reglab/statecodes huggingface dataset:
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3 - Annual Audited Financial Reports › § 31–306. Consolidated or combined audits

§ 31–306. Consolidated or combined audits.
An insurer may make written application to the Mayor for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies which utilizes a pooling or 100% reinsurance agreement that affects the solvency and integrity of the insurer’s reserves and the insurer cedes all of its direct and assumed business to the pool. In these cases, a column consolidating or combining worksheet shall be filed with the report, as follows:
(1) Amounts shown on the consolidated or combined audited financial report shall be shown on the worksheet.
(2) Amounts for each insurer subject to this section shall be stated separately.
(3) Noninsurance operations may be shown on the worksheet on a combined or individual basis.
(4) Explanations of consolidating and eliminating entries shall be included.
(5) A reconciliation shall be included of any differences between the amounts shown in the individual insurer columns of the worksheet and comparable amounts shown on the annual statements of the insurers.
(Oct. 21, 1993, D.C. Law 10-48, § 7, 40 DCR 6102.)
Prior Codifications
1981 Ed., § 35-3206.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3 - Annual Audited Financial Reports › § 31–307. Scope of audit and report of independent certified public accountant

§ 31–307. Scope of audit and report of independent certified public accountant.
Financial statements furnished pursuant to § 31-303 shall be examined by an independent certified public accountant. In accordance with AU section 319 of the Professional Standards of the American Institute of Certified Public Accountants, Consideration of Internal Control in a Financial Statement Audit, the independent certified public accountant shall obtain a sufficient understanding of the insurer’s internal controls to ensure that the audit plan is effective. To the extent required by AU section 319, for those insurers required to file a management’s report of internal control over financial reporting pursuant to § 31-311.03, the independent certified public accountant shall consider the most recently available management reports in planning and performing the audit of the statutory financial statements. The audit of the insurer’s financial statements shall be conducted in accordance with generally accepted auditing standards. Consideration shall also be given to such other procedures illustrated in the Financial Condition Examiner’s Handbook promulgated by the NAIC as the independent certified public accountant deems necessary.
(Oct. 21, 1993, D.C. Law 10-48, § 8, 40 DCR 6102; Feb. 27, 1996, D.C. Law 11-90, § 5(d), 42 DCR 7155; Mar. 12, 2011, D.C. Law 18-317, § 2(f), 57 DCR 12418.)
Prior Codifications
1981 Ed., § 35-3207.
Effect of Amendments
D.C. Law 18-317 substituted “audit” for “examination”; added the second and third sentences; and substituted “consideration shall” for “consideration should”.
Emergency Legislation
For temporary amendment of section, see § 6(d) of the Insurance Omnibus Emergency Amendment Act of 1995 (D.C. Act 11-48, May 15, 1995, 42 DCR 2544) and § 5(d) of the Insurance Omnibus Congressional Recess Emergency Amendment Act of 1995 (D.C. Act 11-97, July 19, 1995, 42 DCR 3844).
For temporary (90 day) amendment of section, see § 2(f) of Annual Financing Reporting Modernization Emergency Amendment Act of 2010 (D.C. Act 18-665, December 28, 2010, 58 DCR 80).
For temporary (90 day) amendment of section, see § 2(f) of Annual Financial Reporting Modernization Congressional Review Emergency Amendment Act of 2011 (D.C. Act 19-30, March 15, 2011, 58 DCR 2591).
Temporary Legislation
For temporary (225 day) amendment of section, see § 5(d) of Insurance Omnibus Temporary Amendment Act of 1995 (D.C. Law 11-36, September 8, 1995, law notification 42 DCR 5305).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3 - Annual Audited Financial Reports › § 31–309. Communication of internal control related matters noted in audit

