reglab/statecodes huggingface dataset:
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 53 - Fraternal Benefit Societies › § 31–5329. Injunction

§ 31–5329. Injunction.
No application or petition for injunction against any domestic, foreign or alien society, or lodge thereof, shall be recognized in any court of the District unless made by the Corporation Counsel upon request of the Commissioner.
(Apr. 29, 1998, D.C. Law 12-86, § 1230, 45 DCR 1172.)
Prior Codifications
1981 Ed., § 35-1259.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 53 - Fraternal Benefit Societies › § 31–5330. Licensing of agents

§ 31–5330. Licensing of agents.
(a) Agents of societies shall be licensed in accordance with the provisions of the laws regulating the licensing, revocation, suspension, or termination of license of resident and nonresident agents. No written or other examination shall be required of a person who is certified by a society as having been its full-time agent prior to April 29, 1998.
(b) No examination or license shall be required of any regular salaried officer, employee, or member of a licensed society who devotes substantially all of his or her services to activities other than the solicitation of fraternal insurance contracts from the public, and who receives for the solicitation of such contracts no commission or other compensation directly dependent upon the amount of business obtained.
(c) Any agent, representative, or member of a society who devotes, or intends to devote, less than 50% of such person’s time to the solicitation and procurement of insurance contracts for such society shall be exempt from the requirements of subsection (a) of this section. Any person who, in the preceding calendar year, has received or will receive a commission or other compensation for soliciting and procuring the type of contracts listed in paragraphs (1) through (5) of this subsection on behalf of an individual society, shall be presumed to be devoting, or intending to devote, 50% of the person’s time to the solicitation or procurement of insurance contracts for such society:
(1) Life insurance contracts that, in the aggregate, exceed $200,000 of coverage for all lives insured for the preceding calendar year;
(2) A permanent life insurance contract offering more than $10,000 of coverage on an individual life;
(3) A term life insurance contract offering more than $50,000 of coverage on an individual life;
(4) Any insurance contracts other than life that the fraternal benefit society may write that insure the individual lives of more than 23 individuals; or
(5) Any variable life insurance or variable annuity contract.
(Apr. 29, 1998, D.C. Law 12-86, § 1231, 45 DCR 1172.)
Prior Codifications
1981 Ed., § 35-1260.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 53 - Fraternal Benefit Societies › § 31–5331. Unfair methods of competition; unfair and deceptive acts and practices

§ 31–5331. Unfair methods of competition; unfair and deceptive acts and practices.
Every society authorized to do business in the District and its agents shall be subject to the provisions of law applicable to life, accident, and health insurers relating to unfair and deceptive practices; provided, however, that nothing in such provisions shall be construed as applying to or affecting the right of any society to determine its eligibility requirements for membership, or be construed as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation or affiliated organization of the society.
(Apr. 29, 1998, D.C. Law 12-86, § 1232, 45 DCR 1172.)
Prior Codifications
1981 Ed., § 35-1261.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 53 - Fraternal Benefit Societies › § 31–5332. Penalties

§ 31–5332. Penalties.
(a) Any person who makes a false or fraudulent statement in or relating to an application for membership or for the purpose of obtaining money from a benefit in any society shall, upon conviction, be fined not less than $100 nor more than $5,000 or be subject to imprisonment not less than 30 days nor more than one year, or both.
(b) Any person who solicits membership for, or in any manner assists in procuring membership in, any society not licensed to do business in the District shall, upon conviction thereof, be punished by a fine of not less than $50 nor more than $200, or by imprisonment for not less than 30 days nor more than one year, or both, in the discretion of the court.
(c) Any person convicted of a willful violation of, or neglect or refusal to comply with, any provision of this chapter for which a penalty is not otherwise prescribed shall, upon conviction, be punished by a fine not exceeding $5,000.
(d) Any person who willfully makes a false or fraudulent statement in any verified report or declaration under oath required or authorized by this chapter, or of any material fact or thing contained in a sworn statement concerning the death or disability of an insured for the purpose of procuring payment of a benefit named in the certificate, shall be guilty of perjury and shall be subject to the penalties prescribed by law.
(Apr. 29, 1998, D.C. Law 12-86, § 1233, 45 DCR 1172.)
Prior Codifications
1981 Ed., § 35-1262.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 53 - Fraternal Benefit Societies › § 31–5334. Review

