18 Del. Admin. Code § 2001
2.1 Each application for an original license as an Insurance Premium Finance Company shall be accompanied by Form No. PF‑3, entitled "Biographical Questionnaire," attached hereto as Exhibit C and incorporated herein. A separate form shall be completed and executed:
The licensee shall conspicuously display the license issued by the State Insurance Commissioner in the place of business.
4.1 Death of a proprietor shall terminate the license; provided, however, that if notice of such death is furnished to the Commissioner and the Commissioner is satisfied, by examination or otherwise, that the interests of insureds and insurers have been adequately protected, he may issue a temporary license:
When a partner retires from a licensed partnership or a new partner is admitted, or when a person ceases to be an officer, director, or 10% stockholder of a licensed corporation or a person becomes an officer, director or 10% stockholder of a licensed corporation, the Commissioner shall, within ten (10) days after the event, be advised of the facts in detail by letter. The letter shall be accompanied by a duly completed Biographical Questionnaire (on Form No. PF‑3) of any new partner or any new officer, director or 10% stockholder. Each licensee shall supply such additional information as the Commissioner may request.
6.1 If any licensee or any person who is a partner of a licensee or who is an officer, director, or 10% stockholder of a licensee shall be:
If the licensee engages in any other business, the records relating to the insurance premium finance business shall be kept separate from the records of any other business.
Every insurance premium finance contract and all documents relating thereto, and copies or form numbers of all documents delivered to an insured, shall be retained so as to be readily available for inspection by the Commissioner at any time. Said records shall be preserved intact for at least three (3) years after making final entry in respect to any premium finance contract and may be maintained and preserved in photographic form.
The licensee shall notify the insurer that a premium finance contract was signed and the premium paid to an agent, agency or broker within twenty (20) days of the date the premium finance contract is accepted by the licensee.
All payments less any commissions and fees tendered to a licensee are to be considered fiduciary funds held in trust for the insured and not in trust for the insurance company insofar as unearned premiums, fees and charges are concerned if the same are not directly owed to the licensee.
Each loan shall be supported by a Disclosure Statement in conformity with Federal and Delaware Statutes.
Pursuant to the requirements of notice of cancellation to the insured contained herein, all such notices shall be transmitted by certified mail as defined in18 Del.C. §3903(a)(4).
The service charge of $9 per $100 per year is to be calculated as an add‑on charge.
Notwithstanding any provisions of the contract to the contrary, any unpaid balance may be paid at any time, without penalty, and any unearned service charge shall be refunded based on the "Rule of 78's" with the exception that any initial charge will not be refunded and rebates of less than $1 need not be made.
18.5 The following is the procedure to be employed by insurers for returning gross unearned premiums to a licensee subsequent to cancellation of insurance policies:
A premium finance agreement may provide for the payment by the insured of a delinquency charge per installment of at least $1 but which may not exceed a maximum charge of 5% of the delinquent installment of $5, whichever is less, for each installment which is in default for a period of 10 days or more. If the default results in the cancellation of any insurance contract listed in the agreement, the agreement may provide for the payment by the insured of a cancellation charge equal to the difference between any delinquency charge imposed in respect to the installment in default as permitted hereinabove and the sum of $5. No other penalties may be imposed.
Attorneys' fees for collection as allowed by law, and so included in the evidence of debt and other supporting papers, shall not be charged to the borrower unless the account is actually processed by an attorney not an employee of the lender.
24.1 Each licensee office shall open and maintain the following books and records. These are the minimum books and records required by the Department and shall be kept on a current basis. For establishing and maintaining these required records, there may be suitable variations to accommodate individual accounting systems, including automated systems, provided the required data is kept on a current basis and is readily available to the Department's Examiners.
Prior to March 1 of each year, each licensee shall furnish to the Commissioner a completed Form No. PF‑4 entitled "Annual Report of Insurance Premium Finance Companies," attached hereto as Exhibit D and incorporated herein.
STATE OF DELAWARE‑INSURANCE DEPARTMENT
Exhibit A
INSURANCE DEPARTMENT
STATE OF DELAWARE
1351 WEST NORTH ST., SUITE 101
DOVER, DE 19904
APPLICATION FOR LICENSE AS AN INSURANCE PREMIUM FINANCE COMPANY
TO THE INSURANCE COMMISSIONER OF THE STATE OF DELAWARE:
Application is hereby made for a license to operate an insurance premium finance company.
