CHAPTER 65. INSURANCE FOR THE PROTECTION OF THE STATE
Subchapter I. General Provisions
§ 6501. Definitions.
As used in this chapter:
(1) "The Committee" means the Insurance Coverage Determination Committee, hereinafter established by § 6502 of this title.
(2) "Coverage Office" means the State Insurance Coverage Office, hereinafter established by § 6505 of this title.
(3) "Director" means the Director of Insurance Coverage, hereinafter established by § 6505 of this title.
(4) "The Fund" means the State Self-Insurance Fund as provided for by subchapter III of this chapter.
18 Del. C. 1953, § 6501; 57 Del. Laws, c. 187, § 2.;
§ 6502. Insurance for the protection of the State and the public; determination of coverage.
There is hereby established the Insurance Coverage Determination Committee, which shall be composed of the Governor, the State
Auditor and the Insurance Commissioner, during their respective terms of office. The Committee shall from time to time determine
the method of insuring, the amount of insurance, and the class of coverage covering any type of risk to which the State may
be exposed, including, but not limited to: Life insurance, as defined in § 902 of this title; health insurance, as defined
in § 903 of this title; property insurance, as defined in § 904 of this title; surety insurance, as defined in § 905(a)(1)
of this title; casualty insurance, as defined in § 906 of this title; marine and transportation and "wet marine" insurance,
as defined in § 907 of this title; title insurance, as defined in § 908 of this title; to be effected and carried by the State
or any subdivision thereof, including all school districts, but excluding, however, municipal corporations, counties, and
the authorities relating to the crossings of the Delaware River and the Delaware Bay.
18 Del. C. 1953, § 6502; 57 Del. Laws, c. 187, § 2.;
§ 6503. Forms of coverage.
The Committee shall:
(1) Protect this State from loss to state-owned property;
(2) Protect the public from wrongful actions of State officials and employees and failure or malfunction of state-owned property;
(3) Secure for this State the maximum economic advantage feasible in the operation of its insurance coverage program, including,
when deemed appropriate to such end, the utilization of blanket policies, deductible or excess loss insurance, and self-insurance;
(4) Determine such insurance protection as shall be required by the needs of the State and as shall be most economically advantageous
to the State by providing for, as they shall deem appropriate, no insurance on small losses, coverage by commercial insurance,
coverage by self-insurance or a combination of such methods.
18 Del. C. 1953, § 6502A; 57 Del. Laws, c. 187, § 2.;
§ 6504. Rules and regulations.
The Insurance Commissioner shall promulgate such rules and regulations as shall be necessary to carry out the policy determinations
of the Committee in administering the state insurance coverage program, so as to effectively provide coverage for the State
whether same be procured from commercial insurance or by self-insurance or a combination of both.
18 Del. C. 1953, § 6502B; 57 Del. Laws, c. 187, § 2.;
§ 6505. Establishment of State Insurance Coverage Office.
There is hereby established under the direction and supervision of the Insurance Commissioner the State Insurance Coverage
Office, hereinafter in this chapter referred to as the Coverage Office, the executive head of which shall be the Director
of Insurance Coverage, hereinafter referred to in this chapter as the Director, who shall be appointed by and serve at the
pleasure of the Insurance Commissioner.
18 Del. C. 1953, § 6503; 57 Del. Laws, c. 187, § 2.;
§ 6506. Qualifications of Director of Insurance Coverage.
The Director shall be qualified for the office by virtue of the Director's education and experience, and during the tenure
of office the Director shall not be associated directly or indirectly with any insurance agency, firm or corporation, and
before entering upon the duties of the office the Director shall file with the Secretary of State a bond in the penal sum
of $50,000 with corporate surety approved by the Insurance Commissioner. The Director shall be charged with and responsible
for the administration of the Coverage Office as herein provided.
18 Del. C. 1953, § 6504; 57 Del. Laws, c. 187, § 2; 70 Del. Laws, c. 186, § 1.;
§ 6507. Salary of the Director of Insurance Coverage.
The salary of the Director shall be not less than $10,000 per year. The Director shall be in the classified service of the
State by virtue of said employment.
18 Del. C. 1953, § 6505; 57 Del. Laws, c. 187, § 2.;
§ 6508. Duties of the State Insurance Coverage Office.