§ 31–5334. Review.
All decisions and findings of the Commissioner made under the provisions of this chapter shall be subject to review as provided by subchapters I and II of Chapter 2 of Title 5.
(Apr. 29, 1998, D.C. Law 12-86, § 1235, 45 DCR 1172.)
Prior Codifications
1981 Ed., § 35-1264.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 53 - Fraternal Benefit Societies › § 31–5335. Severability

§ 31–5335. Severability.
If any provision of this chapter or the application of such provision to any circumstance is held invalid, the remainder of this chapter or the application of the provision to other circumstances, shall not be affected thereby.
(Apr. 29, 1998, D.C. Law 12-86, § 1236, 45 DCR 1172.)
Prior Codifications
1981 Ed., § 35-1265.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 54 - Life and Health Insurance Guaranty Association › § 31–5403. Creation of the Association

§ 31–5403. Creation of the Association.
(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.
(July 22, 1992, D.C. Law 9-129, § 4, 39 DCR 4036.)
Prior Codifications
1981 Ed., § 35-1943.
Section References
This section is referenced in § 31-5401.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 54 - Life and Health Insurance Guaranty Association › § 31–5404. Board of Directors

§ 31–5404. Board of Directors.
(a)(1) The Board of Directors of the Association (“Board” or “Board of Directors”) shall consist of no less than 5 and no more than 9 member insurers serving terms as established in the plan of operation.
(2) The members of the Board shall be selected by member insurers subject to the approval of the Mayor.
(3) Vacancies on the Board shall be filled for the remaining period of the term by a majority vote of the remaining Board members, subject to the approval of the Mayor.
(b) The Mayor shall give notice to all member insurers of the time and place of the organizational meeting to select the initial Board of Directors, and to initially organize the Association.
(c) In determining voting rights at the organizational meeting, each member insurer shall be entitled to 1 vote in person or by proxy.
(d) If the Board of Directors is not selected within 60 days after notice of the organizational meeting, the Mayor may appoint the initial members.
(e) In approving selections or in appointing members to the Board, the Mayor shall consider, among other things, whether all member insurers are fairly represented.
(f) Members of the Board may be reimbursed from the assets of the Association for expenses incurred by them as members of the Board of Directors, but shall not otherwise be compensated by the Association for their services.
(July 22, 1992, D.C. Law 9-129, § 5, 39 DCR 4036.)
Prior Codifications
1981 Ed., § 35-1944.
Section References
This section is referenced in § 31-5403 and § 31-5407.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 54 - Life and Health Insurance Guaranty Association › § 31–5407. Plan of operation

§ 31–5407. Plan of operation.
(a)(1) The Association shall submit to the Mayor a plan of operation, and any subsequent amendments that are necessary or suitable, to assure the fair, reasonable, and equitable administration of the Association. The plan of operation, and any amendments, shall become effective 30 days following its submission to the Mayor, unless the Mayor has issued written disapproval of the plan within the 30 days.
(2) If the Association fails to submit a suitable plan of operation within 120 days following July 22, 1992, or if at any time thereafter the Association fails to submit suitable amendments to the plan, the Mayor shall, after notice and hearing, adopt and promulgate reasonable rules as necessary or advisable to carry out the provisions of this chapter. These rules shall continue in force until modified by the Mayor or superseded by a plan submitted by the Association and approved by the Mayor.
(b) All member insurers shall comply with the plan of operation.
(c) The plan of operation, in addition to requirements enumerated elsewhere in this chapter, shall:
(1) Establish procedures for handling the assets of the Association;
(2) Establish the amount and method of reimbursement of members of the Board of Directors under § 31-5404;
(3) Establish regular places and times for meetings, including telephone conference calls, of the Board of Directors;
(4) Establish procedures for records to be kept of all financial transactions of the Association, its agents, and the Board of Directors;
(5) Establish the procedures whereby nominations to the Board of Directors will be made and submitted to the Mayor for approval;
(6) Establish any additional procedures necessary for assessments under § 31-5406; and
(7) Contain additional provisions necessary or proper for the execution of the powers and duties of the Association.
(d)(1) The plan of operation may provide that any or all powers and duties of the Association, except those under § 31-5405(q)(3) and § 31-5406, are delegated to a corporation, association, or other organization which performs or will perform functions similar to those of this Association, or its equivalent in 2 or more states.
(2) Such a corporation, association, or organization shall be reimbursed for any payments made on behalf of the Association and shall be paid for its performance of any function of the Association.
(3) A delegation under this subsection shall take effect only with the approval of the Board of Directors and the Mayor, and may be made only to a corporation, association, or organization which extends protection not substantially less favorable and effective than that provided by this chapter.
(July 22, 1992, D.C. Law 9-129, § 8, 39 DCR 4036.)
Prior Codifications
1981 Ed., § 35-1947.
Section References
This section is referenced in § 31-5403.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 54 - Life and Health Insurance Guaranty Association › § 31–5408. Duties and powers of the Mayor