§ 31–309. Communication of internal control related matters noted in audit.
(a) In addition to the annual audited financial report, an insurer shall furnish the Mayor with a written communication regarding any unremediated material weaknesses in its internal controls over financial reporting noted during the audit. If no unremediated material weaknesses were noted during the audit, the insurer shall submit a written communication stating this fact to the Mayor. The communication shall be prepared by the independent certified public accountant within 60 days after the filing of the annual audited financial report and shall contain a description of any unremediated material weakness, as of December 31 immediately preceding, in the insurer’s internal control over financial reporting noted by the accountant during the course of their audit of the financial statements.
(b) The insurer shall provide a description of the remedial actions taken or those being proposed to correct unremediated material weaknesses if the actions are not described in the independent certified public accountant’s communication to the insurer.
(Oct. 21, 1993, D.C. Law 10-48, § 10, 40 DCR 6102; Mar. 12, 2011, D.C. Law 18-317, § 2(h), 57 DCR 12418.)
Prior Codifications
1981 Ed., § 35-3209.
Section References
This section is referenced in § 31-311.03 and § 31-314.
Effect of Amendments
D.C. Law 18-317 rewrote the section, which formerly read:
“In addition to the annual audited financial statements, each insurer shall furnish the Mayor with a written report prepared by the accountant describing significant deficiencies in the insurer’s internal control structure noted by the accountant during the audit. SAS No. 60, Communication of Internal Control Structure Matters Noted in an Audit (AU section 325 of the Professional Standards of the American Institute of Certified Public Accountants) requires an accountant to communicate significant deficiencies, known as reportable conditions, noted during a financial statement audit to the appropriate parties within an entity. No report shall be issued if the accountant does not identify significant deficiencies. If significant deficiencies are noted, the written report shall be filed annually by the insurer with the Mayor within 60 days after the filing of the annual audited financial statements. The insurer is required to provide a description of remedial actions taken or proposed to correct significant deficiencies, if the actions are not described in the accountant’s report.”
Emergency Legislation
For temporary (90 day) amendment of section, see § 2(h) of Annual Financing Reporting Modernization Emergency Amendment Act of 2010 (D.C. Act 18-665, December 28, 2010, 58 DCR 80).
For temporary (90 day) amendment of section, see § 2(h) of Annual Financial Reporting Modernization Congressional Review Emergency Amendment Act of 2011 (D.C. Act 19-30, March 15, 2011, 58 DCR 2591).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3 - Annual Audited Financial Reports › § 31–310. Accountant’s letter of qualifications

§ 31–310. Accountant’s letter of qualifications.
The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating that:
(1) The accountant is independent with respect to the insurer and conforms to the standards of his or her profession as contained in the Code of Professional Ethics and pronouncements of the American Institute of Certified Public Accountants and the rules of the District of Columbia Board of Accountancy.
(2) The background and experience of the accountant in general is listed, and the experience in audits of insurers of the staff assigned to the engagement and whether each is an independent certified public accountant. Nothing within this chapter shall be construed as prohibiting the accountant from utilizing the staff he or she deems appropriate where use is consistent with the standards prescribed by generally accepted auditing standards.
(3) The accountant understands the annual audited financial report and his or her opinion thereon will be filed in compliance with this chapter and that the Mayor will be relying on this information in the monitoring and regulation of the financial position of insurers.
(4) The accountant consents to the requirements of § 31-311 and that the accountant consents and agrees to make available for review by the Mayor, his or her designee or his or her appointed agent, the workpapers, as defined in § 31-311.
(5) The accountant is properly licensed by an appropriate state licensing authority and is a member in good standing in the American Institute of Certified Public Accountants.
(6) The accountant is in compliance with the requirements of § 31-305.
(Oct. 21, 1993, D.C. Law 10-48, § 11, 40 DCR 6102; Feb. 27, 1996, D.C. Law 11-90, § 5(f), 42 DCR 7155.)
Prior Codifications
1981 Ed., § 35-3210.
Section References
This section is referenced in § 31-314.
Emergency Legislation
For temporary amendment of section, see § 6(f) of the Insurance Omnibus Emergency Amendment Act of 1995 (D.C. Act 11-48, May 15, 1995, 42 DCR 2544) and § 5(f) of the Insurance Omnibus Congressional Recess Emergency Amendment Act of 1995 (D.C. Act 11-97, July 19, 1995, 42 DCR 3844).
Temporary Legislation
For temporary (225 day) amendment of section, see § 5(f) of Insurance Omnibus Temporary Amendment Act of 1995 (D.C. Law 11-36, September 8, 1995, law notification 42 DCR 5305).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3 - Annual Audited Financial Reports › § 31–311.01a. Internal audit function requirements

§ 31–311.01a. Internal audit function requirements.
(a) An insurer shall be exempt from the requirements of this section if:
(1) The insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premium reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $500 million; and
(2) If the insurer is a member of a group of insurers, the group has annual direct written and unaffiliated assumed premium including international direct and assumed premium, but excluding premium reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $1 billion.
(b) The insurer or group of insurers shall establish an internal audit function providing independent, objective, and reasonable assurance to the audit committee and insurer management regarding the insurer's governance, risk management, and internal controls. This assurance shall be provided by performing general and specific audits, reviews, and tests and by employing other techniques considered necessary to protect assets, evaluate control effectiveness and efficiency, and evaluate compliance with policies and regulations.
(c)(1) To ensure that internal auditors remain objective, the internal audit function shall be organizationally independent. The internal audit function will not defer ultimate judgment on audit matters to others and shall appoint an individual to head the Internal audit function who will have direct and unrestricted access to the board of directors.
(2) Organizational independence shall not preclude dual-reporting relationships.
(d) The head of the internal audit function shall report to the audit committee regularly, but no less than annually, on the periodic audit plan, factors that may adversely impact the Internal audit function's independence or effectiveness, material findings from completed audits, and the appropriateness of corrective actions implemented by management as a result of audit findings.
(e) If an insurer is a member of an insurance holding company system or included in a group of insurers, the insurer may satisfy the Internal audit function requirements set forth in this section at the ultimate controlling parent level, an intermediate holding company level, or the individual legal entity level.
(Oct. 21, 1993, D.C. Law 10-48, § 12a-1; as added Apr. 11, 2019, D.C. Law 22-292, § 301(c), 66 DCR 1691.)
Applicability
Section 401 of D.C. Law 22-292 provided that this section, as created by D.C. Law 22-292, shall apply to all insurance policies issued or renewed in the District 90 days after April 11, 2019.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3 - Annual Audited Financial Reports › § 31–311.02. Conduct of insurer in connection with the preparation of required reports and documents