The Coverage Office shall provide:
(1) The placement of all insurance with commercial insurers that the Committee has deemed appropriate to place with such insurers;
(2) The operation of the fund, when and if same shall be established by the Committee for the operation of a self-insurance
program;
(3) Centralized responsibility for the operation of the State insurance coverage program vested in a single agency with an
adequate staff of legal, actuarial and administrative personnel;
(4) The establishment and operation of an open bid procedure to be maintained for purchasing new insurance coverage from commercial
insurers and renewing existing contracts with such commercial insurers which will permit the free forces of market competition
to operate to the benefit of the state insurance coverage program;
(5) The keeping of all policies with commercial insurers and all records necessary and pertinent thereto in some safe and
secure place;
(6) The keeping in some safe and secure place of all records, accounts, claims files, statistical studies and other such records
and documents necessary and proper in the administration of the self-insurance program, when and if the Committee deems it
proper to utilize same;
(7) The periodic preparation of reports as to the commercially procured insurance coverage part of the program which shall
present the basic statistical-actuarial data pertaining to the experience of that part of the program and its component parts,
which reports shall be public documents;
(8) Provide to the commercial insurance industry such information about bidding procedures as is required by the statutes
of this State, so that any qualified commercial insurer may have an opportunity to offer its service to this State in the
areas where the Committee has deemed it desirable to procure commercial coverage;
(9) Periodic comprehensive insurance surveys of program needs, and a continuing review of existing commercially procured insurance
contracts, as well as analysis of commercial rates in terms of changing economic conditions, and periodic studies of commercial
market conditions and developments;
(10) Such special investigations and reports as may be requested by the Insurance Commissioner;
(11) Technical assistance to the volunteer fire departments in the State concerning insurance matters relating to their operations.
Such assistance shall be given only at the request of the president of a company and with the consent of the Insurance Commissioner.
18 Del. C. 1953, § 6506; 57 Del. Laws, c. 187, § 2; 60 Del. Laws, c. 130, § 1.;
§ 6509. Insurance by other agencies of the State.
No other agency of this State, for which coverage is herein provided, shall be authorized to place any insurance, any law
to the contrary notwithstanding, and all insurance for such agencies shall be placed by and through the Coverage Office.
18 Del. C. 1953, § 6507; 57 Del. Laws, c. 187, § 2.;
§ 6510. Existing insurance contracts.
Existing insurance contracts and any renewals thereof may continue in full force and effect unless and until otherwise provided
by the Director.
18 Del. C. 1953, § 6508; 57 Del. Laws, c. 187, § 2.;
§ 6511. Defense of sovereignty prohibited.
The defense of sovereignty is waived and cannot and will not be asserted as to any risk or loss covered by the state insurance
coverage program, whether same be covered by commercially procured insurance or by self-insurance, and every commercially
procured insurance contract shall contain a provision to this effect, where appropriate.
18 Del. C. 1953, § 6509; 57 Del. Laws, c. 187, § 2.;
CHAPTER 65. INSURANCE FOR THE PROTECTION OF THE STATE
Subchapter I. General Provisions
§ 6501. Definitions.
As used in this chapter:
(1) "The Committee" means the Insurance Coverage Determination Committee, hereinafter established by § 6502 of this title.
(2) "Coverage Office" means the State Insurance Coverage Office, hereinafter established by § 6505 of this title.
(3) "Director" means the Director of Insurance Coverage, hereinafter established by § 6505 of this title.
(4) "The Fund" means the State Self-Insurance Fund as provided for by subchapter III of this chapter.
18 Del. C. 1953, § 6501; 57 Del. Laws, c. 187, § 2.;
§ 6502. Insurance for the protection of the State and the public; determination of coverage.
There is hereby established the Insurance Coverage Determination Committee, which shall be composed of the Governor, the State
Auditor and the Insurance Commissioner, during their respective terms of office. The Committee shall from time to time determine
the method of insuring, the amount of insurance, and the class of coverage covering any type of risk to which the State may
be exposed, including, but not limited to: Life insurance, as defined in § 902 of this title; health insurance, as defined
in § 903 of this title; property insurance, as defined in § 904 of this title; surety insurance, as defined in § 905(a)(1)
of this title; casualty insurance, as defined in § 906 of this title; marine and transportation and "wet marine" insurance,
as defined in § 907 of this title; title insurance, as defined in § 908 of this title; to be effected and carried by the State
or any subdivision thereof, including all school districts, but excluding, however, municipal corporations, counties, and
the authorities relating to the crossings of the Delaware River and the Delaware Bay.
