18 Del. Admin. Code § 1202-1.0

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

Section 1202-1.0 - Authority

1.1 18 Del.C. § 314 of the Delaware Insurance Code authorizes the Insurance Commissioner to "... make reasonable Rules and Regulations necessary for or as an aid to the administration or effectuation of any provision of this Title." 18 Del.C. § 2911 provides that the maximum rate of interest which may be charged by insurance companies on life insurance policy loans written after September 6, 1975 shall not exceed 8% per annum, or if payable in advance such interest shall not exceed the rate of 7.4% per annum.

1.2 18 Del.C. § 2911 also contains the following new language:

1.2.1 "Before approving any policy provision providing for a rate of interest in excess of 6%, the Commissioner may require assurances by the insurer that the holders of such policies will benefit from the increased earnings of the insurer resulting from the use of such higher rates, through the use of higher dividends or lower premiums, or both."

18 Del. Admin. Code § 1202-1.0