General Definitions and Provisions

Del. Code tit. 18, ch. 1
in effect

Del. Code tit. 18, § 102 Definitions [For application of this section, see 79 Del. Laws, c. 172, § 6].

As used in this part: (1) An “alien” insurer is a foreign insurer formed under the laws of any country other than the United States of America, its states, districts, commonwealths and possessions. (2) An “authorized” insurer is one duly authorized to transact insurance in this State by a subsisting certificate of authority issued by the Commissioner. (3) “Balance billing” means a health-care provider’s demand that a patient pay a greater amount for a given service than the amount the individual’s insurer, managed care organization or health service corporation has paid or will pay for the service. (4) “Commissioner” means the Insurance Commissioner of this State. (5) “Department” means the Insurance Department of this State. (6) A “domestic” insurer is one formed under the laws of this State. (7) The “domicile” of an insurer means: a. As to Canadian insurers, the province in which the insurer’s head office is located; b. As to other alien insurers authorized to transact insurance in one or more states, as provided in § 532 (retaliatory provision) of this title; c. As to alien insurers other than those referred to in paragraph (7)a. or b. of this section above, the country under the laws of which the insurer was formed; d. As to all other insurers, the state under the laws of which the insurer was formed. (8) A “foreign” insurer is one formed under the laws of any jurisdiction other than this State. (9) “Insurance” means a contract whereby one undertakes to pay or indemnify another as to loss from certain specified contingencies or perils, called “risks,” or to pay or grant a specified amount or determinable benefit in connection with ascertainable risk contingencies or to act as surety. (10) “Insurer” includes every person engaged as principal and as indemnitor, surety or contractor in the business of entering into contracts of insurance; provided that with respect to a corporation established under Chapter 7 of Title 5, “insurer” means an insurance department or division of such corporation (but not the corporation itself) which maintains separate books and records in the same manner and to the same extent as if it were a separately incorporated subsidiary of such corporation, with separate capital accounts, assets and liabilities. (11) “Person” means corporations, companies, associations, firms, partnerships, societies and joint stock companies and individuals as is provided in § 302 of Title 1. In addition, “person” includes trustees of common law trusts, syndicates, organizations, statutory trusts, business trusts, attorneys-in-fact and every natural or artificial legal entity. (12) “Religious employer” means an employer that is both of the following: a. A church, convention, association of churches, or elementary or secondary school that is controlled, operated, or principally supported by a church or convention or association of churches. b. Qualified as a tax-exempt organization under 26 U.S.C. § 501(c) (3). (13) “Third-party administrator” shall mean a person, firm or entity who directly or indirectly underwrites, collects charges or premiums from, or who approves, denies, adjusts or settles claims on residents of this State, in connection with health coverage offered or provided by an insurer. A third-party administrator shall be subject to the jurisdiction of the Department of Insurance. A third-party administrator shall not include any person, firm or entity who operates a billing and/or paying service only and who does not perform any of the other functions of a third-party administrator described above. Additionally, a third-party administrator shall not include any person, firm or entity which holds a certificate of authority as an insurer, health service corporation, MCO, or HMO under this title. The Commissioner shall promulgate regulations which shall provide for the registration, licensing and regulation of third-party administrators and enforcement of applicable provisions of this title to third-party administrators. Third-party administrators doing business in this State shall pay all fees and costs for registration as provided for in this title and shall pay all costs for examination, assessments, fines and/or penalties as provided for in this title or as the Commissioner shall establish by regulation. All revenues from the application of this provision to third-party administrators shall be deposited in accordance with the provisions of § 305 of this title.

Del. Code tit. 18, § 103 “Transacting insurance” defined.

In addition to other aspects of insurance operations to which provisions of this title by their terms apply, “transact” with respect to a business of insurance includes any of the following: (1) Solicitation or inducement; (2) Negotiations; (3) Effectuation of a contract of insurance; (4) Transaction of matters subsequent to effectuation and arising out of such a contract.

Del. Code tit. 18, § 104 Application of Code as to particular types of insurers.

No provision of this title shall apply with respect to: (1) Domestic mutual assessment property insurers, except as stated in Chapter 53 (Mutual Assessment Property Insurers) of this title; (2) Domestic mutual benefit associations, except as stated in Chapter 55 (Mutual Benefit Associations) of this title; (3) Fraternal benefit societies, except as stated in Chapter 62 (Fraternal Benefit Societies) of this title.

Del. Code tit. 18, § 105 Particular provisions prevail.

Provisions of this title as to a particular kind of insurance, type of insurer or matter shall prevail over provisions relating to insurance, insurers or matters in general.

Del. Code tit. 18, § 106 General penalty.

(a) Each violation of this title for which a greater penalty is not provided by a provision of this title or other applicable laws of this State, in addition to any applicable prescribed denial, suspension or revocation of certificate of authority or license shall, upon conviction thereof, subject the violator to a fine of not more than $2,300 or imprisonment of not more than 1 year, or both, except that if the violator is a corporation, the fine shall be not more than $6,900 as to each violation. Any director, officer, manager, employee or representative of a corporation shall be subject to fine and imprisonment as above provided. (b) Prosecutions for any such violation shall be brought in the Superior Court of the county in which the offense occurred. (c) At the discretion of the Commissioner and the Attorney General, any fine provided for above may be recovered on behalf of the State by a civil action brought against the violator.

