D.C. Code § 31-4701 — DC Code / Title 31 / Chapter 47 / § 31-4701
§ 31-4701. Valuation of reserves by Commissioner.
Status: in_force

(a) (1) (A) The Commissioner shall annually value, or cause to be valued, the reserve liabilities (hereinafter called reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in the District issued prior to the operative date of the valuation model, except that in the case of an alien company such valuation shall be limited to its insurance transactions in the United States. All such valuations made by him or by his authority shall be made upon the net premium basis. In calculating such reserves, he may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves herein required of any foreign or alien company, he may accept any valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when such valuation complies with the minimum standard provided in this section.
    (B) The provisions set forth in subsections (c), (d), (e), and (f) of this section and § 31-4720 shall apply to all policies and contracts, as appropriate, subject to this section, issued on or after the operative date of § 31-4705.02 and before the operative date of the valuation model. The provisions set forth in subsections (g) and (h) of this section shall not apply to any such policies and contracts.
    (C) The minimum standard for the valuation of policies and contracts issued before the operative date of § 31-4705.02 shall be provided in subsection (b) of this section.
  (1A) (A) The Commissioner shall annually value, or cause to be valued, the reserve liabilities ("reserves") for all outstanding life insurance contracts, annuity and pure endowment contracts, accident and health contracts, and deposit-type contracts of every company issued on or after the operative date of the valuation manual.
    (B) The provisions set forth in subsections (f), (g), and (h) of this section shall apply to all policies and contracts issued on or after the operative date of the valuation manual.
  (2) Any such company which at any time shall have adopted any standard of valuation producing greater aggregate reserves than those calculated according to a minimum standard herein provided may, with the approval of the Commissioner, adopt any lower standard of valuation, but not lower than the minimum herein provided.
(b) (1) This subsection shall apply to only those policies and contracts issued prior to the operative date of § 31-4705.02 (the standard nonforfeiture law).
  (2) The legal minimum standard for the valuation of life insurance contracts issued before January 1, 1935, shall be the method and basis of valuation heretofore applied by the Commissioner in the valuation of such contracts, and for life insurance contracts issued on and after said date shall be the 1-year preliminary term method of valuation, except as hereinafter modified, on the basis of the American Experience Table of Mortality with interest at 3 1/2% per annum; provided, that any life company may, at its option, value its insurance contracts issued on and after January 1, 1935, in accordance with their terms on the basis of the American Men Ultimate Table of Mortality with interest not higher than 3 1/2% per annum by the level net premium method or by the modified preliminary term method hereinafter described.
  (3) If the premium charged for term insurance under a limited payment life preliminary term policy providing for the payment of all premiums thereon in less than 20 years from date of the policy, or under an endowment preliminary term policy, exceeds that charged for like insurance under 20-payment life preliminary term policies of the same company, the reserve thereon at the end of the year, including the 1st, shall not be less than the reserve on a 20-payment life preliminary term policy issued in the same year and at the same age, together with an amount which shall be equivalent to the accumulation of a net level premium sufficient to provide for a pure endowment at the end of the premium payment period, equal to the difference between the value at the end of such period of such a 20-payment life preliminary term policy and the full net level premium reserve at such time of such a limited payment life or endowment policy. The premium payment period is the period during which premiums are concurrently payable under such 20-payment life preliminary term policy and such limited payment life or endowment policy.
  (4) Policies issued on the preliminary term method shall contain a clause specifying that the reserve thereof shall be computed in accordance with modified preliminary term method of valuation provided for herein.
  (5) Except as otherwise provided in paragraph (3) of subsection (c) of this section for group annuity and pure endowment contracts, the legal minimum standard for the valuation of annuities issued on and after January 1, 1935, shall be McClintock’s Table of Mortality Among Annuitants, with interest at 4% per annum, but annuities deferred 10 or more years and written in connection with life insurance shall be valued on the same basis as that used in computing the consideration or premium therefor, or upon any higher standard at the option of the company.
  (6) The legal minimum standard for the valuation of industrial policies issued after January 1, 1935, shall be the American Experience Table of Mortality with interest at 3 1/2% per annum; provided, that any life company may voluntarily value its industrial policies on the basis of the standard industrial mortality table or the substandard industrial mortality table by the level net premium method or in accordance with their terms by the modified preliminary term method hereinbefore described.
  (7) The Commissioner may vary the standards of interest and mortality in the case of alien companies as to contracts issued by such companies in countries other than the United States, and in particular cases of invalid lives and other extra hazards.
  (8) Reserves for all such policies and contracts may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by this subsection.
(c) (1) This subsection shall apply to only those policies and contracts issued on or after the operative date of § 31-4705.02 (the standard nonforfeiture law) except as otherwise provided in paragraph (3) of this subsection for group annuity and pure endowment contracts issued prior to such operative date.
  (2) Except as otherwise provided in paragraph (3) of this subsection and subsections (d) and (f) of this section, the minimum standard for the valuation of all such policies and contracts shall be the Commissioner's reserve valuation methods defined in paragraphs (4) and (5) of this subsection and in § 31-4720 , 3 1/2% interest per annum, or in the case of policies and contracts, other than annuity and pure endowment contracts, issued on or after the October 13, 1978, 4 1/2% interest per annum, and the following tables:
    (A) For ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in such policies, the Commissioners 1941 Standard Ordinary Mortality Table for such policies issued prior to the operative date of paragraph (5) of § 31-4705.02(d) , and the Commissioners 1958 Standard Ordinary Mortality Table for category of the policies issued on or after the operative date of the 5th paragraph in § 31-4705.02(d) and before the operative date for the category of policies described in § 31-4705.02(e) ; provided that for any category of such policies issued on female risks all modified net premiums and present values referred to in this section may be calculated according to an age not more than 6 years younger than the actual age of the insured and for any category of the policies issued on or after the operative date for the category described in § 31-4705.02(e) , the Commissioners 1980 Standard Ordinary Mortality Table, or at the election of the company for any 1 or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors or any ordinary mortality table adopted after 1980 by the National Association of Insurance Commissioners and approved by the Commissioner for determining the minimum standard for valuing the policies;
    (B) For industrial life insurance policies issued on the standard basis, excluding any disability and accidental death benefits in such policies, the 1941 Standard Industrial Mortality Table for such policies issued prior to the operative date of paragraph (6) of subsection (d) of § 31-4705.02 , and for such policies issued on or after such operative date; provided, that for any category of such policies issued on female risks and evaluated by either the 1941 Standard Industrial Mortality Table or the Commissioners 1961 Standard Industrial Mortality Table, all modified net premiums and present values referred to in this section may be calculated according to an age not more than 6 years younger than the actual age of the insured, the Commissioners 1961 Standard Industrial Mortality Table or any industrial mortality table adopted after 1980 by the National Association of Insurance Commissioners and approved by the Commissioner for determining the minimum standard for valuing the policies;
    (C) For individual annuity and pure endowment contracts, excluding any disability and accidental death benefits in such policies, the 1937 Standard Annuity Mortality Table or, at the option of the company, the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these Tables approved by the Commissioner;
    (D) For group annuity and pure endowment contracts, excluding any disability and accidental death benefits in such policies, the Group Annuity Mortality Table for 1951, any modification of such Table approved by the Commissioner, or, at the option of the company, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts;
    (E) For total and permanent disability benefits in or supplementary to ordinary policies or contracts, for policies or contracts issued on or after January 1, 1966, the tables of period 2 disablement rates and the 1930 to 1950 termination rates of the 1952 Disability Study of the Society of Actuaries, with due regard to the type of benefit, or any tables of disablement rates and termination rates adopted after 1980 by the National Association of Insurance Commissioners and approved by the Commissioner for determining the minimum standard for valuing the policies; for policies or contracts issued on or after January 1, 1961, and prior to January 1, 1966, either such tables or, at the option of the company, the Class (3) Disability Table (1926); and for policies issued prior to January 1, 1961, the Class (3) Disability Table (1926). Any such table shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance policies;
    (F) For accidental death benefits in or supplementary to policies, for policies issued on or after January 1, 1966, the 1959 Accidental Death Benefits Table or any accidental death benefits table adopted after 1980 by the National Association of Insurance Commissioners and approved by the Commissioner for determining the minimum standards for valuing the policies; for policies issued on or after January 1, 1961, and prior to January 1, 1966, either such table or, at the option of the company, the Intercompany Double Indemnity Mortality Table; and for policies issued prior to January 1, 1961, the Intercompany Double Indemnity Mortality Table. Either table shall be combined with a mortality table permitted for calculating the reserves for life insurance policies; or
    (G) For group life insurance, life insurance issued on the substandard basis and other special benefits, such tables as may be approved by the Commissioner.
  (3) (A) Except as provided in subsection (d) of this section, the minimum standard of valuation for individual annuity and pure endowment contracts issued on or after the operative date of this paragraph and for annuities and pure endowments purchased on or after such operative date under group annuity and pure endowment contracts shall be the Commissioner's reserve valuation methods defined in paragraphs (4) and (5) of this subsection and the following tables and interest rates:
      (i) For individual single premium immediate annuity contracts, excluding any disability and accidental death benefits in such contracts, the 1971 Individual Annuity Mortality Table, any individual annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners and approved by the Commissioner for determining the minimum standard for valuing the contracts, or any modification of the tables approved by the Commissioner and 7 1/2% interest per annum;
      (ii) For individual annuity and pure endowment contracts, other than single premium immediate annuity contracts, excluding any disability and accidental death benefits in such contracts, the 1971 Individual Annuity Mortality Table, any individual annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners and approved by the Commissioner for determining the minimum standard for valuing the contracts, or any modification of the tables approved by the Commissioner and 5 1/2% interest per annum for single premium deferred annuity and pure endowment contracts and 4 1/2% interest per annum for all other such individual annuity and pure endowment contracts; or
      (iii) For annuities and pure endowments purchased under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under such contracts, the 1971 Group Annuity Mortality Table, any group annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners and approved by the Commissioner for determining the minimum standard for valuing the annuities and the pure endowments, or any modification of the tables approved by the Commissioner and 7 1/2% interest per annum.
    (B) After October 13, 1978, any company may file with the Commissioner a written notice of its election to comply with the provisions of this paragraph after a specified date before January 1, 1979, which shall be the operative date of this paragraph for such company, provided, a company may elect a different operative date for individual annuity and pure endowment contracts from that elected for group annuity and pure endowment contracts. If a company makes no such election, the operative date of this paragraph for such company shall be January 1, 1979.
  (4) (A) Except as provided in paragraph (5) of this subsection and in § 31-4720 , and according to the reserve valuation method, reserves for life insurance and endowment benefits from policies providing uniform amounts of insurance and requiring uniform premium payments shall be the excess of the present value, on the valuation date, of the future guaranteed benefits from the policies over the then present value of any future modified net premiums.
    (B) The modified net premiums shall be a uniform percentage of the respective premiums that makes the present value, on the issuance date, of all modified net premiums equal the sum of the then present value of the benefits and the excess of the amount described in sub-subparagraph (i) of this subparagraph over the amount described in sub-subparagraph (ii) of this subparagraph.
      (i) Except as provided in subparagraph (C) of this paragraph, a net level annual premium equal to the present value, on issuance date, of the benefits provided after the first policy year, divided by the present value, on issuance date, of an annuity of one per year to be paid on every anniversary of the policy for which a premium becomes due.
      (ii) A net 1-year term premium for the benefits provided in the first policy year.
    (C) The net level annual premium described in subparagraph (B)(i) of this paragraph shall not exceed the net level annual premium or the 19-year premium whole life plan for insuring the same amount at an age one year higher than the age at issuance in the policy.
  (4A) (A) This paragraph governs life insurance policies issued after December 31, 1986, when the policies have the following features:
      (i) The premium for the first year of the life insurance policy exceeds the premium for the second year.
      (ii) The policy does not provide an additional benefit in the first year of the policy for the amount that the 1st-year premium exceeds the premium for the second year.
      (iii) The policy provides an endowment benefit or a cash surrender value that exceeds the difference in the first year and the second year premiums.
    (B) Except as provided in § 31-4702 , and according to the reserve valuation method on any policy anniversary that takes place no later than the 1st year after a life insurance policy provides an endowment benefit or a cash surrender value that, together, exceeds the difference in the premiums described in subparagraph (A)(i) of this paragraph, the reserve shall be the greater of the following amounts:
      (i) The reserve on the policy anniversary as described in paragraph (4) of this subsection.
      (ii) The reserve on the policy anniversary as described in paragraph (4) of this subsection, but with the amount described in paragraph (4)(B)(i) of this subsection reduced by 15% of the excess first year premium, with present values of benefits and premiums determined without reference to premiums or benefits after the first year after a life insurance policy provides an endowment benefit or a cash surrender value that, together, exceeds the difference in the premiums described in subparagraph (A)(i) of this paragraph, with an assumption that the policy will mature as an endowment on that date; and with the cash surrender value provided on that date regarded as an endowment benefit.
    (C) For the comparison described in subparagraph (B) of this paragraph, the mortality and interest bases described in paragraphs (3) and (4) of this subsection and in subsection (d)(2) and (3) of this section shall apply.
  (5) (A) This paragraph shall apply to all annuity and pure endowment contracts except those group annuity and pure endowment contracts for which reserves are to be calculated by a method consistent with the principles of paragraph (4) of this subsection.
    (B) Reserves according to the Commissioner's annuity reserve method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death benefits in such contracts, shall be the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by such contracts at the end of each respective contract year, over the present value, at the date of valuation, of any future valuation consideration derived from future gross considerations, required by the terms of such contract, that become payable prior to the end of such respective contract year. The future guaranteed benefits shall be determined by using the mortality table, if any, and the interest rate, or rates, specified in such contracts for determining guaranteed benefits. The valuation considerations are the portions of the respective gross considerations applied under the terms of such contracts to determine nonforfeiture values.
  (6) In no event shall a company’s aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, be less than the aggregate reserves calculated according to the method described in paragraph (4) of this subsection, in subsection (e) of this section, in § 31-4720 , and in the mortality tables and rates of interest used to calculate nonforfeiture benefits for the policies.
  (7) Reserves for any category of policies, contracts, or benefits, as established by the Commissioner, may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for such category than those calculated according to the minimum standard herein provided, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, shall not be greater than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided in the policies or contracts.
(d) (1) The calendar year statutory valuation interest rates shall be the interest rates used to determine the minimum standard for valuing the following:
    (A) Life insurance benefits under § 31-4705.02 and issued no earlier than the operative date for policies under § 31-4705.02(e) .
    (B) Annuities and pure endowments purchased under group annuity and pure endowments contracts after December 31, 1983.
    (C) Except as provided in subparagraphs (A) and (B) of this paragraph, all life insurance benefits, individual annuity contracts, and pure endowment contracts issued after December 31, 1983.
    (D) In a calendar year following December 31, 1983, the net increase of amounts held under guaranteed interest contracts.
  (2) The calendar year statutory valuation interest rates shall be determined according to the equations described in this paragraph, and the results from the equations shall be rounded to the nearest 1/4%.
    (A) For life insurance, the equation for determining the calendar year statutory valuation interest rates is the following:
    I = .03 + W (R - .03) + w        /2 (R2 - .09).
    (B) For single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and from guaranteed interest contracts with cash settlement options,
    I = .03 + W (R - .03)
    where R      /1 is the lesser of R and .09,
    R        /2 is the greater of R and .09,
    R is the reference interest rate described in paragraph (4) of this subsection,
    and W is the weighting factor.
    (C) Where cash settlement options are valued on an issue year basis, the formula in subparagraph (A) of this paragraph shall apply to annuities and guaranteed interest contracts with guarantee duration exceeding 10 years and the formula in subparagraph (B) of this paragraph shall apply to annuities and guaranteed interest contracts with guarantee duration of 10 years or less.
    (D) Where no cash settlement options apply, the formula for single premium immediate annuities stated in subparagraph (B) of this paragraph shall apply.
    (E) Where cash settlement options are valued on a change in fund basis, the formula for single premium immediate annuities stated in subparagraph (B) of this paragraph shall apply.
    (F) (i) If the calendar year statutory valuation interest rate for life insurance policies for a calendar year differs from the actual interest rate for similar policies issued in the preceding calendar year by less than 1⁄2%, the calendar year statutory valuation interest rate shall equal the corresponding actual interest rate for the preceding calendar year.
      (ii) The calendar year statutory valuation interest rate shall be determined for each calendar year regardless of when § 31-4705.02(e) becomes operative.
  (3) The weighting factors in the paragraph (2)(A) and (B) of this subsection equations are as follows:
    (A) Weighting factors for life insurance:
    Guarantee Duration (Years) Weighting Factors 10 or less .50 More than 10, but not more than 20 .45 More than 20 .35
    For life insurance, the guarantee duration is the maximum number of years the life insurance can remain in force on a basis guaranteed in the policy or under options to convert to plans of life insurance with premium rates or nonforfeiture values, or both, which are guaranteed in the original policy.
    (B) Weighting factor for single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and from guaranteed interest contracts with cash settlement options: .80.
    (C) Except as provided in subparagraph (B) of this paragraph, weighting factors for other annuities and for guaranteed interest contracts shall be specified in the following sub-subparagraphs:
