The Delaware Department of Insurance published a Bulletin on the deposits, fees, and guaranty fund assessments applicable to Delaware Domestic Surplus Lines Insurers (DSLI). DSLIs are foreign surplus lines insurance companies that redomesticate to Delaware and become licensed.
The Delaware Nonadmitted Insurance Act, passed in 2011, created a category of insurance company called a Delaware Domestic Surplus Lines Insurer. A DSLI can write surplus lines in Delaware, unlike other Delaware domestic insurers. A DSLI is considered a domiciled and admitted company in Delaware, but is not permitted to write coverages that surplus lines companies are barred from writing. While a DSLI is an admitted company, it can only write surplus lines insurance business.
A DSLI must follow the procedures in Delaware Code 18 Del. C. Ch 19 which governs surplus lines insurance. DSLI's are subject to a surplus lines premium tax. A DSLI must also meet the requirements in the Delaware Insurance Code applicable to domestic insurers. A DSLI cannot write a policy designed to satisfy motor vehicle financial responsibility requirements, the Workers' Compensation Act, or any other law of Delaware mandating insurance coverage.
THE DSLI application fee can be found in Delaware Insurance Code Chapter 7. A DSLI is not required to pay any deposits or fees associated with lines of coverage that the DSLI is prohibited from writing. DSLI's are also exempted from participating in the Delaware Insurance Guaranty Associations, and thus are not required to pay any deposit or assessment associated with the Association. If a DSLI paid a deposit described here to the Department prior to becoming a DSLI, they can request a refund.
The Bulletin can be found here.