HB 47 Summary

• Increases minimum capital stock and free surplus requirements for insurers authorized to conduct business in Delaware, updating requirements unchanged for over 50 years.

• Raises capital and free surplus thresholds across all insurance types (life, health, property, casualty, marine, surety, multiple line, and title insurance) to $650,000 capital and $350,000 free surplus as baseline requirements.

• Allows domestic insurers holding valid certificates of authority before January 1, 2024, a 5-year transition period to comply with new requirements without authorization to transact additional insurance types.

• Requires insurers to maintain policyholders' surplus in reasonable amounts relative to the types and amount of insurance in force, with surplus never falling below the minimums established in the bill.

• Aligns Delaware's capital and surplus requirements with standards adopted by other states and the National Association of Insurance Commissioners.