§ 31–5408. Duties and powers of the Mayor.
(a) In addition to the duties and powers enumerated elsewhere in this chapter, the Mayor shall:
(1) Upon request of the Board of Directors, provide the Association with a statement of the premiums in the District of Columbia and any other appropriate states for each member insurer; and
(2) When an impairment is declared and the amount of the impairment is determined, serve a demand upon the impaired insurer to make good the impairment within a reasonable time. Notice to the impaired insurer to comply promptly with such a demand shall not excuse the Association from the performance of its powers and duties under this chapter.
(b) In addition to the duties and powers enumerated elsewhere in this chapter, the Mayor may:
(1) 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; or
(2) Levy a forfeiture on any member insurer that fails to pay an assessment when due; provided, that the forfeiture shall not exceed 5% of the unpaid assessment per month, and no forfeiture shall be less than $100 per month.
(c) A final action of the board of directors or the Association may be appealed to the Mayor by a member insurer if the appeal is taken within 60 days of its receipt of notice of the final action being appealed. A final action or order of the Mayor shall be subject to judicial review in a court of competent jurisdiction in accordance with District laws that apply to the actions or orders of the Mayor.
(d) The liquidator, rehabilitator, or conservator of an impaired or insolvent insurer may notify all interested persons of the effect of this chapter.
(July 22, 1992, D.C. Law 9-129, § 9, 39 DCR 4036; July 23, 2014, D.C. Law 20-130, § 2(e), 61 DCR 5900.)
Prior Codifications
1981 Ed., § 35-1948.
Effect of Amendments
The 2014 amendment by D.C. Law 20-130 designated the existing language as (a); and added (b), (c), and (d).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 54 - Life and Health Insurance Guaranty Association › § 31–5410. Credits for assessments paid

§ 31–5410. Credits for assessments paid.
(a) A member insurer may offset against its premium taxes an assessment described in § 31-5406(h) 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. In the event a member insurer should cease doing business, all uncredited assessments may be credited against the premium taxes for the year it ceases doing business.
(b) Any sums which are acquired by refund, pursuant to § 31-5406(f) from the Association by member insurers, and which theretofore have been offset against premium taxes as provided in subsection (a) of this section, shall be paid by member insurers to the District of Columbia in accordance with requirements of the District of Columbia Department of Finance and Revenue. The Association shall notify the Commissioner that the refunds have been made.
(July 22, 1992, D.C. Law 9-129, § 11, 39 DCR 4036; May 21, 1997, D.C. Law 11-268, § 10, 44 DCR 1730; Mar. 24, 1998, D.C. Law 12-81, § 31(b), 45 DCR 745.)
Prior Codifications
1981 Ed., § 35-1950.
Section References
This section is referenced in § 31-205.
Cross References
Premium tax liability offsets, see § 31-205.
References in Text
Pursuant to the Office of the Chief Financial Officer’s “Notice of Public Interest” published in the April 18, 1997, issue of the District of Columbia Register ( 44 DCR 2345) the Office of Tax and Revenue assumed all of the duties and functions previously performed by the Department of Finance and Revenue, as set forth in Commissioner’s Order 69-96, dated March 7, 1969. This action was made effective January 22, 1997, nunc pro tunc.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 54 - Life and Health Insurance Guaranty Association › § 31–5412. Examination of the Association; annual report