18 Del. C. 1953, § 6502; 57 Del. Laws, c. 187, § 2.;
§ 6503. Forms of coverage.
The Committee shall:
(1) Protect this State from loss to state-owned property;
(2) Protect the public from wrongful actions of State officials and employees and failure or malfunction of state-owned property;
(3) Secure for this State the maximum economic advantage feasible in the operation of its insurance coverage program, including,
when deemed appropriate to such end, the utilization of blanket policies, deductible or excess loss insurance, and self-insurance;
(4) Determine such insurance protection as shall be required by the needs of the State and as shall be most economically advantageous
to the State by providing for, as they shall deem appropriate, no insurance on small losses, coverage by commercial insurance,
coverage by self-insurance or a combination of such methods.
18 Del. C. 1953, § 6502A; 57 Del. Laws, c. 187, § 2.;
§ 6504. Rules and regulations.
The Insurance Commissioner shall promulgate such rules and regulations as shall be necessary to carry out the policy determinations
of the Committee in administering the state insurance coverage program, so as to effectively provide coverage for the State
whether same be procured from commercial insurance or by self-insurance or a combination of both.
18 Del. C. 1953, § 6502B; 57 Del. Laws, c. 187, § 2.;
§ 6505. Establishment of State Insurance Coverage Office.
There is hereby established under the direction and supervision of the Insurance Commissioner the State Insurance Coverage
Office, hereinafter in this chapter referred to as the Coverage Office, the executive head of which shall be the Director
of Insurance Coverage, hereinafter referred to in this chapter as the Director, who shall be appointed by and serve at the
pleasure of the Insurance Commissioner.
18 Del. C. 1953, § 6503; 57 Del. Laws, c. 187, § 2.;
§ 6506. Qualifications of Director of Insurance Coverage.
The Director shall be qualified for the office by virtue of the Director's education and experience, and during the tenure
of office the Director shall not be associated directly or indirectly with any insurance agency, firm or corporation, and
before entering upon the duties of the office the Director shall file with the Secretary of State a bond in the penal sum
of $50,000 with corporate surety approved by the Insurance Commissioner. The Director shall be charged with and responsible
for the administration of the Coverage Office as herein provided.
18 Del. C. 1953, § 6504; 57 Del. Laws, c. 187, § 2; 70 Del. Laws, c. 186, § 1.;
§ 6507. Salary of the Director of Insurance Coverage.
The salary of the Director shall be not less than $10,000 per year. The Director shall be in the classified service of the
State by virtue of said employment.
18 Del. C. 1953, § 6505; 57 Del. Laws, c. 187, § 2.;
§ 6508. Duties of the State Insurance Coverage Office.
The Coverage Office shall provide:
(1) The placement of all insurance with commercial insurers that the Committee has deemed appropriate to place with such insurers;
(2) The operation of the fund, when and if same shall be established by the Committee for the operation of a self-insurance
program;
(3) Centralized responsibility for the operation of the State insurance coverage program vested in a single agency with an
adequate staff of legal, actuarial and administrative personnel;
(4) The establishment and operation of an open bid procedure to be maintained for purchasing new insurance coverage from commercial
insurers and renewing existing contracts with such commercial insurers which will permit the free forces of market competition
to operate to the benefit of the state insurance coverage program;
(5) The keeping of all policies with commercial insurers and all records necessary and pertinent thereto in some safe and
secure place;
(6) The keeping in some safe and secure place of all records, accounts, claims files, statistical studies and other such records
and documents necessary and proper in the administration of the self-insurance program, when and if the Committee deems it
proper to utilize same;
(7) The periodic preparation of reports as to the commercially procured insurance coverage part of the program which shall
present the basic statistical-actuarial data pertaining to the experience of that part of the program and its component parts,
which reports shall be public documents;
(8) Provide to the commercial insurance industry such information about bidding procedures as is required by the statutes
of this State, so that any qualified commercial insurer may have an opportunity to offer its service to this State in the
areas where the Committee has deemed it desirable to procure commercial coverage;
(9) Periodic comprehensive insurance surveys of program needs, and a continuing review of existing commercially procured insurance
contracts, as well as analysis of commercial rates in terms of changing economic conditions, and periodic studies of commercial
market conditions and developments;
(10) Such special investigations and reports as may be requested by the Insurance Commissioner;
(11) Technical assistance to the volunteer fire departments in the State concerning insurance matters relating to their operations.
