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2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1343. Unclaimed and withheld funds

§ 31–1343. Unclaimed and withheld funds.
(a) All unclaimed funds subject to distribution remaining in the liquidator’s hands when he or she is ready to apply to the court for discharge, including the amount distributable to any creditor, shareholder, member, or other person who is unknown or cannot be found, shall be deposited with the District of Columbia, and shall be paid without interest, except in accordance with § 31-1340, to the person entitled thereto or his or her legal representative upon proof satisfactory to the District of Columbia Treasurer of his or her right thereto. Any amount on deposit and not claimed at the time of the discharge of the liquidator shall be distributed in accordance with Chapter 1 of Title 41.
(b) All funds withheld under § 31-1336 and not distributed shall, upon discharge of the liquidator, be deposited with the District of Columbia Treasurer and paid by him or her in accordance with § 31-1340. Any sums remaining, which under § 31-1340 would revert to the undistributed assets of the insurer, shall be transferred to the District of Columbia Treasurer and become the property of the District under subsection (a) of this section, unless the Commissioner in his or her discretion petitions the court to reopen the liquidation under § 31-1345.
(Oct. 15, 1993, D.C. Law 10-35, § 44, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2843.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1344. Termination of proceedings

§ 31–1344. Termination of proceedings.
(a) When all assets justifying the expense of collection and distribution have been collected and distributed under this chapter, the liquidator shall apply to the court for discharge. The court may grant the discharge and make any other orders, including an order to transfer any remaining funds that are uneconomic to distribute, deemed appropriate.
(b) Any other person may apply to the court at any time for an order under subsection (a) of this section. If the application is denied, the applicant shall pay the costs and expenses of the liquidator in resisting the application, including a reasonable attorney’s fee.
(Oct. 15, 1993, D.C. Law 10-35, § 45, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2844.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1345. Reopening liquidation

§ 31–1345. Reopening liquidation.
After the liquidation proceeding has been terminated and the liquidator discharged, the Commissioner or other interested party may at any time petition the Superior Court of the District of Columbia to reopen the proceedings for good cause, including the discovery of additional assets. If the court is satisfied that there is justification for reopening, it shall so order.
(Oct. 15, 1993, D.C. Law 10-35, § 46, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2845.
Section References
This section is referenced in § 31-1343.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1346. Disposition of records during and after termination of liquidation

§ 31–1346. Disposition of records during and after termination of liquidation.
Whenever it shall appear to the Commissioner that the records of any insurer in process of liquidation or completely liquidated are no longer useful, he or she may recommend to the court, and the court shall direct, what records should be retained for future reference and what records should be destroyed.
(Oct. 15, 1993, D.C. Law 10-35, § 47, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2846.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1347. External audit of the receiver’s books

§ 31–1347. External audit of the receiver’s books.
The Superior Court of the District of Columbia may, as it deems desirable, order audits to be made of the books of the Commissioner relating to any receivership established under this chapter, and a report of each audit shall be filed with the Commissioner and with the court. The books, records, and other documents of the receivership shall be made available to the auditor at any time without notice. The expense of each audit shall be considered a cost of administration of the receivership.
(Oct. 15, 1993, D.C. Law 10-35, § 48, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2847.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1348. Conservation of property of foreign or alien insurers found in the District of Columbia

§ 31–1348. Conservation of property of foreign or alien insurers found in the District of Columbia.
(a) If a domiciliary liquidator has not been appointed, the Commissioner may apply to the Superior Court of the District of Columbia by verified petition for an order directing him or her to act as conservator to conserve the property of an alien insurer not domiciled in the District, or a foreign insurer, on any one or more of the following grounds:
(1) Any of the grounds in § 31-1310;
(2) That any of its property has been sequestered by official action in its domiciliary state, or in any other state;
(3) That enough of its property has been sequestered in a foreign country to give reasonable cause to fear that the insurer is or may become insolvent; or
(4)(A) That its certificate of authority to do business in the District has been revoked or that none was ever issued; and
(B) That there are residents of the District with outstanding claims or outstanding policies.
(b) When an order is sought under subsection (a) of this section, the court shall cause the insurer to be given notice and time to respond reasonable under the circumstances.
(c) The court may issue the order in whatever terms it deems appropriate. The filing or recording of the order with the Clerk of the Superior Court of the District of Columbia shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that recorder of deeds would have imparted.
(d) The conservator may at any time petition for, and the court may grant, an order under § 31-1349 to liquidate assets of a foreign or alien insurer under conservation, or, if appropriate, for an order under § 31-1351 to be appointed ancillary receiver.
(e) The conservator may at any time petition the court for an order terminating conservation of an insurer. If the court finds that the conservation is no longer necessary, it shall order that the insurer be restored to possession of its property and control of its business. The court may also make such a finding and issue such an order at any time upon motion of any interested party, but, if the motion is denied, all costs shall be assessed against the interested party.
(Oct. 15, 1993, D.C. Law 10-35, § 49, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2848.
Section References
This section is referenced in § 31-1349 and § 31-1350.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1350. Domiciliary liquidators in other states