§ 31–5412. Examination of the Association; annual report.
(a) The Association shall be subject to examination and regulation by the Mayor.
(b) The Board of Directors shall submit to the Mayor each year, not later than 120 days after the end of the Association’s fiscal year, a financial report in a form approved by the Mayor and a report of its activities during the preceding fiscal year.
(July 22, 1992, D.C. Law 9-129, § 13, 39 DCR 4036.)
Prior Codifications
1981 Ed., § 35-1952.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 54 - Life and Health Insurance Guaranty Association › § 31–5413. Tax exemptions

§ 31–5413. Tax exemptions.
The Association shall be exempt from payment of all fees and all taxes levied by the District of Columbia.
(July 22, 1992, D.C. Law 9-129, § 14, 39 DCR 4036.)
Prior Codifications
1981 Ed., § 35-1953.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 54 - Life and Health Insurance Guaranty Association › § 31–5414. Immunity

§ 31–5414. Immunity.
(a) There shall be no liability on the part of, and no cause of action shall arise against, any member insurer or its agents or employees, the Association or its agents or employees, members of the Board of Directors, or the Mayor or the Mayor’s representatives, for any action or omission by them in performance of their powers and duties under this chapter, except in the case of willful misconduct, gross negligence, or criminal activity on the part of these persons.
(b) The immunity established by subsection (a) of this section shall extend to the participation in any organization of 1 or more state associations of similar purposes and to any organization and its agents or employees.
(July 22, 1992, D.C. Law 9-129, § 15, 39 DCR 4036.)
Prior Codifications
1981 Ed., § 35-1954.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 54 - Life and Health Insurance Guaranty Association › § 31–5415. Stay of proceedings; reopening default judgments

§ 31–5415. Stay of proceedings; reopening default judgments.
(a) All proceedings in which the insolvent insurer is a party in any court in the District of Columbia shall be stayed 180 days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the Association on any matters germane to its powers or duties.
(b) As to judgment under any decision, order, verdict, or finding based on default, the Association may apply to have the judgment set aside by the same court that made the judgment and shall be permitted to defend against the suit on the merits.
(July 22, 1992, D.C. Law 9-129, § 16, 39 DCR 4036; July 23, 2014, D.C. Law 20-130, § 2(h), 61 DCR 5900.)
Prior Codifications
1981 Ed., § 35-1955.
Effect of Amendments
The 2014 amendment by D.C. Law 20-130 substituted “180 days” for “60 days” in (a).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5502. Applicability

§ 31–5502. Applicability.
This chapter shall apply to all kinds of direct insurance, but shall not be applicable to the following:
(1) Life, annuity, health, or disability insurance;
(2) Mortgage guaranty, financial guaranty, or other forms of insurance offering protection against investment risks;
(3) Fidelity or surety bonds, or any other bonding obligations;
(4) Credit insurance, vendors’ single interest insurance, or collateral protection insurance or any similar insurance protecting the interests of a creditor arising out of a creditor-debtor transaction;
(5) Insurance of warranties or service contracts;
(6) Title insurance;
(7) Ocean marine insurance;
(8) Any transaction or combination of transactions between a person, including affiliates of such a person, and an insurer, including affiliates of such an insurer, which involves the transfer of investment or credit risk unaccompanied by transfer of insurance risk; or
(9) Any insurance provided by or guaranteed by government.
(Oct. 21, 1993, D.C. Law 10-51, § 3, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3902.
Section References
This section is referenced in § 31-5501.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5503. Creation of the Association

§ 31–5503. Creation of the Association.
There is created a nonprofit unincorporated legal entity to be known as the District of Columbia Insurance Guaranty Association. All insurers defined as member insurers in § 31-5501(9) shall be and remain members of the Association as a condition of their authority to transact insurance in the District. The Association shall perform its functions under a plan of operation established and approved under § 31-5506 and shall exercise its powers through a board of directors established under § 31-5504. For purposes of administration and assessment, the Association shall be divided into 3 separate accounts:
(1) The workmen’s compensation insurance account;
(2) The automobile insurance account; and
(3) The account for all other insurance to which this chapter applies.
(Oct. 21, 1993, D.C. Law 10-51, § 4, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3903.
Section References
This section is referenced in § 31-5501.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5504. Board of directors