Company Name: _____________________________________
Address at which applicant will conduct business under license: ___________________
Address of principal place of business within State: _______________________
Address at which all books, records, accounts and documents relating to business in this State will be kept: ________________________________
If applicant is a foreign proprietorship, partnership, or corporation, address of principal place of business: _______________________________
Applicant is
( ) Individual Proprietor
( ) Partnership
( ) Corporation
( ) Other (Specify)
If applicant is a corporation (Attach Certificate of Incorporation)
State of Incorporation: _______________________
Date of Incorporation: _______________________
If a foreign corporation, name and address of Agent for Service of Process in Delaware: _____________________________________
If applicant has engaged previously in the same or a similar business, provide details, including name(s), address(es), and date(s) first commenced: ___________________________
____________________________________________________________________________
____________________________________________________________________________
State whether applicant is, directly or indirectly, under common ownership, control, or management or is otherwise affiliated or associated with any insurer, or any person, firm or corporation having or exercising control of an insurer.
_ YES _ NO
If "yes," supply complete details: _________________________________________________
____________________________________________________________________
If applicant is a partnership
State whether general partnership or limited partnership: __________________
Give names and addresses of all partners specifically identifying limited partners, if any: _____________________________________________________________________
_____________________________________________________________________
If applicant is a corporation, trust or other entity, other than a partnership, of which ownership is manifested by shares. identify each type of shares and state:
Number of shares authorized: ___________________
Number of shares outstanding ___________________
Par Value: _____________________
Give name, residence address, title and number and per cent of shares directly or beneficially owned by every officer and director and every person, firm or corporation owning or controlling 10% or more of the shares of each type: _______________________________
NAME AND RESIDENCE ADDRESS TITLE NUMBER OF SHARES (%)
________________________________ ______________________________
________________________________ ______________________________
________________________________ ______________________________
Attach current, certified financial statement, which is as of the following dates:
___________________________________________________________________________
In addition to an insurance premium finance company, the following additional business will a conducted at the address of the applicant: ___________________________________
___________________________________________________________________________
If applicant, or any subsidiary, affiliated, or associated insurance premium finance company, has more than one place of business, give the name and address of each:
___________________________________________________________________________
______________________________________________________________________
If the appropriate answer is "Yes" to any of the following questions concerning the applicant, manager, any officer, director, owner or beneficial owner of 10% or more of the shares, complete details must a given including name, address, disposition of charges, etc.
Have any of the above:
Applied previously in this State for a license to engage in the business of insurance premium financing?
_ YES _ NO
Received a rejection, revocation or suspension of license under laws of this State governing insurance premium or other consumer financing?
_ YES _ NO
Received a rejection, revocation or suspension under an insurance premium financing law or regulation, or si milar law or regulation in any other State?
_ YES _ NO
Received a revocation or suspension of any license, been convicted or entered a plea of guilty, or nolo contendere, with respect to any law or regulation relating to the business of insurance?
_ YES _ NO
Been arrested, indicted, convicted, entered a plea of guilty or nolo contendere with respect to a State or Federal offense in this or any other State?
_ YES _ NO
Been placed in voluntary or involuntary bankruptcy, receivership, trusteeship, or conservator ship?
_ YES _ NO
Do any of the above now hold a license to engage in the business of insurance premium financing or a similar or related business in any State, District or Territory of the United States?
_ YES _ NO
Form PF‑I Delaware
REGULATION NO. 21‑INSURANCE PREMIUM FINANCE COMPANIES
INSURANCE DEPARTMENT
STATE OF DELAWARE
1351 WEST NORTH ST., SUITE 101
DOVER, DE 19904
APPLICATION FOR RENEWAL LICENSE AS AN INSURANCE PREMIUM FINANCE COMPANY
TO THE INSURANCE COMMISSIONER OF THE STATE OF DELAWARE:
Licensee's Name: ______________________________________________________
Address: _____________________________________________________________
NOTE: The name and address of the licensee as it appears above shall be the same as it presently appears on your license. If any of this information is incorrect, fill in the correct information in the space provided below:
Name: ________________________________________________________
Address: ______________________________________________________
This is a renewal of license number _________, for the year __________
If this is a corporation, give name and address:______________________________
____________________________________________________________________________________
Give names of officers:
President ________________________
Secretary ________________________
Treasurer ________________________
If this is a partnership or proprietorship, give names of partners or proprietor:
____________________________________________________________________
__________________________________________________________________________
Attached is check in the amount of $300 for annual license fee. (Check should be made payable to "Insurance Commissioner, State of Delaware.")