§ 31–1350. Domiciliary liquidators in other states.
(a) The domiciliary liquidator of an insurer domiciled in a reciprocal state shall, except as to special deposits and security on secured claims under § 31-1351(c), be vested by operation of law with the title to all of the assets, property, contracts, and rights of action, agents’ balances, and all of the books, accounts, and other records of the insurer located in the District. The date of vesting shall be the date of the filing of the petition, if that date is specified by the domiciliary law for the vesting of property in the domiciliary state. Otherwise, the date of vesting shall be the date of entry of the order directing possession to be taken. The domiciliary liquidator shall have the immediate right to recover balances due from agents and to obtain possession of the books, accounts, and other records of the insurer located in this state. He also shall have the right to recover all other assets of the insurer located in this state, subject to § 31-1351.
(b) If a domiciliary liquidator is appointed for an insurer not domiciled in a reciprocal state, the Commissioner shall be vested by operation of law with the title to all of the property, contracts, and right of action, and all of the books, accounts and other records of the insurer located in the District, at the same time that the domiciliary liquidator is vested with title in the domicile. The Commissioner may petition for a conservation or liquidation order under § 31-1348 or § 31-1349, or for an ancillary receivership under § 31-1351, or, after approval by the Superior Court of the District of Columbia, may transfer title to the domiciliary liquidator, as the interests of justice and the equitable distribution of the assets require.
(c) Claimants residing in the District may file claims with the liquidator or ancillary receiver, if any, in the District or with the domiciliary liquidator, if the domiciliary law permits. The claims must be filed on or before the last date fixed for the filing of claims in the domiciliary liquidation proceedings.
(Oct. 15, 1993, D.C. Law 10-35, § 51, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2850.
Section References
This section is referenced in § 31-1301.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1351. Ancillary formal proceedings

§ 31–1351. Ancillary formal proceedings.
(a) If a domiciliary liquidator has been appointed for an insurer not domiciled in the District, the Commissioner may file a petition with the Superior Court of the District of Columbia requesting appointment as ancillary receiver in the District:
(1) If he or she finds that there are sufficient assets of the insurer located in the District to justify the appointment of an ancillary receiver; or
(2) If the protection of creditors or policyholders in the District so requires.
(b) The court may issue an order appointing an ancillary receiver in whatever terms it deems appropriate. The filing or recording of the order with the recorder of deeds in the District imparts the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that recorder of deeds.
(c) When a domiciliary liquidator has been appointed in a reciprocal state, then the ancillary receiver appointed in the District may, whenever necessary, aid and assist the domiciliary liquidator in recovering assets of the insurer located in the District. The ancillary receiver shall, as soon as practicable, liquidate from their respective securities those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in the District, and shall pay the necessary expenses of the proceedings. He or she shall promptly transfer all remaining assets, books, accounts, and records to the domiciliary liquidator. Subject to this section, the ancillary receiver and his or her deputies shall have the same powers and be subject to the same duties with respect to the administration of assets as a liquidator of an insurer domiciled in the District.
(d) When a domiciliary liquidator has been appointed in the District, ancillary receivers appointed in reciprocal states shall have, as to assets and books, accounts, and other records in their respective states, corresponding rights, duties, and powers to those provided in subsection (c) of this section for ancillary receivers appointed in the District.
(Oct. 15, 1993, D.C. Law 10-35, § 52, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2851.
Section References
This section is referenced in § 31-1301, § 31-1348, § 31-1349, and § 31-1350.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1352. Ancillary summary proceedings

§ 31–1352. Ancillary summary proceedings.
The Commissioner, in his or her sole discretion, may institute proceedings under §§ 31-1308 and 31-1309 at the request of the commissioner or other appropriate insurance official of the domiciliary state of any foreign or alien insurer having property located in the District.
(Oct. 15, 1993, D.C. Law 10-35, § 53, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2852.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1353. Claims of nonresidents against insurers domiciled in the District of Columbia