§ 31–311.02. Conduct of insurer in connection with the preparation of required reports and documents.
(a) A director or officer of an insurer shall not, in connection with any audit, review, or communication required under this chapter, directly or indirectly:
(1) Make, or cause to be made, a materially false or misleading statements [sic] to an accountant; or
(2) Omit to state, or cause another person to omit to state, any material fact necessary to make a statement made to an accountant, in light of the circumstances under which they were made, not misleading.
(b)(1) A director or officer of an insurer, or any other person acting under the direction thereof, shall not, directly or indirectly, take any action to coerce, manipulate, mislead, or fraudulently influence any accountant engaged in the performance of an audit pursuant to this chapter if the person knew or should have known that the action, if successful, could result in rendering the insurer’s financial statements materially misleading.
(2) For the purposes of this subsection, actions that could result in rendering the insurer’s financial statements materially misleading include actions causing the accountant to:
(A) Issue or reissue a report on an insurer’s financial statements that is not warranted under the circumstances due to material violations of statutory accounting principles, generally accepted auditing standards, or other professional or regulatory standards;
(B) Not perform audit, review, or other procedures required by generally accepted auditing standards or other professional standards;
(C) Not withdraw an issued report; or
(D) Not communicate matters to an insurer’s audit committee.
(Oct. 21, 1993, D.C. Law 10-48, § 12b; as added Mar. 12, 2011, D.C. Law 18-317, § 2(j), 57 DCR 12418.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3 - Annual Audited Financial Reports › § 31–313. Canadian and British companies

§ 31–313. Canadian and British companies.
(a) In the case of Canadian and British insurers, the annual audited financial report shall be defined as the annual statement of total business on the form filed by these companies with their domiciliary supervision authority duly audited by an independent chartered accountant.
(b) For Canadian and British insurers, the letter required in § 31-304 shall state that the accountant is aware of the requirements relating to the annual audited statement filed with the Mayor pursuant to § 31-302 and shall affirm that the opinion expressed is in conformity with these requirements.
(Oct. 21, 1993, D.C. Law 10-48, § 14, 40 DCR 6102; May 16, 1995, D.C. Law 10-255, § 31, 41 DCR 5193.)
Prior Codifications
1981 Ed., § 35-3213.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3 - Annual Audited Financial Reports › § 31–314. Applicability

§ 31–314. Applicability.
(a) Every insurer, as defined in § 31-301, shall be subject to this chapter. Insurers having direct premiums written in the District of Columbia of less than $1,000,000 in any calendar year and having less than 1,000 policyholders or certificateholders of directly written policies nationwide at the end of any calendar year shall be exempt from this chapter for that year, unless the Mayor makes a specific finding that compliance is necessary for the Mayor to carry out statutory responsibilities, except that insurers having assumed premiums pursuant to contracts or treaties of reinsurance of $1,000,000 or more will not be so exempt.
(b) Foreign or alien insurers filing audited financial reports in another state pursuant to the other state’s requirement of audited financial reports which has been found by the Mayor to be substantially similar to the requirements of this chapter are exempt from this chapter if:
(1) A copy of the audited financial report, report on significant deficiencies in internal controls, and the accountant’s letter of qualifications which are filed with the other states are filed with the Mayor in accordance with the filing dates specified in §§ 31-302, 31-309, and 31-310, respectively. Canadian insurers may submit accounts’ reports as filed with the Canadian Dominion Department of Insurance.
(2) A copy of any notification of adverse financial condition report filed with the other states is filed with the Mayor within the time specified in § 31-308.
(c) This chapter shall not prohibit, preclude, or in any way limit the Mayor from ordering, conducting, or performing examinations of insurers under the rules and the practices and procedures of the District of Columbia.
(Oct. 21, 1993, D.C. Law 10-48, § 15, 40 DCR 6102.)
Prior Codifications
1981 Ed., § 35-3214.
Section References
This section is referenced in § 31-3931.13.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3A - Insurer Corporate Governance Annual Report › § 31–331. Definitions