      (i) For purposes of this subsection, the following plan types apply:
      “Plan Type A” means that, unless the company prohibits a withdrawal, the policyholder may withdraw funds with an adjustment to reflect changes in interest rates or asset values since the company received the funds; without adjustment, but in installments for 5 years or more; or as an immediate life annuity.
      “Plan Type B” means that, before the interest rate guarantee expires, and unless the company prohibits a withdrawal, the policyholder may withdraw funds with an adjustment to reflect changes in interest rates or asset values since the company received the funds; without the adjustment, but in installments for 5 years or more; or, after the interest rate guarantee ends, in a lump sum without the adjustment or in installments lasting less than 5 years.
      “Plan Type C” means that, before the interest rate guarantee expires, the policyholder may withdraw funds in a lump sum or in installments lasting less than 5 years, and either without the withdrawal being adjusted to reflect changes in interest rates or asset values since the company received the funds or with the withdrawal subject only to a fixed surrender charge stipulated in the contract as a percentage of the fund.
      (ii) Weighting factors for annuities and guaranteed interest contracts valued on an issue year basis:
      Guarentee Duration(Years) Weighting Factor for plan type A B C 5 or less: .80 .60 .50 More than 5, but not more than 10: .75 .60 .50 More than 10, but not more than 20: .65 .50 .45 More than 20: .45 .35 .35.
      (iii) For annuities and guaranteed interest contracts valued on a change in fund basis, the factors shown in sub-subparagraph (ii) of this subparagraph increased by:
      Plan Type A B C .15 .25 .05.
      (iv) For annuities and guaranteed interest contracts valued on an issue year basis (other than those with no cash settlement options) and which do not guarantee interest on considerations received more than one year after issue or purchase, and for annuities and guaranteed interest contracts valued on a change in fund basis and which do not guarantee interest rates on considerations received more than 12 months beyond the valuation date, the factors shown in sub-subparagraph (ii) of this subparagraph or derived in sub-subparagraph (iii) of this subparagraph increased by:
      Plan Type A B C .05 .05 .05.
      (v) Where cash settlement options apply to annuities and guaranteed interest contracts, the guarantee duration is the number of years that the contract guarantees interest rates in excess of the calendar year statutory valuation interest rate for life insurance policies with guarantee duration in excess of 20 years.
      (vi) Where no cash settlement options apply to annuities or guaranteed interest contracts, the guarantee duration is the number of years from the issuance or the purchase date that the policy has scheduled the annuity benefits to begin.
    (D) (i) A company may elect to value guaranteed interest contracts with cash settlement options and annuities with cash settlement options on either an issue year basis or on a change in fund basis.
      (ii) Guaranteed interest contracts with no cash settlement options and other annuities with no cash settlement options must be valued on an issue year basis.
      (iii) An issue year basis of valuation refers to a valuation basis where the interest rate used to determine the minimum valuation standard for the annuity or the guaranteed interest contract is the calendar year valuation interest rate for the issuance year or purchase year.
      (iv) The change in fund basis of valuation refers to a valuation basis where the interest rate used to determine the minimum valuation standard for each change in the annuity or the guaranteed interest contract fund is the calendar year valuation interest rate for the year that the fund changed.
  (4) The reference interest rate referred to in paragraph (2) of this subsection shall be as follows:
    (A) For all life insurance, the reference rate shall be the lesser between the average rate during a 36-month period and the average rate during a 12-month period ending June 30 of the calendar year preceding the issuance year.
    (B) For single premium immediate annuities and for annuity benefits involving life contingencies arising where cash settlement options apply to other annuities and to guaranteed interest contracts, the reference rate shall be the average rate during a 12-month period ending June 30 of the calendar year of issue or purchase.
    (C) Where guarantee duration exceeds 10 years and where cash settlement options for annuities and for guaranteed interest contracts have values based upon the issuance year, the reference rate shall be the least between the average rate during a 36-month period and the average rate during a 12-month period ending June 30 of the calendar year of issue or purchase.
    (D) Where guarantee duration does not exceed 10 years and where cash settlement options for annuities and for guaranteed interest contracts have values based upon the issuance year, the reference rate shall be the average rate during a 12-month period ending June 30 of the calendar year of issue or purchase.
    (E) For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the reference rate shall be the average rate during a 12-month period ending June 30 of the calendar year of issue or purchase.
    (F) Where cash settlement options apply to annuities and to guaranteed interest contracts and have values based on a change in the fund, the reference rate shall be the average rate during a 12-month period ending June 30 of the calendar year of the change in the fund.
  (5) The reference interest rate referred to in paragraph (2) of this subsection shall be as follows:
    (A) Moody’s Corporate Bond Yield Average—Monthly Average Corporate published by Moody’s Investors Service, Inc., shall set the reference rates described in paragraph (4) of this subsection.
    (B) If the National Association of Insurance Commissioners determines that Moody’s Investors Service, Inc., is no longer an appropriate source for the reference rate, then an alternative method shall be adopted by the National Association of Insurance Commissioners and approved by the Commissioner.
(e) For life insurance plans which require the company to fix future premium determination according to the then present estimates of future experience, and for life insurance plans or annuities with minimum reserves that cannot be determined by the methods described in subsection (c)(5) and (6) of this section and in § 31-4720 , the reserves held under the plan shall:
  (1) Be appropriated in relation to the benefits and the pattern of premiums for the plan.
  (2) Be computed by a method consistent with the principles of the Standard Valuation Law and according to regulations promulgated by the Commissioner.
(f) For disability and accident and sickness health insurance policies and contracts as provided under § 31-4712 and accident and long-time care health insurance policies and contracts as provided under Chapter 36 of this title , issued on or after the operative date of § 31-4705.02 and before the operative date of the valuation manual, the minimum standard of valuation is the standard adopted by the Commissioner by regulation. For accident and health insurance policies and contracts issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under subsection (a)(1A) of this section.
  (g) (1) For policies issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under subsection (a)(1A) of this section, except as provided under paragraphs (5) or (7) of this subsection.
  (2) The operative date of the valuation manual is April 11, 2019.
  (3) The valuation manual shall specify the following:
    (A) The minimum valuation standards for and definitions of the policies or contracts subject to subsection (a)(1A) of this section. Such minimum valuation standards shall be:
      (i) The Commissioner's reserve valuation method for life insurance contracts, other than annuity contracts, subsection to (a)(1A) of this section;
      (ii) The Commissioner's annuity reserve valuation method for annuity contracts subject to subsection (a)(1A) of this section; and
      (iii) The Minimum reserves for all other policies or contracts subject to subsection (a)(1A) of this section;
    (B) Which policies or contracts or types of policies or contracts that are subject to the requirements of a principle-based valuation in subsection (h)(1) of this section and the minimum valuation standards consistent with those requirements;
    (C) For policies and contracts subject to a principle-based valuation under subsection (h) of this section:
      (i) The requirements for the format of reports to the Commissioner under subsection (h)(2)(C) of this section and which shall include information necessary to determine if the valuation is appropriate and in compliance with this section;
      (ii) The assumptions shall be prescribed for risks over which the company does not have significant control or influence; and
      (iii) The procedures for corporate governance and oversight of the actuarial function, and a process for appropriate waiver or medication of such procedures;
    (D) For policies not subject to a principle-based valuation under subsection (h) of this section, that the minimum valuation standard shall:
      (i) Be consistent with the minimum standard of valuation prior to the operative date of the valuation manual; or
      (ii) Require the development of reserves that quantify the benefits and guarantees, and the funding, associated with the contracts and their risk at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring;
    (E) Other requirements, including, those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company experience, risk measurement, disclosure, certifications, reports, actuarial opinions and memorandums, transition rules, and internal controls; and
    (F) The data and form of the data, required under subsection (i) of this section, to whom the data must be submitted, and may specify other requirements, including data analyses and reporting of analyses.
  (4) In the absence of a specific valuation requirement or if a specific valuation requirement in the valuation manual is not, in the opinion of the Commissioner, in compliance with this section, then the company shall, with respect to such requirements, comply with minimum valuation standards prescribed by the Commissioner by regulation.
  (5) (A) The Commissioner may engage a qualified actuary, at the expense of the company, to perform an actuarial examination of the company and opine on the appropriateness of any reserve assumption or method used by the company, or to review and opine on a company's compliance with any requirement set forth in this section or § 31-4709 . The Commissioner may rely upon the opinion, regarding provisions contained within this section or § 31-4709 of a qualified actuary engaged by the Commissioner of another state, district, or territory of the United States.
    (B) For the purposes of this paragraph, the term "engage" means to employ or contract.
  (6) The Commissioner may require a company to change any assumption or method that in the opinion of the Commissioner is necessary to comply with the requirements of the valuation manual or this section. The company shall adjust the reserves as required by the Commissioner.
(g) (1) For policies issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under subsection (a)(1A) of this section, except as provided under paragraphs (5) or (7) of this subsection.
(h) (1) A company shall establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the valuation manual:
    (A) Quantifies the benefits and guarantees, and the funding, associated with the policies and contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring during the lifetime of the policies and contracts, and for polices and contracts with significant tail risk, reflects conditions appropriately adverse to quantify the tail risk;
    (B) Incorporates assumptions, risk analysis methods, and financial models and management techniques that are consistent with, but not necessarily identical to, those utilized within the company's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods;
    (C) Incorporates assumptions that are derived in one of the following manners:
      (i) The assumption is prescribed in the valuation manual; or
      (ii) For assumptions that are not prescribed, the assumptions shall:
        (I) Be established utilizing the company's available experience, to the extent it is relevant and statistically credible; or
        (II) To the extent that company data is not available, relevant, or statistically credible, be established utilizing other relevant, statistically credible experience; and
    (D) Provides margins for uncertainty, including adverse deviation and estimation error, such that the greater the uncertainty the larger the margin and resulting reserve.
  (2) A company using a principle-based valuation for one or more policies or contracts subject to this subsection as specified in the valuation manual shall:
    (A) Establish procedures for corporate governance and oversight of the actuarial valuation function consistent with those described in the valuation manual;
    (B) Provide to the Commissioner and the Board of Directors an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation where the controls are designed to assure that all material risks inherent in the liabilities and associated assets subject to such valuation are included in the valuation, and that valuations are made in accordance with the valuation manual, and which certification shall be based on the controls in place as of the end of the preceding calendar year; and
    (C) Develop, and file with the Commissioner upon request, a principle-based valuation report that complies with standards prescribed in the valuation manual.
  (3) A principle-based valuation may include a prescribed formulaic reserve component.
(i) A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation model.
(j) (1) For the purposes of this subsection, the term "confidential information" shall mean:
    (A) A memorandum in support of an opinion submitted pursuant to § 31-4901 , and any other documents, materials, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the Commissioner or any other person in connection with such memorandum;
    (B) All documents, materials, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the Commissioner or any other person in the course of an examination made under subsection (g)(5) of this section; provided, that if an examination report or other material prepared in connection with an examination made pursuant to Chapter 14 of this title is not held as private and confidential information, the examination report or other materials prepared in connection with an examination made under subsection (g)(5) of this section shall not be confidential information to the same extent as such examination report that had been prepared pursuant to the Chapter 14 of this title .
    (C) Any reports, documents, materials, and other information developed by a company in support of, or in connection with, an annual certification by the company pursuant to subsection (h)(2)(B) of this section that evaluates the effectiveness of the company's internal controls with respect to a principle-based valuation and any other documents, materials, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the Commissioner or any other person in connection with such reports, documents, materials, and other information;
    (D) Any principle-based valuation report developed under section (h)(2)(C) of this section and any other documents, materials, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the Commissioner or any other person in connection with such report; and
    (E) Any documents, materials, data, and other information submitted by a company under subsection (i) of this section and any other documents, materials, data, and other information, including all working papers, and copies thereof, created or produced in connection with such experience data, which in each case includes any potentially company-identifying or personally identifiable information, that is provided to, or obtained by, the Commissioner and any other documents, materials, data, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the Commissioner or any other person in connection with such experience materials.
  (2) Confidential information specified in paragraphs (1)(A) and (D) of this subsection:
    (A) May be subject to subpoena for the purpose of defending an action seeking damages from the appointed actuary submitting the related memorandum in support of an opinion submitted pursuant to § 31-4901 or principle-based valuation report developed under subsection (h)(2)(C) of this section by reason of an action required by this section or by regulations issued pursuant to this section;
    (B) May be released by the Commissioner with written consent of the company; and
    (C) Shall no longer be confidential once any portion of a memorandum of support of an opinion submitted pursuant to Chapter 49 of this title or a principle-based valuation report developed under subsection (h)(2)(C) of this section is cited by the company in its marketing or is publicly volunteered to or before a governmental agency, other than the insurance department of a state or jurisdiction, or is released by the company to the news media.
  (3) (A) Except as provided in this subsection, a company's confidential information is confidential by law and privileged and shall not be subject to subchapter II of Chapter 5 of Title 2 , shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. The Commissioner is authorized to use the confidential information in the furtherance of any regulatory or legal action brought against the company as part of the Commissioner's official duties.
    (B) Neither the Commissioner nor any other person who received confidential information while acting under the authority of the Commissioner in performing the duties as required by this chapter shall be permitted or required to testify in any private civil action concerning any confidential information.
    (C) (i) To assist in the performance of the Commissioner's duties, the Commissioner may share and receive confidential information from:
        (I) Other state, federal, and international regulatory agencies; and
        (II) The National Association of Insurance Commissioners and its affiliates and subsidiaries.
      (ii) The Commissioner may share and receive confidential information specified in paragraphs (1)(A) and (D) of this subsection from the Actuarial Board for Counseling and Discipline or its successor upon a request stating that the confidential information is required for the purpose of professional disciplinary proceedings with state, federal, or international law enforcement officials.
      (iii) Any recipient of confidential information shall maintain the confidentiality and privileged status of such documents, materials, data, or other information in the same manner and to the same extent as required for the Commissioner of the jurisdiction that is the source of the documents, materials, data, or other information.
    (D) The Commissioner may enter into agreements governing sharing and use of information pursuant to this paragraph.
    (E) No waiver of any applicable privilege or claim of confidentiality in the confidential information shall occur as a result of disclosure to the Commissioner under this subsection.
    (F) A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this paragraph shall be available and enforced in any proceeding in, and in any court of, the District of Columbia.
(k) (1) The Commissioner may exempt specific product forms or product lines of a domestic company that is licensed and doing business only in the District of Columbia from the requirements provided under subsection (g) of this section if:
    (A) The Commissioner has issued an exemption in writing to the company and has not subsequently revoked the exemption in writing; and
    (B) The company computes reserves using assumptions and methods used before the operative date of the valuation manual in addition to any requirements established by the Commissioner and promulgated by regulation.
  (2) Subsections (c), (d), (e), and (f) of this section and § 31-4720 and Chapter 49 of this title shall remain applicable to a company that is granted an exemption under this subsection. With respect to a company applying for an exemption under this subsection, any reference to subsection (g) found in subsections (c), (d), (e), and (f) of this section and § 31-4720 and Chapter 49 of this title shall not be applicable.
(l) For the purposes of this section, the term:
  (1) "Accident and health insurance" means contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the valuation manual.
  (2) "Appointed actuary" means a qualified actuary who is appointed in accordance with the valuation manual to prepare the actuarial opinion required under § 31-4901(c) and (d) .
  (3) "Company" means an entity that:
    (A) Has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in the District and has at least one such policy in force or on claim; or
    (B) Has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in any state or jurisdiction and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in the District.
  (4) "Deposit-type contract" means contracts that do not incorporate mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual.
  (5) "Life insurance" means contracts that incorporate mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual.
  (6) "Policyholder behavior" means any action a policyholder, contract holder, or any other person with the right to elect options, such as a certificate holder, may take under a policy or contract subject to this section including lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization, or benefit elections prescribed by the policy or contract but excluding events of mortality or morbidity that result in benefits prescribed in their essential aspects by the terms of the policy or contract.
  (7) "Principle-based valuation" means a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer and is required to comply with subsection (h) of this section as specified in the valuation manual.
  (8) "Qualified actuary" means an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements and who meets the requirement specified in the valuation manual.
  (9) "Tail risk" means a risk that occurs either where the frequency of low probability events is higher than expected under a normal probability distribution or where there are observed events of very significant size or magnitude.
  (10) "Valuation manual" means the manual of valuation instructions adopted by the National Association of Insurance Commissioner as specified in this section or as amended.
D.C. Code § 31-4121.02 — DC Code / Title 31 / Chapter 41A / § 31-4121.02
§ 31-4121.02. Risk management framework.
Status: in_force

