Must the Bakersfield Insurance Company be a member of the Delaware Life and Health Insurance Guaranty Association if it has a very low volume of insurance policy sales?

The Bakersfield Insurance Company must be a member of the Delaware Life and Health Insurance Guaranty Association because membership is mandatory for all insurance companies that are licensed to operate in the state of Delaware. This requirement ensures that policyholders are protected in the event that an insurance company becomes insolvent.

The purpose of the Delaware Life and Health Insurance Guaranty Association is to provide a safety net for policyholders by covering their claims and ensuring continuity of coverage. Mandatory membership helps maintain consumer confidence in the insurance market, as it guarantees that individuals have access to certain financial protections regardless of the company's sales volume or financial status.

In this context, the provisions of the law do not typically allow exemptions based on the volume of sales or the size of the company. All licensed insurers are held to the same standards of accountability and protection for their clients, fostering a uniform standard in the industry. Therefore, low sales volume does not exempt a company from this obligation.