§ 31–5504. Board of directors.
(a) The board of directors of the Association shall consist of not fewer than 5 nor more than 9 persons serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the approval of the Mayor. Vacancies on the board shall be filled for the remainder of the term by a majority vote of the remaining board members subject to the approval of the Mayor. If no members are selected within 60 days after October 21, 1993, the Mayor may appoint the initial members of the board of directors.
(b) In approving selections to the board of directors, the Mayor shall consider, among other things, whether all member insurers are fairly represented.
(c) Members of the board of directors may be reimbursed from the assets of the Association for expenses incurred by them as members of the board of directors.
(Oct. 21, 1993, D.C. Law 10-51, § 5, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3904.
Section References
This section is referenced in § 31-5503 and § 31-5506.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5507. Powers and duties of the Mayor

§ 31–5507. Powers and duties of the Mayor.
(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.
(Oct. 21, 1993, D.C. Law 10-51, § 8, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3907.
Section References
This section is referenced in § 31-5505.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5508. Effect of paid claims

§ 31–5508. Effect of paid claims.
(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.
(Oct. 21, 1993, D.C. Law 10-51, § 9, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3908.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5509. Nonduplication of recovery

§ 31–5509. Nonduplication of recovery.
(a) Any person having a claim against an insurer under any provision in an insurance policy, other than a policy of an insolvent insurer which is also a covered claim, shall be required to exhaust first his or her right under such a policy. Any amount payable on a covered claim under this chapter shall be reduced by the amount of any recovery under such an insurance policy.
(b) Any person having a claim which may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the Association of the place of residence of the insured, except that if it is a first-party claim for damage to property with a permanent location, he or she shall seek recovery first from the Association of the location of the property, and if it is a workers’ compensation claim, he or she shall seek recovery first from the Association of the residence of the claimant. Any recovery under this chapter shall be reduced by the amount of recovery from any other insurance guaranty association or its equivalent.
(Oct. 21, 1993, D.C. Law 10-51, § 10, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3909.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5510. Prevention of insolvencies

§ 31–5510. Prevention of insolvencies.
To aid in the detection and prevention of insurer insolvencies:
(1) The board of directors may, upon majority vote:
(A) Make recommendations to the Mayor for the detection and prevention of insurer insolvencies; and
(B) Respond to requests by the Mayor to discuss and make recommendations regarding the status of any member insurer whose financial condition may be hazardous to policyholders or the public. The recommendations shall not be considered public documents.
(2) The board of directors may, at the conclusion of any domestic insurer insolvency in which the Association was obligated to pay covered claims, prepare a report on the history and causes of the insolvency, based on the information available to the Association, and submit the report to the Mayor.
(Oct. 21, 1993, D.C. Law 10-51, § 11, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3910.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5511. Examination of the Association

§ 31–5511. Examination of the Association.
The Association shall be subject to examination and regulation by the Mayor. The board of directors shall submit, not later than March 30th of each year, a financial report for the preceding calendar year in a form approved by the Mayor.
(Oct. 21, 1993, D.C. Law 10-51, § 12, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3911.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5512. Tax exemption

§ 31–5512. Tax exemption.
The Association shall be exempt from payment of all fees and all taxes levied by the District, except taxes levied on real or personal property.
(Oct. 21, 1993, D.C. Law 10-51, § 13, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3912.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5513. Recognition of assessments in rates

§ 31–5513. Recognition of assessments in rates.
The rates and premiums charged for insurance policies to which this chapter applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the Association by the member insurer less any amounts returned to the member insurer by the Association, and these rates shall not be deemed excessive because they contain an amount reasonably calculated to recoup assessments paid by the member insurer.
(Oct. 21, 1993, D.C. Law 10-51, § 14, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3913.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5514. Immunity from liability

§ 31–5514. Immunity from liability.
There shall be no liability on the part of, and no cause of action of any nature shall arise against any member insurer, the Association or its agents or employees, the board of directors, or the Mayor or his or her representatives for any action taken or any failure to act by them in the performance of their powers and duties under this chapter.
(Oct. 21, 1993, D.C. Law 10-51, § 15, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3914.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 55 - Property and Liability Insurance Guaranty Association › § 31–5515. Stay of proceedings; access to records

