PG Registration

Risk Purchasing Groups (PGs) that wish to do business in Delaware must register with the Insurance Department.  There is a non-refundable $100.00 registration fee. 

Due to the volume of companies doing business in Delaware, and the frequent similarity in company names, all companies are referenced by their nine-digit Federal Employer Identification Number (EIN) for premium tax purposes.  If possible, provide the purchasing group’s EIN on the registration application. 

Some Purchasing Groups have not provided the Department with EIN information.  In order to supply a tax identifier, a PG Identification Number (PG ID#) has been assigned to all purchasing groups by the Department.  This number is required on the tax form. If the PG does not have a Federal EIN, and you do not know the PG ID#, contact the Department to get this number.  Enter both numbers (if applicable) as indicated on the tax form.  The PG should always use either the EIN or the PG ID# when corresponding with the Department. 

PG Taxation and Annual Renewals 

All registered Purchasing Groups must file the Premium Tax and Annual Renewal Form and pay the $50.00 renewal fee, regardless of premium volume or tax liability. 

Premium taxes and taxes on premiums paid for coverage of risks resident or located in Delaware by a purchasing group or any members of the purchasing groups shall be:  (1) Imposed at the same rate and subject to the same interest, fines and penalties as that applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insureds; and  (2) Paid first by such insurance source, and if not by such source by the agent or broker for the purchasing group, and if not by such agent or broker  then by the purchasing group, and if not by such purchasing group then by each of its members.

Please note that all surplus lines business must be transacted by a resident or non-resident individual licensed in Delaware as a Surplus Lines (SL) Broker.  If the PG uses a surplus lines company as a carrier, the individual SL broker who is responsible for procuring the business must be listed.  According to Delaware law, if the insurance carrier does not make filings and pay taxes to the State (as in the case of a non-admitted insurer) the responsibility falls to the SL Broker who obtained the coverage.

• Purchasing Group Registration Application
• Power of Attorney Form
• Premium Tax and Annual Renewal Form
• Title 18, Chapter 80, Delaware Code - Risk Retention Act