Such assistance shall be given only at the request of the president of a company and with the consent of the Insurance Commissioner.
18 Del. C. 1953, § 6506; 57 Del. Laws, c. 187, § 2; 60 Del. Laws, c. 130, § 1.;
§ 6509. Insurance by other agencies of the State.
No other agency of this State, for which coverage is herein provided, shall be authorized to place any insurance, any law
to the contrary notwithstanding, and all insurance for such agencies shall be placed by and through the Coverage Office.
18 Del. C. 1953, § 6507; 57 Del. Laws, c. 187, § 2.;
§ 6510. Existing insurance contracts.
Existing insurance contracts and any renewals thereof may continue in full force and effect unless and until otherwise provided
by the Director.
18 Del. C. 1953, § 6508; 57 Del. Laws, c. 187, § 2.;
§ 6511. Defense of sovereignty prohibited.
The defense of sovereignty is waived and cannot and will not be asserted as to any risk or loss covered by the state insurance
coverage program, whether same be covered by commercially procured insurance or by self-insurance, and every commercially
procured insurance contract shall contain a provision to this effect, where appropriate.
18 Del. C. 1953, § 6509; 57 Del. Laws, c. 187, § 2.;
CHAPTER 65. INSURANCE FOR THE PROTECTION OF THE STATE
Subchapter I. General Provisions
§ 6501. Definitions.
As used in this chapter:
(1) "The Committee" means the Insurance Coverage Determination Committee, hereinafter established by § 6502 of this title.
(2) "Coverage Office" means the State Insurance Coverage Office, hereinafter established by § 6505 of this title.
(3) "Director" means the Director of Insurance Coverage, hereinafter established by § 6505 of this title.
(4) "The Fund" means the State Self-Insurance Fund as provided for by subchapter III of this chapter.
18 Del. C. 1953, § 6501; 57 Del. Laws, c. 187, § 2.;
§ 6502. Insurance for the protection of the State and the public; determination of coverage.
There is hereby established the Insurance Coverage Determination Committee, which shall be composed of the Governor, the State
Auditor and the Insurance Commissioner, during their respective terms of office. The Committee shall from time to time determine
the method of insuring, the amount of insurance, and the class of coverage covering any type of risk to which the State may
be exposed, including, but not limited to: Life insurance, as defined in § 902 of this title; health insurance, as defined
in § 903 of this title; property insurance, as defined in § 904 of this title; surety insurance, as defined in § 905(a)(1)
of this title; casualty insurance, as defined in § 906 of this title; marine and transportation and "wet marine" insurance,
as defined in § 907 of this title; title insurance, as defined in § 908 of this title; to be effected and carried by the State
or any subdivision thereof, including all school districts, but excluding, however, municipal corporations, counties, and
the authorities relating to the crossings of the Delaware River and the Delaware Bay.
18 Del. C. 1953, § 6502; 57 Del. Laws, c. 187, § 2.;
§ 6503. Forms of coverage.
The Committee shall:
(1) Protect this State from loss to state-owned property;
(2) Protect the public from wrongful actions of State officials and employees and failure or malfunction of state-owned property;
(3) Secure for this State the maximum economic advantage feasible in the operation of its insurance coverage program, including,
when deemed appropriate to such end, the utilization of blanket policies, deductible or excess loss insurance, and self-insurance;
(4) Determine such insurance protection as shall be required by the needs of the State and as shall be most economically advantageous
to the State by providing for, as they shall deem appropriate, no insurance on small losses, coverage by commercial insurance,
coverage by self-insurance or a combination of such methods.
18 Del. C. 1953, § 6502A; 57 Del. Laws, c. 187, § 2.;
§ 6504. Rules and regulations.
The Insurance Commissioner shall promulgate such rules and regulations as shall be necessary to carry out the policy determinations
of the Committee in administering the state insurance coverage program, so as to effectively provide coverage for the State
whether same be procured from commercial insurance or by self-insurance or a combination of both.
18 Del. C. 1953, § 6502B; 57 Del. Laws, c. 187, § 2.;
§ 6505. Establishment of State Insurance Coverage Office.