(a) (1) An insurer shall maintain a risk management framework, as described in the ORSA Guidance Manual, to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks.
  (2) A change in the ORSA Guidance Manual shall be effective on the January 1 following the calendar year in which the changes are adopted by NAIC.
(b) The requirement set forth in subsection (a) of this section may be satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
D.C. Code § 31-205 — DC Code / Title 31 / Chapter 2 / § 31-205
§ 31-205. Required annual statement of business; tax payments; annuities exemption.
Status: in_force

(a) Every insurance company and association doing business in the District of Columbia shall, through its local agents or representatives, furnish to the Commissioner, during the month of January of each year, a statement of its business in the District, setting forth specifically the net amount of its premium receipts, the amount of losses paid, the amount of expenses incurred, respecting the business done in the District during the calendar year next preceding, and the Commissioner shall preserve a separate record of the same in his office for convenient reference, showing the ratio of such losses and expenses, respectively, to the premium receipts.
(b) Every insurance company or association of whatever kind or character, not including fraternal beneficiary associations, shall, as required by law, pay to the Director of the Department of Finance and Revenue, or to a depository designated by the Director, in lieu of all other taxes, except taxes upon real estate and any license fees provided for in § 31-804 [repealed] an amount equal to the following:
  (1) (A) One and seven tenths percent of the gross amount of premiums received during the preceding calendar year by every life insurance company or association, not including fraternal beneficiary associations, or the gross payments or deposits collected from holders of fraternal beneficiary association certificates, on contracts of insurance covering risks resident in the District during the preceding year, including contracts for group insurance and annuities and without including or deducting any amounts received or paid for reinsurance.
    (B) In determining the gross amount of premiums to be taxed, there shall be excluded all premiums received from policies or contracts issued in connection with a pension, annuity, profit-sharing plan or individual retirement annuity qualified or exempt under §§ 401, 403, 404, 408, or 501(a) of the Internal Revenue Code, or successor provisions, and all premiums returned to policyholders or annuitants during the preceding calendar year, except cash surrender values, all dividends that, during the year, have been paid in cash or applied in reduction of premiums or left to accumulate to the credit of policyholders or annuitants.
    (C) In determining the gross amount of premiums to be taxed, there shall be excluded all consideration received in connection with an annuity contract whether or not such contract is qualified or exempt under the Internal Revenue Code, and all premiums returned to policyholders or annuitants during the preceding calendar year, except cash surrender values, and all dividends that, during said year, have been paid in cash or applied in reduction of premiums or left to accumulate to the credit of policyholders or annuitants.
  (2) One and seven tenths percent of the gross amount of premiums, assessments, and fees received during the preceding calendar year by every company or association other than life on contracts of insurance other than life for business done in the District, after deducting the amount returned upon canceled policies, certificates, and rejected applications.
  (3) Except as provided in paragraph (4) of this subsection, the premium tax shall be paid on or before March 1 of the year following the calendar year for which the tax is due.  The Commissioner may suspend or revoke the license of a company or association that fails to pay premium tax on or before the due date.
  (4) Each insurance company and association transacting business in the District whose District premium tax liability for the preceding calendar year was $1,000 or more shall remit on or before June 1, on a prepayment basis, an amount equal to one-half of the premium tax liability for the preceding calendar year.  The sums prepaid by a company or association under this subsection shall be allowed as credits against its premium tax liability for the calendar year during which the payments are made.  If a prepayment made under this subsection exceeds the annual premium tax liability, the excess shall be allowed as a credit against subsequent prepayment or tax liabilities.  The Commissioner may suspend or revoke the license of a company or association that fails to make a prepayment on or before the due date.
(c) A hospital service corporation or medical service corporation may deduct, up to $550,000, the corporation’s payment to the rate stabilization fund under § 31-3514 and payments and expenditures pursuant to a public-private partnership entered into in accordance with Chapter 35 of this title from the amount otherwise due by the corporation under subsection (b) of this section.
(d) The Commissioner shall determine whether or not the tax remitted is correct. If the tax remitted is not sufficient, the Commissioner shall notify the delinquent company of the amount of such delinquency and certify the amount thereof to the Department of Finance and Revenue which shall proceed to collect such delinquency.
(e) An insurer may offset an assessment made pursuant to § 31-5406 (“Life and Health Insurance Guaranty Association Act”), against its premium tax liability pursuant to § 31-5410 to the extent of 10% of the amount of the assessment for each of the 10 calendar years following the year in which the assessment was paid.  If an insurer ceases doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business.
(f) (1) When by the laws of any other jurisdiction a premium or income or other taxes, or fees, fines, penalties, licenses, deposit requirement, or other obligations, prohibitions or restrictions are imposed upon District domestic insurance companies doing business in the other jurisdiction, or upon the agents of District companies, which in the aggregate are in excess of the aggregate of the taxes, fees, fines, penalties, licenses, deposit requirements or other obligations, prohibitions or restrictions directly imposed upon insurance companies of the other jurisdiction under the statutes of the District, the same obligations, prohibitions or restrictions for whatever kind are in the same manner and for the same purpose imposed upon insurance companies of the other jurisdiction doing business in the District.
  (2) Insurance premium taxes paid which were not paid under protest shall not be refunded if the refund claim is based upon an alleged error or mistake of law or erroneous interpretation of statute regarding the validity or legality of this section under the laws or constitution of the United States.
  (3) For the purpose of this section, an alien insurer is deemed domiciled in a United States jurisdiction designated by it wherein it has established its principal office or agency in the United States, maintains the largest amount of its assets held in trust or on deposit for the security of its policyholders or policyholders and creditors in the United States, or in which it was admitted to do business in the United States.
  (4) This section does not apply to ad valorem taxes on real or personal property or to personal income taxes.
D.C. Code § 31-4412 — DC Code / Title 31 / Chapter 44 / § 31-4412
§ 31-4412. Liability of stockholders; rights of fiduciary stockholders and persons pledging stock.
Status: in_force

(a) All the stockholders of every company incorporated under this chapter shall be severally and individually liable to the policyholders and creditors of the company in which they are stockholders for the unpaid amount due upon the shares of capital stock held by them, respectively, for all debts and contracts made by such company until the whole amount of capital stock fixed and limited by such company shall have been paid in.
(b) No person holding capital stock in such company as executor, administrator, guardian, committee, or trustee shall be personally subject to any liability as stockholder of such company, but the estate and funds in the hands of such executor, administrator, guardian, committee, or trustee shall be liable in like manner and to the same extent as the testator or intestate or the ward or person interested in such trust would have been if he had been living and competent to act and hold the stock in his own name.
(c) Every such executor, administrator, guardian, committee, or trustee shall represent the capital stock in his hands at all meetings of the company, and may vote accordingly as a stockholder.
(d) No person holding capital stock in such company as collateral security shall be personally subject to any liability as stockholder of such company, but the person pledging such capital stock shall be considered as holding the same, and shall be liable as a stockholder accordingly; and every person who shall pledge his capital stock as collateral security may, nevertheless, represent the same at all meetings and vote as a stockholder.
D.C. Code § 31-4307 — DC Code / Title 31 / Chapter 43 / § 31-4307
§ 31-4307. Annual financial statement — Companies required to file; failure to file; publication of summary.
Status: repealed

Repealed.
D.C. Code § 31-1108 — DC Code / Title 31 / Chapter 11 / § 31-1108
§ 31-1108. Form and contents of agreements.
Status: in_force

(a) A premium finance agreement shall:
  (1) Be dated, signed by or on behalf of the insured, and the printed portion thereof shall be in at least 8-point type;
  (2) Contain the name and place of business of the insurance agent negotiating the related insurance contract, the name and residence or the place of business of the premium finance company to which payments are to be made, a description of the insurance contracts involved and the amount of the premium therefor; and
  (3) Set forth the following items where applicable:
    (A) The total amount of the premiums;
    (B) The amount of the downpayment;
    (C) The principal balance (the difference between subparagraphs (A) and (B) of this paragraph);
    (D) The amount of the service charge;
    (E) The balance payable by the insured (sum of subparagraphs (C) and (D) of this paragraph); and
    (F) The number of installments required, the amount of each installment expressed in dollars, and the due date or period thereof.
(b) The items set out in subsection (a)(3) of this section need not be stated in the sequence or order in which they appear in such paragraph, and additional items may be included to explain the computations made in determining the amount to be paid by the insured.
D.C. Code § 31-1330 — DC Code / Title 31 / Chapter 13 / § 31-1330
§ 31-1330. Reinsurer’s liability.
Status: in_force

The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contracts or other agreements. The reinsurance shall be payable under contracts reinsured by the assuming insurer on the basis of reported claims allowed by the Superior Court of the District of Columbia, without diminution because of the insolvency of the ceding insurer. The payments shall be made directly to the ceding insurer or to its domiciliary liquidator, except where:
(1) The contracts or other written agreements specifically provide for another payee of the reinsurance in the event of the insolvency of the ceding insurer; or
(2) The assuming insurer, with the consent of the direct insureds, has assumed the policy obligations of the ceding insurer as the direct obligation of the assuming insurer to the payees under such policies and in substitution for the obligations of the ceding insurer to the payees.
D.C. Code § 31-5604.01 — DC Code / Title 31 / Chapter 56 / § 31-5604.01
§ 31-5604.01. Exempt securities.
Status: in_force

The following securities shall be exempt from the requirements of §§ 31-5603.01 , 31-5603.07 , and 31-5604.05 :
(1) A security, including a revenue obligation, issued or guaranteed by the United States; an international agency or corporate or other instrumentality of which the United States and one or more foreign governments are members; a state; a political subdivision of a state; or any agency or corporate or other instrumentality of one or more of the foregoing; or a certificate of deposit for any of the foregoing;
(2) A security issued, insured, or guaranteed by Canada; a Canadian province; a political subdivision of an agency or other instrumentality of one or more of the foregoing; or an foreign government with which the United States currently maintains diplomatic relations, if the security is recognized as a valid obligation by the issuer, insurer, or guarantor.
(3) A security issued by and representing an interest in, or a direct obligation of, or guaranteed by, a depository institution or credit union organized under the laws of the United States or a depository institution or credit union organized and supervised under the laws of any state if the deposit or share accounts of the depository institution or credit union are insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation, the National Credit Union Share Insurance Fund, or a successor to one of the foregoing;
(4) A security issued by and representing an interest in, or a direct obligation of, or insured or guaranteed by, an insurance company organized under the laws of any state or the District and authorized to do business in the District; provided, that this exemption shall not apply to an annuity contract, investment contract, or similar security under which the promised payments or rate of return are not fixed in dollars but are substantially dependent upon the investment results of a segregated fund or account invested in securities;
(5) A security issued or guaranteed by a railroad, other common carrier, public utility, or holding company that is:
  (A) Subject to the jurisdiction of the Interstate Commerce Commission or a successor agency;
  (B) A registered holding company under the Public Utility Holding Company Act of 1935 or a subsidiary of such a company within the meaning of that Act;
  (C) Regulated with respect to its rates and charges by a governmental authority of the United States or any state; or
  (D) Regulated with respect to the issuance or guarantee of the security by a governmental authority of the United States, any state, the District, Canada, or a Canadian province;
(6) (A) A security which is listed or approved for listing upon notice of issuance on the New York Stock Exchange, the American Stock Exchange, the Philadelphia Stock Exchange, the Midwest Stock Exchange, the Pacific stock exchange, or any other exchange which the Commissioner designates by rule to have substantially the same standards for listing as these exchanges, or designated for trading on the National Association of Securities Dealers Automated Quotation System or any other electronic trading system which the Commissioner designates by rule to have substantially the same standards for listing or trading;
  (B) Any other security of the same issuer which is of senior or substantially equal rank;
  (C) A security called for by subscription rights or warrants so listed or approved; or
  (D) A warrant or right to purchase or subscribe to any of the foregoing;
(7) An option issued by a clearing agency registered under the Securities Exchange Act of 1934, other than an off-exchange futures contract or substantially similar arrangement, if the security, currency, commodity, or other interest underlying the option:
  (A) Is registered under § 31-5603.02 , § 31-5603.03 , or § 31-5603.04 ;
  (B) Is exempt under this section; or
  (C) Is not otherwise required to be registered under this chapter;
(8) A security issued by a person organized and operated not for private profit but exclusively for a religious, educational, benevolent, charitable, fraternal, social, athletic, or reformatory purpose or as a chamber of commerce or trade or professional association, and no part of the net earnings of the issuer inures to the benefit of any private shareholder or individual; provided, that at least 10 calendar days before a sale of the security, the person has filed with the Commissioner a notice setting forth the material terms of the proposed sale and copies of any sales and advertising literature to be used and the Commissioner, by order, does not disallow the exemption within the next 5 calendar days;
(9) (A) A promissory note, draft, bill of exchange, or bankers’ acceptance that evidences an obligation to pay cash within 9 months after the date of issuance, exclusive of days of grace, that is issued in denominations of at least $50,000, and that receives a rating in one of the 3 highest rating categories from a nationally recognized statistical rating organization;
  (B) A renewal of such an obligation that is likewise limited; or
  (C) A guarantee of such an obligation or of a renewal;
(10) A security issued in connection with:
  (A) A written compensatory benefit plan, including a stock purchase, savings, option, bonus, stock appreciation, profit sharing, thrift, incentive, pension, or similar employees’ benefit plan, and interests in such plans established by one or more of the issuers thereof or its parents or affiliates or controlled subsidiaries, for the participation of their employees, directors, general partners, or trustees if the issuer is a business trust, officers, or consultants or advisers of such issuers or their parents or controlled subsidiaries; provided, that bona fide services are rendered by consultants or advisers and the services are not in connection with the offer and sale of securities in a capital-raising transaction; or
  (B) A written contract relating to the compensation of such participating persons;
(11) Equipment trust certificates for equipment leased or conditionally sold to a person if securities issued by the person would be exempt under this section; and
(12) A membership or equity interest in, or a retention certificate or like security given in lieu of a cash patronage dividend issued by, a cooperative organized and operated as a nonprofit membership cooperative under the cooperative laws of the District or any state if not traded to the public.
(13) Repealed.
D.C. Code § 31-4330 — DC Code / Title 31 / Chapter 43 / § 31-4330
§ 31-4330. Contractual rights of minors.
Status: in_force

Any minor of the age of 15 years or more may, notwithstanding such minority, contract for life, health, and accident insurance on his own life for his or her own benefit or for the benefit of his father, mother, spouse, child, brother, sister, or for the benefit of any person who has the care or custody of said minor or with whom said minor makes his or her home, and may exercise all such contractual rights with respect to any such contract of insurance as might be exercised by a person of full legal age and may at any time surrender his or her interest in any such insurance or give a valid discharge for any benefit accruing or money payable thereunder.
D.C. Code § 31-1307 — DC Code / Title 31 / Chapter 13 / § 31-1307
§ 31-1307. Condition on release from delinquency proceedings; conditions on operations during proceedings.
Status: in_force

No insurer that is subject to any delinquency proceedings, whether formal or informal (administrative or judicial), shall:
(1) Be released from the proceeding, unless the proceeding is converted into a judicial rehabilitation or liquidation proceeding;
(2) Be permitted to solicit or accept new business, or request or accept the restoration of any suspended or revoked license or certificate of authority;
(3) Be returned to the control of its shareholders or private management; or
(4) Have any of its assets returned to the control of its shareholders or private management until all payments of or on account of the insurer’s contractual obligations by all guaranty associations, along with all expenses and interest on all payments and expenses, shall have been repaid to the guaranty associations or a plan of repayment by the insurer shall have been approved by the guaranty association.
D.C. Code § 31-3406 — DC Code / Title 31 / Chapter 34 / § 31-3406
§ 31-3406. Quality assurance program.
Status: in_force

(a) A health maintenance organization shall establish procedures to assure that the health care services provided to enrollees shall be rendered under reasonable standards of quality of care consistent with prevailing professionally recognized standards of medical practice. Such procedures shall include mechanisms to assure availability, accessibility, and continuity of care.
(b) A health maintenance organization shall have an ongoing internal quality assurance program to monitor and evaluate its health care services, including primary and specialist physician services, and ancillary and preventive health care services, across all institutional and noninstitutional settings. The program shall include, at a minimum, the following:
  (1) A written statement of goals and objectives which emphasizes improved health status in evaluating the quality of care rendered to enrollees;
  (2) A written quality assurance plan which describes the following:
    (A) The health maintenance organization’s scope and purpose in quality assurance;
    (B) The organizational structure responsible for quality assurance activities;
    (C) Contractual arrangements, where appropriate, for delegation of quality assurance activities;
    (D) Confidentiality policies and procedures;
    (E) A system of ongoing evaluation activities;
    (F) A system of focused evaluation activities;
    (G) A system for credentialing providers and performing peer review activities; and
    (H) Duties and responsibilities of the designated physician responsible for the quality assurance activities;
  (3) A written statement describing the system on ongoing quality assurance activities including:
    (A) Problem assessment, identification, selection, and study;
    (B) Corrective action, monitoring, evaluation, and reassessment; and
    (C) Interpretation and analysis of patterns of care rendered to individual patients by individual providers;
  (4) A written statement describing the system focused quality assurance activities based on representative samples of the enrolled population which identifies method of topic selection, study, data collection, analysis, interpretation, and report format; and
  (5) Written plans for taking appropriate corrective action whenever, as determined by the quality assurance program, inappropriate or substandard services have been provided or services which should have been provided have not been provided.
(c) The organization shall record proceedings of formal quality assurance program activities and maintain documentation in a confidential manner. Quality assurance program minutes shall be available to the Commissioner.
(d) The organization shall ensure the use and maintenance of an adequate patient record system which will facilitate documentation and retrieval of clinical information for the purpose of the health maintenance organization evaluating continuity and coordination of patient care and assessing the quality of health and medical care provided to enrollees.
(e) Enrollee clinical records shall be available to the Commissioner or an authorized designee for examination and review to ascertain compliance with this section, or as deemed necessary by the Commissioner.
(f) The organization shall establish a mechanism for periodic reporting of quality assurance program activities to the governing body, providers, and appropriate staff.
(g) If a quality assurance program has received approval in Maryland or Virginia, or if a quality assurance program has been approved by the D.C. Medicaid Program, it shall be deemed approved.
(h) The following shall apply to health maintenance organizations, carriers, and providers:
  (1) No contract between a health maintenance organization and a provider shall prohibit, impede, or interfere in the discussions between a patient and a provider of medical treatment option including discussions regarding financial coverage of those treatment options.
  (2) A contract between a carrier and a provider shall permit and require the provider to discuss medical treatment options with the patient.
  (3) A health maintenance organization may not terminate or refuse to contract with a provider solely because the provider discussed medical treatment options with an enrollee.
(i) The Commissioner may accept all or part of a quality assurance report and supporting documentation of an approved accrediting organization acceptable to the Commissioner to satisfy the review requirements under this section; provided, that such acceptance shall not preclude the Commissioner from performing the examination function.
(j) The expense of the quality assurance examination shall be borne by the entity applying for the health maintenance organization certificate of authority or otherwise seeking to comply with this section.
D.C. Code § 31-2996.03 — DC Code / Title 31 / Chapter 29D / § 31-2996.03
§ 31-2996.03. Limitations on other coverage.
Status: in_force

This chapter shall not limit or alter any right to dependent coverage or to the continuation of coverage that is otherwise provided for in the District of Columbia.
D.C. Code § 31-4501 — DC Code / Title 31 / Chapter 45 / § 31-4501
§ 31-4501. Filing requirements; approval by Commissioner of certain conditions.
Status: in_force

(a) A foreign or alien insurance company desiring to transact business in the District shall file with the Commissioner:
  (1) Its application for certificate of authority, stating the kind or kinds of insurance it proposes to transact;
  (2) A copy of its charter, articles of incorporation, or deed or settlement, certified by the official who is required to keep or record the same in the state under whose laws the company is incorporated, or if organized under the laws of a foreign government, province, or state, by the proper official of such government, province, or state;
  (3) A copy of its bylaws, or regulations, if any, certified to by the secretary of the company;
  (4) Copies of the policies it is issuing or proposes to issue and of the applications therefor;
  (5) Proof of compliance with the service of process requirements of § 31-202 ; and
  (6) A statement of its financial condition and business, in form as prescribed by law for annual statements, signed and sworn to by the president and secretary or other principal officers of the company. If an alien company, the statement shall comprise only its condition and business in the United States, and shall be signed and sworn to by its United States manager.
(b) It shall satisfy the Commissioner that the company is duly organized under the laws of the state, province, or government under whose laws it professes to be organized, and authorized to do the business it is transacting or proposes to transact, and that its name is not identical with, nor so similar to, that of another company organized prior to the organization of the applying company as to lead to confusion.
(c) It shall satisfy the Commissioner that its funds are invested in accordance with the laws of its domicile and in securities or property which afford a degree of financial security substantially equal to that required for similar domestic companies, and, if a stock company, that it has paid-up capital and surplus at least equal to the capital and surplus required of domestic stock companies, or, if a mutual company, that it has a surplus at least equal to that required by this subdivision for domestic mutual companies.
D.C. Code § 31-5601.02 — DC Code / Title 31 / Chapter 56 / § 31-5601.02
§ 31-5601.02. Purpose and coordination with federal law.
Status: in_force