§ 31–331. Definitions.
For the purposes of this chapter, the term:
(1) "Commissioner" means the Commissioner of the Department of Insurance, Securities, and Banking.
(2) "Corporate Governance Annual Disclosure" means the report filed by an insurer or insurance group under this chapter.
(3) "Insurance group" means those insurers and affiliates included within an insurance holding company system, as defined in § 31-701(4).
(4) "Insurer" shall have the same meaning as defined in § 31-301(3); except, that it shall not include agencies, authorities, or instrumentalities of the United States, its possessions or territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state.
(5) "NAIC" means the National Association of Insurance Commissioners.
(Sept. 22, 2021, D.C. Law 24-26, § 2, 68 DCR 007994.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3A - Insurer Corporate Governance Annual Report › § 31–332. Applicability and scope

§ 31–332. Applicability and scope.
(a) This chapter shall apply to all insurers domiciled in the District.
(b) Nothing in this chapter shall be construed to prescribe or impose corporate governance standards and internal procedures beyond that which are required under applicable District law or to limit the Commissioner's authority, or the rights or obligations of third parties, under Chapter 14 of this title.
(Sept. 22, 2021, D.C. Law 24-26, § 3, 68 DCR 007994.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3A - Insurer Corporate Governance Annual Report › § 31–333. Disclosure requirement

§ 31–333. Disclosure requirement.
(a)(1) By June 1 of each year, an insurer, or the insurance group of which the insurer is a member, shall submit to the Commissioner a Corporate Governance Annual Disclosure that contains the information required by this chapter, or rules issued pursuant to this chapter; except, that if the insurer is a member of an insurance group operating in the District for which the Department of Insurance, Securities, and Banking is not the group's primary regulator the insurer shall submit the Corporate Governance Annual Disclosure to the commissioner of the lead state for the insurance group in accordance with the laws of the lead state, as outlined in the most recent edition of the NAIC Financial Analysis Handbook.
(2) An insurer not required to submit a Corporate Governance Annual Disclosure to the Commissioner under this subsection shall provide a copy of the insurer's Corporate Governance Annual Disclosure to the Commissioner upon the Commissioner's request.
(b) The Corporate Governance Annual Disclosure shall include a signature of the insurer or insurance group's chief executive officer or corporate secretary attesting, to the best of that individual's belief and knowledge, that the insurer has implemented the corporate governance practices described in the Corporate Governance Annual Disclosure and that a copy of the Corporate Governance Annual Disclosure has been provided to the insurer's board of directors or the appropriate committee of the insurer's board of directors.
(c) For purposes of completing the Corporate Governance Annual Disclosure, the insurer or insurance group may provide information regarding corporate governance at the ultimate controlling parent level, an intermediate holding company level, or the individual legal entity level depending upon how the insurer or insurance group has structured its system of corporate governance.
(Sept. 22, 2021, D.C. Law 24-26, § 4, 68 DCR 007994.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3A - Insurer Corporate Governance Annual Report › § 31–334. Contents of Corporate Governance Annual Disclosure

§ 31–334. Contents of Corporate Governance Annual Disclosure.
(a)(1) The Corporate Governance Annual Disclosure shall be prepared in accordance with rules issued pursuant to this chapter and contain the material information necessary to permit the Commissioner to gain an understanding of the insurer's or group's corporate governance structure, policies, and practices.
(2) The Commissioner may request any additional information considered material to providing the Commissioner with a clear understanding of the corporate governance policies and the reporting or information system or controls implementing those policies.
(b) Documentation and supporting information for the Corporate Governance Annual Disclosure shall be maintained by the insurer or insurance group and made available for examination or upon request of the Commissioner.
(Sept. 22, 2021, D.C. Law 24-26, § 5, 68 DCR 007994.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3A - Insurer Corporate Governance Annual Report › § 31–335. Confidentiality

§ 31–335. Confidentiality.
(a) Documents, materials, and other information, including the Corporate Governance Annual Disclosure, in the possession or control of the Commissioner that are obtained by, created by, or disclosed to the Commissioner or any other person under this chapter shall be treated as confidential pursuant to the standards set forth in § 31-4121.07.
(b) Documents obtained by, created by, or disclosed to the Commissioner or any other person under this chapter that are already in the public domain shall not be subject to the confidentiality provisions described in subsection (a) of this section.
(Sept. 22, 2021, D.C. Law 24-26, § 6, 68 DCR 007994.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3A - Insurer Corporate Governance Annual Report › § 31–336. NAIC and third-party consultants

