Process and regulatory changes developed in partnership with the Delaware Captive Insurance Association

Insurance Commissioner Trinidad Navarro and the Delaware Captive Insurance Association (DCIA) are proud to announce a series of process and regulatory improvements intended to ensure Delaware remains a top domicile for businesses seeking to form captive insurance companies. The news was shared at DCIA’s Fall Forum last week, the premier event for industry leaders.

“As global leaders in captive insurance, we recognize that we must continue to explore improvement, innovation, and industry insight,” said Insurance Commissioner Trinidad Navarro. “This industry is an important economic engine in our state, and I look forward to continuing to foster its expansion.”

After robust stakeholder engagement, the department issued Captive Bulletin No. 14, which outlines the Bureau of Captive & Financial Insurance Products’ requirements for captives formed to write corporate “Side A” directors’ and officers’ (D&O) coverage for Delaware corporations. This progress was made possible by the passage of SB 203 (2022). It is expected that this will help companies access more affordable coverage and increase Side A D&O capacity.

The department also issued revised Captive Bulletin No. 12, adopting a more flexible approach for certain captive applicant’s capitalization requirements, including allowing use of brokerage accounts in certain circumstances. Additionally capital and surplus requirements have been recalibrated to place more emphasis on consulting actuaries’ adverse case projections.

Several process changes are anticipated to improve approval timelines and speed to market. Unless otherwise noticed, review of initial application filings will decrease from a goal of 45 days to 30 days. Conditional licensure applications typically see a significant spike toward the end of the year. Moving forward, those applications received after November 1 each year will be reviewed within 80 days of submission. All routine requests for approvals, such as dividends, business plan changes, statutory dormancy, and changes in approved service providers, will now be reviewed within ten days of receipt. Additionally, captives will now be able to seek contingent Bureau approval for actions requiring Board approval or ratification.

Michael Teichman, President of the Delaware Captive Insurance Association, said “Delaware has been a top global captive domicile since revamping its captive insurance statute almost 18 years ago. While we believe Delaware continues to have much to offer, we recognize other domiciles are not standing still, and we cannot rest on our laurels. Over the past year we have enjoyed the opportunity to work with Commissioner Navarro and Bureau Director Stephen Taylor to develop these helpful and timely domicile improvements.”

Captive insurance companies are owned by the entities that they insure and are usually formed by businesses to better manage the cost and administration of their insurance coverage. Delaware is the world’s fifth largest and the third largest U.S. captive domicile. It is one of four global domiciles recognized by the International Center for Captive Insurance Education as ICCIE Trained. To learn more, visit captive.delaware.gov.

The Delaware Captive Insurance Association is a Delaware non-stock not-for-profit corporation formed in 2005 to serve as the unified voice of the captive insurance industry in Delaware and to support the development and growth of the industry through marketing, networking, education, and legislative initiatives.

Insurers required to cover testing and telemedicine services related to COVID-19

While no active cases of the virus have been confirmed in Delaware to date, Insurance Commissioner Trinidad Navarro notified insurers today of their duties related to COVID-19. In a bulletin to insurance companies, the Commissioner reminded Delaware’s health insurers that testing for COVID-19 is a covered essential health benefit and that access to telehealth and telemedicine services should be made available.

“Concerns around the cost of care for coronavirus may be a significant factor in residents deciding not to seek out medical interventions when symptoms arise, leading to negative health impacts on the individual, and an increased possibility of the spread of the virus,” said Commissioner Navarro. “Ensuring testing and expanding telemed options may be the biggest thing we can do to prevent the escalation of new transmissions.”

The bulletin notes that some insurers have taken additional steps to meet the challenges posed by the virus, including waiving cost sharing. “I applaud those carriers who have committed to waiving upfront costs for their consumers. Residents may avoid being tested simply because they can’t afford to pay their co-pays or deductibles, and I commend the companies that are taking the barrier of economic ability out of the equation,” said Commissioner Navarro.

In addition to ensuring COVID-19 testing is covered, whether at a testing facility or in emergency care, the bulletin also explains options surrounding telehealth and telemedicine and clarifies that healthcare providers can utilize webcam and facetime with their clients.

Should active Delaware cases occur, medical facilities may experience a high level of activity. The bulletin specifies that care related to COVID-19 outside of the testing process should be considered in-network by health insurers if their in-network providers are unable to provide care in a timely fashion, in a safe and convenient location, or if they do not have trained, experienced providers of related care in-network. The department made clear that immunizations for COVID-19, if made available, should be covered by insurers, as would related prescription drugs. The bulletin also reminds insurers that Delaware law prohibits surprise billing.

Delaware’s Division of Public Health (DPH) Smyrna Health Lab can test for COVID-19. Testing conducted by the Division of Public Health carries no costs to consumers. DPH has opened a COVID-19 hotline for residents at 1-866-408-1899, and will also respond to questions sent to DPHCall@delaware.gov. Visit de.gov/coronavirus for more information.

Commissioner’s bulletin to insurers

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