 2017, Delaware House Bill No. 147, as amended by Senate Amendment No. 1, was signed into law. The bill went into effect immediately. The bill relates to fees and charges collected by the Delaware Department of Insurance. Each of sections 1, 2 and 3 of the bill amends 18 Del.C. § 701, 714 and 4802, respectively, to increase fees listed in those sections of the Insurance Code. A copy of the engrossed bill is attached to this bulletin for ease of reference. As of July 1, 2017, the Department will only accept checks postmarked before July 1st at the old rates. Checks postmarked from July 1st on must be at the new rates. Any questions, comments or requests for clarification about this bulletin should be emailed to DOI-Legal@state.de.us. This Bulletin shall be effective immediately and shall remain in effect unless withdrawn or superseded by subsequent law, regulation or bulletin. Trinidad Navarro Trinidad Navarro Delaware Insurance Commissioner 841 Silver Lake Blvd., Dover, DE 19904-2465 ♦ www.insurance.delaware.gov (302) 674-7300 Dover ♦ (302) 739-5280 fax ♦ (302) 577-5280 Wilmington SPONSOR: Rep. B. Short & Sen. Bushweller Reps. Baumbach, J. Johnson, Keeley; Sen. Henry # HOUSE OF REPRESENTATIVES 149th GENERAL ASSEMBLY HOUSE BILL NO. 147 AS AMENDED BY SENATE AMENDMENT NO. 1 AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO FEES AND CHARGES COLLECTED BY THE INSURANCE DEPARTMENT. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein): Section 1. Amend § 701, Title 18 of the Delaware Code by making deletions as shown by strikethrough and insertions as shown by underline as follows: § 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 $700$1,000 b. Issuance of certificate of authority 100150 c. Annual continuation 100150 d. Reinstatement (§ 518 of this title) 100150 e. Amendment to include or delete lines of authority 100150 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 100150 b. Annual continuation 100150 (3) Health maintenance organizations license (Regulation 58 §§ 5 and 6). Managed care organizations license (§ 6404 of this title). a. Original license 500 Page 1 of 7 HD : KP : TEH : 0021490024 LC : HVW : : 5081490111 Draft: 07/01/2017 02:29 AM b. Annual continuation ~~100~~ 150 (4) Fraternal associations (§ 6227 of this title). a. Original license ~~25~~ 100 b. Renewal ~~25~~ 100 c. Annual statement ~~25~~ 100 (5) Insurance premium finance company (§ 4802 of this title). a. Original license ~~300~~ 500 b. Annual continuation ~~300~~ 500 (6) Rating organization license. a. Application for original license and issuance of license, if issued ~~100~~ 150 b. Annual continuation ~~100~~ 150 (7) Risk retention group. a. Initial registration ~~100~~ 150 b. Annual continuation ~~50~~ 150 (8) Risk purchasing group. a. Initial registration ~~100~~ 150 b. Annual continuation ~~50~~ 150 (9) Accredited reinsurer. a. Initial registration ~~100~~ 150 b. Annual continuation ~~100~~ 150 (10) Surplus lines insurer. a. Initial registration ~~100~~ 150 b. Annual continuation ~~100~~ 150 (11) Captive insurer. a. Application fee ~~200~~ 300 b. Annual continuation ~~300~~ 400 (12) Reinsurance intermediary. a. Initial license ~~100~~ 250 b. Annual continuation ~~50~~ 100 (13) Solicitation permit application, filing. Page 2 of 7 HD : KP : TEH : 0021490024 LC : HVW : : 5081490111 Draft: 07/01/2017 02:29 AM 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 100150 (16) Registration statement of insurance holding company or member of insurance holding company system, filing. a. Annual registration statement filing 50100 b. Each amendment thereof 10100 (17) Form A filing 1001,000 (18) Copies of documents on file in the Department, ($.25-50 per page) minimum 5 (19) Certifying and affixing official seals 510 (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. Against unauthorized persons and insurers under Chapter 21 of this title 25 (23) Insurance producer (§ 1702(i) of this title), limited line credit insurance producer (as defined in § 1702 of this title), limited lines producer (as defined in § 1702 of this title) and miscellaneous limited lines producer (§ 1708(f) of this title). a. Initial license (resident and nonresident) 75100 b. Resident license renewal (due biennially February 28 in even years beginning February 28, 2004) 50100 c. Resident insurance producer's, limited line credit insurance producer's, limited lines producer's 