(a) The purpose of this chapter is to protect investors and maintain public confidence in securities markets while avoiding unreasonable burdens on participants in capital markets. This chapter is remedial in nature and is to be broadly construed to effectuate its purposes.
(b) This chapter and the rules and regulations promulgated hereunder shall be coordinated with the federal acts and statutes to which references are made in this chapter and the rules and regulations promulgated under those federal acts and statutes to the extent that coordination is consistent with both the purposes and the provisions of this chapter.
D.C. Code § 31-1131.01 — DC Code / Title 31 / Chapter 11A / § 31-1131.01
§ 31-1131.01. Short title.
Status: in_force

This chapter may be cited as “the Producer Licensing Act of 2002.”
D.C. Code § 31-3931.21 — DC Code / Title 31 / Chapter 39A / § 31-3931.21
§ 31-3931.21. Regulations.
Status: in_force

The Commissioner may issue rules and regulations relating to captive insurers as are necessary to enable him or her to carry out the provisions of this chapter.
D.C. Code § 31-332 — DC Code / Title 31 / Chapter 3A / § 31-332
§ 31-332. Applicability and scope.
Status: in_force

(a) This chapter shall apply to all insurers domiciled in the District.
(b) Nothing in this chapter shall be construed to prescribe or impose corporate governance standards and internal procedures beyond that which are required under applicable District law or to limit the Commissioner's authority, or the rights or obligations of third parties, under Chapter 14 of this title .
D.C. Code § 31-5031.20 — DC Code / Title 31 / Chapter 50A / § 31-5031.20
§ 31-5031.20. Record retention requirements.
Status: in_force

Evidence of the examination of title and determination of insurability for business written by a title insurer or title insurance producer and records relating to escrow and indemnity deposits shall be preserved and retained by the insurer or producer for as long as appropriate to the circumstances but not less than 3 years after the title insurance policy has been issued or 3 years after the escrow or indemnity deposit account has been closed. This section shall not apply to a title insurer acting as coinsurer if one of the other coinsurers has complied with this section.
D.C. Code § 31-1315 — DC Code / Title 31 / Chapter 13 / § 31-1315
§ 31-1315. Grounds for liquidation.
Status: in_force

The Commissioner may petition the Superior Court of the District of Columbia for an order directing him or her to liquidate a domestic insurer or an alien insurer domiciled in the District on the basis:
(1) Of any ground for an order of rehabilitation as specified in § 31-1310 , whether or not there has been a prior order directing the rehabilitation of the insurer;
(2) That the insurer is insolvent; or
(3) That the insurer is in such a condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors, or the public.
D.C. Code § 31-4109 — DC Code / Title 31 / Chapter 41 / § 31-4109
§ 31-4109. Purchasing group taxation.
Status: in_force

Premium taxes and taxes on premiums paid for coverage of risks resident or located in the District 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 the insurance source, and if not by the source by the agent or broker for the purchasing group, and if not by the agent or broker then by the purchasing group, and if not by the purchasing group then by each of its members.
D.C. Code § 31-754 — DC Code / Title 31 / Chapter 7 / § 31-754
§ 31-754. Incorporation of holding company.
Status: in_force

A mutual insurance holding company resulting from a conversion of a domestic reciprocal insurance company shall be incorporated pursuant to Chapter 3 of Title 29 and shall be subject to Chapters 1, 2, and 3 of Title 29 to the extent that those provisions are not in conflict with this subchapter. The articles of incorporation and any amendments to such articles of incorporation of the mutual insurance holding company shall be subject to approval of the Commissioner and Corporation Counsel of the District in the same manner as those of an insurance company.
D.C. Code § 31-3931.08 — DC Code / Title 31 / Chapter 39A / § 31-3931.08
§ 31-3931.08. Reinsurance.
Status: in_force

(a) A captive insurer or protected cell may provide reinsurance on risks ceded by any other insurer, captive insurer, or protected cell.
(b) A captive insurer or protected cell may take credit for the reinsurance of risks or portions of risks ceded to reinsurers in compliance with Chapter 5 of this title . Prior approval of the Commissioner shall be required for ceding or taking credit for the reinsurance of risks or portions of risks ceded to reinsurers not complying with Chapter 5 of this title , except for business written by an alien captive insurer outside of the United States.
(c) In addition to reinsurers authorized under Chapter 5 of this title , a captive insurer or protected cell may take credit for the reinsurance of risks or portions of risks ceded to a pool, exchange, or association acting as a reinsurer which has been authorized by the Commissioner. The Commissioner may require any other documents, financial information, or other evidence that the pool, exchange, or association will be able to provide adequate security for its financial obligations. The Commissioner may deny authorization or impose any limitations on the activities of a reinsurance pool, exchange, or association that, in the Commissioner’s judgment, are necessary and proper to provide adequate security for the ceding captive insurer or protected cell and for the protection and consequent benefit of the public at large.
(d) For all purposes of this chapter, insurance written by a captive insurer or protected cell of any workers’ compensation qualified self-insured plan of its parent or affiliates shall be deemed to be reinsurance.
D.C. Code § 31-1103 — DC Code / Title 31 / Chapter 11 / § 31-1103
§ 31-1103. Licenses — Persons required to obtain; fees; other requirements.
Status: in_force

(a) No person shall engage in the business of financing insurance premiums in the District without first having obtained a license as a premium finance company from the Commissioner. Any person who shall engage in the business of financing insurance premiums in the District without obtaining a license as provided hereunder shall, upon conviction in the Superior Court of the District of Columbia, be guilty of a misdemeanor and shall be subject to the penalties in § 31-2502.42 .
(b) The annual license fee shall be $150. Licenses may be renewed from year to year as of the 1st day of May of each year upon payment of the fee of $150. The fee for said license shall be paid through the Commissioner to the District of Columbia Treasurer.
(c) The person to whom the license or the renewal thereof may be issued shall file sworn answers, subject to the penalties of perjury, to such interrogatories as the Commissioner may require. The Commissioner shall have authority, at any time, to require the applicant fully to disclose the identity of all stockholders, partners, officers, and employees and he may, in his discretion, refuse to issue or renew a license in the name of any firm, partnership, or corporation if he is not satisfied that any officer, employee, stockholder, or partner thereof who may materially influence the applicant’s conduct meets the standards of this chapter.
(d) Any license issued pursuant to this section shall be issued as a Financial Services endorsement to a basic business license under the basic business license system as set forth in subchapter I-A of Chapter 28 of Title 47 .
D.C. Code § 31-2009 — DC Code / Title 31 / Chapter 20 / § 31-2009
§ 31-2009. Supplemental provisions; rules; exemption.
Status: in_force

(a) The provisions of this chapter are supplemental to any other provisions of the laws of the District, and shall not preclude or limit any other powers or duties of the Commissioner under such laws, including, but not limited to, Chapter 13 and Chapter 21 of this title .
(b) The Commissioner may adopt reasonable rules necessary for the implementation of this chapter.
(c) The Commissioner may exempt from the application of this chapter any insurer which;
  (1) Writes direct business only in the District;
  (2) Writes direct annual premiums of $1 million or less; and
  (3) Assumes no reinsurance in excess of 5% of direct premium written.
D.C. Code § 31-3303.13 — DC Code / Title 31 / Chapter 33 / § 31-3303.13
§ 31-3303.13. Alternative methods.
Status: in_force

A health maintenance organization may use alternative methods to an affiliation period to address adverse selection provided that they are approved by the Commissioner prior to their use.
D.C. Code § 31-5031.13 — DC Code / Title 31 / Chapter 50A / § 31-5031.13
§ 31-5031.13. Duties of title insurers utilizing the services of title insurance producers.
Status: in_force

(a) The title insurer shall not accept business from a title insurance producer unless there is in force a written contract between the parties which sets forth the responsibilities of each party and, if both parties share responsibility for a particular function, specifies the division of responsibilities.
(b) Repealed.
(c) The title insurer shall, at least annually, conduct an on-site review, or a review conducted electronically that would accomplish the functional equivalent of the same, of the underwriting, claims, and escrow practices of the title insurance producer which shall include a review of the producer’s policy blank inventory and processing operations. If the title insurance producer does not maintain separate bank or trust accounts for each title insurer it represents, the title insurer shall verify that the funds held on its behalf are reasonably ascertainable from the books of account and records of the title insurance producer.
(d) Within 30 days after executing or terminating a contract with a title insurance producer, the title insurer shall provide written notification of the appointment or termination and the reason for termination to the Commissioner. Notices of appointment of a title insurance producer shall be made on a form promulgated by the Commissioner.
(e) A domestic title insurer shall not appoint to its board of directors an officer, director, employee, controlling shareholder, or any title insurance producer who wrote 1% or more of the title insurer’s direct premiums written during the previous calendar year as shown on the title insurer’s most recent annual statement on file with the Commissioner. This subsection shall not apply to relationships governed by Chapter 7 of this title [ § 31-701 et seq.].
(f) The title insurer shall maintain an inventory of all policy forms or policy numbers allocated to each title insurance producer.
(g) The title insurer shall have on file proof that the title insurance producer is licensed in the District.
(h) The title insurer shall establish the underwriting guidelines and, if applicable, limitations on title claims settlement authority to be incorporated into contracts with its title insurance producers.
D.C. Code § 31-6208 — DC Code / Title 31 / Chapter 62 / § 31-6208
§ 31-6208. Filing requirements.
Status: repealed

Repealed.
D.C. Code § 31-3758 — DC Code / Title 31 / Chapter 37 / § 31-3758
§ 31-3758. Filing requirements for advertising.
Status: repealed

Repealed.
D.C. Code § 31-4401 — DC Code / Title 31 / Chapter 44 / § 31-4401
§ 31-4401. Formation — Required contents of articles of incorporation.
Status: in_force

Any 7 or more persons who desire to become incorporated as an insurance company shall make, sign, and acknowledge articles of incorporation before an officer authorized to take acknowledgment of deeds, in which shall be stated:
(1) The proposed corporate name, which shall not be identical with nor so nearly resemble the name of an existing corporation organized under the laws of the District, or authorized to transact business therein, as to mislead the public or cause confusion and, in case of a mutual company, shall contain the word “mutual”;
(2) The term of its existence, which may be perpetual;
(3) The place where its principal office shall be located, which shall be the District of Columbia;
(4) The purpose of the company, which shall be restricted to the business of insurance appertaining to persons;
(5) The mode and manner in which the corporate power shall be exercised; the number, terms of office, and manner of electing directors, who shall be stockholders, or, in the case of a mutual company, shall be members or policyholders of the corporation;
(6) The provisions for meeting and votes of stockholders and policyholders. A stock company in which the policyholders do not vote shall provide for cumulative voting in its articles of incorporation. A stock company in which policyholders vote shall provide that each stockholder shall have 1 vote, in person or by proxy, for each share of stock owned. A company without capital stock shall provide that every policyholder shall be a member and entitled to 1 or more votes, in person, or by proxy, based on the insurance in force, the number of policies held or the amount of premiums paid as may be provided in the bylaws, and a stock company may provide for votes by policyholders, but in such case each policyholder shall have the same voting power as every other policyholder;
(7) The amount of its capital stock, if any, the number of shares, and the par value of each share;
(8) The number of directors who shall manage the company for the 1st year and their names; and
(9) Such other particulars as may be necessary to manifest and explain the objects and purposes of the company.
D.C. Code § 31-301 — DC Code / Title 31 / Chapter 3 / § 31-301
§ 31-301. Definitions.
Status: in_force

For the purposes of this chapter, the term:
(1) “Accountant” or “independent certified public accountant” means an independent certified public accountant or accounting firm in good standing with the American Institute of Certified Public Accountants and in all states in which they are licensed to practice; for Canadian and British companies, it means a Canadian-chartered or British-chartered accountant.
(1A) “Affiliate” or “affiliated person” means an individual or entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the individual or entity.
(1B) “Audit committee” means a committee established by the board of directors of an entity for the purpose of overseeing the accounting and financial reporting processes of an insurer or group of insurers, the internal audit function of an insurer or group of insurers if applicable, and external audits of financial statements of the insurer or group of insurers. The audit committee of any entity that controls a group of insurers may be deemed to be the audit committee for one or more of the controlled insurers for the purposes of this chapter at the election of the controlling person pursuant to § 31-311.01(e) . If an audit committee is not designated by the insurer, the insurer’s entire board of directors shall constitute the audit committee.
(2) “Audited financial report” means and includes those items specified in § 31-303 .
(2A) “Indemnification” means an agreement of indemnity or a release from liability if the intent or effect is to shift or limit in any manner the potential liability of the person or firm for failure to adhere to applicable auditing or professional standards, whether or not resulting in part from knowing of other misrepresentations made by the insurer or its representatives.
(3) “Insurer” means a licensed insurer or authorized company which has authority from the Mayor [now Commissioner] to do business in the District of Columbia as provided under §§ 31-2502.02 and 31-4304 .
(3A) “Group of insurers” means those licensed insurers included in the reporting requirements of subchapter I of Chapter 7 of this title [ § 31-701 et seq.], or a set of insurers as identified by management for the purpose of assessing the effectiveness of internal control over financial reporting.
(3B) "Internal audit function" means a person or persons that provide independent, objective, and reasonable assurance designed to add value and improve an organization's operations and accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
(3C) “Internal control over financial reporting” means a process effected by an entity’s board of directors, management, and other personnel designed to provide reasonable assurance regarding the reliability of the financial statements, including compliance with § 31-303(2) through (7), and includes such other policies and procedures that:
  (A) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the acquisition and disposition of assets;
  (B) Provide reasonable assurance that:
    (i) Transactions are recorded as necessary to permit preparation of the financial statements; or
    (ii) Receipts and expenditures are made only in accordance with management and director authorization; and
  (C) Provide reasonable assurance regarding:
    (i) Prevention or timely detection of unauthorized acquisitions; or
    (ii) The use or disposition of assets that could have a material effect on the financial statements.
(4) “NAIC” means the National Association of Insurance Commissioners.
(5) “SEC” means the United States Securities and Exchange Commission.
(6) “Section 404” means § 404 of the Sarbanes-Oxley Act of 2002, approved July 30, 2002 (116 Stat. 745; 15 U.S.C. § 7201 et seq.), and the rules and regulations promulgated thereunder.
(7) “Section 404 Report” means management’s report on internal control over financial reporting as defined by the SEC and the related attestation report of the independent certified public accountant.
(8) “SOX Compliant Entity” means an entity that is required to be compliant with or is voluntarily compliant with:
  (A) Section 10A(h) of the Securities Exchange Act of 1934, approved June 6, 1934 (105 Stat. 762; 15 U.S.C. § 78j-l(h)) (preapproval requirements);
  (B) Section 10A(m)(3) of the Securities Exchange Act of 1934, approved December 22, 1995 (109 Stat. 762; 15 U.S.C. § 78j-l(m)(3)) (audit committee independence requirements); and
  (C) The internal control over financial reporting requirements of Section 404 and 17 C.F.R. § 229.308 (Item 308 of SEC Regulation S-K).
D.C. Code § 31-2361.11 — DC Code / Title 31 / Chapter 23R / § 31-2361.11
§ 31-2361.11. Disciplinary proceedings.
Status: in_force

The Department may deny, suspend, or revoke the registration of an appraisal management company, impose a monetary penalty of an amount not to exceed $5,000 per violation, issue a letter of reprimand, refuse to issue or renew the registration of an appraisal management company, or take other disciplinary action against an appraisal management company when an appraisal management company engages in conduct prohibited under § 31-2361.10 .
D.C. Code § 31-631 — DC Code / Title 31 / Chapter 6A / § 31-631
§ 31-631. Definitions.
Status: in_force

For the purposes of this chapter, the term:
(1) “Applicant” means an individual, or other person designated by the Commissioner by rule, applying for any of the following:
  (A) An initial license as a resident insurance producer pursuant to Chapter 11A of this title [ § 31-1131.01 et seq.], or public insurance adjuster pursuant to Chapter 16A of this title [ § 31-1631.01 et seq.];
  (B) A license or registration to be an agent, broker-dealer, investment adviser, or investment adviser representative pursuant to Chapter 56 of this title [ § 31-5601.01 et seq.];
  (C) A charter to open and operate a new bank pursuant to Chapter 7 of Title 26 [ § 26-701 et seq.]; or
  (D) A license, charter, or registration, other than those designated in subparagraphs (A) through (C) of this paragraph, as designated by the Commissioner by rule.
(2) “Commissioner” means the Commissioner of the Department of Insurance, Securities, and Banking.
(3) “Fingerprint” means an impression of the lines on the finger taken for the purpose of identification. The impression may be electronic or in ink converted to an electronic format.
D.C. Code § 31-3163 — DC Code / Title 31 / Chapter 31C / § 31-3163
§ 31-3163. Application.
Status: in_force

This chapter shall apply to policies and certificates of insurance that are health benefit plans as defined under § 31-3271(4) that are issued 90 days after April 8, 2011. This chapter shall not apply to short-term limited duration health benefit plans.
D.C. Code § 31-335 — DC Code / Title 31 / Chapter 3A / § 31-335
§ 31-335. Confidentiality.
Status: in_force