§ 31–5515. Stay of proceedings; access to records.
(a) All proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court in the District of Columbia shall be stayed for 6 months, and any additional time thereafter as may be determined by the court, from the date the insolvency is determined or an ancillary proceeding is instituted in the District, whichever is later, to permit proper defense by the Association of all pending causes of action. As to any covered claims arising from a judgment under any decision, verdict, or finding based on the default of the insolvent insurer or its failure to defend an insured, the Association, either on its own behalf or on behalf of the insured, may apply to have the judgment, order, decision, verdict, or finding set aside by the same court or administrator that made the judgment, order, decision, verdict, or finding and shall be permitted to defend the claim on the merits.
(b) The liquidator, receiver, or statutory successor of an insolvent insurer covered by this chapter shall permit access by the board of directors or its authorized representative, to any of the insolvent insurer’s records which are necessary for the board of directors in carrying out its functions under this chapter with regard to covered claims. In addition, the liquidator, receiver, or statutory successor shall provide the board of directors, or its representative, with copies of the records upon the request by the board and at the expense of the board.
(Oct. 21, 1993, D.C. Law 10-51, § 16, 40 DCR 6120.)
Prior Codifications
1981 Ed., § 35-3915.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 56 - Securities › Subchapter I - Definitions and Rules of Construction › § 31–5601.02. Purpose and coordination with federal law

§ 31–5601.02. Purpose and coordination with federal law.
(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.
(Oct. 26, 2000, D.C. Law 13-203, § 102, 47 DCR 7837.)
Section References
This section is referenced in § 31-5604.06.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 56 - Securities › Subchapter II - Broker-Dealers, Agents, Investment Advisers and Investment Adviser Representatives › § 31–5602.01. Licensing of broker-dealer and agent

§ 31–5602.01. Licensing of broker-dealer and agent.
(a) No person shall transact business in the District of Columbia (“District”) as a broker-dealer or agent unless the person is licensed or exempt from licensure under this chapter.
(b) No broker-dealer or issuer shall employ an agent to represent the broker-dealer or issuer unless the agent is licensed or exempt from licensure under this chapter. The license of an agent shall not be effective during any period when the agent is not associated with a specified broker-dealer licensed under this chapter or with a specified issuer.
(c) No agent shall at any time represent more than one broker-dealer or issuer without the written consent of each broker-dealer or issuer. If an agent begins or terminates an association with a broker-dealer or issuer, or begins or terminates those activities which make the person an agent, the agent and the broker-dealer or issuer shall promptly notify the Commissioner.
(d) Unless sooner terminated under this chapter or renewed, the license of a broker-dealer or agent shall expire on December 31.
(e) No broker-dealer licensed under this chapter shall transact business in the District unless it registers at least one agent with the Department.
(Oct. 26, 2000, D.C. Law 13-203, § 201, 47 DCR 7837.)
Section References
This section is referenced in § 31-5605.01, § 31-5606.05, and § 31-5608.01.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 56 - Securities › Subchapter II - Broker-Dealers, Agents, Investment Advisers and Investment Adviser Representatives › § 31–5602.02. Licensing of investment adviser and investment adviser representative

§ 31–5602.02. Licensing of investment adviser and investment adviser representative.
(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.
(Oct. 26, 2000, D.C. Law 13-203, § 202, 47 DCR 7837.)
Section References
This section is referenced in § 31-5601.01, § 31-5602.03, § 31-5604.02, § 31-5605.01, and § 31-5606.05.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 56 - Securities › Subchapter II - Broker-Dealers, Agents, Investment Advisers and Investment Adviser Representatives › § 31–5602.04. Post-licensing requirements