Del. Code tit. 18, § 107 Electronic notices and documents.

(a) In this section, the following words shall have the following meanings: (1) “Delivered by electronic means” includes: a. Delivery to an electronic mail address at which a party has consented to receive notice; or b. Posting on an electronic network, together with separate notice to a party directed to the electronic mail address at which the party has consented to receive notice of the posting. (2) “Party” means an applicant, an insured, or a policyholder. (b) Subject to subsection (d) of this section, any notice to a party or any other document required under this title in an insurance transaction may be delivered by electronic means so long as it meets the requirements of the Uniform Electronic Transactions Act (§ 12A-101 et seq. of Title 6). (c) Delivery of a notice or document in accordance with this section shall be considered equivalent to any delivery method required under this title, including delivery by first class mail, certified mail, certificate of mail, or certificate of mailing. (d) A notice or document may be delivered by electronic means by an insurer to a party under this section if: (1) The party has affirmatively consented to that method of delivery and has not withdrawn the consent; (2) The party, before giving consent, is provided with a clear and conspicuous statement informing the party of: a. Any right or option of the party to have the notice provided or made available in paper or another nonelectronic form. b. The right of the party to withdraw consent to have notice or a document delivered by electronic means and any fees, conditions, or consequences imposed in the event consent is withdrawn; c. Whether the party’s consent applies: 1. Only to the particular transaction as to which the notice or document must be given; or 2. To identified categories of notices or documents that may be delivered by electronic means during the course of the parties’ relationship; d. 1. The means, after consent is given, by which a party may obtain a paper copy of a notice or document delivered by electronic means; and 2. The fee, if any, for the paper copy; and e. The procedure a party must follow to withdraw consent to have a notice or document delivered by electronic means and to update information needed to contact the party electronically; (3) The party: a. Before giving consent, is provided with a statement of the hardware and software requirements for access to and retention of a notice or document delivered by electronic means; and b. Consents electronically, or confirms consent electronically, in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for notices or documents delivered by electronic means as to which the party has given consent; and (4) After consent of the party is given, the insurer, in the event a change in the hardware or software requirements needed to access or retain a notice or document delivered by electronic means creates a material risk that the party will not be able to access or retain a subsequent notice to which the consent applies. a. Provides the party with a statement of: 1. The revised hardware and software requirements for access to and retention of a notice or document delivered by electronic means; 2. The right of the party to withdraw consent without the imposition of any fee, condition, or consequence that was not disclosed under paragraph (d)(2)b. of this section; and b. Complies with paragraph (d)(2) of this section. (e) This section does not affect requirements related to content or timing of any notice or document required under this title. (f) If a provision of this title requiring a notice or document to be provided to a party expressly requires verification or acknowledgment of receipt of the notice or document, the notice or document may be delivered by electronic means only if the method used provides for verification or acknowledgment of receipt. (g) The legal effectiveness, validity, or enforceability of any contract or policy of insurance executed by a party may not be denied solely because of the failure to obtain electronic consent or confirmation of consent of the party in accordance with paragraph (d)(3)b. of this section. (h) (1) A withdrawal of consent by a party does not affect the legal effectiveness, validity, or enforceability of a notice or document delivered by electronic means to the party before the withdrawal of consent is effective. (2) A withdrawal of consent by a party is effective within a reasonable period of time after receipt of the withdrawal by the insurer. (3) Failure by an insurer to comply with paragraph (d)(4) of this section may be treated, at the election of the party, as a withdrawal of consent for purposes of this section. (i) This section does not apply to a notice or document delivered by an insurer in an electronic form before May 22, 2012, to a party who, before that date, has consented to receive notice in an electronic form otherwise allowed by law. (j) If the consent of a party to receive notice or document in an electronic form is on file with an insurer before May 22, 2012, the insurer shall notify the party of: (1) The notices or documents that may be delivered by electronic means under this section; and (2) The party’s right to withdraw consent to have notices or documents delivered by electronic means. (k) (1) Except as otherwise provided by law, if an oral communication or a recording of an oral communication from a party can be reliably stored and reproduced by an insurer, the oral communication or recording may qualify as a notice or document delivered by electronic means for purposes of this section. (2) If a provision of this title requires a signature or record or document to be notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the electronic signature of the person authorized to perform those acts, together with all other information required to be included by the provision, is attached to or logically associated with the record or document. (l) This section may not be construed to modify, limit, or supersede the provisions of the federal Electronic Signatures in Global and National Commerce Act, Public Law 106-229 [15 U.S.C. § 7001 et seq.], as amended. (m) The provisions of this section shall apply to any regulatory requirement of or transaction with, the Department of Insurance which requires the filing or exchange of documents, notices, waivers, or forms.
Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title18/c001/index.htmlFetched: 10/4/2026