(a) Documents, materials, and other information, including the Corporate Governance Annual Disclosure, in the possession or control of the Commissioner that are obtained by, created by, or disclosed to the Commissioner or any other person under this chapter shall be treated as confidential pursuant to the standards set forth in § 31-4121.07 .
(b) Documents obtained by, created by, or disclosed to the Commissioner or any other person under this chapter that are already in the public domain shall not be subject to the confidentiality provisions described in subsection (a) of this section.
D.C. Code § 31-5507 — DC Code / Title 31 / Chapter 55 / § 31-5507
§ 31-5507. Powers and duties of the Mayor.
Status: in_force

(a) The Mayor shall:
  (1) Notify the Association of the existence of an insolvent insurer not later than 3 days after he or she receives notice of the determination of the insolvency. The Association shall be entitled to a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member company at the same time that the complaint is filed with a court of competent jurisdiction; and
  (2) Upon request of the board of directors, provide the Association with a statement of the net direct written premiums of each member insurer.
(b) The Mayor may:
  (1) Require that the Association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this chapter. Notification shall be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation in the District shall be sufficient;
  (2) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in the District of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the Mayor may levy a fine on any member insurer which fails to pay an assessment when due. Such a fine shall not exceed 5% of the unpaid assessment per month, except that no fine shall be less than $100 per month; or
  (3) Revoke the designation of any servicing facility if the Mayor finds claims are being handled unsatisfactorily.
(c) Any final action or order of the Mayor under this chapter shall be subject to judicial review in accordance with § 2-510 .
D.C. Code § 31-5041.07 — DC Code / Title 31 / Chapter 50B / § 31-5041.07
§ 31-5041.07. Prohibition of rebate and fee splitting.
Status: in_force

(a) In a real or personal property transaction, a title insurance producer, a title insurer, or any employee or representative of a title insurance producer or a title insurer, shall not pay, allow, or give, or offer to pay, allow, or give, directly or indirectly, as an inducement to insurance, or after insurance has been effected, any rebate, discount, abatement, credit, or reduction of the premium named in a policy of insurance, or any valuable consideration or inducement, whether or not specified or provided for in the policy, except to the extent provided for in an applicable filing with the Commissioner as provided by law.
(b) In a real or personal property transaction, an insured named in a policy, or any employee of the insured, shall not knowingly receive or accept, directly or indirectly, any rebate, discount, abatement, credit, or reduction of premium, or any special favor, advantage, valuable consideration, or inducement, as specified in subsection (a) of this section.
(c) This section shall not prohibit:
  (1) The payment of commissions or other compensation to domestic or foreign licensed title insurance producers or title insurer employees; or
  (2) Any insurer from allowing or returning to its participating policyholders, members, or subscribers dividends, savings, or unabsorbed premium deposits.
D.C. Code § 31-708.01 — DC Code / Title 31 / Chapter 7 / § 31-708.01
§ 31-708.01. Rules.
Status: in_force

The Mayor shall, pursuant to subchapter I of Chapter 5 of Title 2 [ § 2-501 et seq.], issue rules to implement the provisions of this subchapter.
D.C. Code § 31-1702 — DC Code / Title 31 / Chapter 17 / § 31-1702
§ 31-1702. Approval as a domestic insurer.
Status: in_force

Any insurer which is organized under laws of any state and is admitted to do business in the District for the purpose of writing insurance may become a domestic insurer by complying with all of the requirements of law relative to the organization and licensing of a domestic insurer of the same type and by designating its principal place of business at a place in the District. The domestic insurer shall be entitled to like certificates and licenses to transact business in the District, and shall be subject to the authority and jurisdiction of the District.
D.C. Code § 31-5403 — DC Code / Title 31 / Chapter 54 / § 31-5403
§ 31-5403. Creation of the Association.
Status: in_force

(a) (1) There is created a nonprofit legal entity to be known as the District of Columbia Life and Health Insurance Guaranty Association.
  (2) All member insurers shall be and shall continually remain members of the Association as a condition of their authority to transact insurance business in the District of Columbia.
  (3) The Association shall perform its functions under the plan of operation established and approved under § 31-5407 and shall exercise its powers through a board of directors established under § 31-5404 .
  (4) For purposes of administration and assessment the Association shall maintain 2 accounts:
    (A) The life insurance and annuity account which shall include the following subaccounts:
      (i) Life insurance account; and
      (ii) Annuity account; and
    (B) The health insurance account.
(b) The Association shall come under the immediate supervision of the Mayor and shall be subject to the applicable provisions of the insurance laws of the District of Columbia.
D.C. Code § 31-1505 — DC Code / Title 31 / Chapter 15 / § 31-1505
§ 31-1505. Examination authority.
Status: in_force

The acts of the managing general agent are considered to be the acts of the insurer on whose behalf it is acting. A managing general agent may be examined as if it were the insurer.
D.C. Code § 31-1373.05 — DC Code / Title 31 / Chapter 13A / § 31-1373.05
§ 31-1373.05. Insurer investment pools.
Status: in_force

(a) An insurer may acquire investments in investment pools that invest only in:
  (1) Obligations that are rated 1 or 2 by the SVO or have an equivalent of an SVO 1 or 2 rating (or, in the absence of a 1 or 2 rating or equivalent rating, the issuer has outstanding obligations with an SVO 1 or 2 or equivalent rating) by a nationally recognized statistical rating organization recognized by the SVO and have:
    (A) A remaining maturity not exceeding 397 days or a put that entitles the holder to receive the principal amount of the obligation, which put may be exercised through maturity at specified intervals not exceeding 397 days; or
    (B) A remaining maturity not exceeding 3 years, and a floating interest rate that resets no less frequently than quarterly on the basis of a current short-term index (including federal funds, prime rate, treasury bills, London InterBank Offered Rate, or commercial paper) and is subject to no maximum limit, if the obligations do not have an interest rate that varies inversely to market interest rate changes;
  (2) Government money market mutual funds or class one money market mutual funds; or
  (3) Securities lending, repurchase, and reverse repurchase transactions that meet all the requirements of § 31-1373.09 other than the quantitative limitations of 31-1373.09(d); or
  (4) Investments which an insurer may acquire under this chapter if the insurer’s proportionate interest in the amount invested in these investments does not exceed the applicable limits of this chapter.
(b) For an investment in an investment pool to be qualified under this chapter, the investment pool shall not:
  (1) Acquire securities issued, assumed, guaranteed, or insured by the insurer or an affiliate of the insurer;
  (2) Borrow or incur any indebtedness for borrowed money, except for securities lending and reverse repurchase transactions that meet the requirements of § 31-1373.09 other than the quantitative limitations of § 31-1373.09(d) ; or
  (3) Permit the aggregate value of securities then loaned or sold to, purchased from, or invested in any one business entity under this section to exceed 10% of the total assets of the investment pool.
(c) The limitations of § 31-1373.03(a) shall not apply to an insurer’s investment in an investment pool; provided, that an insurer shall not acquire an investment in an investment pool under this section if, as a result of and after giving effect to the investment, the aggregate amount of investments held by the insurer under this section:
  (1) In any one investment pool would exceed 10% of its admitted assets;
  (2) In all investment pools investing in investments permitted under subsection (a)(2) of this section, would exceed 25% of its admitted assets; or
  (3) In all investment pools would exceed 40% of its admitted assets.
(d) For an investment in an investment pool to be qualified under this chapter, the manager of the investment pool shall:
  (1) Be organized under the laws of the United States or a state and designated as the pool manager in a pooling agreement;
  (2) (A) Be the insurer; an affiliated insurer or a business entity affiliated with the insurer; a qualified bank; a business entity registered under the Investment Advisors Act of 1940, approved August 22, 1984 (54 Stat. 789; 15 U.S.C. § 80a-1 et seq.);
    (B) In the case of a reciprocal insurer or interinsurance exchange, be its attorney-in-fact; or
    (C) In the case of a United States branch of a non-U.S. insurer, be its United States manager or affiliates or subsidiaries of its United States manager;
  (3) Compile and maintain detailed accounting records setting forth:
    (A) The cash receipts and disbursements reflecting each participant’s proportionate investment in the investment pool;
    (B) A complete description of all underlying assets of the investment pool (including amount, interest rate, maturity date, if any, and other appropriate designations); and
    (C) Other records which, on a daily basis, allow third parties to verify each participant’s investment in the investment pool; and
  (4) Maintain the assets of the investment pool in one or more accounts, in the name of or on behalf of the investment pool, under a custody agreement with a qualified bank, which custody agreement shall:
    (A) State and recognize the claims and rights of each participant;
    (B) Acknowledge that the underlying assets of the investment pool are held solely for the benefit of each participant in proportion to the aggregate amount of its investments in the investment pool; and
    (C) Contain an agreement that the underlying assets of the investment pool shall not be commingled with the general assets of the custodian qualified bank or any other person.
(e) The pooling agreement for each investment pool shall be in writing and shall provide that:
  (1) An insurer and its affiliated insurers; in the case of an investment pool investing solely in investments permitted under subsection (a)(1) of this section, the insurer and its subsidiaries, affiliates, or any pension or profit-sharing plan of the insurer, its subsidiaries, and affiliates; and, in the case of a United States branch of a non-U.S. insurer, affiliates or subsidiaries of its United States manager, shall, at all times, hold 100% of the interests in the investment pool;
  (2) The underlying assets of the investment pool shall not be commingled with the general assets of the pool manager or any other person;
  (3) In proportion to the aggregate amount of each pool participant’s interest in the investment pool:
    (A) Each participant owns an undivided interest in the investment pool underlying assets; and
    (B) The underlying assets of the investment pool are held solely for the benefit of each participant;
  (4) A participant, or in the event of the participant’s insolvency, bankruptcy, or receivership, its trustee, receiver, or other successor-in-interest, may withdraw all or any portion of its investment from the investment pool under the terms of the pooling agreement;
  (5) Withdrawals may be made on demand without penalty or other assessment on any business day; provided, that settlement of funds shall occur within a reasonable and customary period thereafter not to exceed 5 business days; and
  (6) The pool manager shall make the records of the investment pool available for inspection by the Commissioner.
(f) Distributions under subsection (e)(5) of this section shall be calculated net of all applicable fees and expenses of the investment pool. The pooling agreement shall provide that the pool manager may distribute to a participant, at the discretion of the pool manager:
  (1) In cash, the fair market value of the participant’s pro rata share of each underlying asset of the investment pool;
  (2) In kind, a pro rata share of each underlying asset; or
  (3) In a combination of cash and in kind distributions, a pro rata share in each underlying asset.
D.C. Code § 31-4728 — DC Code / Title 31 / Chapter 47 / § 31-4728
§ 31-4728. Regulations.
Status: in_force

The Mayor shall issue rules to implement the provisions of this chapter pursuant to subchapter I of Chapter 5 of Title 2 .
D.C. Code § 31-5719 — DC Code / Title 31 / Chapter 57 / § 31-5719
§ 31-5719. Insurance and/or annuities upon lives of children; applications — Computation of contributions.
Status: repealed

Repealed.
D.C. Code § 31-106.02c — DC Code / Title 31 / Chapter 1 / § 31-106.02c
§ 31-106.02c. Prohibited acts – private education lenders.
Status: in_force

(a) (1) A private education loan executed after the applicability date of this section shall not include a provision that permits the private education lender to accelerate, in whole or in part, payments on a private education loan except in cases of payment default or place any loan or account into default or accelerate a loan for any reason other than for payment default.
  (2) A private education loan executed prior to the applicability date of this section shall permit the private education lender to accelerate payments only if the promissory note or private education loan agreement explicitly authorizes an acceleration and only for the reasons stated in the note or agreement.
  (3) In the event of the death of a cosigner, the lender shall not attempt to collect against the cosigner's estate other than for payment default.
  (4) Upon receiving notification of the death or bankruptcy of a cosigner, when the private education loan is not more than 60 days delinquent at the time of the notification, the private education lender shall not change any terms or benefits under the promissory note, repayment schedule, repayment terms, or monthly payment amount or any other provision associated with the private education loan.
  (5) A private education lender shall not place any private education loan or account into default or accelerate a private education loan while a student loan borrower is seeking a loan modification or enrollment in a flexible repayment plan; except, that a private education lender may place a private education loan or account into default or accelerate a private education loan for payment default 90 days after the student loan borrower's default.
(b) A private education lender shall not:
  (1) Directly or indirectly employ any scheme, device, or artifice to defraud a student loan borrower;
  (2) Directly or indirectly employ any scheme, device, or artifice to mislead a student loan borrower;
  (3) Engage in any unfair or deceptive practice toward any person or misrepresent or omit any material information in connection with the servicing of a private education loan, including, abusive acts and practices;
  (4) Obtain property by fraud;
  (5) Obtain property by misrepresentation;
  (6) Misapply private education loan payments to the outstanding balance of a private education loan;
  (7) Provide inaccurate information to a credit bureau, thereby harming a student loan borrower's creditworthiness;
  (8) Fail to report both the favorable and unfavorable payment history of the student loan borrower to a nationally recognized consumer credit bureau at least annually if the private education lender regularly reports information to a credit bureau;
  (9) Refuse to communicate with an authorized representative of the student loan borrower who provides a written authorization signed by the student loan borrower; except, that the private education lender may adopt procedures reasonably related to verifying that the representative is authorized to act on behalf of the student loan borrower;
  (10) Make any false statement or make any omission of a material fact in connection with any information or reports filed with a governmental agency or in connection with any investigation conducted by the Commissioner or another governmental agency;
  (11) Fail to respond within 15 business days to communications from the Department or the Office of the Attorney General, or within such shorter reasonable period of time as may be requested by the Commissioner or the Attorney General; or
  (12) (A) Fail to respond within 15 business days to a consumer complaint transmitted to the private education lender by the Department or the Office of the Attorney General.
    (B) A private education lender may request additional time to respond to the complaint, up to a maximum of 45 business days, provided that the request is accompanied by an explanation as to why additional time is reasonable and necessary.
D.C. Code § 31-5602.06 — DC Code / Title 31 / Chapter 56 / § 31-5602.06
§ 31-5602.06. Power of inspection, examination and audit.
Status: in_force

(a) The Commissioner may, in a manner reasonable under the circumstances, examine, audit, or inspect the books and records, within or without the District, of a licensed broker-dealer, agent, investment adviser, or investment adviser representative as the Commissioner considers necessary or appropriate in the public interest or for the protection of investors or to determine compliance with this chapter. All licensed broker-dealers, agents, and investment advisers shall make their books and records available to the Commissioner in legible form.
(b) The Commissioner may copy records, or require a licensed person to copy records and provide the copies to the Commissioner, to the extent and in a manner reasonable under the circumstances.
(c) The Commissioner may impose a reasonable fee for the expense of conducting an examination, inspection, or audit under this section.
(d) For the purpose of avoiding unnecessary duplication of examinations, the Commissioner may cooperate with the securities administrators of other states, the Securities and Exchange Commission, or any self-regulatory organization.
D.C. Code § 31-2231.22 — DC Code / Title 31 / Chapter 22A / § 31-2231.22
§ 31-2231.22. Powers of the Commissioner; cease and desist orders.
Status: in_force

(a) The Commissioner may examine and investigate the affairs of a person engaged in the business of insurance in the District of Columbia to determine whether the person has been or is engaged in an unfair trade practice, an unfair method of competition, or an unfair or deceptive action practice under this chapter. The Commissioner may suspend or revoke the license or certificate of authority for a person that violates this chapter or a rule or regulation adopted under this chapter, or fails to comply with an order of the Commissioner.
(b) (1) The Commissioner may enforce this chapter, or any rules and regulations adopted under this chapter, by issuing an order:
    (A) To cease and desist from the violation and further similar violations; and
    (B) Requiring the violator to correct the violation, including the restitution of money or property to a person aggrieved by the violation.
  (2) If a violator fails to comply with an order issued under paragraph (1) of this subsection, the Commissioner may impose a civil penalty of up to $1,000 for each violation from which the violator failed to cease and desist or which the violator failed to correct.
(c) The Commissioner may request the Corporation Counsel of the District of Columbia [Attorney General for the District of Columbia] (“Corporation Counsel”) take appropriate action in the Superior Court of the District of Columbia (“Superior Court”) for the enforcement of an order issued under this section. The Corporation Counsel may also seek, and the Superior Court may order or decree, damages and other relief allowed by law, including restitution. In an action brought by the Corporation Counsel under this section, the Corporation Counsel may be awarded attorney’s fees and costs.
(d) In determining the amount of financial penalty to be imposed under subsection (b) of this section, the Commissioner shall consider the following:
  (1) The seriousness of the violation;
  (2) The good faith of the violator;
  (3) The violator’s history of previous violations;
  (4) The deleterious effect of the violation on the public and the insurance industry;
  (5) The assets of the violator; and
  (6) Any other factor relevant to the determination of the financial penalty.
D.C. Code § 31-3171.01 — DC Code / Title 31 / Chapter 31D / § 31-3171.01
§ 31-3171.01. Definitions.
Status: in_force