§ 31–1353. Claims of nonresidents against insurers domiciled in the District of Columbia.
(a) In a liquidation proceeding begun in the District against an insurer domiciled in the District, claimants residing in foreign countries or in states not reciprocal states must file claims in the District, and claimants residing in reciprocal states may file claims either with the ancillary receivers, if any, in their respective states, or with the domiciliary liquidator. Claims must be filed on or before the last date fixed for the filing of claims in the domiciliary liquidation proceeding.
(b) Claims belonging to claimants residing in reciprocal states may be proved either in the liquidation proceeding in the District as provided in this chapter, or in ancillary proceedings, if any, in the reciprocal states. If notice of the claims and opportunity to appear and be heard is afforded the domiciliary liquidator of the District as provided in § 31-1354(b) with respect to ancillary proceedings, the final allowance of claims by the courts in ancillary proceedings in reciprocal states shall be conclusive as to amount and priority against special deposits or other security located in ancillary states, but shall not be conclusive with respect to priorities against general assets under § 31-1340.
(Oct. 15, 1993, D.C. Law 10-35, § 54, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2853.
Section References
This section is referenced in § 31-1301.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1354. Claims of residents against insurers domiciled in reciprocal states

§ 31–1354. Claims of residents against insurers domiciled in reciprocal states.
(a) In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the insurer who reside within the District may file claims either with the ancillary receiver, if any, in the District, or with the domiciliary liquidator. Claims must be filed by the last dates fixed for the filing of claims in the domiciliary liquidation proceeding.
(b) Claims belonging to claimants residing in the District may be proved either in the domiciliary state under the law of that state, or in ancillary proceedings, if any, in the District. If a claimant elects to prove his or her claim in the District, the claimant shall file his or her claim with the liquidator in the manner provided in §§ 31-1333 and 31-1334. The ancillary receiver shall make his or her recommendation to the court as under § 31-1341. He or she shall also arrange a date for hearing if necessary under § 31-1337 and shall give notice to the liquidator in the domiciliary state, either by certified mail or by personal service at least 40 days prior to the date set for hearing. If the domiciliary liquidator, within 30 days after the giving of notice, gives notice in writing to the ancillary receiver and to the claimant, either by certified mail or by personal service, of his or her intention to contest the claim, he or she shall be entitled to appear or to be represented in any proceeding in the District involving the adjudication of the claim.
(c) The final allowance of the claim by the courts of the District shall be accepted as conclusive as to amount and as to priority against special deposits or other security located in the District.
(Oct. 15, 1993, D.C. Law 10-35, § 55, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2854.
Section References
This section is referenced in § 31-1353.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1355. Attachment, garnishment, and levy of execution

§ 31–1355. Attachment, garnishment, and levy of execution.
During the pendency in this, or any other state, of a liquidation proceeding, whether called by that name or not, no action or proceeding in the nature of an attachment, garnishment, or levy of execution shall be commenced or maintained in the District against the delinquent insurer or its assets.
(Oct. 15, 1993, D.C. Law 10-35, § 56, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2855.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1356. Interstate priorities

§ 31–1356. Interstate priorities.
(a) In a liquidation proceeding in the District involving 1 or more reciprocal states, the order of distribution of the domiciliary state shall control as to all claims of residents of this and reciprocal states. All claims of residents of reciprocal states shall be given equal priority of payment from general assets regardless of where the assets are located.
(b) The owners of special deposit claims against an insurer for which a liquidator is appointed in this or any other state shall be given priority against the special deposits in accordance with the statutes governing the creation and maintenance of the deposits. If there is a deficiency in any deposit so that the claims secured by it are not fully discharged from it, the claimants may share in the general assets, but the sharing shall be deferred until general creditors, and also claimants against other special deposits who have received smaller percentages from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from the special deposit.
(c) The owner of a secure claim against an insurer for which a liquidator has been appointed in this or any other state may surrender his or her security and file his or her claim as a general creditor, or the claim may be discharged by resort to the security in accordance with § 31-1339, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer on the same basis as claims of unsecured creditors.
(Oct. 15, 1993, D.C. Law 10-35, § 57, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2856.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1357. Subordination of claims for noncooperation

§ 31–1357. Subordination of claims for noncooperation.
If an ancillary receiver in another state or foreign country, whether called by that name or not, fails to transfer to the domiciliary liquidator in the District any assets within his or her control other than special deposits, diminished only by the expenses of the ancillary receivership, if any, the claims filed in the ancillary receivership, other than special deposit claims or secured claims, shall be placed in the class of claims under § 31-1340(7).
(Oct. 15, 1993, D.C. Law 10-35, § 58, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2857.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter I - General Provisions › § 31–1371.01. Application

