18 Del. Admin. Code § 203-4.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 203-4.0 - Certificate of Authority Requirements

4.1 Initial operations

4.1.1 Except as provided in section 3.0 above, any division or subsidiary of a bank or trust company wishing to transact the business of insurance under the authority of 5 Del.C. § 761(a)(14) must first apply for and obtain a certificate of authority or license to do so from the Delaware Insurance Department pursuant to the applicable provisions of the Delaware Insurance Code and the regulations promulgated thereunder. If such division or subsidiary has previously obtained a certificate of authority or license to transact the business of insurance in Delaware from this office, such division or subsidiary may continue to transact business consistent with the terms of such certificate of authority or license, unless further application to this office is otherwise required to so continue to transact business under the Delaware Insurance Code or the regulations promulgated thereunder. For purposes of these regulations, the term "certificate of authority" shall mean the original governmental or administrative authorization conferred upon any person to act as an insurer, and the term "license" shall mean the original governmental or administrative authorization conferred upon any person to act as a foreign insurer.

4.2 Changes in operations in Delaware

4.2.1 Any division or subsidiary of a bank or trust company transacting the business of insurance in Delaware pursuant to a certificate of authority or license issued by this office is prohibited from engaging in any activity not authorized by the terms of that certificate of authority or license, including but not limited to the sale or underwriting of any line or type of insurance not authorized by that certificate of authority or license, unless such division or subsidiary first applies for and obtains additional authority to engage in such activity from the Delaware Insurance Department pursuant to the applicable provisions of the Delaware Insurance Code and the regulations promulgated thereunder.

4.3 Sales activities in other states

4.3.1 Any division or subsidiary of a bank or trust company wishing to transact the business of selling insurance in any state other than Delaware under the authority of 5 Del.C. § 761(a)(14) must comply with all licensure and other requirements of each such state in connection with the transaction of such business, and this office shall monitor the compliance of any such division or subsidiary of a bank or trust company with all such state laws. To this end, any division or subsidiary of a bank or trust company transacting the business of insurance in a state other than Delaware shall maintain, as part of its principal books and records required to be maintained in Delaware pursuant to 18 Del.C. § 534, copies of all licenses required to be obtained in connection with the transaction of such insurance business in such state.

18 Del. Admin. Code § 203-4.0