(1) “American Health Benefit Exchange” means an entity established pursuant to § 31-3171.04 , and section 1311(b) of the Federal Act.
(2) “Authority” means the District of Columbia Health Benefit Exchange Authority established by § 31-3171.02 .
(2A) "Basic health program" means a program established pursuant to section 1331 of the Federal Act (42 U.S.C. § 18051).
(3) “Commissioner” means the Commissioner of the Department of Insurance, Securities and Banking, as established by § 31-102 .
(3A) “Direct gross receipts” means all policy and membership fees and net premium receipts or consideration received in a calendar year on all health insurance carrier risks originating in or from the District of Columbia.
(4) “Federal Act” means the Patient Protection and Affordable Care Act, approved March 23, 2010 (124 Stat. 119; 42 U.S.C. § 18001, note), as amended by the Health Care and Education Reconciliation Act of 2010 approved March 30, 2010 (124 Stat. 1029; 42 U.S.C. § 1305, note), and any amendments, regulations, or guidance issued pursuant to the Federal Act.
(5) (A) “Health benefit plan” means a policy, contract, certificate, or agreement offered or issued by a health carrier to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services.
  (B) The term “health benefit plan” does not include:
    (i) Coverage only for accident or disability income insurance, or any combination thereof;
    (ii) Liability insurance, including general liability insurance and automobile liability insurance;
    (iii) Coverage issued as a supplement to liability insurance;
    (iv) Workers' compensation or similar insurance;
    (v) Automobile medical payment insurance;
    (vi) Credit-only insurance;
    (vii) Coverage for on-site medical clinics; or
    (viii) Other similar insurance coverage, specified in federal regulations issued pursuant to the Health Insurance Portability and Accountability Act of 1996, approved August 21, 1996 (110 Stat. 1936; 42 U.S.C. § 201, note) (“HIPAA”), under which benefits for health care services are secondary or incidental to other insurance benefits.
  (C) The term “health benefit plan” does not include the following benefits if they are provided under a separate policy, certificate of insurance, or contract of insurance, or are otherwise not an integral part of the plan:
    (i) Limited scope dental or vision benefits;
    (ii) Benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof; or
    (iii) Other similar, limited benefits specified in federal regulations issued pursuant to HIPAA.
  (D) The term “health benefit plan” does not include the following benefits if the benefits are provided under a separate policy, certificate of insurance, or contract of insurance, and there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid with respect to an event without regard to whether benefits are provided with respect to such an event under any group health plan maintained by the same plan sponsor:
    (i) Coverage only for a specified disease or illness; or
    (ii) Hospital indemnity or other fixed indemnity insurance.
  (E) The term “health benefit plan” does not include the following if offered as a separate policy, certificate of insurance, or contract of insurance:
    (i) A Medicare supplemental policy as defined in section 1882(g)(1) of the Social Security Act (42 U.S.C. § 1395ss(g)(1));
    (ii) Coverage supplemental to the coverage provided under 10 U.S.C. § 1071 et seq.; or
    (iii) Similar supplemental coverage provided to coverage under a group health plan.
(6) “Health carrier” means an entity subject to the insurance laws and regulations of the District that contracts, or offers to contract, to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services, including:
  (A) An accident and sickness insurance company;
  (B) A health maintenance organization;
  (C) A hospital and medical services corporation; or
  (D) Any other entity providing a health benefit plan.
(7) “Health professional” shall have the same meaning as provided in § 3-1201.01(8) .
(8) “Internal Revenue Code of 1986” means the Internal Revenue Code of 1986, approved August 16, 1954 (100 Stat. 2095; 26 U.S.C. § 1 et seq.).
(8A) “Metal level” means the bronze, silver, gold, and platinum levels of coverage as defined in section 1302(d)(1) of the Federal Act.
(8B) “Navigator” refers to the entities described in section 1311(i) of the Federal Act.
(8C) “Net premium receipts or consideration received” means gross premiums or consideration received less the sum of premiums received for reinsurance assumed and premiums or consideration returned on policies or contracts canceled or not taken.
(9) “PHSA” means the Public Health Service Act, approved July 1, 1944 (58 Stat. 682; 42 U.S.C. § 201 et seq.).
(10) “Qualified dental plan” means a limited-scope dental plan that has been certified in accordance with § 31-3171.09 .
(11) “Qualified employer” means a small employer that elects to make its full-time employees eligible for one or more qualified health plans offered through the Small Business Health Options Program Exchange (“SHOP Exchange”), and, at the option of the employer, some or all of its part-time employees; provided, that the employer:
  (A) Has its principal place of business in the District and elects to provide coverage through the SHOP Exchange to all of its eligible employees, wherever employed; or
  (B) Elects to provide coverage through the SHOP Exchange to all of its eligible employees who are principally employed in the District.
(12) “Qualified health plan” means a health benefit plan that has a certification validating that the plan meets the criteria for certification described in section 1311(c) of the Federal Act and § 31-3171.09 .
(13) “Qualified individual” means an individual, including a minor, who:
  (A) Is seeking to enroll in a qualified health plan offered to individuals through the Authority;
  (B) Resides in the District;
  (C) At the time of enrollment, is not incarcerated, other than incarceration pending the disposition of charges; and
  (D) Is, and is reasonably expected to be, for the entire period for which enrollment is sought, a citizen or national of the United States or an alien lawfully present in the United States.
(14) “Secretary” means the Secretary of the United States Department of Health and Human Services.
(15) “SHOP Exchange” means a Small Business Health Options Program Exchange established pursuant to § 31-3171.04 , and section 1311(b) of the Federal Act.
(16) (A) “Small employer” means a single employer that employed an average of not more than 50 employees during the preceding calendar year.
  (B) For the purposes of this paragraph:
    (i) All persons treated as a single employer under section 414(b), (c), (m), or (o) of the Internal Revenue Code of 1986 (26 U.S.C. § 414(b), (c), (m), or (o)) shall be treated as a single employer.
    (ii) An employer and any predecessor employer shall be treated as a single employer.
    (iii) All employees shall be counted, including part-time employees and employees who are not eligible for health benefit coverage through the employer.
    (iv) If an employer was not in existence throughout the preceding calendar year, the determination of whether that employer is a small employer shall be based on the average number of employees that employer is reasonably expected to employ in the current calendar year.
    (v) An employer that makes enrollment in qualified health plans available to its employees through the SHOP Exchange and would cease to be a small employer by reason of an increase in the number of its employees shall continue to be treated as a small employer for purposes of this chapter as long as it continuously makes enrollment through the SHOP Exchange available to its employees.
(17) “Social Security Act” means the Social Security Act, approved August 14, 1935 (49 Stat. 620; 42 U.S.C. § 301 et seq.), as amended.
(18) “Standardized plan” means a plan with defined benefits and cost sharing as determined by the executive board for the Authority.
D.C. Code § 31-3415 — DC Code / Title 31 / Chapter 34 / § 31-3415
§ 31-3415. Filing requirements for rating information.
Status: in_force

(a) No fees may be used until either a schedule of enrollment fees or methodology for determining enrollment fees dues has been filed with and approved by the Commissioner.
(b) Either a specific schedule of fees, or a methodology for determining fees, shall be established in accordance with actuarial principles for various categories of enrollees, provided that the enrollment fees applicable to an enrollee shall not be individually determined based on the status of an enrollee’s health. However, the fees shall not be excessive, inadequate, or unfairly discriminatory. A statement by a qualified actuary or other qualified person acceptable to the Commissioner as to the appropriateness of the use of the methodology, based on reasonable assumptions, shall accompany the filing along with adequate supporting information. A health maintenance organization filing a schedule of enrollment fees or methodology for determining enrollment fees pursuant to this section shall also comply with the Reasonable Health Insurance Ratemaking Reform Act of 2010 [Chapters 30A, 31C, and 33A of this title].
(c) The Commissioner shall approve the schedule of enrollment fees dues or methodology for determining enrollment fees if the requirements of subsection (b) of this section are met. If the Commissioner disapproves the filing, the Commissioner shall notify the health maintenance organization. In the notice, the Commissioner shall specify the reasons for disapproval. A hearing shall be held within 30 days after a request in writing by the person filing. If the Commissioner does not take action on the schedule or methodology within 30 days of the filing, it shall be deemed approved.
D.C. Code § 31-3706 — DC Code / Title 31 / Chapter 37 / § 31-3706
§ 31-3706. Filing requirements; master policy and certificate.
Status: in_force

(a) Except as provided in subsection (b) of this section, any insurer who provides group Medicare supplement insurance benefits to a resident of the District shall file the master policy and certificate, as provided by rule issued pursuant to § 31-3710 .
(b) An insurer shall not be required to file the master policy and certificate within the 30-day period following the date that the insurance is provided if the policy is a master policy issued for delivery outside the District.
D.C. Code § 31-5706 — DC Code / Title 31 / Chapter 57 / § 31-5706
§ 31-5706. Issuance of permit to do business.
Status: repealed

Repealed.
D.C. Code § 31-5602.10 — DC Code / Title 31 / Chapter 56 / § 31-5602.10
§ 31-5602.10. Limited registration of Canadian broker-dealers and agents.
Status: in_force

(a) A Canadian broker-dealer may be licensed under this section if the broker-dealer:
  (1) Has its principal office located in a province or territory of Canada that provides at least equivalent registration for a broker-dealer that is resident in the United States;
  (2) Is resident in Canada and does not have an office or physical presence in the United States;
  (3) Files an application in the form required by the jurisdiction in which the broker-dealer has its principal office;
  (4) Files a written consent to service of process under § 31-5607.06 ;
  (5) Is registered as a broker or dealer in good standing in the jurisdiction from which the broker-dealer is effecting transactions in the District and files evidence of the registration; and
  (6) Is a member of a self-regulating organization or stock exchange in Canada.
(b) An agent may be licensed under this section if the agent represents a Canadian broker-dealer that is licensed under this section, and the agent:
  (1) Files an application in the form required by the jurisdiction in which the broker-dealer has its principal office;
  (2) Files a written consent to service of process under section § 31-5607.06 ; and
  (3) Is registered and files evidence of good standing in the jurisdiction from which the agent is effecting transactions into the District.
(c) If no denial order is in effect and no proceeding is pending under § 31-5602.07 , the license shall become effective no later than noon on the 30th day after an application is filed. If the application is incomplete, the Commissioner may request additional information from the applicant and delay the effective date for 30 days from the date of receipt of the request for information.
(d) (1) A broker-dealer licensed under this section may effect transactions in securities with or for or induce or attempt to induce the purchase or sale of a security by a person from Canada who is:
    (A) Temporarily resident in the District and with whom the Canadian broker-dealer had a bona fide broker-dealer-client relationship before the person entered the United States; or
    (B) A resident in the District and whose transactions are in a self- directed tax-advantaged retirement plan in Canada of which the person is the holder or contributor.
  (2) A Canadian broker-dealer or agent licensed under this section shall not effect transactions in the District unless it is:
    (A) Authorized in paragraph (1) of this subsection;
    (B) With or through:
      (i) The issuers of the securities involved in the transactions;
      (ii) Other broker-dealers; or
      (iii) Banks, savings institutions, trust companies, insurance companies, investment companies as defined in the Investment Company Act of 1940, approved August 22, 1946 (54 Stat. 789; 15 U.S.C. § 80a-1 et seq.), pension or profit-sharing trusts, or other financial institutions or institutional investor, whether acting for themselves or as trustees; or
    (C) As otherwise permitted by the Commissioner in any rule or order.
(e) An agent licensed under this section may effect transactions in securities in the District of Columbia as permitted for the Canadian broker-dealer licensed under this section.
(f) A Canadian broker-dealer licensed under this section shall:
  (1) Maintain provincial or territorial registration and membership in good standing in a self-regulating organization or stock exchange;
  (2) Provide the Commissioner on request with books and records relating to its business in the District as a broker-dealer;
  (3) Inform the Commissioner promptly of any criminal action taken against the broker-dealer or of any finding or sanction imposed on the broker-dealer as a result of regulatory action, including that of a self-regulating organization, involving fraud, theft, deceit, misrepresentation, or similar conduct; and
  (4) Disclose to its clients in the District that the broker-dealer and its agents are not subject to the full regulatory requirements of the District.
(g) An agent of a Canadian broker-dealer licensed under this section shall:
  (1) Maintain provincial or territorial registration in good standing; and
  (2) Inform the Commissioner promptly of any criminal action taken against the agent or of any finding or sanction imposed on the broker-dealer or agent as a result of regulatory action, including that of a self-regulating organization, involving fraud, theft, deceit, misrepresentation, or similar conduct.
(h) Renewal applications for Canadian broker-dealers and agents under this section shall be filed annually before December 1 and may be made by filing the most recent renewal application, if any, filed in the jurisdiction in which the broker-dealer has its principal office or, if a renewal application is not required, the most recent application filed under subsection (a)(1) or (b)(1) of this section.
(i) An applicant for an initial license or renewal under this section shall pay the fee for broker-dealers and agents required by rules issued by the Commissioner.
(j) A Canadian broker-dealer or agent licensed under this section and acting in accordance with the limitations in subsection (d) or (e) of this section shall be exempt from all of the requirements of this chapter, except the provisions of subchapters V and VI.
D.C. Code § 31-4413 — DC Code / Title 31 / Chapter 44 / § 31-4413
§ 31-4413. Payments for capital stock.
Status: in_force

No company incorporated under this chapter shall be authorized to transact any business until the authorized capital stock shall have been actually paid in, either in cash or in investments authorized by this subdivision at market value; and it shall be lawful for the directors to call in and demand from the stockholders the residue of their subscriptions in money or property at such times and in such instalments as the directors shall deem proper, under the penalty of forfeiting the shares of capital stock subscribed for and all previous payments made thereon, if payment shall not be made by the stockholder within 60 days after a personal demand or a notice requiring such payment shall have been published once a week for 3 consecutive weeks in a daily newspaper in the District.
D.C. Code § 31-5508 — DC Code / Title 31 / Chapter 55 / § 31-5508
§ 31-5508. Effect of paid claims.
Status: in_force

(a) Any person recovering under this chapter shall be deemed to have assigned his or her rights under the policy to the Association to the extent of his or her recovery from the Association. Every insured or claimant seeking the protection of this chapter shall cooperate with the Association to the same extent as that person would have been required to cooperate with the insolvent insurer. The Association shall have no cause of action against the insured of the insolvent insurer for any sums it has paid out except those causes of action as the insolvent insurer would have had if such sums had been paid by the insolvent insurer and except as provided in subsection (b) of this section. In the case of an insolvent insurer operating on a plan with assessment liability, payments of claims of the Association shall not operate to reduce the liability of the insureds to the receiver, liquidator, or statutory successor for unpaid assessments.
(b) The Association shall have the right to recover from the following persons the amount of any covered claim paid on behalf of such a person pursuant to the chapter:
  (1) Any insured whose net worth on December 31st of the year next preceding the date the insurer becomes an insolvent insurer exceeds $50 million and whose liability obligations to other persons are satisfied in whole or in part by payments made under this chapter; and
  (2) Any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this chapter.
(c) The receiver, liquidator, or statutory successor of an insolvent insurer shall be bound by settlements of covered claims by the Association or a similar organization in another jurisdiction. The court having jurisdiction shall grant these claims priority equal to that which the claimant would have been entitled in the absence of this chapter against the assets of the insolvent insurer. The expenses of the Association or similar organization in handling claims shall be accorded the same priority as the liquidator’s expenses.
(d) The Association shall periodically file, with the receiver or liquidator of the insolvent insurer, statements of the covered claims paid by the Association and estimates of anticipated claims on the Association which shall preserve the rights of the Association against the assets of the insolvent insurer.
D.C. Code § 31-1309.01 — DC Code / Title 31 / Chapter 13 / § 31-1309.01
§ 31-1309.01. Duty to provide information to other insurance regulators and guaranty associations.
Status: in_force

The domiciliary receiver shall provide information to other state insurance regulators and guaranty associations, including reports and analyses of financial condition and the status of development of a plan of rehabilitation. The domiciliary receiver shall also permit a state insurance regulator or guaranty association to obtain a listing of policyholders and certificate holders residing in the requestor’s state, including current addresses and summary policy information; provided, that (1) the regulator or guaranty association agrees, and has the legal authority, to maintain the confidentiality of the records, and (2) records will be used only for regulatory or guaranty association purposes. Access to financial records shall be at least equivalent to that to which a state insurance regulator was entitled before the commencement of a formal delinquency proceeding. Access to records may be limited to normal business hours. If the domiciliary receiver believes that certain information is sensitive and disclosure might cause a diminution in recovery, the receiver may apply for a protective order imposing additional restrictions on access. No waiver of an applicable privilege shall occur as a result of disclosure to the Commissioner or receiver or of sharing documents, materials, or other information under this section. Nothing in this section shall require an insurer to disclose documents, materials, or other information that is not otherwise required by law to be disclosed.
D.C. Code § 31-101 — DC Code / Title 31 / Chapter 1 / § 31-101
§ 31-101. Definitions.
Status: in_force