§ 31–1371.01. Application.
This chapter shall apply only to investments and investment practices of domestic insurers and United States branches of non-U.S. insurers that are authorized to use the District of Columbia as a state of entry to transact insurance through its United States branch under § 31-2202. This chapter shall not apply to separate accounts of an insurer pertaining to variable or modified guaranteed contracts.
(Apr. 11, 2003, D.C. Law 14-297, § 101, 50 DCR 330.)
Section References
This section is referenced in § 31-1372.01, § 31-3931.07, and § 31-5031.07.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter I - General Provisions › § 31–1371.04. Authorization of investments by the board of directors

§ 31–1371.04. Authorization of investments by the board of directors.
(a) An insurer’s board of directors shall adopt a written plan for acquiring and holding investments and for engaging in investment practices that specifies guidelines as to the quality, maturity, and diversification of investments and other specifications, including investment strategies intended to assure that the investments and investment practices are appropriate for the business conducted by the insurer, its liquidity needs, and its capital and surplus. The board of directors shall review and assess the insurer’s technical investment and administrative capabilities and expertise before adopting a written plan concerning an investment strategy or investment practice.
(b) Investments acquired and held under this chapter shall be acquired and held under the supervision and direction of the board of directors of the insurer. The board of directors shall evidence by formal resolution, at least annually, that it has determined whether all investments have been made in accordance with delegations, standards, limitations, and investment objectives prescribed by the board of directors or a committee of the board of directors charged with the responsibility to direct its investments.
(c) On no less than a quarterly basis, and more often if considered appropriate, an insurer’s board of directors, or committee of the board of directors, shall:
(1) Receive and review a summary report on the insurer’s investment portfolio, its investment activities, and investment practices engaged in under delegated authority, to determine whether the investment activity of the insurer is consistent with its written plan; and
(2) Review and revise, as appropriate, the written plan.
(d) In discharging its duties under this section, the board of directors shall require that records of an authorization or approval, other documentation as the board of directors may require, and the report of an action taken under authority delegated under the plan referred to in subsection (a) of this section shall be made available on a regular basis to the board of directors.
(e) In discharging their duties under this section, the directors of an insurer shall perform their duties in good faith and with that degree of care that ordinarily prudent individuals in like positions would use under similar circumstances.
(f) If an insurer does not have a board of directors, all references to the board of directors in this chapter shall refer to the governing body of the insurer having authority equivalent to that of a board of directors.
(Apr. 11, 2003, D.C. Law 14-297, § 104, 50 DCR 330.)
Section References
This section is referenced in § 31-1371.03, § 31-1372.08, and § 31-1373.09.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter I - General Provisions › § 31–1371.05. Prohibited investments

§ 31–1371.05. Prohibited investments.
(a) An insurer shall not, directly or indirectly:
(1) Invest in an obligation or security or make a guarantee for the benefit of or in favor of an officer or director of the insurer, except as provided in § 31-1371.06;
(2) Invest in an obligation or security, make a guarantee for the benefit of or in favor of, or make other investments in a business entity of which 10% or more of the voting securities or equity interests are owned, directly or indirectly, by or for the benefit of one or more officers or directors of the insurer, except as authorized in § 31-701, or provided in § 31-1371.06;
(3) Engage on its own behalf or through one or more affiliates in a transaction or series of transactions designed to evade the prohibitions of this chapter;
(4) Invest in a partnership as a general partner; provided, that an insurer may make an investment as a general partner:
(A) If all other partners in the partnership are subsidiaries of the insurer;
(B) For the purpose of:
(i) Meeting cash calls committed to prior to April 11, 2003;
(ii) Completing those specific projects or activities of the partnership in which the insurer was a general partner as of April 11, 2003, that had been undertaken as of that date; or
(iii) Making capital improvements to property owned by the partnership on April 11, 2003, if the insurer was a general partner as of that date; or
(C) In accordance with § 31-1371.03(c); or
(5) Invest in or lend its funds upon the security of shares of its own stock, except that an insurer may acquire shares of its own stock, which shall not be admitted assets of the insurer for the following purposes:
(A) Conversion of a stock insurer into a mutual or reciprocal insurer or a mutual or reciprocal insurer into a stock insurer;
(B) Issuance to the insurer’s officers, employees, or agents in connection with a plan approved by the Commissioner for converting a publicly-held insurer into a privately-held insurer under § 31-903, or in connection with other stock option and employee benefit plans; or
(C) In accordance with any other plan approved by the Commissioner.
(b) Subsection (a)(3) of this section shall not prohibit a subsidiary or other affiliate of the insurer from becoming a general partner.
(Apr. 11, 2003, D.C. Law 14-297, § 105, 50 DCR 330.)
Section References
This section is referenced in § 31-1371.02, § 31-1371.06, § 31-1372.06, § 31-1372.07, § 31-1372.12, § 31-1373.07, and § 31-1373.08.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter I - General Provisions › § 31–1371.07. Valuation of investments

