Delaware Code § 19-2374

Proof of compliance with insurance requirements; liability on failure of compliance; defenses
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(a) Every employer to whom this chapter applies shall file with the Department in form prescribed by it, annually or as often as may
be required by the Department, evidence of the employer's compliance with §§ 2372 and 2373 of this title and all other sections relating
thereto.
(b) Every insurance carrier shall notify the Department of Labor, on forms specified by the Department, within l4 days that an employer's
policy for workers' compensation coverage has been canceled, lapsed, or is otherwise terminated, other than for replacement of coverage
through a different insurance carrier, with a copy to the employer.
(c) Every employer, upon such notice, or, at the latest, when contacted by the Department of Labor concerning such notice, shall provide
proof of insurance within 14 days or establish by proof satisfactory to the Secretary of the Department of Labor that the employer has:
(1) Been granted self-insured status in accordance with all the laws of the State;
(2) Terminated operation;
(3) Terminated or retired any employees and the operators of the business have elected to waive coverage under § 2308 of this title;
(4) Sold the business, been voluntarily or involuntarily liquidated, and/or enjoined by the courts from doing business; or
(5) Otherwise ceased to exist as an entity that requires workers' compensation coverage in Delaware.
(d) Whoever, being an employer, refuses or neglects to comply with the sections referred to in subsection (a) of this section shall be
subject to a civil penalty:
(1) For employers previously insured until the default, an amount equal to the premium for the insurance not purchased times 3,
based on the last premium rate charged by the carrier providing the coverage before the default for a 1-year period; or
(2) For employers without previous history of coverage, an amount equal to the most expensive policy premium actually charged
by any insurance carrier doing business in the State at the time of the assessment for appropriate coverage of the uninsured employer's
business times 3 for a 1-year period.
(e) Whoever, being an employer, refuses or neglects to comply with the sections referred to in subsection (a) of this section on a
continuing basis after notice by the Department of Labor shall be subject to a civil penalty:
(1) As described in subsection (d) of this section on the fifteenth day after notice to comply with subsection (c) of this section; and
(2) An assessment of $10 per day for each employee in the employer's service at the time when the insurance became due, but not
less than $250 for each day of such refusal or neglect and until the same ceases.
(3) The employer shall also be liable to the employer's injured employees during continuance of such neglect or refusal, either for
compensation under this chapter or in an action at law for damages. In such action, upon proof that the employer has not complied
with this section, it shall not be a defense that the:
a. Employee was negligent; or
b. Employee had assumed the risk of the injury; or
c. Injury was caused by the negligence of a fellow employee.
(f) If any employer is in default under §§ 2372 and 2373 of this title for a period of 30 days, in addition to the above, the employer
may be enjoined by the Court of Chancery of this State from carrying on business while such default continues. The Department of Labor
shall file such petitions in such cases seeking an order of the Court.
(g) When an employer is uninsured for any period and obtains insurance subsequently to comply with notice to provide proof of
insurance, for each day that the employer is uninsured, regardless of whether or not a claim arises during that period, the employer shall
be assessed the penalty in subsection (d) of this section unless the employer can demonstrate to the satisfaction of the Secretary of Labor
that the uninsured status was the fault of some other business entity, in which case the assessment shall be levied upon the business entity
at fault for the uninsured status. Before an alternative business entity may be charged with the assessment, it shall be given notice and
if the liability is contested, a hearing before the Secretary of Labor.
(h) Any assessment or fine collected under this section will be deposited in the Workers' Compensation Fund and disbursed to pay the
claims of any employee affected by the employer's failure to comply with the requirements of insurance imposed by this chapter.
(Code 1915, § 3193aa; 29 Del. Laws, c. 233; Code 1935, § 6097; 19 Del. C. 1953, § 2374; 70 Del. Laws, c. 95, § 3; 70 Del. Laws,
c. 172, §§ 4, 9; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 84, § 3; 76 Del. Laws, c. 1, § 22.)

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