For the purposes of this subchapter, the term:
(1) "Abusive act or practice" means an act or practice that:
  (A) Materially interferes with the ability of a student loan borrower to understand a term or condition of a student education loan or private education loan;
  (B) Takes unreasonable advantage of:
    (i) A lack of understanding on the part of a student loan borrower of the material risks, costs, or conditions of a student education loan or private education loan;
    (ii) The inability of a student loan borrower to protect the interests of the student loan borrower when selecting or using:
      (I) A student education loan or private education loan; or
      (II) A feature, term, or condition of a student education loan or private education loan; or
    (iii) The reasonable reliance by the student loan borrower on a person engaged in servicing a student education loan or private education loan to act in the interests of the borrower; or
  (C) Misrepresents the amount, nature, or terms of any fee or payment due or claimed to be due on a student education loan or private education loan, the terms and conditions of the student education loan agreement or private education loan agreement or the student loan borrower's obligations under the student education loan or private education loan.
(1A) “Associate Commissioner for Securities and Banking” means the Associate Commissioner of the Securities and Banking Bureau.
(2) “Commissioner” means the Commissioner of the Department of Insurance, Securities, and Banking, who shall be the chief executive officer of the Department of Insurance, Securities, and Banking.
(2A) (A) "Cosigner" means an individual who is liable for the obligation of a student loan borrower without compensation, regardless of how the individual is designated in the contract or instrument with respect to that obligation, including an obligation under a private education loan extended to consolidate a student loan borrower's pre-existing student loans.
  (B) The term includes an individual whose signature is requested as a condition to grant credit or to forbear on collection, but does not include a spouse of a student loan borrower, the signature of whom is needed to perfect the security interest in a loan.
(3) “Department” means the Department of Insurance, Securities, and Banking.
(4) “Deputy Commissioner” means the Deputy Commissioner of the Department of Insurance, Securities, and Banking.
(5) “District of Columbia Banking Code” means the statutory provisions concerning banking and financial institutions codified in Title 26, laws administered by the Commissioner, and rules and regulations promulgated under those statutory provisions and laws.
(6) “Insurance Bureau” means the office overseeing the regulation of insurance, insurers, and health maintenance organizations.
(6A) "Licensee" means the holder of a SLS license.
(6B) "Ombudsman" means the position of Student Loan Ombudsman established within the Department by § 31-106.01 .
(6C) "Overpayment" means a payment on a student education loan or private education loan in excess of the monthly amount due from the student loan borrower on a student education loan or private education loan.
(6D) "Partial payment" means a payment on a student education loan account that contains multiple individual loans in an amount less than the amount necessary to satisfy the outstanding payment due on all loans in the student education loan account.
(6E) (A) "Postsecondary education expense" means an expense related to enrollment in or attendance at a postsecondary education institution regardless of whether the debt incurred by a student to pay those expenses is owed to the provider of postsecondary education whose school, program, or facility the student attends.
  (B) For the purpose of this paragraph, the term "postsecondary" has the same meaning as that term is defined in § 38-1302(12B) .
(6F) "Private education lender" means a person engaged in the business of securing, making, or extending private education loans, or a holder of a private education loan.  The term does not include, to the extent preempted by federal law:
  (A) A bank or credit union;
  (B) A wholly owned subsidiary of a bank or credit union; or
  (C) An operating subsidiary of a bank or credit union where each owner of the operating subsidiary is wholly owned by the same bank or credit union.
(6G) (A) "Private education loan" means an extension of credit that is not made, insured, or guaranteed under Title IV of the Higher Education Act of 1965 (20 U.S.C. § 1070 et seq .), and is extended to a consumer expressly, in whole or in part, for postsecondary education expenses regardless of whether the loan is provided by the educational institution that the student attends.
  (B) The term does not include:
    (i) Open-end credit or any loan that is secured by real property or a dwelling; or
    (ii) An extension of credit in which the covered educational institution is the creditor if the term is 90 days or less or an interest rate will not be applied to the credit balance and the term of the extension of credit is one year or less, even if the credit is payable in more than 4 installments.
(7) “Securities and Banking Bureau” means the office administering the District of Columbia Banking Code and overseeing the regulation of securities.
(8) "Student education loan" means a loan obtained for personal use to finance education or other school-related expenses.
(9) "Student loan borrower" means a resident of the District of Columbia who has received or agreed to pay a student education loan or a private education loan to fund his or her postsecondary education.
(10) "Student loan servicer" means a person or entity, whether located within or outside the District, responsible for the servicing of a student education loan of a student loan borrower.
(11) "Student loan servicing" means the process of collecting payments and interest and performing other administrative tasks associated with maintaining a student education loan. The term "student loan servicing" includes:
  (A) Receiving any scheduled periodic payments from a student loan borrower or notification of payments;
  (B) Applying payments to the student loan borrower's account pursuant to the terms of the student education loan or contract governing the servicing;
  (C) Maintaining account records for the student education loan during a period when no payment is required on the loan; and
  (D) Communicating with the student loan borrower regarding the student education loan; and having other interactions to assist a student loan borrower, including activities to help prevent default on obligations arising from a student education loan.
(12) "SLS license" means the business license issued by the Department pursuant to § 31-106.02 that is required for a student loan servicer.
(13) "Total and permanent disability" is the condition of an individual who:
  (A) Has been determined by the United State Secretary of Veterans Affairs to be unemployable due to a service-connected disability; or
  (B) Is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 12 months, or can be expected to last for a continuous period of not less than 12 months.
D.C. Code § 31-5608.04 — DC Code / Title 31 / Chapter 56 / § 31-5608.04
§ 31-5608.04. Repeal and transition provisions.
Status: in_force

(a) Chapters 36 and 37 of Title 3 (“prior law”), are repealed, subject to the transition provisions of subsections (b) through (e) of this section.
(b) Prior law shall govern all suits, actions, prosecutions, or proceedings which are pending or may be initiated on the basis of facts or circumstances occurring before October 26, 2000.
(c) A civil suit or action shall not be maintained to enforce a liability under prior law unless brought within the period of limitation which applied when the cause of action accrued and, in any event, no later than 2 years after October 26, 2000.
(d) All effective registrations and notice filings under prior law, all administrative orders relating to such registrations and notice filings, and all conditions imposed upon such registrations shall apply to the extent they would have applied under prior law.
(e) All no-action and opinion letters, administrative orders, and waivers issued under prior law or regulation shall apply to the extent they would have applied under prior law.
D.C. Code § 31-1339 — DC Code / Title 31 / Chapter 13 / § 31-1339
§ 31-1339. Secured creditor’s claims.
Status: in_force

(a) The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct:
  (1) By converting the same into money according to the terms of the agreement pursuant to which the security was delivered to the creditors; or
  (2) By agreement, arbitration, compromise, or litigation between the creditor and the liquidator.
(b) The determination shall be under the supervision and control of the court with due regard for the recommendation of the liquidator. The amount so determined shall be credited upon the secured claim, and any deficiency shall be treated as an unsecured claim. If the claimant shall surrender his or her security to the liquidator, the entire claim shall be allowed as if unsecured.
D.C. Code § 31-2708 — DC Code / Title 31 / Chapter 27 / § 31-2708
§ 31-2708. Additional powers and duties of Commissioner.
Status: in_force

(a) In addition to any powers hereinbefore expressly enumerated in this chapter, the Commissioner shall have full power and authority, and it shall be his duty, to enforce by regulations made and promulgated by the Council of the District of Columbia, by orders, or otherwise all and singular, the provisions of this chapter, and the full intent thereof. In particular he shall have the authority and power:
  (1) To examine all records of companies and rating organizations and to require any or every company, agent, broker, and rating organization to furnish under oath such information as he may deem necessary for the administration of this chapter. The expense of such examination shall be paid by the company or rating organization examined. In lieu of such examination the Commissioner may, in his discretion, accept a report of examination made by any other insurance supervisory authority;
  (2) The Council of the District of Columbia shall have the authority and power to make, and the Commissioner shall have the authority and power to enforce, such reasonable orders, rules, and regulations as may be necessary in making this chapter effective, but such orders, rules, and regulations shall not be contrary to or inconsistent with the provisions of this chapter;
  (3) To issue an order, after a full hearing to all parties in interest, requiring any group, association, or organization of companies and the members thereof to cease and desist from any unfair or unreasonable practice.
(b) The Commissioner may designate 1 or more rating organizations or other agencies to assist him in gathering statistical data and in making such compilations thereof as may be necessary for the proper administration of this chapter. Such compilations shall be made available, subject to reasonable rules promulgated by the Council of the District of Columbia, to companies and rating organizations.
(c) The Commissioner shall have no authority at any hearing to compel the attendance of witnesses and he shall not be required to adhere to formal rules of pleading or evidence. At the request of a party or parties in interest made prior to any hearing, he shall administer oaths to witnesses and shall permit such party or parties, at the cost and expense of one who so requests, to have made a record of the hearing, which record upon request of such party or parties the Commissioner shall certify.
D.C. Code § 31-2502.26 — DC Code / Title 31 / Chapter 25 / § 31-2502.26
§ 31-2502.26. Company reserves.
Status: repealed

Repealed.
D.C. Code § 31-2931 — DC Code / Title 31 / Chapter 29 / § 31-2931
§ 31-2931. Coverage.
Status: in_force

(a) Every individual and group health insurance policy or service, including Medicaid, shall provide coverage for colorectal cancer screening for policyholders residing in the District of Columbia.
(b) The screening shall be in compliance with American Cancer Society colorectal cancer screening guidelines.
(c) As American Cancer Society colorectal cancer screening guidelines are updated, every individual and group health insurance policy of service, including Medicaid, shall update their colorectal cancer screening benefits to comply with the American Cancer Society guidelines.
D.C. Code § 31-3002 — DC Code / Title 31 / Chapter 30 / § 31-3002
§ 31-3002. Payable benefits.
Status: in_force

A health benefit plan shall provide coverage for the equipment, supplies, and other outpatient self-management training and education, including medical nutritional therapy, for the treatment of insulin-dependent diabetes, insulin-using diabetes, gestational diabetes, and non-insulin using diabetes if prescribed by a health care professional legally authorized to prescribe such item.
D.C. Code § 31-3234 — DC Code / Title 31 / Chapter 32 / § 31-3234
§ 31-3234. Applicability.
Status: in_force

This subchapter shall apply to health insurers beginning with referrals issued 120 days after the promulgation of final regulations under § 31-3233 .
D.C. Code § 31-3905 — DC Code / Title 31 / Chapter 39 / § 31-3905
§ 31-3905. Name.
Status: repealed

Repealed.
D.C. Code § 31-4405 — DC Code / Title 31 / Chapter 44 / § 31-4405
§ 31-4405. Formation — Disposition of sums paid upon stock subscriptions.
Status: in_force

Every subscription to the capital stock of a stock company shall contain the stipulation that no sum shall be used for commission, promotion, or organization expenses in excess of a percentage of the amount paid upon the stock subscriptions, to be named in such stipulation and proved by the Commissioner, and the remainder of sums so paid to the company shall be invested in securities in which a life insurance company is authorized to invest, or deposited in a bank or trust company in the District until the company has duly procured a certificate of authority from the Commissioner.
D.C. Code § 31-3707 — DC Code / Title 31 / Chapter 37 / § 31-3707
§ 31-3707. Notice of free examination.
Status: in_force

Medicare supplement policies and certificates shall have a notice prominently printed on the 1st page of the policy or certificate, or attached thereto, stating in substance that the applicant shall have the right to return the policy or certificate within 30 days of its delivery and to have the premium refunded if, after examination of the policy or certificate, the applicant is not satisfied for any reason. Any refund made pursuant to this section shall be paid directly to the applicant by the issuer in a timely manner.
D.C. Code § 31-121 — DC Code / Title 31 / Chapter 1 / § 31-121
§ 31-121. Regulations.
Status: in_force

The Commissioner may promulgate rules, regulations, and orders as are necessary or appropriate to conform to the Gramm-Leach-Bliley Act, approved November 12, 1999 (113 Stat. 1338; codified in scattered sections of the U.S. Code), or regulations promulgated thereunder.
D.C. Code § 31-303 — DC Code / Title 31 / Chapter 3 / § 31-303
§ 31-303. Contents of annual audited financial report.
Status: in_force

The annual audited financial report shall report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flow, and changes in capital and surplus for the year then ended in conformity with statutory accounting practices prescribed, or otherwise permitted, by the jurisdiction where it is domiciled. The annual audited financial report shall include the following:
(1) Report of an independent certified public accountant;
(2) Balance sheet reporting admitted assets, liabilities, capital, and surplus;
(3) Statement of operations;
(4) Statement of cash flows;
(5) Statement of changes in capital and surplus;
(6) Notes to the financial statements, which shall:
  (A) Be those required by the appropriate NAIC annual statement instructions and the NAIC Accounting Practices and Procedures Manual; and
  (B) Include a reconciliation of differences, if any, between the audited statutory financial statement and the annual statement filed pursuant to Chapter 19 of this title [ § 31-1901 et seq.], and a written description of the nature of these differences; and
(7) The financial statements included in the audited financial report shall be prepared in a form and using language and groupings substantially the same as the relevant sections of the annual statement of the insurer filed with the Mayor, and the financial statement shall be comparative, presenting the amounts as of December 31st of the current year and the amounts as of the immediately preceding December 31st. However, in the first year in which an insurer is required to file an audited financial report, the comparative data may be omitted.
D.C. Code § 31-1631.04 — DC Code / Title 31 / Chapter 16A / § 31-1631.04
§ 31-1631.04. Licensure.
Status: in_force

(a) The Commissioner shall issue a license to an applicant for a public insurance adjuster’s license who:
  (1) Has paid the applicable fee established by the Commissioner by rule;
  (2) Passes a written examination for which a fee may be charged; and
  (3) Has sufficient experience, training, and instruction concerning the adjusting of first party claims for damages or losses under insurance contracts that insure the real or personal property of the insured, as determined by the Commissioner in accordance with regulations issued pursuant to this chapter.
(b) The Commissioner may issue a license to any applicant without an examination if:
  (1) The applicant holds a like license in good standing from another state and the public official having supervision of public insurance adjusters in the other state certifies that the applicant has passed a written examination; and
  (2) The other state recognizes public insurance adjusters with District public insurance adjuster licenses for the purpose of licensing the applicant without the requirement of an examination.
(c) A license issued pursuant to this section shall continue in force from the date of issuance until April 30th of the next odd-numbered year, unless suspended, revoked, or otherwise terminated prior thereto. Requests for renewal of the license shall be made to the Commissioner and accompanied by the license fee. Unless a request for renewal, accompanied by the appropriate fee, is received by the termination date, the license shall expire.
D.C. Code § 31-1308 — DC Code / Title 31 / Chapter 13 / § 31-1308
§ 31-1308. Temporary seizure order.
Status: in_force

(a) The Commissioner may file in the Superior Court of the District of Columbia a petition alleging, with respect to a domestic insurer, that there exists grounds that would justify a court order for a formal delinquency proceeding against an insurer under this chapter, and that the interests of policyholders, creditors, or the public will be endangered by delay in the Commissioner’s determination of the financial condition of the insurer.
(b) Upon a filing under subsection (a) of this section, the court may issue, ex parte and without a hearing, the requested order which shall direct the Commissioner to take possession and control of all or part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business; and until further order of the court enjoins the insurer and its officers, managers, agents, and employees from disposition of its property and from the transaction of its business except with the written consent of the Commissioner.
(c) The court shall specify in the order its duration, which shall be the time the court deems necessary for the Commissioner to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may from time to time hold hearings it deems desirable after notice it deems appropriate, and may extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the Commissioner fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this chapter shall ipso facto vacate the seizure order.
(d) Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the insurer.
(e) An insurer subject to an ex parte order under this section may petition the court at any time after the issuance of the order for a hearing and review of the order. The court shall hold such a hearing and review not more than 15 days after the request. A hearing under this subsection may be held privately in chambers and it shall be if the insurer proceeded against so requests.
(f) If, at any time after the issuance of such an order, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued by the court.
D.C. Code § 31-5031.01 — DC Code / Title 31 / Chapter 50A / § 31-5031.01
§ 31-5031.01. Definitions.
Status: in_force

For the purposes of this chapter, the term:
(1) “Abstract of title” or “abstract” means a written history, synopsis, or summary of the recorded instruments affecting the title to real property.
(2) “Affiliate” means, with respect to a person, another person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the person.
(3) Repealed.
(4) “Attorney” means a person who holds a license to practice law in the District of Columbia.
(4A) “Business entity” means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.
(5) “Commissioner” means the Commissioner of the Department of Insurance, Securities, and Banking, or the Commissioner’s representatives, or the commissioner, director, or superintendent of insurance in any other state.
(6) “Direct operations” means that portion of a title insurer’s operations that is attributable to business written or conducted directly by an employee of:
  (A) The title insurer;
  (B) A title insurance producer owned by:
    (i) The title insurer;
    (ii) A parent entity owning the title insurer;
    (iii) A holding entity owning the title insurer; or
    (iv) A subsidiary of a parent or holding entity owning a title insurer.
(7) “Escrow” means written instruments, money, or other items deposited by one party with a depository, escrow agent, or escrowee for delivery to another party upon the performance of a specified condition or the happening of a certain event.
(8) “Escrow Officer” means a person who maintains an escrow or indemnified deposit account.
(9) “Escrow, settlement, or closing fee” means the consideration for supervising or handling the actual execution, delivery, or recording of transfer and lien documents and for disbursing funds.
(10) “Fire and Casualty Act” means Chapter 25 of  this  title [ § 31-2501.01 et seq.].
(11) “Foreign title insurer” means any title insurer incorporated or organized under the laws of any other state of the United States or any other jurisdiction of the United States.
(12) “Indemnity” or “indemnity deposit” means funds or other property received by the title insurer as collateral to secure an indemnitor’s obligation under an indemnity agreement pursuant to which the insurer is granted a perfected security interest in the collateral in exchange for agreeing to provide coverage in a title insurance policy for a specific title exception to coverage.
(12A) “Individual” means a natural person.
(13) “IRLA” means Chapter 13 of this title [ §  31-1301 et seq.) ].
(14) “Net retained liability” means the total liability retained by a title insurer for a single risk, after taking into account any ceded liability and collateral, acceptable to the Commissioner, maintained by the insurer.
(15) “Non-U.S. title insurer” means any title insurer incorporated or organized under the laws of any foreign nation or any province or territory.
(16) “Person” means an individual or business entity.
(17) “Personal property” means stock ownership in a cooperative housing association.
(18) “Qualified financial institution” means an institution that is:
  (A) Organized or, in the case of a United States branch or agency office of a foreign banking organization, licensed under the laws of the United States or any state and has been granted authority to operate with fiduciary powers;
  (B) Regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies;
  (C) Insured by the appropriate federal entity; and
  (D) Qualified under any additional rules established by the Commissioner.
(19) “Referral source” means any person, including an officer, director, or owner of more than 5% or more of the equity or capital of any person engaged in the District in the trade, business, occupation, or profession of:
  (A) Buying or selling interests in real property;
  (B) Making loans secured by interests in real property; or
  (C) Acting as broker, agent, representative, or attorney of a person who buys or sells any interest in real property or who lends or borrows money with the interest as security.
(20) Repealed.
(21) “Subsidiary” means an affiliate controlled by a person, directly or indirectly, through one or more intermediaries.
(22) “Title insurance business” or “business of title insurance” means:
  (A) Issuing as an insurer, or offering to issue as an insurer, a title insurance policy;
  (B) Engaging in, or proposing to engage in, any of the following activities when conducted or performed in contemplation of or in conjunction with the issuance of a title insurance policy:
    (i) Soliciting or negotiating the issuance of a title insurance policy;
    (ii) Guaranteeing, warranting, or otherwise insuring the correctness of title searches for all instruments affecting titles to real property, any interest in real property, cooperative units, and proprietary leases, and for all liens or charges affecting the same;
    (iii) Executing title insurance policies;
    (iv) Effecting contracts of reinsurance; or
    (v) Abstracting, searching, or examining titles;
  (C) Guaranteeing, warranting, or insuring searches or examinations of title to real property or any interest in real property;
  (D) Guaranteeing or warranting the status of title as to ownership of or liens on real property or personal property by any person other than the principals to the transaction;
  (E) Doing, or holding oneself out to do, business substantially equivalent to any of the activities listed in this paragraph in a manner designed to evade the provisions of this chapter; or
  (F) Matters insuring the correctness or marketability of title.
(23) “Title insurance commitment” means a preliminary report, commitment, or binder issued prior to the issuance of a title insurance policy containing the terms, conditions, exceptions, and any other matters incorporated by reference under which the title insurer is willing to issue its title insurance policy.
(24) “Title insurance policy” or “policy” means a contract insuring or indemnifying owners of, or other persons lawfully interested in, real or personal property or any interest in real or personal property, against loss or damage arising from any or all of the following conditions existing on or before the policy date and not excepted or excluded:
  (A) Defects in, or liens or encumbrances on, the insured title;
  (B) Unmarketability of the insured title;
  (C) Invalidity, lack of priority, or unenforceability of liens or encumbrances on the stated property;
  (D) Lack of legal right of access to the land;
  (E) Unenforceability of rights in title to the land and other matters affecting the title to, or the right to the use and enjoyment of, the property; or
  (F) Matters insuring the correctness or marketability of title.
(25) (A) “Title insurance producer” or “producer” means a person who is authorized to perform, on behalf of a title insurer, the following acts in conjunction with the issuance of a title insurance commitment or policy covering real or personal property situated in the District of Columbia:
    (i) Determining insurability and issuing title insurance commitments or policies, or both, based upon the performance or review of a search or abstract of title; and
    (ii) Soliciting or negotiating title insurance business.
  (B) The term “title insurance producer” or “producer” shall not include:
    (i) A financial institution (and its employees) that does not solicit, procure, or negotiate title insurance contracts for compensation or conduct title insurance business;
    (ii) An employee of an abstracting company;
    (iii) A person whose activities in the District are limited to advertising, without the intent to solicit insurance in the District, through communications in printed publications or other forms of electronic mass media; provided, that the person does not sell, solicit, or negotiate insurance that would insure risks of persons residing in or located in, or activities to be performed in, the District;
    (iv) A salaried full-time employee who counsels or advises his or her employer relative to the insurance interests of the employer or of the subsidiaries of the employer; provided, that the employee does not sell, solicit, or negotiate insurance, or receive a commission; or
    (v) An employee of a title insurer; provided, that the employee’s activities are not focused on transactions in the District of Columbia, his or her primary responsibilities cover multiple states, and his or her involvement in transactions is to coordinate with title insurance producers licensed in the District of Columbia who conduct title insurance business.
(26) “Title insurer” or “insurer” means a company organized under laws of the District of Columbia for the purpose of transacting the business of title insurance and any foreign or non-U.S. title insurer licensed in the District of Columbia to transact the business of title insurance.
(27) “Title plant” means a set of records consisting of documents, maps, surveys, or entries affecting title to real property or any interest in or encumbrance on the property, which have been filed or recorded in the jurisdiction for which the title plant is established or maintained.
(28) “Underwrite” means to accept or reject, or have the authority to accept or reject, risk on behalf of a title insurer.
D.C. Code § 31-3451.08 — DC Code / Title 31 / Chapter 34A / § 31-3451.08
§ 31-3451.08. Confidentiality; prohibition on announcements; prohibition on use in rate making.
Status: in_force

