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Delaware Increases the Required Minimum Capital and Surplus Amounts for Licensed Insurers

Effective May 25, 2023, the Delaware legislature passed a law amending 18 Delaware Code Section 511, which establishes the minimum amounts of capital and surplus required for a carrier to transact insurance within Delaware. All licensed insurers in Delaware, including stock, mutuals, or reciprocals, must now possess minimum capital of $650,000 as well as a minimum free surplus of $350,000 in order to transact any line of insurance. Previously, these minimum amounts of capital and surplus varied among carrier types and/or lines of authority.

For Delaware domestic insurers which obtained a valid certificate of authority prior to January 1, 2024, they may continue to be authorized under the prior capital and surplus minimums for a period of 5 years (until January 1, 2029). This exception does not apply to new applicants, or those Delaware domestic which seek to expand their authority in the state.

The Delaware Department of Insurance has issued Domestic/Foreign Insurers Bulletin 140, which provides further information on these changes.

For any questions related to the new capital and surplus requirements in Delaware, or for any of your carrier licensing and compliance needs, please contact Westmont Associates!


Nevada Division of Insurance Update Regarding the Regulations Governing Defense Costs

On July 20, 2023, The Nevada Division of Insurance issued guidance in response to the recently passed Assembly Bill 398, affecting policies of liability insurance including insurance issued by authorized insurers and non-risk retention group captive insurers that provide third-party liability coverage.

Effective October 1, 2023, AB 398 prohibits the issuance or renewal a policy of liability insurance which (1) either reduces the limit of liability stated in the policy by the costs of defense, legal costs and fees and other expenses for claims; or (2) otherwise limits the availability of coverage for the costs of defense, legal costs and fees and other expenses for claims.

The Nevada Division of Insurance has advised that such policies include defense costs outside of the limits of liability, and defense coverage must be made available. However, the law does not require unlimited defense costs. For policies of liability insurance other than those which do not limit defense costs, a separate limit for defenses costs must be made available (including a limit of $0).

The bill does not prohibit insurers from issuing policies which include self-insured retentions or deductibles on liability coverage and/or defense costs.

The Nevada department will prioritize review of any forms which are filed to ensure compliance with AB 398 upon its effective date.

For more information on this Nevada Division of Insurance  update or any other questions, please contact Westmont Associates, Inc.


Washington Adopted a Rule Requiring Insurers to Inform Policyholder Regarding Premium Increases

On June 22, 2023, Washington Insurance Commissioner Mike Kreidler adopted a rule requiring insurers to explain premium increases to their policyholders, using basic language that a policyholder can understand.

The adopted rule is designed to create more transparency for consumers regarding premium increases. The rule applies to all property and casualty insurers in Washington that sell private passenger auto and homeowner coverage, including coverage for manufactured homes, condominiums, and renters.

Beginning June 1, 2024, Insurance companies must provide a written notice upon renewal to policyholders who received a premium increase of 10% or more explaining the primary factors behind the increase, or to any policyholder who requests an explanation of a premium increase. Primary factors include the vehicle’s location, driving record, miles driven, number of drivers, claims history, discounts, fees, surcharges, driver’s age, credit history, education, gender, marital status, occupation, property age, and value. Additionally, insurance companies are required to provide the same notice to any policyholder who asks.

Beginning June 1, 2027, all premium increase notifications must be filed with the Commissioner for approval.

Attached is a link referencing the adopted rule and the statutory changes that come along with the new rule (

For more information on Washington’s adoption of this new rule or any other questions, please contact Westmont Associates, Inc.





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