Affidavit
County ______________________
State ________________________
I, _________________________________________ the undersigned, being the ______________________________________________________________________ of the
(Title, if a corporation)
______________________________________________________________________
Name of the insurance premium finance company) swear, (or affirm), that to the best of my knowledge and belief, the statements contained in this application, including the accompanying statements (if any), are true and complete.
By ____________________________________
Title ___________________________________
Subscribed and sworn to before me this ______day of______________, 19_________
____________________________________
Notary Public
Form PF‑2
Delaware
INSURANCE DEPARTMENT
STATE OF DELAWARE
1351 WEST NORTH ST., SUITE 101
DOVER, DE 19904
BIOGRAPHICAL QUESTIONNAIRE FOR PREMIUM FINANCE COMPANIES
Company Name: _________________________________________
Office Held: _________________________________________
Individual's Name: _________________________________________
Date of Birth: ______________________ Place of Birth: _____________________
Current Residential Address: _________________________________________
Current Business Address: _________________________________________
Residential Address for Past Five Years: ________________________________
_________________________________________
_________________________________________
_________________________________________
_________________________________________
_________________________________________
Education (Beyond High School):
_______________________________________________________
Employment History. (Beginning with current employer, trace back complete history. Show dates of employment, name and address of company, position held, and duties.)
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
List any other companies which you now serve, or within the past five years have served, as either an officer or director. (List company, position and dates.)
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Have you ever been charged with a criminal violation (other than a traffic offense) at any time? If "yes," provide complete details.
___________________________________________________________________
___________________________________________________________________
Have you ever held any other license (except a driver’s license)
_ YES _ NO
If "yes," provide details as to any such license which was ever suspended, revoked, or renewal refused.
__________________________________________________________________
__________________________________________________________________
Have you ever been charged by any regulatory agency, whether City, County, State or Federal, with having violated any laws, rules or regulations or has any company been so charged, allegedly as a result of any action or conduct on you part?
_ YES _ NO
If "yes," as to either, submit full details including disposition of charge.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Date: _____________________ Signature ______________________________
State of_______________)
ss
County_______________)
On the ____________day of ________ , 20 __, before me, a Notary Public in and for the State and County aforesaid, personally appeared ________________________to me known to be the individual described in and who executed the foregoing and did make oath in due form of law that the matters and facts contained in the foregoing resume are true and correct.
____________________________
Notary Public
PF‑3
Delaware
INSURANCE DEPARTMENT
STATE OF DELAWARE
1351 WEST NORTH ST., SUITE 101
DOVER, DE 19904
ANNUAL REPORT OF INSURANCE PREMIUM FINANCE COMPANIES FOR THE YEAR ENDED DECEMBER 31, 20__
DUE ON OR BEFORE MARCH 1st
NOTE: Where insufficient space is provided to set forth the facts adequately, annex a schedule giving the details.
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READ THE INSTRUCTIONS CAREFULLY BEFORE MAKING UP THIS REPORT
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Schedule A
General
Name of Licensee: __________________ License # ________________________
Address, Street and City: _______________________________________________
State Whether Corporation, Partnership, Association or Individual: ______________
Date Licensee Began Business in Delaware: _________________________________
Business Other Than Insurance Premium Finance Business Conducted in Same Offices:
_________________________________________________________________
Name of Principal Officers at Close of Year Covered by this Report:
President ___________________________
Secretary __________________________
Treasurer ________________________
Owner ____________________________
Partners ___________________________
| SCHEDULE B Balance Sheets ‑ As Per Books As at December 31, 20__ and December 31, 20__ | ||