§ 31–336. NAIC and third-party consultants.
(a) The Commissioner may disclose information received pursuant to this chapter to the NAIC in reviewing the Corporate Governance Annual Disclosure and related information or in evaluating an insurer's compliance with this chapter.
(b)(1) The Commissioner may retain, at the insurer's expense, third-party consultants, including attorneys, actuaries, accountants, and other experts not otherwise a part of the Commissioner's staff, as may be reasonably necessary, to assist the Commissioner in reviewing the Corporate Governance Annual Disclosure and related information or in evaluating the insurer's compliance with this chapter.
(2) The Commissioner shall have the authority to enter into a written agreement with the NAIC or a third-party consultant governing the sharing and use of information provided pursuant to this chapter. The agreement shall comply with the standards set forth in § 31-4121.07(d)(2).
(3) A third-party consultant retained pursuant to this subsection shall serve under the direction and control of the Commissioner and shall act in an advisory capacity to the Commissioner.
(4) The NAIC, and third-party consultants retained pursuant to this subsection, shall be subject to the same confidentiality standards and requirements as the Commissioner.
(c) As part of the retention process, a third-party consultant shall verify to the Commissioner, with notice to the insurer, that it is free of a conflict of interest and has internal procedures in place to identify conflicts and monitor compliance with any measures taken to cure any conflicts and to comply with the confidentiality standards and requirements of this chapter.
(Sept. 22, 2021, D.C. Law 24-26, § 7, 68 DCR 007994.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3A - Insurer Corporate Governance Annual Report › § 31–337. Sanctions

§ 31–337. Sanctions.
An insurer or insurance group failing, without just cause, to timely file a Corporate Governance Annual Disclosure as required in this chapter, after notice and hearing, may be fined up to $1,000 per day, with a maximum penalty of $25,000, or have its certificate of authority suspended, revoked, or denied renewal.
(Sept. 22, 2021, D.C. Law 24-26, § 8, 68 DCR 007994.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 3A - Insurer Corporate Governance Annual Report › § 31–338. Rulemaking

§ 31–338. Rulemaking.
The Commissioner may, in accordance with Chapter 5 of Title 2, issue rules to implement the provisions of this chapter.
(Sept. 22, 2021, D.C. Law 24-26, § 9, 68 DCR 007994.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 4 - Business Transacted with Producer Controlled Insurer › § 31–401. Definitions

§ 31–401. Definitions.
For the purposes of this chapter, the term:
(1) “Accredited state” means a jurisdiction in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated and established from time to time by the National Association of Insurance Commissioners (“NAIC”).
(2) “Captive insurers” means insurance companies owned by another organization whose exclusive purpose is to insure risks of the parent organization and affiliated companies, or, in the case of groups and associations, insurance organizations owned by the insureds whose exclusive purpose is to insure risks to member organizations or group members and their affiliates.
(2A) “Commissioner” means the Commissioner of Insurance and Securities [Commissioner of the Department of Insurance, Securities, and Banking].
(3) “Control” or “controlled” has the meaning ascribed in § 31-701(2).
(4) “Controlled insurer” means a licensed insurer which is controlled, directly or indirectly, by a producer.
(5) “Controlling producer” means a producer who, directly or indirectly, controls an insurer.
(6) “Holding company system” has the meaning ascribed in § 31-701(4).
(7) “Licensed insurer” or “insurer” means any person, firm, association, or corporation duly licensed to transact a property/casualty insurance business in the District of Columbia. The following, inter alia, are not licensed insurers for the purposes of this chapter:
(A) All risk retention groups as defined in the Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C. § 9601 et seq.), the Product Liability Risk Retention Act of 1981 (15 U.S.C. § 3901 et seq.), and § 31-4101;
(B) All residual market pools and joint underwriting authorities or associations; and
(C) All captive insurers.
(8) “Producer” means an insurance broker or brokers or any other person, firm, association, or corporation, when, for any compensation, commission, or other thing of value, such a person, firm, association, or corporation acts or aids in any manner in soliciting, negotiating, or procuring the making of any insurance contract on behalf of an insured other than the person, firm, association, or corporation.
(9) Repealed.
(Oct. 21, 1993, D.C. Law 10-52, § 2, 40 DCR 6129; May 21, 1997, D.C. Law 11-268, § 10(hh), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-4001.
Editor's Notes
Mayor authorized to issue rules: Section 10 of D.C. Law 10-52 provided that the Mayor shall, pursuant to subchapter I of Chapter 15 of Title 1 [subchapter 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 10-52, the Business Transacted with Producer Controlled Insurance 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 4 - Business Transacted with Producer Controlled Insurer › § 31–402. Applicability

§ 31–402. Applicability.
This chapter shall apply to licensed insurers either domiciled in the District of Columbia or domiciled in a state that is not an accredited state having in effect a substantially similar law. All provisions of Chapter 7 of this title, to the extent they are not superseded by this chapter, shall continue to apply to all parties within holding company systems subject to this chapter.
(Oct. 21, 1993, D.C. Law 10-52, § 3, 40 DCR 6129.)
Prior Codifications
1981 Ed., § 35-4002.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 4 - Business Transacted with Producer Controlled Insurer › § 31–403. Applicability of minimum standards

