Delaware Administrative Code
Title 18 - Insurance
500 - Agents, Brokers, Solicitors, and Consultants
503 - Licensing Procedure for Limited Representatives for Fixed or Guaranteed Annuities [Formerly Regulation 35]
Section 503-2.0 - Definitions
Current through Register Vol. 28, No. 3, September 1, 2024
2.1 The definitions below are summarized for convenience. For complete definitions see cited reference as applicable.
"Agent of New York Stock Exchange Broker-Dealer" In general, the representative of a broker-dealer, registered with the New York Stock Exchange, who is engaged in the business of transaction of securities for the account of others. The agent acts for and on behalf of the broker-dealer and not on his own account. [6 Del.C. § 7302 (a)(2) ]
"Agency or Firm License" A license or certificate of authority issued to a corporation, firm, sole proprietorship, partnership or other business entity authorizing the conduct of insurance business in the firm's name. Such license is issued to the corporation or firm on the basis of the qualification of its specific members who are registered with the Department. The certificate of authority is valid only for those lines of insurance for which the registered member is qualified and licensed. The insurance transactions of the licensed firm may only be conducted by the licensed registered members. (Regulation 201 Formerly Insurance Regulation No. 16)
"Annuity" An insurance contract under which obligations are assumed as to periodic payments for specific term or terms, or where the making or continuance of all or some such payments, or the amount of such payments, is dependent upon continuance of human life. (18 Del.C. § 2902)
"Fixed or Guaranteed Annuity" An insurance contract which provides for an annuity payment of a stipulated amount commencing either immediately or at some future date. The amount of the insurer's payments are guaranteed and cannot be changed according to specific investment experience.
"Insurer's Appointment" Written authorization by an insurer conveying to specific individuals and firms to act as agent and/or limited representative for that insurer in the solicitation of insurance contracts. Such appointments must be filed with and approved by the Department. (18 Del.C. § 1714)
"Limited Representatives" A certificate of authority issued to individuals and/or agencies conveying authority for the transaction of insurance business. The authority of the limited representative is limited to the specific lines of insurance described on the certificate. The limited representative certificate is issued for those lines of insurance which the Commissioner deems essential for the transaction of insurance business in Delaware and which do not require the level of qualification required for a full agent's or broker's license. Such certificates are normally issued where insurance is a peripheral activity associated with the licensee's primary business. (18 Del.C. § 1706)
