SB 56 Summary

• Adds new Section 6310 to Title 18 requiring the Insurance Commissioner to approve change-of-control transactions between Delaware health service corporations and insurers administering CHIP buy-in programs only if the Delaware-licensed corporation will administer Delaware's CHIP buy-in program with premiums similar to those charged in the state where the insurer previously operated.

• Requires that for states with income-based CHIP premiums, Delaware must charge identical premiums for comparable income ranges; for states offering free CHIP coverage at higher income levels, Delaware premiums must be actuarially consistent with program requirements.

• Defines "change of control affiliation or transaction" as any affiliation or transaction resulting in a change in effective control of a health service corporation, as described by the applicant or determined by the Commissioner.

• Requires the Commissioner to approve specific initial premiums as part of the transaction or affiliation approval process.

• Preserves the Attorney General's and Insurance Commissioner's existing statutory and common law authority over health service corporation transactions and affiliations.