§ 31–403. Applicability of minimum standards.
(a) The provisions of §§ 31-404, 31-405, and 31-406 shall apply if, in any calendar year, the aggregate amount of gross written premium on business placed with a controlled insurer by a controlling producer is equal to or greater than 5% of the admitted assets of the controlled insurer, as reported in the controlled insurer’s quarterly statement filed as of September 30 of the prior year.
(b) Subsection (a) of this section shall not apply if:
(1) The controlling producer:
(A) Places insurance only with the controlled insurer, or only with the controlled insurer and a member or members of the controlled insurer’s holding company system, or the controlled insurer’s parent, affiliate, or subsidiary, and receives no compensation based upon the amount of premiums written in connection with the insurance; and
(B) Accepts insurance placements only from nonaffiliated subproducers, and not directly from insureds; and
(2) The controlled insurer, except for insurance business written through a residual market facility accepts insurance business only from a controlling producer, a producer controlled by the controlled insurer, or a producer that is a subsidiary of the controlled insurer.
(Oct. 21, 1993, D.C. Law 10-52, § 4, 40 DCR 6129.)
Prior Codifications
1981 Ed., § 35-4003.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 4 - Business Transacted with Producer Controlled Insurer › § 31–405. Audit committee

§ 31–405. Audit committee.
Every controlled insurer shall have an audit committee of the board of directors composed of independent directors. The audit committee shall annually meet with management, the insurer’s independent certified public accountants, and an independent casualty actuary, or other independent loss reserve specialist acceptable to the Mayor, to review the adequacy of the insurer’s loss reserves.
(Oct. 21, 1993, D.C. Law 10-52, § 6, 40 DCR 6129.)
Prior Codifications
1981 Ed., § 35-4005.
Section References
This section is referenced in § 31-403.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 4 - Business Transacted with Producer Controlled Insurer › § 31–406. Reporting requirements

§ 31–406. Reporting requirements.
(a) In addition to any other required loss reserve certification, the controlled insurer shall annually, on April 1 of each year, file with the Mayor an opinion of an independent casualty actuary, or any other independent loss reserve specialist acceptable to the Mayor reporting loss reserve for each line of business written and attesting to the adequacy of loss reserves established for losses incurred and outstanding as of year-end, including that incurred, but not reported, on business placed by the producer.
(b) The controlled insurer shall annually report to the Mayor the amount of commissions paid to the producer, the percentage the amount represents of the net premiums written, and comparable amounts and percentage paid to noncontrolling producers for placements of the same kinds of insurance.
(Oct. 21, 1993, D.C. Law 10-52, § 7, 40 DCR 6129; Apr. 26, 1994, D.C. Law 10-103, § 9, 41 DCR 1005.)
Prior Codifications
1981 Ed., § 35-4006.
Section References
This section is referenced in § 31-403.
Temporary Legislation
For temporary (225 day) amendment of section, see § 9 of the Insurance Omnibus Temporary Amendment Act of 1993 (D.C. Law 10-76, March 17 1994, law notification 41 DCR 1626).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 4 - Business Transacted with Producer Controlled Insurer › § 31–407. Disclosure

§ 31–407. Disclosure.
The producer, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer, except that, if the business is placed through a subproducer who is not a controlling producer, the controlling producer shall retain in his or her records a signed commitment from the subproducer that the subproducer is aware of the relationship between the insurer and the producer and that the subproducer has or will notify the insured.
(Oct. 21, 1993, D.C. Law 10-52, § 8, 40 DCR 6129.)
Prior Codifications
1981 Ed., § 35-4007.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 4 - Business Transacted with Producer Controlled Insurer › § 31–408. Penalties

§ 31–408. Penalties.
(a)(1) If the Mayor believes that the controlling producer or any other person has not materially complied with this chapter, or any regulation or order promulgated hereunder, after notice and opportunity to be heard, the Commissioner may order the controlling producer to cease placing business with the controlled insurer; and
(2) If it was found that because of material noncompliance the controlled insurer or any policyholder has suffered any loss or damage, the Mayor may maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for recovery of compensatory damages for the benefit of the insurer or policyholder or for other appropriate relief.
(b) If an order for liquidation or rehabilitation of the controlled insurer has been entered pursuant to Chapter 13 of this title, and the receiver appointed under that order believes that the controlling producer, or any other person, has not materially complied with this chapter, or any regulation or order promulgated hereunder, and the insurer suffered any loss or damage therefrom, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
(c) Nothing contained in this section shall affect the right of the Mayor to impose any other penalties provided under the insurance laws of the District of Columbia.
(d) Nothing contained in this section shall in any manner alter or affect the rights of policyholders, claimants, creditors, or other third parties.
(Oct. 21, 1993, D.C. Law 10-52, § 9, 40 DCR 6129; May 21, 1997, D.C. Law 11-268, § 10, 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-4008.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 5 - Credit for Reinsurance › § 31–503. Qualified U.S. financial institutions