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) 75100 e. Nonresident producer's, nonresident limited line credit insurance producer, nonresident limited lines producer and nonresident miscellaneous limited lines producer's initially licensed within 90 days prior to the Page 3 of 7 HD : KP : TEH : 0021490024 LC : HVW : : 5081490111 Draft: 07/01/2017 02:29 AM 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, limited lines producer and miscellaneous limited line producer (§ 1715 of this title), each insurer 2550 (24) Amendments to license issued under Chapter 17 of this title 4025 (25) Surplus lines broker (§ 1912 of this title): a. Initial license (resident and nonresident) 200250 b. Resident license renewal (due biennially February 28 in even years beginning February 28, 2004) 100200 c. Resident surplus lines broker's 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) 125200 e. Nonresident surplus lines broker's 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) 75-100 b. Resident license renewal (due biennially February 28 in even years beginning February 28, 2004) 50 100 c. Resident fraternal representative's 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) 75-100 e. Nonresident fraternal representative's 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 2550 Page 4 of 7 HD : KP : TEH : 0021490024 LC : HVW : : 5081490111 Draft: 07/01/2017 02:29 AM c. Resident viatical settlement provider's 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 (33)b. of this section. d. Nonresident license renewal (due biennially February 28 in odd years ending in the numbers 1, 3, 5, 7, 9 beginning February 28, 2003) ~~175250~~ e. Nonresident viatical settlement provider's 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 (30)d. of this section. (31) Business entity (insurance agency, § 1702(f) of this title): Initial license (resident and nonresident) ~~75100~~ a. Resident license renewal (due biennially February 28 in even years beginning February 28, 2004) ~~50100~~ b. Resident business entity 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. c. Nonresident license renewal (due biennially February 28 in odd years beginning February 28, 2003) ~~75100~~ d. Nonresident business entity 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. (32) Vending machine, each year ~~50100~~ (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 ~~100150~~ (35) Bail agent, initial and renewal Bail agent ~~100200~~ (36)a. For initial licensing of a discount medical plan organization: 500 b. For renewal of discount medical plan organization license: ~~100250~~ (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: 1,000 Page 6 of 7 HD : KP : TEH : 0021490024 LC : HVW : : 5081490111 Draft: 07/01/2017 02:29 AM b. For renewal of a limited lines travel insurance producer license: 500 c. Licensing periods, renewal dates and appointments for limited lines travel insurance producers are subject to paragraph (23) of this section. 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. Section 2. Amend § 714, Title 18 of the Delaware Code by making deletions as shown by strikethrough and insertions as shown by underline as follows: § 714. Expenses and fees for form and rate filings. In addition to a filing fee of $50,150, 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. 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. Section 3. Amend § 4802, Title 18 of the Delaware Code by making deletions as shown by strikethrough and insertions as shown by underline as follows: § 4802. License required of insurance premium finance companies. (a) No person shall engage in the business of financing insurance premiums in this State without first having obtained a license as a premium finance company from the Commissioner, unless such person is exempted from obtaining such a license pursuant to § 4810 of this title. The fee for such a license shall be the sum of $300,500 per year which license shall be valid until the 1st day of January at which time it may be renewed for a full year and every year thereafter provided that the licensee shall have paid the said annual license fee of $300,500 and shall otherwise qualify for a license hereunder. All fees for licenses hereunder shall be paid to the Commissioner. 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. Page 7 of 7 HD : KP : TEH : 0021490024 LC : HVW : : 5081490111 Draft: 07/01/2017 02:29 AM