§ 31–1371.07. Valuation of investments.
For the purposes of this chapter, the value or amount of an investment acquired or held, or any investment practice engaged in, under this chapter, unless otherwise specified in this code, shall be the value at which assets of an insurer are required to be reported for statutory accounting purposes as determined in accordance with procedures prescribed in published accounting and valuation standards of the NAIC, including the
Purposes and Procedures of the Securities Valuation Office
Valuation of Securities
Accounting Practices and Procedures
Annual Statement Instructions
, or any successor valuation procedures officially adopted by the NAIC.
, the
, the
, the
(Apr. 11, 2003, D.C. Law 14-297, § 107, 50 DCR 330.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter II - Life Insurers › § 31–1372.01. Application of subchapter

§ 31–1372.01. Application of subchapter.
This subchapter shall apply to the investments and investment practices of life insurers subject to the provisions of this chapter pursuant to § 31-1371.01.
(Apr. 11, 2003, D.C. Law 14-297, § 201, 50 DCR 330.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter II - Life Insurers › § 31–1372.05. Equity interests

§ 31–1372.05. Equity interests.
(a) Subject to the limitations of § 31-1372.02, an insurer may acquire equity interests in business entities organized under the laws of any domestic jurisdiction.
(b) An insurer shall not acquire an investment 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 would exceed 20% of its admitted assets or the amount of equity interests held by the insurer that are not listed on a qualified exchange would exceed 5% of its admitted assets. An accident and health insurer shall not be subject to this section, but shall be subject to the same aggregate limitation on equity interests as a fire, casualty, and marine insurer under § 31-1373.06 and to the provisions of § 31-1373.02.
(c) An insurer shall not acquire under this section any investments that the insurer may acquire under § 31-1372.07.
(d) An insurer shall not short sell equity investments unless the insurer covers the short sale by owning the equity investment or an unrestricted right to the equity instrument exercisable within 6 months of the short sale.
(Apr. 11, 2003, D.C. Law 14-297, § 205, 50 DCR 330.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter II - Life Insurers › § 31–1372.06. Tangible personal property under lease

§ 31–1372.06. Tangible personal property under lease.
(a)(1) Subject to the limitations of § 31-1372.02, an insurer may acquire tangible personal property or equity interests therein, which property or interests are located or used wholly or in part within a domestic jurisdiction, directly or indirectly through:
(A) Limited partnership interests and general partnership interests not otherwise prohibited § 31-1371.05;
(B) Joint ventures;
(C) Stock of an investment subsidiary;
(D) Membership interests in a limited liability company;
(E) Trust certificates; or
(F) Other similar instruments.
(2) Investments acquired under paragraph (1) of this subsection shall be eligible only if:
(A) The property is subject to a lease or other agreement with a person whose rated credit instruments the insurer could acquire under § 31-1372.03 for a price equal to the purchase price of the personal property; and
(B) The lease or other agreement provides the insurer the right to receive rental, purchase, or other fixed payments for the use or purchase of the property, and the aggregate value of the payments, together with the estimated residual value of the property at the end of its useful life and the estimated tax benefits to the insurer resulting from ownership of the property, shall be adequate to return the cost of the insurer’s investment in the property, plus a return considered adequate by the insurer.
(b) The insurer shall compute the amount of each investment under this section on the basis of the cash purchase price and applicable related expenses paid by the insurer for the investment, net of each borrowing made to finance the purchase price and expenses to the extent the borrowing is nonrecourse to the insurer.
(c) An insurer shall not acquire an investment under this section if, as a result of and after giving effect to the investment, the aggregate amount of all investments held by the insurer under this section would exceed:
(1) Two percent of its admitted assets; or
(2) One half of one percent of its admitted assets as to any single item of tangible personal property.
(d) For purposes of determining compliance with the limitations of § 31-1372.02:
(1) Investments acquired by an insurer under this section shall be aggregated with those acquired under § 31-1372.03; and
(2) Each lessee of the property under a lease referred to in this section shall be deemed the issuer of an obligation in the amount of the investment of the insurer in the property determined as provided under subsection (b) of this section.
(e) This section shall not be applicable to a lease of tangible personal property between an insurer and its subsidiaries or affiliates under a cost sharing arrangement or agreement permitted under subchapter I of Chapter 7 of Title 31.
(Apr. 11, 2003, D.C. Law 14-297, § 206, 50 DCR 330.)
Section References
This section is referenced in § 31-1372.02.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter II - Life Insurers › § 31–1372.11. Policy loans