| Assets | End of Present Year | End of Previous Year |
| (7)Loans Receivable | ||
| (8)Cash in Office and in Banks | ||
| (9)Accounts Receivable: | ||
| (A)Parent and/or Affiliated Companies | ||
| (B)Other | ||
| (10)Notes Receivable ‑ Other | ||
| (11) Deferred Charges and Prepaid Expenses | ||
| (12)Fixed Assets (Less Reserve for Depreciation and Amortization | ||
| (13)Other Assets: | ||
| (A)Parent and/or Affiliated Companies | ||
| (B)Other | ||
| (C)All Other Assets | ||
| (14) Total Assets | ||
| LIABILITIES AND CAPITAL | End of Present Year | End of Previous Year |
| (15) Accounts and Notes Payable: | ||
| (A)Banks | ||
| (B)Due to parent Company and/or Affiliated Companies | ||
| (C)Other | ||
| (16)Bonds | ||
| (17)Other Liabilities: | ||
| (A)Accrued Expenses | ||
| (B)All Other Liabilities | ||
| (18) Expenses Reserves: | ||
| (19) Deferred Income: | ||
| (A)Unearned Interest and Fees ‑ Loans Receivable | ||
| (B)All Other Deferred Income | ||
| (20)Branch Office Capital | ||
| (21)Net Worth (If Proprietorship or Partnership) | ||
| (22)Capital Stock (if Corporation) | ||
| (23)Paid in Surplus | ||
| (24)Earned Surplus | ||
| (25)Total Liabilities and Capital | ||
| SCHEDULE C Statement of Income and Expense For Period From January 1, 20__ and December 31, 20__ | ||
| GROSS INCOME DERIVED FROM INSURANCE PREMIUM FINANCE BUSINESS End of Present Year End of Previous Year | ||
| (26)Earned Interest Less Refunds | ||
| (27)Earned Fees Less Refunds | ||
| (28)Collection on Loans Previously Charged Off | ||
| (29)All Other Income From Insurance Premium Finance Business (Attach Schedule) | ||
| (30)Total Gross Income Derived from Insurance Premium Finance Business (Items 26 to 29) | ||
| EXPENSES OF CONDUCTING INSURANCE PREMIUM FINANCE BUSINESS | End of Present Year | End of Previous Year |
| (31)Advertising | ||
| (32)Automobile Expense | ||
| (33)Bad Debts, or Reserve for Bad Debts | ||
| (34)Credit and Collection Expense | ||
| (35)Depreciation and Amortization of Fixed Assets | ||
| (36)Donations, Dues and Subscriptions | ||
| (37)Expense, Sundry | ||
| (38)Heat, Light and Water | ||
| (39)Insurance | ||
| (40)Postage and Express | ||
| (41)Legal and Auditing Expense | ||
| (42)Printing, Stationery and Supplies | ||
| (43)Recording Fees ‑ Net | ||
| EXPENSES OF CONDUCTING INSURANCE PREMIUM FINANCE BUSINESS | End of Present Year | End of Previous Year |
| (44) Rent | ||
| (45) Salaries | ||
| (46) Supervision and Administration (When not Allocated to Other Items) | ||
| (47) Taxes | ||
| (A) License Taxes | ||
| (48) Telephone and Telegraph | ||
| (49) Travel | ||
| (50) Other Expenses of Conducting Business Premium Finance Business (Explain): | ||
| (A) | ||
| (B) | ||
| (51) Total Expenses of conducting Business Premium Finance Business (Items 31 to 50) | ||
| (52) Total Net Earnings Derived From Insurance Premium Finance Business for the Period (Before Deducting Interest on Borrowed Funds and Federal and State Taxes on Income) (Item 30 Less Item 51) | ||
| SCHEDULE D Reconciliation of Surplus or Net Earnings For Period From _________, 20___ and ___________, 20 ___________ | ||
| SURPLUS, ADDITIONS AND DEDUCTIONS | End of Present Year | End of Previous Year |
| (53) Surplus Balance at End of Previous Period, for Books (Item 24) | ||
| ADDITIONS: | ||
| (54) Total Net Earnings Derived From Insurance Premium Finance Business For The Period (Item 52) | ||
| (55) Other Credits to Surplus for the Period (Attach Explanation) | ||
| (56) Total Additions for the Period (Item 54 to 55) | ||
| DEDUCTIONS: | ||
| (57) Federal and State Taxes on Income | ||
| (58) Interest Paid | ||
| (59) Amortization of Financing Cost | ||
| (60) Dividends Paid During the Period | ||
| (61) Other Charges to Surplus for the Period: | ||
| (A) Transfer of Earnings to net Worth or Home Office Control | ||
| (B) All Other Charges | ||
| (62) Total Deductions for the Period (Item 57 to 61) | ||
| (63) Net Additions to Previous Periods Surplus Balance (Item 56 minus Item 62) | ||
| (64) Surplus Balance at End of Present Period ‑ As Per Books (Item 53 Plus Item 63) (This amount should be the same as Item 24) | ||
| AFFIDAVIT County _____________________ State _______________________ I, _______________________ the undersigned, being the __________________________ (Title, if a corporation) of the ___________________________________________ (Name of the insurance premium finance company) swear, (or affirm), that to the best of my knowledge and belief, the statements contained in this report, including the accompanying schedules and statements (if any), are true and that the same is a true and complete statement. By ______________________________________ Title ____________________________________ Subscribed and sworn to before me this _____ day of __________, 20___ _____________________________________ Notary Public Form PF‑4 Delaware |