§ 31–503. Qualified U.S. financial institutions.
(a) For purposes of [§ 31-502(b)], a qualified U.S. financial institution means an institution that:
(1) Is organized, or, in the case of a United States office of a foreign banking organization, licensed, under the laws of the United States or any state thereof;
(2) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies;
(3) Has been determined by either the Commissioner or the Securities Valuation Office of the National Association of Insurance Commissioners to meet the standards of financial condition and standing considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the Commissioner; and
(4) When eligible to act as a fiduciary of a trust under this chapter:
(A) Is organized, or, in the case of a United States branch or agency office of a foreign banking organization, licensed, under the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers; and
(B) Is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies.
(Oct. 15, 1993, D.C. Law 10-36, § 4, 40 DCR 5812; May 21, 1997, D.C. Law 11-268, § 10(cc), 44 DCR 1730; Apr. 11, 2019, D.C. Law 22-292, § 201(c), 66 DCR 1691.)
Prior Codifications
1981 Ed., § 35-3303.
Section References
This section is referenced in § 31-501.
Applicability
Section 401 of D.C. Law 22-292 provided that the changes made to this section by D.C. Law 22-292 shall apply to all insurance policies issued or renewed in the District 90 days after April 11, 2019.
Editor's Notes
Application of Law 10-36: See Historical and Statutory Notes following § 31-501.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 5 - Credit for Reinsurance › § 31–504. Rulemaking

§ 31–504. Rulemaking.
(a) The Commissioner may adopt rules and regulations necessary to implement the provisions of this chapter.
(b) The Commissioner is further authorized to adopt rules and regulations applicable to reinsurance arrangements; provided, that regulations adopted pursuant to this subsection:
(1) May apply only to reinsurance relating to:
(A) Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits;
(B) Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;
(C) Variable annuities with guaranteed death or living benefits;
(D) Long-term care insurance policies; and
(E) Such other life and health insurance and annuity products as to which the National Association of Insurance Commissioners ("NAIC") adopts model regulatory requirements with respect to credit for reinsurance.
(2) Pursuant paragraph (1)(A) or (B) of this subsection may apply to any treaty containing:
(A) Policies issued on or after January 1, 2015; or
(B) Policies issued prior to January 1, 2015, if risk pertaining to such pre-2015 policies is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015;
(3) May require the ceding insurer, in calculating the amounts or forms of security required to be held under regulations promulgated under this authority, to use the Valuation Manual adopted by the NAIC, as amended.
(4) Shall not apply to cessions to an assuming insurer that:
(A) Is certified in the District or, at a minimum, in 5 other states or meets the conditions set forth in § 31-501(f-1); or
(B) Maintains at least $250 million in capital and surplus when determined in accordance with the NAIC Accounting Practices and Procedures Manual, including all amendments thereto adopted by the NAIC, excluding the impact of any permitted or prescribed practices, and is:
(i) Licensed in at least 26 states; or
(ii) Licensed in at least 10 states, and licensed or accredited in a total of at least 35 states.
(Oct. 21, 1993, D.C. Law 10-36, § 5, 40 DCR 5812; Apr. 11, 2019, D.C. Law 22-292, § 201(c), 66 DCR 1691; Dec. 13, 2022, D.C. Law 24-194, § 2(b), 69 DCR 012703.)
Applicability
Section 401 of D.C. Law 22-292 provided that the changes made to this section by D.C. Law 22-292 shall apply to all insurance policies issued or renewed in the District 90 days after April 11, 2019.
Emergency Legislation
For temporary (90 days) amendment of this section, see § 2(b) of Credit for Reinsurance Congressional Review Emergency Amendment Act of 2022 (D.C. Act 24-589, Oct. 25, 2022, 0 DCR 0).
For temporary (90 days) amendment of this section, see § 2(b) of Credit for Reinsurance Emergency Amendment Act of 2022 (D.C. Act 24-537, July 27, 2022, 0 DCR 0).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 6 - Domestic Stock Insurance Companies › § 31–601. Definition

§ 31–601. Definition.
As used in this chapter, unless the context otherwise requires, “domestic stock insurance company” means a stock insurance company incorporated or organized under the laws of the District of Columbia.
(Apr. 18, 1966, 80 Stat. 123, Pub. L. 89-402, § 1.)
Prior Codifications
1981 Ed., § 35-211.
1973 Ed., § 35-221.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 6 - Domestic Stock Insurance Companies › § 31–604. Authority and functions of government entities