§ 31–1372.11. Policy loans.
A life insurer may lend to a policyholder on the security of the cash surrender value of the policyholder’s policy a sum not exceeding the legal reserve that the insurer is required to maintain on the policy.
(Apr. 11, 2003, D.C. Law 14-297, § 211, 50 DCR 330.)
Section References
This section is referenced in § 31-1371.06.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter II - Life Insurers › § 31–1372.12. Additional investment authority

§ 31–1372.12. Additional investment authority.
(a) Solely for the purpose of acquiring investments that exceed the quantitative limitations of §§ 31-1372.02 through 31-1372.09, an insurer may acquire under this subsection an investment, or engage in investment practices, described in § 31-1372.08; provided, that an insurer shall not acquire and investment, or engage in investment practices, described in § 31-1372.08 under this subsection if, as a result of and after giving effect to the transaction:
(1) The aggregate amount of investments held by an insurer under this subsection would exceed 3% of its admitted assets; or
(2) The aggregate amount of investments as to one limitation in §§ 31-1372.02 through 31-1372.09 held by the insurer under this subsection would exceed 1% of its admitted assets.
(b)(1) In addition to the authority provided under subsection (a) of this section, subject to paragraph (2) of this subsection, an insurer may acquire under this subsection an investment of any kind, or engage in investment practices described in § 31-1372.08, that are not specifically prohibited by this chapter without regard to the categories, conditions, standards, or other limitations of §§ 31-1372.02 through 31-1372.09 if, as a result of and after giving effect to the transaction, the aggregate amount of investments held under this subsection would not exceed the lesser of:
(A) Ten percent of its admitted assets; or
(B) Seventy-five percent of its capital and surplus.
(2) An insurer shall not acquire any investment or engage in any investment practice under this subsection if, as a result of and after giving effect to the transaction, the aggregate amount of all investments in any one person held by the insurer under this subsection would exceed 3% of its admitted assets.
(c) In addition to the investments acquired under subsections (a) and (b) of this section, an insurer may acquire under this subsection an investment of any kind, or engage in investment practices described in § 31-1372.08, that are not specifically prohibited by this chapter without regard to any limitations of §§ 31-1372.02 through 31-1372.09 if:
(1) The Commissioner grants prior approval;
(2) The insurer demonstrates that its investments are being made in a prudent manner and that the additional amounts will be invested in a prudent manner; and
(3) As a result of and after giving effect to the transaction, the aggregate amount of investments held by the insurer under this subsection does not exceed the greater of:
(A) Twenty-five percent of its capital and surplus; or
(B) One hundred percent of capital and surplus, less 10% of its admitted assets.
(d) An investment prohibited under § 31-1371.05 or § 31-1372.10 or additional derivative instruments acquired under § 31-1372.10 shall not be acquired under this section.
(Apr. 11, 2003, D.C. Law 14-297, § 212, 50 DCR 330.)
Section References
This section is referenced in § 31-1371.03.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter III - Fire, Casualty, and Marine Insurers › § 31–1373.01. Application of subchapter

§ 31–1373.01. Application of subchapter.
This subchapter shall apply to the investment and investment practices of domestic fire, casualty, and marine insurers.
(Apr. 11, 2003, D.C. Law 14-297, § 301, 50 DCR 330.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter III - Fire, Casualty, and Marine Insurers › § 31–1373.06. Equity interests

§ 31–1373.06. Equity interests.
(a) Subject to the limitations of § 31-1373.03, an insurer may acquire equity interests in business entities organized under the laws of any domestic jurisdiction.
(b) An insurer shall not acquire an investment 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 would exceed the greater of 25% of its admitted assets or 100% of its surplus as regards policyholders.
(c) An insurer shall not acquire under this section any investments that the insurer may acquire under § 31-1373.08.
(d) An insurer shall not short sell equity investments unless the insurer covers the short sale by owning the equity investment or an unrestricted right to the equity instrument exercisable within 6 months of the short sale.
(Apr. 11, 2003, D.C. Law 14-297, § 306, 50 DCR 330.)
Section References
This section is referenced in § 31-1372.05 and § 31-1373.02.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter III - Fire, Casualty, and Marine Insurers › § 31–1373.07. Tangible personal property under lease

