The national guide explains term, whole life, universal, variable and indexed products, endowments and special-use policies. This page covers Delaware's rules for group life (18 Del. C. Chapter 31), industrial life, variable products and prohibited policy plans.

Group life

• Association groups: must have at least 100 persons at the outset, be organized for purposes other than buying insurance, and have existed at least two years (3106).
• Debtor groups: coverage on a debtor can't exceed the greater of the scheduled or actual unpaid debt (3103).
• Noncontributory plans must cover every eligible employee who doesn't decline in writing (3102).
• Dependents: coverage on spouses and children may be limited to a percentage of the employee's amount (3111).
• Grace period: 31 days (3113).
• Incontestability: after two years, except for nonpayment. An insured's own statements can't be used after his coverage has been in force two years (3114).
• Funeral expenses: up to $2,000 may be paid to someone who covered funeral or last-illness costs (3118).
• Conversion:
  • Apply and pay within 31 days of leaving, with no evidence of insurability. The premium is the insurer's customary rate for the person's attained age (3120).
  • If the group policy ends, people insured at least five years may convert. The amount may be capped at the lesser of the lost coverage or $10,000 (3121).
  • Death during the conversion period is paid as a group claim (3122).
  • If notice of the right came late, the window extends to 15 days after notice, but never more than 60 days past the original deadline (3125).
• Totally disabled employees: coverage may continue on a premium-paying basis for six months (3123).

Other policy types and rules

• Industrial life: policies of $1,000 or less face amount, labeled "industrial policy," with premiums paid monthly or more often (2903).
• Variable products: require a Life license plus FINRA registration (1706(d), 1707(a)(5)).
• Prohibited: policies that call premiums "deposits", and tontine plans that pay survivors from others' lapses (2933).

Exam traps

• Group grace period and conversion window are both 31 days.
• When the group plan ends, conversion requires 5 years of coverage and may be capped at $10,000.
• Association groups need 100 members and 2 years of existence.