SB 109 Summary

• Implements the federal Nonadmitted and Reinsurance Reform Act (NRRA) of 2010 by establishing that nonadmitted insurance placement is subject solely to the home state's (insured's domiciliary state) statutory and regulatory requirements.

• Establishes a comprehensive regulatory framework for surplus lines brokers and nonadmitted insurers in Delaware, including licensing requirements, financial eligibility standards (minimum capital and surplus), and annual reporting requirements for brokers.

• Authorizes the Insurance Commissioner to enter into interstate cooperative agreements, compacts, or clearinghouse arrangements to facilitate collection and allocation of premium taxes on nonadmitted insurance among states.

• Creates exemptions from diligent effort requirements for "exempt commercial purchasers" (those with significant premiums and net worth thresholds) and risk retention groups, while requiring a 2% premium tax on surplus lines insurance where Delaware is the home state.

• Permits Delaware domestic insurers with at least $15 million in surplus to operate as domestic surplus lines insurers and allows independently procured insurance, subject to the same tax reporting and payment requirements as broker-placed surplus lines insurance.