DE SB46

Adds new Section 1333 to Title 18 authorizing the Insurance Commissioner to issue rules and regulations governing domestic insurers' use of derivative instruments and qualified financial contracts.

Defines 11 new terms in Section 5901 including "qualified financial contract," "netting agreement," "commodity contract," "forward contract," "repurchase agreement," and "securities contract" by referencing federal law definitions.

Creates new Section 5933 establishing protections for counterparties to netting agreements and qualified financial contracts with insurers in formal delinquency proceedings, allowing termination, liquidation, acceleration, and setoff rights notwithstanding the insurer's insolvency or the commencement of liquidation proceedings.

Requires receivers to transfer qualified financial contracts and netting agreements on an all-or-nothing basis to a single transferee (either all contracts with a counterparty or none) and establishes that damages from receiver disaffirmance or repudiation shall be measured as actual direct compensatory damages as of the termination date.

Effective immediately upon enactment but applies only to liquidation, rehabilitation, or conservation proceedings commenced under Chapter 59 of the Delaware Insurance Code after the bill's enactment.