1. Arrange a meeting with the Captive Insurance Program Administrator Bill White and staff to discuss the proposed captive insurance company. This meeting should include the principal organizers of the proposed company and any other key individuals who will be active in the financing and management of the company.  The initial meeting can be arranged in-person or by conference call. An in-person meeting will be required prior to licensing if the initial meeting is by conference call.

2. Gather necessary information and documents and retain services necessary to complete the application process.  As part of the application process, the applicant must provide a certified copy of the Certificate of Incorporation or other appropriate organizational document for the entity that is applying for the license.  If the entity has not been formed, the Delaware Division of Corporations can be accessed at http://www.state.de.us/corp/ to obtain information regarding entity formation in the State of Delaware. Biographical affidavits must be completed for directors, officers and senior management. An independent CPA, captive management services, actuarial services and legal services must be engaged to satisfy application requirements.  

3. Complete the application documents including all attachments and related documents. The business plan outline provides the framework for the information that is to be submitted.  It is a five-year strategic business plan that provides an integrated, detailed overview of the proposed captive insurance company and its operations.  Plan information will be used to evaluate the application and if approved, set guidelines for monitoring compliance with captive insurance regulations. The attachments to the business plan provide documentation to comply with specific application requirements and regulatory standards as well as any additional information to clarify business objectives, operations or organizational structure. The application documents can be accessed through the website.  A completed strategic business plan, the required attachments and any additional attachments pertinent to the application comprise the complete set of application documents.

4. Submit the completed application documents, any related information and the application fee to the Department of Insurance – Captive Insurance Program. Application is to be submitted in hard copy with a cd containing a PDF.  A non-refundable application fee of $200.00 made payable to the Delaware Department of Insurance is required at the time the application documents are submitted. Funds may be wire transferred if the application documents are submitted electronically or a check may be sent with a hardcopy version of the application documents to the Department of Insurance – Captive Insurance Program.

5. Provide additional information or documents as required.  The application will be reviewed for completeness including receipt of a certified copy of the organizational documents and required designations (Exhibits IV – VIII).  The contact person indicated in the Application for Admission (Exhibit I) will be contacted when the file is complete and ready for evaluation review.  A non-refundable fee of $3,000.00 made payable to the Delaware Department of Insurance is required at that time.  The fee covers the cost of the required financial and organizational examinations.  Any additional information or reviews that are needed to evaluate or qualify the application will be specified at that time including additional fees, if any. Upon completion of the evaluation review and approval of the application, the Department of Insurance may request a meeting prior to issuance of the Certificate of Authority.  The purpose of the meeting would be to clarify any remaining circumstances that might affect the captive insurance company’s operation or regulatory oversight by the Department of Insurance.    

Additional Considerations

The CPA firm must complete Exhibit IV for authorization to perform audits annually.  Each captive insurance company shall report using generally accepted accounting principles, unless the Commissioner approves the use of statutory accounting principles or international accounting standards.  The applicant must select an accountant that meets the requirements of Regulation 302.

A qualified actuary must complete Exhibit VI for authorization to render opinions on reserves.  Regulation 302 requires that loss reserves and loss expense reserves be certified by a Fellow of the Casualty Actuarial Society, a member in good standing of the American Academy of Actuaries or an individual who has demonstrated his/her competence in loss reserve evaluation and has been approved by the Commissioner. 

Pure and Industrial insured captive insurance companies must file an annual statement blank in the form as directed by the Commissioner.  Association captives must file an annual statement on the NAIC blank currently in use by the insurance industry.

The company’s principal place of business and all books and records necessary for examination must be located in Delaware.