DE SB40

Requires all Delaware-domiciled insurers to file a Corporate Governance Annual Disclosure (CGAD) with the Insurance Commissioner by June 1 each year, or upon the Commissioner's request if not otherwise required.

CGAD must include information about the insurer's or insurance group's corporate governance structure, policies, and practices, signed by the chief executive officer or corporate secretary attesting to implementation and board notification.

Designates CGAD documents as confidential trade secrets exempt from public disclosure, Freedom of Information Act requests, subpoena, and discovery in private civil actions, though the Commissioner may share with other regulators and the NAIC under written confidentiality agreements.

Allows the Commissioner to retain third-party consultants (attorneys, actuaries, accountants, experts) at the insurer's expense to review CGAD submissions and compliance with the Act.

Imposes penalties of $500 per day for late filing without just cause, with a maximum penalty of $25,000, which the Commissioner may reduce if payment would cause financial hardship.

Effective January 1, 2018, with the first CGAD filing deadline in 2018.