Insurance departments require insurers to meet certain minimum capital and surplus requirements to ensure they have enough capital to pay for losses owed to policyholders, even under adverse conditions.
Delaware has issued a Bulletin to alert insurers of an increase to the minimum amount of capital stock or unimpaired basic surplus and free surplus an insurer must maintain throughout the year. Delaware had not increased capital and surplus requirements since July, 1968, so the updated requirements are now consistent with other states' requirements. An insurer must notify the Commissioner immediately if they fall below the minimum requirements, or they will be subject to administrative action.
Any insurer that has the authority to conduct business in Delaware prior to Jan 1, 2024, will be allowed to continue to do so for a period of 5 years using the previous minimum requirements. If they enter a different line of insurance, they must comply with the new requirements for that line.
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