An Act To Amend Title 18 Of The Delaware Code Relating To Licensing Fees And Department Of Insurance Funding.
HB18 revises Delaware’s insurance licensing fee structure and the funding rules for the Insurance Commissioner Regulatory Revolving Fund. The bill increases a range of licensing and renewal fees for insurance professionals by $25, including producers, surplus lines brokers, adjusters, appraisers, apprentices, viatical settlement providers and brokers, business entities, bail agents, discount medical plan organizations, travel insurance producers, rental company limited lines producers, and portable electronics vendors. It also makes technical and conforming changes to centralize certain fee provisions in one section of Title 18 and update cross-references and terminology.
The bill changes how some licensing revenue is allocated by requiring 15% of certain insurance professional licensing fees to be deposited into the Regulatory Revolving Fund, while other fees and taxes continue to go to the General Fund unless otherwise provided by law. It also raises the fund’s maximum allowed unencumbered balance from $1.4 million to $5 million and requires any year-end balance above $5 million to be transferred to the General Fund. The synopsis states these changes are intended to reflect departmental budget growth, cover additional statutory duties, maintain staffing, support consumer services, satisfy NAIC accreditation standards, and avoid federal preemption.
HB18 amends Title 18 of the Delaware Code, primarily sections 305, 701, 2006, and 2057, to increase insurance-related licensing fees and revise the Department of Insurance’s funding mechanism. It affects insurance professionals and related licensees by raising initial and renewal fees, while also directing a portion of licensing revenue to the Insurance Commissioner Regulatory Revolving Fund and setting a higher cap on that fund’s retained balance. The bill also consolidates fee authority into section 701 and removes separate fee caps or formulas in related sections for rental company and portable electronics limited lines licenses.
The bill appears to have been broadly supported and noncontroversial in the recorded votes, passing the House 39-0 and the Senate 19-0. The synopsis frames the measure as a practical funding adjustment needed to keep pace with the Department of Insurance’s workload and operating costs. No committee transcript or recorded opposition is provided, suggesting little visible public or legislative resistance in the available record.
The main policy issue is the increase in licensing fees for insurance professionals and the redirection of a portion of those fees into the Department’s revolving fund rather than the General Fund. Potential points of concern for affected parties include higher costs for producers, brokers, adjusters, agencies, and specialty licensees such as travel insurance and portable electronics vendors. Another possible point of debate is the larger $5 million fund balance cap, which increases the amount the department may retain before excess funds are swept to the General Fund; however, no specific objections are documented in the provided materials.