§ 31–1373.07. Tangible personal property under lease.
(a)(1) Subject to the limitations of § 31-1373.03, an insurer may acquire tangible personal property or equity interests therein, which property or interests are located or used wholly or in part within a domestic jurisdiction, directly or indirectly, through:
(A) Limited partnership interests and general partnership interests not otherwise prohibited by section 31-1371.05;
(B) Joint ventures;
(C) Stock of an investment subsidiary;
(D) Membership interests in a limited liability company;
(E) Trust certificates; or
(F) Other similar instruments.
(2) Investments acquired under paragraph (1) of this subsection shall be eligible only if:
(A) The property is subject to a lease or other agreement with a person whose rated credit instruments the insurer could acquire under § 31-1373.04 for a price equal to the purchase price of the personal property; and
(B) The lease or other agreement provides the insurer the right to receive rental, purchase, or other fixed payments for the use or purchase of the property, and the aggregate value of the payments, together with the estimated residual value of the property at the end of its useful life and the estimated tax benefits to the insurer resulting from ownership of the property, shall be at least equal to the cost of the insurer’s investment in the property, plus a return considered adequate by the insurer.
(b) The insurer shall compute the amount of each investment under this section on the basis of the cash purchase price and applicable related expenses paid by the insurer for the investment, net of each borrowing made to finance the purchase price and expenses to the extent the borrowing is nonrecourse to the insurer.
(c) An insurer shall not acquire an investment under this section if, as a result of and after giving effect to the investment, the aggregate amount of all investments held by the insurer under this section would exceed:
(1) Two percent of its admitted assets; or
(2) One half of one percent of its admitted assets as to any single item of tangible personal property.
(d) For purposes of determining compliance with the limitations of § 31-1373.03:
(1) Investments acquired by an insurer under this section shall be aggregated with those acquired under § 31-1373.04; and
(2) Each lessee of the property under a lease referred to in this section shall be deemed the issuer of an obligation in the amount of the investment of the insurer in the property determined as provided under subsection (b) of this section.
(e) This section shall not be applicable to a lease of tangible personal property between an insurer and its subsidiaries or affiliates under a cost sharing arrangement or agreement permitted under subchapter I of Chapter 7 of Title 31.
(Apr. 11, 2003, D.C. Law 14-297, § 307, 50 DCR 330.)
Section References
This section is referenced in § 31-1373.03.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter III - Fire, Casualty, and Marine Insurers › § 31–1373.12. Additional investment authority

§ 31–1373.12. Additional investment authority.
(a) An insurer may acquire under this section investments, or engage in investment practices, of any kind that are not specifically prohibited by this chapter or engage in investment practices without regard to any limitation in §§ 31-1373.03 through 31-1373.10; provided, that an insurer shall not acquire an investment or engage in an investment practice under this section if, as a result of and after giving effect to the transaction, the aggregate amount of the investments held by the insurer under this section would exceed the greater of:
(1) Its unrestricted surplus; or
(2) The lesser of:
(A) Ten percent of its admitted assets; or
(B) Fifty percent of its surplus as regards policyholders.
(b) An insurer shall not acquire any investment or engage in any investment practice under subsection (a)(2) of this section if, as a result of and after giving effect to the transaction the aggregate amount of all investments in any one person held by the insurer under that subsection would exceed 5% of its admitted assets.
(Apr. 11, 2003, D.C. Law 14-297, § 312, 50 DCR 330.)
Section References
This section is referenced in § 31-1371.03 and § 31-1373.02.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13A - Investments of Insurers › Subchapter V - Regulations › § 31–1375.01. Regulations

§ 31–1375.01. Regulations.
The Commissioner may, in accordance with § 2-505, promulgate rules and regulations to carry out the purposes of this chapter.
(Apr. 11, 2003, D.C. Law 14-297, § 501, 50 DCR 330.)
Section References
This section is referenced in § 31-1371.02, § 31-1372.10, § 31-1373.11, and § 31-3931.07.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13B - Interstate Insurance Product Regulation Compact › Subchapter I - Authority to enter into Interstate Insurance Product Regulation Compact › § 31–1391. Authority to enter into Interstate Insurance Product Regulation Compact