There is hereby established under the direction and supervision of the Insurance Commissioner the State Insurance Coverage
Office, hereinafter in this chapter referred to as the Coverage Office, the executive head of which shall be the Director
of Insurance Coverage, hereinafter referred to in this chapter as the Director, who shall be appointed by and serve at the
pleasure of the Insurance Commissioner.
18 Del. C. 1953, § 6503; 57 Del. Laws, c. 187, § 2.;
§ 6506. Qualifications of Director of Insurance Coverage.
The Director shall be qualified for the office by virtue of the Director's education and experience, and during the tenure
of office the Director shall not be associated directly or indirectly with any insurance agency, firm or corporation, and
before entering upon the duties of the office the Director shall file with the Secretary of State a bond in the penal sum
of $50,000 with corporate surety approved by the Insurance Commissioner. The Director shall be charged with and responsible
for the administration of the Coverage Office as herein provided.
18 Del. C. 1953, § 6504; 57 Del. Laws, c. 187, § 2; 70 Del. Laws, c. 186, § 1.;
§ 6507. Salary of the Director of Insurance Coverage.
The salary of the Director shall be not less than $10,000 per year. The Director shall be in the classified service of the
State by virtue of said employment.
18 Del. C. 1953, § 6505; 57 Del. Laws, c. 187, § 2.;
§ 6508. Duties of the State Insurance Coverage Office.
The Coverage Office shall provide:
(1) The placement of all insurance with commercial insurers that the Committee has deemed appropriate to place with such insurers;
(2) The operation of the fund, when and if same shall be established by the Committee for the operation of a self-insurance
program;
(3) Centralized responsibility for the operation of the State insurance coverage program vested in a single agency with an
adequate staff of legal, actuarial and administrative personnel;
(4) The establishment and operation of an open bid procedure to be maintained for purchasing new insurance coverage from commercial
insurers and renewing existing contracts with such commercial insurers which will permit the free forces of market competition
to operate to the benefit of the state insurance coverage program;
(5) The keeping of all policies with commercial insurers and all records necessary and pertinent thereto in some safe and
secure place;
(6) The keeping in some safe and secure place of all records, accounts, claims files, statistical studies and other such records
and documents necessary and proper in the administration of the self-insurance program, when and if the Committee deems it
proper to utilize same;
(7) The periodic preparation of reports as to the commercially procured insurance coverage part of the program which shall
present the basic statistical-actuarial data pertaining to the experience of that part of the program and its component parts,
which reports shall be public documents;
(8) Provide to the commercial insurance industry such information about bidding procedures as is required by the statutes
of this State, so that any qualified commercial insurer may have an opportunity to offer its service to this State in the
areas where the Committee has deemed it desirable to procure commercial coverage;
(9) Periodic comprehensive insurance surveys of program needs, and a continuing review of existing commercially procured insurance
contracts, as well as analysis of commercial rates in terms of changing economic conditions, and periodic studies of commercial
market conditions and developments;
(10) Such special investigations and reports as may be requested by the Insurance Commissioner;
(11) Technical assistance to the volunteer fire departments in the State concerning insurance matters relating to their operations.
Such assistance shall be given only at the request of the president of a company and with the consent of the Insurance Commissioner.
18 Del. C. 1953, § 6506; 57 Del. Laws, c. 187, § 2; 60 Del. Laws, c. 130, § 1.;
§ 6509. Insurance by other agencies of the State.
No other agency of this State, for which coverage is herein provided, shall be authorized to place any insurance, any law
to the contrary notwithstanding, and all insurance for such agencies shall be placed by and through the Coverage Office.
18 Del. C. 1953, § 6507; 57 Del. Laws, c. 187, § 2.;
§ 6510. Existing insurance contracts.
Existing insurance contracts and any renewals thereof may continue in full force and effect unless and until otherwise provided
by the Director.
18 Del. C. 1953, § 6508; 57 Del. Laws, c. 187, § 2.;
§ 6511. Defense of sovereignty prohibited.
The defense of sovereignty is waived and cannot and will not be asserted as to any risk or loss covered by the state insurance
coverage program, whether same be covered by commercially procured insurance or by self-insurance, and every commercially
procured insurance contract shall contain a provision to this effect, where appropriate.
18 Del. C. 1953, § 6509; 57 Del. Laws, c. 187, § 2.;