§ 31–604. Authority and functions of government entities.
Nothing in this chapter shall be construed so as to affect the authority vested in the Mayor of the District of Columbia by Reorganization Plan No. 5 of 1952 (66 Stat. 824). The performance of any function vested by this chapter in the Mayor or in any office or agency under the jurisdiction and control of said Mayor may be delegated by said Mayor in accordance with § 3 of such Plan.
(Apr. 18, 1966, 80 Stat. 125, Pub. L. 89-402, § 4.)
Prior Codifications
1981 Ed., § 35-214.
1973 Ed., § 35-224.
Change in Government
This section originated at a time when local government powers were delegated to a Board of Commissioners of the District of Columbia (see Acts Relating to the Establishment of the District of Columbia and its Various Forms of Governmental Organization in Volume 1). Section 402 (419), (420), and (421) of Reorganization Plan No. 3 of 1967 (see Reorganization Plans in Volume 1) transferred all of the functions of the Board of Commissioners under this section to the District of Columbia Council, subject to the right of the Commissioner as provided in § 406 of the Plan. The District of Columbia Self-Government and Governmental Reorganization Act, 87 Stat. 818, § 711 ( D.C. Code, § 1-207.11), abolished the District of Columbia Council and the Office of Commissioner of the District of Columbia. These branches of government were replaced by the Council of the District of Columbia and the Office of Mayor of the District of Columbia, respectively. Accordingly, and also pursuant to § 714(a) of such Act ( D.C. Code, § 1-207.14(a)), appropriate changes in terminology were made in this section.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 6A - Fingerprint-Based Background Checks › § 31–631. Definitions

§ 31–631. Definitions.
For the purposes of this chapter, the term:
(1) “Applicant” means an individual, or other person designated by the Commissioner by rule, applying for any of the following:
(A) An initial license as a resident insurance producer pursuant to Chapter 11A of this title [§ 31-1131.01 et seq.], or public insurance adjuster pursuant to Chapter 16A of this title [§ 31-1631.01 et seq.];
(B) A license or registration to be an agent, broker-dealer, investment adviser, or investment adviser representative pursuant to Chapter 56 of this title [§ 31-5601.01 et seq.];
(C) A charter to open and operate a new bank pursuant to Chapter 7 of Title 26 [§ 26-701 et seq.]; or
(D) A license, charter, or registration, other than those designated in subparagraphs (A) through (C) of this paragraph, as designated by the Commissioner by rule.
(2) “Commissioner” means the Commissioner of the Department of Insurance, Securities, and Banking.
(3) “Fingerprint” means an impression of the lines on the finger taken for the purpose of identification. The impression may be electronic or in ink converted to an electronic format.
(June 20, 2012, D.C. Law 19-143, § 101, 59 DCR 4069.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 6A - Fingerprint-Based Background Checks › § 31–632. Fingerprinting and criminal history record background checks

§ 31–632. Fingerprinting and criminal history record background checks.
(a) The Commissioner shall require state and national criminal history record background checks of each applicant for the purpose of determining eligibility for a license, registration, or charter. In order for the Commissioner to obtain and receive national criminal history records from the Federal Bureau of Investigation’s Criminal Justice Information Services Division, the Commissioner shall require each applicant to submit a full set of fingerprints, including a scanned electronic or digital fingerprint or a hard copy fingerprint.
(b) The applicant shall bear the cost of administering and processing the fingerprinting and criminal history record background checks. The Commissioner shall establish, by rule, fees to cover the costs associated with the fingerprinting and criminal history record background checks.
(c) The Commissioner may contract for the collection and transmission of fingerprints authorized under this chapter, including any administrative functions related thereto.
(d) The Commissioner may exchange the fingerprints and other information with, and receive criminal history record background information from, the Metropolitan Police Department and the Federal Bureau of Investigation for the purpose of facilitating determinations regarding eligibility for licensure under this chapter. The Metropolitan Police Department may exchange this fingerprint data with the Federal Bureau of Investigation.
(June 20, 2012, D.C. Law 19-143, § 102, 59 DCR 4069.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 6A - Fingerprint-Based Background Checks › § 31–633. Confidentiality

§ 31–633. Confidentiality.
(a) The Commissioner shall:
(1) Treat and maintain applicants’ fingerprints and any criminal history record background information obtained under this chapter as confidential;
(2) Apply security measures consistent with the Criminal Justice Information Services Division of the Federal Bureau of Investigation’s standards for the electronic storage of fingerprints and necessary identifying information; and
(3) Limit the use of records solely for the purposes authorized by this chapter.
(b) For the purposes of this chapter, any such records shall:
(1) Not be deemed to be a public record within the meaning of § 2-502(18);
(2) Not be subject to disclosure, except pursuant to a subpoena issued by order of a court of competent jurisdiction;
(3) Be kept confidential by law and privileged; and
(4) Not be subject to discovery or admissible in any private civil action.
(June 20, 2012, D.C. Law 19-143, § 103, 59 DCR 4069.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 6A - Fingerprint-Based Background Checks › § 31–634. Rules

§ 31–634. Rules.
The Commissioner, pursuant to Chapter 5 of Title 2 [§ 2-501 et seq.], may issue rules to implement the provisions of this chapter.
(June 20, 2012, D.C. Law 19-143, § 104, 59 DCR 4069.)
Editor's Notes
Because of the enactment by D.C. Law 11-159 of subchapter II of Chapter 37 of Title 35 [subchapter II of Title 31, 2001 Ed.], the preexisting text, including §§ 35-3701 through 35-3714 [§§ 31-701 through 31-714, 2001 Ed.], was designated as subchapter I.