§ 31–5602.04. Post-licensing requirements.
(a)(1) A licensed broker-dealer shall make and keep such accounts, correspondence, memoranda, papers, books, and other records as the Commissioner may, by rule, require.
(2) The authority of the Commissioner to adopt rules under paragraph (1) of this subsection shall be subject to the limitations of section 15 of the Securities Exchange Act 1934 [15 U.S.C. § 78o].
(3) A licensed investment adviser shall make and keep such accounts, correspondence, memoranda, papers, books, and other records as the Commissioner may by rule require.
(4) The authority of the Commissioner to adopt rules under paragraph (3) of this subsection shall be subject to the limitations of section 222 of the Investment Advisers Act of 1940 [15 U.S.C. § 80b-18a].
(b)(1) With respect to investment advisers, the Commissioner may, by rule or order, require that certain information be furnished or disseminated as appropriate in the public interest or for the protection of investors and advisory clients.
(2) Information furnished to clients or prospective clients of a licensed investment adviser that complies with the Investment Advisers Act of 1940 and the rules promulgated under that Act may be used in whole or partial satisfaction of the requirement in paragraph (1) of this subsection.
(c) A licensed broker-dealer or investment adviser shall file such financial reports as the Commissioner may, by rule or order, prescribe, except as provided by section 15 of the Securities Exchange Act 1934 [15 U.S.C. § 78o] in the case of a broker-dealer and section 222 of the Investment Advisers Act of 1940 [15 U.S.C. § 80b-18a] in the case of an investment adviser.
(d) If the information contained in any document filed with the Commissioner is, or becomes, inaccurate or incomplete in any material respect, a licensed broker-dealer or investment adviser shall promptly file a correcting amendment with the Commissioner, and a federal covered adviser shall file a correcting amendment when required to do so with the Securities and Exchange Commission.
(Oct. 26, 2000, D.C. Law 13-203, § 204, 47 DCR 7837.)
Section References
This section is referenced in § 31-5607.03.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 56 - Securities › Subchapter II - Broker-Dealers, Agents, Investment Advisers and Investment Adviser Representatives › § 31–5602.05. Licensing of successor firms

§ 31–5602.05. Licensing of successor firms.
(a) A licensed broker-dealer or investment adviser or federal covered adviser shall file an application for the license or a notice filing, as applicable, of a successor, whether or not the successor is then in existence. There shall be no fee for the license or notice filing of the successor.
(b) If a broker-dealer or investment adviser succeeds to, and continues the business of, a licensed broker-dealer or investment adviser, or a federal covered adviser succeeds to and continues the business of, a federal covered adviser who has made a notice filing, and the successor files an application for a license or a notice filing, as applicable, within 30 days after the succession, the license or notice filing of the predecessor remains effective as the license or notice filing of the successor for 60 days after the succession.
(c) The licensing of a licensed agent of the broker-dealer filing an application under subsections (a) or (b) of this section continues without a separate filing or fee upon the licensing of the successor.
(Oct. 26, 2000, D.C. Law 13-203, § 205, 47 DCR 7837.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 56 - Securities › Subchapter II - Broker-Dealers, Agents, Investment Advisers and Investment Adviser Representatives › § 31–5602.06. Power of inspection, examination and audit

§ 31–5602.06. Power of inspection, examination and audit.
(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.
(Oct. 26, 2000, D.C. Law 13-203, § 206, 47 DCR 7837.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 56 - Securities › Subchapter II - Broker-Dealers, Agents, Investment Advisers and Investment Adviser Representatives › § 31–5602.08. Denial, suspension, or revocation on grounds of lack of qualification

§ 31–5602.08. Denial, suspension, or revocation on grounds of lack of qualification.
A determination by the Commissioner that an applicant or licensed person lacks qualification shall be made subject to the following limitations and considerations:
(1) The Commissioner may not enter an order against a broker-dealer on the basis of the lack of qualification of a person other than the broker-dealer if the broker-dealer is an individual.
(2) The Commissioner may not enter an order against an investment adviser on the basis of the lack of qualification of a person other than the investment adviser if the investment adviser is an individual.
(3) The Commissioner may not enter an order solely because of lack of experience of the applicant or licensed person if the applicant or licensed person is qualified by training or knowledge.
(4) An agent who will work under the supervision of a licensed broker-dealer need not have the same qualifications as a broker-dealer and an investment adviser representative who will work under the supervision of a licensed investment adviser need not have the same qualifications as an investment adviser.
(5) An investment adviser is not qualified solely on the basis of experience as a broker-dealer or agent. If the Commissioner finds an applicant for initial or renewal licensure as a broker-dealer is not qualified as an investment adviser, the Commissioner may, by order, condition the applicant’s licensure as a broker-dealer upon the broker-dealer not transacting business in the District as an investment adviser.
(6) The Commissioner may, by rule, provide for an examination, which may be written, oral, or both, to be taken by any class of, or all, applicants. The Commissioner may, by rule or order, waive the examination requirement as to a person or class of persons if the Commissioner determines that the examination is not necessary or appropriate in the public interest or for the protection of investors.
(Oct. 26, 2000, D.C. Law 13-203, § 208, 47 DCR 7837.)
Section References
This section is referenced in § 31-5602.07.