Insurance Commissioner of the State of Delaware v. Sun Life Assurance Company of Canada (U.S.)

Summary

The Delaware Supreme Court held that insurance premiums may be aggregated into a single tax "case" under 18 Del. C. § 702(c)(2) only when the policies were issued through the same private placement memorandum. The court reversed the Superior Court and upheld the Insurance Commissioner's denial of Sun Life's requested premium-tax refunds.

Holdings

1. An insurer may aggregate premiums from contracts issued to all employers or trusts into one "case" only when the contracts were offered in the same private placement memorandum. Premiums from policies issued through separate private placements may not be aggregated.
2. The 1998 amendment's deletion of the word "single" did not materially or substantively change the meaning of the statute; both the pre-amendment phrase "a single private placement" and the amended phrase "a private placement" mean one private placement.
3. The Supreme Court reviews the agency's statutory interpretation and application of the statute to undisputed facts plenarily, while reviewing the agency's decision for substantial evidence and legal error.

Questions Presented

1. Whether 18 Del. C. § 702(c)(2)b permits an insurer to aggregate premiums from policies issued through separate and distinct private placements into one statutory "case."
2. Whether the 1998 amendment to the definition of "case" materially changed the statute or created an ambiguity requiring construction in favor of the taxpayer.
3. What standard of review applies to the Commissioner's interpretation of the statute and its application to undisputed facts.

Disposition

reversed