(a) All RBC reports (to the extent the information is not required to be set forth in a publicly available annual statement schedule) and RBC plans (including the results or report of any examination or analysis of a health organization performed under this chapter and any corrective order issued by the Commissioner under examination or analysis) that are filed with the Commissioner shall be confidential and privileged, shall not be subject to subchapter II of Chapter 5 of Title 2 , shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in a private civil action; provided, that the Commissioner may use the documents, materials, or other information in furtherance of any regulatory or legal action brought as a part of the Commissioner’s official duties.
(b) The Commissioner or any person who received documents, materials, or other information while acting under the authority of the Commissioner shall not be permitted or required to testify in a private civil action concerning any confidential documents, materials, or information subject to subsection (a) of this section.
(c) To assist in the performance of the Commissioner’s duties under this chapter, the Commissioner may:
  (1) Share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to subsection (a) of this section, with District, state, federal, and international regulatory agencies, with the NAIC, and with District, state, federal, and international law enforcement authorities; provided, that the recipient agrees to maintain the confidentiality and privileged status of document, material, or other information;
  (2) Receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the NAIC and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential and privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; or
  (3) Enter into agreements governing sharing and use of the information consistent with this subsection.
(d) No waiver of an existing privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of sharing as authorized in subsection (c)(3) of this section.
(e) Except as otherwise required under this chapter, the making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over a radio or television station, or in any other way, an advertisement, announcement or statement containing an assertion, representation, or statement with regard to the RBC levels of any health organization, or of any component derived in the calculation, by any health organization, agent, broker, or other person engaged in any manner in the insurance business shall be prohibited; provided, that if any materially false statement with respect to the comparison regarding a health organization’s total adjusted capital to its RBC levels (or any of them) or an inappropriate comparison of any other amount to the health organizations’ RBC levels is published in any written publication and the health organization is able to demonstrate to the Commissioner with substantial proof the falsity of the statement, or the inappropriateness, as the case may be, the health organization may publish an announcement in a written publication if the sole purpose of the announcement is to rebut the materially false statement.
(f) The RBC instructions, RBC reports, adjusted RBC reports, RBC plans, and revised RBC plans shall only be used by the Commissioner in monitoring the solvency of health organizations and the need for possible corrective action and shall not be used by the Commissioner for ratemaking, or considered or introduced as evidence in any rate proceeding, nor used by the Commissioner to calculate or derive any elements of an appropriate premium level or rate of return for any line of insurance that a health organization or an affiliate is authorized to write.
D.C. Code § 31-3171.14 — DC Code / Title 31 / Chapter 31D / § 31-3171.14
§ 31-3171.14. Powers of the Mayor.
Status: in_force

Notwithstanding any other provision of this chapter, all powers and authority vested by this chapter in the Authority shall remain with the Mayor until:
(1) A majority of members of the executive board have been confirmed by the Council; and
(2) The executive board has hired an executive director.
D.C. Code § 31-4802 — DC Code / Title 31 / Chapter 48 / § 31-4802
§ 31-4802. Policies — Defenses to validity.
Status: in_force

If payment of such a policy shall be refused because of unsound health at or prior to the date of the policy, the good faith of both applicant and insured shall constitute a material element in determining the validity of the policy; and it shall not be held invalid because of unsound health unless the insurer shall prove that, at or before the date of issue of the policy, the insured or applicant had knowledge of, or reason to know, the facts on which the defense is based, or shall prove that the insurance was procured by the insured or applicant in bad faith or with intent to defraud the company, any provision, agreement, condition, warranty, or clause contained in said policy, or endorsed thereon, or added or attached thereto, to the contrary notwithstanding. Proof by the insurer of fraud, intent to deceive, unsound health, bad faith, breach of warranty or condition precedent, or other matter of defense, shall be subject to the provisions of § 31-5203 .
D.C. Code § 31-6002 — DC Code / Title 31 / Chapter 60 / § 31-6002
§ 31-6002. Applicability of chapter.
Status: repealed

Repealed.
D.C. Code § 31-2231.12 — DC Code / Title 31 / Chapter 22A / § 31-2231.12
§ 31-2231.12. Rebates: life, health, and annuities.
Status: in_force

(a) No person shall knowingly:
  (1) Permit, or offer to make, a policy or contract of life insurance, annuity, or accident and health insurance, or agreement as to such policy or contract, other than as plainly expressed in the policy or contract issued thereon; or
  (2) Pay, allow, give, or offer to pay, allow, or give, directly or indirectly as inducement to such policy or contract:
    (A) A rebate of premiums payable on the policy or contract;
    (B) A special favor or advantage in the dividends or other benefits thereon; or
    (C) A valuable consideration or inducement not specified in the contract.
(b) No person shall directly or indirectly give, sell, purchase, or offer, or agree to give, sell, purchase, or offer as inducement to the policy or contract specified in subsection (a) of this section, or in connection therewith:
  (1) Stocks, bonds, or other securities of an insurance company or other corporation, association, or partnership;
  (2) Dividends or profits accrued or to accrue thereon; or
  (3) Anything of value not specified in the contract.
(c) No person shall receive or accept as inducement to a policy or contract:
  (1) A rebate of premium payable on the policy or contract;
  (2) A special favor or advantage in the dividends or other benefits to accrue on the policy or contract; or
  (3) A valuable consideration or inducement not specified in the contract.
(d) Section 31-2231.11 or this section shall not be construed to include within the definition of discrimination or rebates any of the following practices:
  (1) In the case of a contract of life insurance or life annuity, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance; provided, that the bonuses or abatement of premiums shall be fair and equitable to policyholders and for the best interests of the company and its policyholders;
  (2) In the case of life insurance policies issued on the industrial debit, preauthorized check, bank draft, or similar plans, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount which fairly represents the saving in collection expenses;
  (3) Readjustment of the rate of premium for a group insurance policy based on the loss or expense experience thereunder at the end of the first or a subsequent policy year of insurance thereunder, which may be made retroactive only for the policy year;
  (4) Reduction of premium rates for policies of large amounts, but not exceeding savings in issuance and administration expenses reasonably attributable to the policies as compared with policies of similar plans issued in smaller amounts;
  (5) Issuing life or health insurance policies or annuity contracts on a salary savings or payroll deduction plan, or other distribution plan, at reduced rates reasonably commensurate with the savings made by the use of the plan; and
  (6) Issuance of health insurance policies which provide for increases in benefits to policyholders who maintain their policies continuously in force without lapse for specified periods.
(e) Section 31-2231.11 or this section shall not be construed to include within the definition of securities an inducement to purchase insurance, the selling or offering for sale, contemporaneously with life insurance, mutual fund shares or face amount certificates of regulated investment companies under offerings registered with the United States Securities and Exchange Commission where the shares, the face amount certificates, or the insurance may be purchased independently of, and not contingent upon, purchase of the other, at the same price and upon similar terms and conditions as where purchased independently.
(f) For the purposes of § 31-2231.11 or this section, the term “valuable consideration” shall not include any educational materials, promotional materials, or articles of merchandise that cost less than $75, regardless of whether a policy or contract is purchased.
D.C. Code § 31-5602.02 — DC Code / Title 31 / Chapter 56 / § 31-5602.02
§ 31-5602.02. Licensing of investment adviser and investment adviser representative.
Status: in_force

(a) No person shall transact business in the District as an investment adviser or as an investment adviser representative unless the person is licensed, or exempt from licensure, under this chapter, or the person has no place of business in the District, and:
  (1) The person’s only clients in the District are other investment advisers, federal covered advisers, broker-dealers, investment companies as defined in the Investment Company Act of 1940, depository institutions, insurance companies, employee benefit plans with assets of not less than $1 million, governmental agencies or instrumentalities (whether acting for themselves or as trustees with investment control), or other institutional investors as are designated by rule or order of the Commissioner; or
  (2) During the preceding 12 months, the person has had no more than 5 clients who are residents of the District and are not the types of clients described in paragraph (1) of this subsection.
(b) No person shall:
  (1) In the case of a licensed investment adviser, employ an investment adviser representative unless the investment adviser representative is licensed under this chapter; provided, that the license of an investment adviser representative shall not be effective during any period when the investment adviser representative is not employed by a licensed investment adviser; or
  (2) In the case of a federal covered adviser, employ, supervise, or associate with an investment adviser representative having a place of business located in the District unless the investment adviser representative is licensed under this chapter or is exempt from licensure.
(c) When an investment adviser representative begins or terminates employment with a licensed investment adviser or federal covered adviser, the investment adviser or the investment adviser representative shall promptly notify the Commissioner.
(d) Except for advisers whose only clients are those described in subsection (a) of this section, a federal covered adviser shall not conduct advisory business in the District unless the federal covered adviser complies with § 31-5602.03(e) .
(e) Unless sooner terminated under this chapter or renewed, the license of an investment adviser and investment adviser representative, and the notice filing of each federal covered adviser, shall expire on December 31.
(f) No investment adviser representative may be registered with more than one investment adviser unless the investment advisers which employ or associate with the investment adviser representative are under common ownership or control.
D.C. Code § 31-402 — DC Code / Title 31 / Chapter 4 / § 31-402
§ 31-402. Applicability.
Status: in_force

This chapter shall apply to licensed insurers either domiciled in the District of Columbia or domiciled in a state that is not an accredited state having in effect a substantially similar law. All provisions of Chapter 7 of this title , to the extent they are not superseded by this chapter, shall continue to apply to all parties within holding company systems subject to this chapter.
D.C. Code § 31-2602.19 — DC Code / Title 31 / Chapter 26 / § 31-2602.19
§ 31-2602.19. Acquisition, use and disposition of real estate by domestic companies.
Status: repealed

Repealed.
D.C. Code § 31-3505.01 — DC Code / Title 31 / Chapter 35 / § 31-3505.01
§ 31-3505.01. Community health reinvestment.
Status: in_force

A corporation shall engage in community health reinvestment to the maximum feasible extent consistent with financial soundness and efficiency.
D.C. Code § 31-2903 — DC Code / Title 31 / Chapter 29 / § 31-2903
§ 31-2903. Applicability.
Status: in_force

The requirements of this subchapter shall apply:
(1) To any health benefit plan delivered or issued for delivery in the District more than 120 days after March 7, 1991; and
(2) To any health benefit plan renewed, amended, or reissued 120 days after March 7, 1991.
D.C. Code § 31-1373.09 — DC Code / Title 31 / Chapter 13A / § 31-1373.09
§ 31-1373.09. Securities lending, repurchase, reverse repurchase and dollar roll transactions.
Status: in_force

(a) An insurer may enter into securities lending, repurchase, reverse repurchase, and dollar roll transactions with business entities, subject to the requirements of this section.
(b) The insurer’s board of directors shall adopt a written plan that is consistent with the requirements of the written plan in § 31-1371.04(a) that specifies guidelines and objectives to be followed, such as:
  (1) A description of how cash received will be invested or used for general corporate purposes of the insurer;
  (2) Operational procedures to manage interest rate risk and counterparty default risk, the conditions under which proceeds from reverse repurchase transactions may be used in the ordinary course of business, and the use of acceptable collateral in a manner that reflects the liquidity needs of the transaction; and
  (3) The extent to which the insurer may engage in these transactions.
(c) The insurer shall enter into a written agreement for all transactions authorized in this section other than dollar roll transactions. The written agreement shall require that each transaction terminate no more than one year from its inception or upon the earlier demand of the insurer. The agreement shall be with the business entity counterparty; provided, that for securities lending transactions, the agreement may be with an agent acting on behalf of the insurer if:
  (1) The agent is a qualified business entity;
  (2) The agreement:
    (A) Requires the agent to enter into separate agreements with each counterparty that are consistent with the requirements of this section; and
    (B) Prohibits securities lending transactions under the agreement with the agent or its affiliates.
(d) Cash received in a transaction under this section shall be invested in accordance with this chapter and in a manner that recognizes the liquidity needs of the transaction or used by the insurer for its general corporate purposes. As long as the transaction remains outstanding, the insurer, its agent, or custodian shall maintain, as to acceptable collateral received in a transaction under this section, either physically or through the book entry systems of the Federal Reserve, Depository Trust Company, Participants Trust Company, or other securities depositories approved by the Commissioner:
  (1) Possession of the acceptable collateral;
  (2) A perfected security interest in the acceptable collateral; or
  (3) In the case of a jurisdiction outside of the United States, title, or rights of a secured creditor, to the acceptable collateral.
(e) The limitations of §§ 31-1373.03 and 31-1373.10 shall not apply to the business entity counterparty exposure created by transactions under this section. For purposes of calculations made to determine compliance with this subsection, no effect shall be given to the insurer’s future obligation to resell securities in the case of a repurchase transaction or to repurchase securities in the case of a reverse repurchase transaction. An insurer shall not enter into a transaction under this section if, as a result of and after giving effect to the transaction:
  (1) The aggregate amount of securities loaned to, sold to, or purchased from any one business entity counterparty under this section would exceed 5% of its admitted assets; provided, that in calculating the amount sold to or purchased from a business entity counterparty under repurchase or reverse repurchase transactions, effect may be given to netting provisions under a master written agreement; or
  (2) The aggregate amount of all securities then loaned to, sold to, or purchased from all business entities under this section would exceed 40% of its admitted assets; provided, that the limitation of this subsection shall not apply to reverse repurchase transactions if the borrowing is used to meet operational liquidity requirements resulting from an officially declared catastrophe and subject to a plan approved by the Commissioner.
(f) In a securities lending transaction, the insurer shall receive acceptable collateral having a market value as of the transaction date at least equal to 102% of the market value of the securities loaned by the insurer in the transaction as of that date. If at any time the market value of the acceptable collateral is less than the market value of the loaned securities, the business entity counterparty shall be obligated to deliver additional acceptable collateral, the market value of which, together with the market value of all acceptable collateral held in connection with the transaction, at least equals 102% of the market value of the loaned securities.
(g) In a reverse repurchase transaction, other than a dollar roll transaction, the insurer shall receive acceptable collateral having a market value as of the transaction date at least equal to 95% of the market value of the securities transferred by the insurer in the transaction as of that date. If at any time the market value of the acceptable collateral is less than 95% of the market value of the securities transferred, the business entity counterparty shall be obligated to deliver additional acceptable collateral, the market value of which, together with the market value of all acceptable collateral held in connection with the transaction, equals at least 95% of the market value of the transferred securities.
(h) In a dollar roll transaction, the insurer shall receive cash in an amount at least equal to the market value of the securities transferred by the insurer in the transaction as of the transaction date.
(i) In a repurchase transaction, the insurer shall receive as acceptable collateral transferred securities having a market value at least equal to 102% of the purchase price paid by the insurer for the securities. If at any time the market value of the acceptable collateral is less than 100% of the purchase price paid by the insurer, the business entity counterparty shall be obligated to provide additional acceptable collateral, the market value of which, together with the market value of all acceptable collateral held in connection with the transaction, equals at least 102% of the purchase price. Securities acquired by an insurer in a repurchase transaction shall not be sold in a reverse repurchase transaction, loaned in a securities lending transaction, or otherwise pledged.