§ 31–1391. Authority to enter into Interstate Insurance Product Regulation Compact.
(a) In general. — The District of Columbia is authorized to enter into an interstate compact to establish a joint state commission as an instrumentality of the District of Columbia for the purpose of establishing uniform insurance product regulations among the participating States.
(b) Delegation. — Any insurance product regulation compact that the Council of the District of Columbia authorizes the Mayor to execute on behalf of the District may contain provisions that delegate the requisite power and authority to the joint State commission to achieve the purposes for which the interstate compact is established.
(Oct. 16, 2006, 120 Stat. 2023, Pub. L. 109-356, § 104.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13B - Interstate Insurance Product Regulation Compact › Subchapter II - Interstate Insurance Product Regulation Compact › § 31–1392.02. Commissioner Designated

§ 31–1392.02. Commissioner Designated.
The Commissioner of the Department of Insurance, Securities, and Banking is designated to serve as the representative of the District to the Interstate Insurance Product Regulation Commission.
(Feb. 22, 2019, D.C. Law 22-213, § 3, 65 DCR 12933.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 14 - Law on Examinations › § 31–1401. Definitions

§ 31–1401. Definitions.
For the purposes of this chapter, the term:
(1) Repealed.
(2) “Company” means any person engaging in or proposing or attempting to engage in any transaction or kind of insurance or surety business and any person or group of persons who may otherwise be subject to the insurance laws of the District of Columbia, including fraternal benefit associations and excluding the District of Columbia Life and Health Guaranty Association and the District of Columbia Property and Liability Insurance Guaranty Association.
(2A) “Department” means the Department of Insurance, Securities, and Banking.
(3) “District” means the District of Columbia.
(4) “Examiner” means any individual or firm having been authorized by the Mayor to conduct an examination under this chapter.
(5) “Person” means any individual, aggregation of individuals, trust, association, partnership, or corporation, or any affiliate thereof.
(Oct. 21, 1993, D.C. Law 10-49, § 2, 40 DCR 6110; May 21, 1997, D.C. Law 11-268, § 10(ff)(1), 44 DCR 1730; Mar. 24, 1998, D.C. Law 12-81, § 39, 45 DCR 745; June 11, 2004, D.C. Law 15-166, § 4(j), 51 DCR 2817.)
Prior Codifications
1981 Ed., § 35-3601.
Effect of Amendments
D.C. Law 15-166, in par. (2A), substituted “Department of Insurance, Securities, and Banking” for “Department of Insurance and Securities Regulation”.
Emergency Legislation
For temporary (90 day) amendment of section, see § 4(j) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
Editor's Notes
Mayor authorized to issue rules: Section 10 of D.C. Law 10-49 provided that the Mayor shall, pursuant to subchapter I of Chapter 15 of Title 1subchapter I of Chapter 5 of Title 2, 2001 Ed., issue rules to implement the provisions of this chapter.
Delegation of Authority
Delegation of authority pursuant to D.C. Law 10-49, the Law on Examinations Act of 1993, see Mayor’s Order 94-54, March 7, 1994 ( 41 DCR 1433).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 14 - Law on Examinations › § 31–1402. Authority, scope, and scheduling of examinations

§ 31–1402. Authority, scope, and scheduling of examinations.
(a) The Mayor, or any of his or her examiners, may conduct an examination under this chapter of any company as often as the Mayor in his or her sole discretion deems appropriate, but shall at a minimum conduct an examination of every insurer licensed in the District at least once every 5 years. In scheduling and determining the nature, scope, and frequency of the examinations, the Mayor shall consider such factors as the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants, and other criteria set forth in the Examiners’ Handbook adopted by the National Association of Insurance Commissioners and in effect when the Mayor exercises discretion under this section.
(b) For purposes of completing an examination of any company under this chapter, the Mayor may examine or investigate any person, or the business of any person, insofar as the examination or investigation is, in the sole discretion of the Mayor, necessary or material to the examination of the company.
(c) In lieu of an examination under this chapter of any foreign or alien insurer licensed in the District, the Mayor may accept, until January 1, 1994, an examination report on the company prepared by the insurance department for the company’s state of domicile or port-of-entry state. Thereafter, these reports may be accepted only if the insurance department was at the time of the examination accredited under the National Association of Insurance Commissioners’ Financial Regulation Standards and Accreditation Program, or the examination is performed under the supervision of an accredited state insurance department or with the participation of one or more examiners who are employed by such an accredited state insurance department, and who, after a review of the examination workpapers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by their insurance department.
(Oct. 21, 1993, D.C. Law 10-49, § 3, 40 DCR 6110.)
Prior Codifications
1981 Ed., § 35-3602.