reglab/statecodes huggingface dataset:
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1309. Confidentiality of records

§ 31–1309. Confidentiality of records.
In all proceedings and judicial reviews under § 31-1308, all records of the insurer, other documents, all Department of Insurance, Securities, and Banking files, court records, and papers, so far as they pertain to or are a part of the record of the proceedings, shall be and remain confidential except as is necessary to obtain compliance, unless and until the Superior Court of the District of Columbia, after hearing arguments from the parties in chambers, shall order otherwise, or unless the insurer requests that the matter be made public. Until such a court order, all papers filed with the clerk of the Superior Court of the District of Columbia shall be held in a confidential file. The Commissioner may share documents, materials, or other information in the possession or control of the Department of Insurance, Securities, and Banking pertaining to an insurer that is the subject of a proceeding under this chapter with other state, federal, and international regulatory agencies; with the National Association of Insurance Commissioners, including its affiliates and subsidiaries; and with state, federal, and international law enforcement authorities; provided, that the recipient agrees, and has the legal authority, to maintain the confidentiality of the documents, material, or other information. No waiver of an applicable privilege or claim of confidentiality shall occur as a result of disclosure to the Commissioner or of sharing documents, materials, or other information under this section. Nothing in this section shall require an insurer to disclose documents, materials, or other information that is not otherwise required by law to be disclosed.
(Oct. 15, 1993, D.C. Law 10-35, § 10, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(1), 44 DCR 1730; Oct. 21, 2000, D.C. Law 13-191, § 2(a), 47 DCR 7311; June 11, 2004, D.C. Law 15-166, § 4(i)(3), 51 DCR 2817.)
Prior Codifications
1981 Ed., § 35-2809.
Section References
This section is referenced in § 31-1352.
Effect of Amendments
D.C. Law 13-191 added the concluding three sentences to the section.
D.C. Law 15-166 substituted “Department of Insurance, Securities, and Banking” for “Department of Insurance Securities” and substituted “Department of Insurance, Securities, and Banking” for “Department of Insurance and Securities Regulation”.
Cross References
Ancillary proceedings, domiciliary state of any foreign or alien insurer having property located in the District, see § 31-1352.
Emergency Legislation
For temporary (90 day) amendment of section, see § 4(i)(3) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1309.01. Duty to provide information to other insurance regulators and guaranty associations

§ 31–1309.01. Duty to provide information to other insurance regulators and guaranty associations.
The domiciliary receiver shall provide information to other state insurance regulators and guaranty associations, including reports and analyses of financial condition and the status of development of a plan of rehabilitation. The domiciliary receiver shall also permit a state insurance regulator or guaranty association to obtain a listing of policyholders and certificate holders residing in the requestor’s state, including current addresses and summary policy information; provided, that (1) the regulator or guaranty association agrees, and has the legal authority, to maintain the confidentiality of the records, and (2) records will be used only for regulatory or guaranty association purposes. Access to financial records shall be at least equivalent to that to which a state insurance regulator was entitled before the commencement of a formal delinquency proceeding. Access to records may be limited to normal business hours. If the domiciliary receiver believes that certain information is sensitive and disclosure might cause a diminution in recovery, the receiver may apply for a protective order imposing additional restrictions on access. No waiver of an applicable privilege shall occur as a result of disclosure to the Commissioner or receiver or of sharing documents, materials, or other information under this section. Nothing in this section shall require an insurer to disclose documents, materials, or other information that is not otherwise required by law to be disclosed.
(Oct. 15, 1993, D.C. Law 10-35, § 10a; as added Oct. 21, 2000, D.C. Law 13-191, § 2(b), 47 DCR 7311.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1311. Rehabilitation orders

§ 31–1311. Rehabilitation orders.
(a) An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in the District, shall appoint the Commissioner and his or her successors in office the rehabilitator, and shall direct the rehabilitator forthwith to take possession of the assets of the insurer, and to administer them under the general supervision of the court. The filing or recording of the order with the clerk of the Superior Court of the District of Columbia shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with the recorder of deeds would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator.
(b) Any order issued under this section shall require accountings to the court by the rehabilitator. Accountings shall be at intervals the court specifies in its order, but no less frequently than semiannually. Each accounting shall include a report concerning the rehabilitator’s opinion as to the likelihood that a plan under § 31-1312(e) will be prepared by the rehabilitator and the timetable for doing so.
(c) Entry of an order of rehabilitation shall not constitute an anticipatory breach of any contracts of the insurer nor shall it be grounds for retroactive revocation or retroactive cancellation of any contracts of the insurer, unless the revocation or cancellation is done by the rehabilitator pursuant to § 31-1312.
(Oct. 15, 1993, D.C. Law 10-35, § 12, 40 DCR 5773; May 16, 1995, D.C. Law 10-255, § 27(b), 41 DCR 5193; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2811.
Section References
This section is referenced in § 31-1335.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1313. Actions by and against the rehabilitator

§ 31–1313. Actions by and against the rehabilitator.
(a) Any court in the District before which any action or proceeding in which the insurer is a party, or is obligated to defend a party, is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for 90 days and any additional time necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take any action respecting the pending litigation deemed necessary in the interests of, justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside the District and shall petition the court having jurisdiction over that litigation for a stay whenever necessary to protect the estate of the insurer.
(b) No statute of limitations or defense of laches shall run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least 60 days after the order of rehabilitation is entered or the petition is denied. The rehabilitator may, upon an order for rehabilitation, within 1 year or any other longer time as applicable law may permit, institute an action or proceeding on behalf of the insurer upon any cause of action against which the period of limitation fixed by applicable law has not expired at the time of the filing of the petition upon which the order is entered.
(c) Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if the association is or may become liable to act as a result of the rehabilitation.
(Oct. 15, 1993, D.C. Law 10-35, § 14, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2813.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1314. Termination of rehabilitation

§ 31–1314. Termination of rehabilitation.
(a) Whenever the Commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the Commissioner may petition the Superior Court of the District of Columbia for an order of liquidation. A petition under this subsection shall have the same effect as a petition under § 31-1315. The Superior Court of the District of Columbia shall permit the directors of the insurer to take any action reasonably necessary to defend against the petition and may order payment from the estate of the insurer of the costs and other expenses of defense as justice may require.
(b) The protection of the interests of insureds, claimants, and the public requires the timely performance of all insurance policy obligations. If the payment of policy obligations is suspended in substantial part for a period of 6 months at any time after the appointment of the rehabilitator and the rehabilitator has not filed an application for approval of a plan under § 31-1312(e), the rehabilitator shall petition the court for an order of liquidation on grounds of insolvency.
(c) The rehabilitator may at any time petition the Superior Court of the District of Columbia for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of the costs and other expenses of the petition as justice may require. If the Superior Court of the District of Columbia finds that rehabilitation has been accomplished and that grounds for rehabilitation under § 31-1310 no longer exist, it shall order that the insurer be restored to possession of its property and the control of the business. The Superior Court of the District of Columbia may also make that finding and issue that order at any time upon its own motion.
(Oct. 15, 1993, D.C. Law 10-35, § 15, 40 DCR 5773; May 16, 1995, D.C. Law 10-255, § 27(c), 41 DCR 5193; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2814.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1315. Grounds for liquidation

§ 31–1315. Grounds for liquidation.
The Commissioner may petition the Superior Court of the District of Columbia for an order directing him or her to liquidate a domestic insurer or an alien insurer domiciled in the District on the basis:
(1) Of any ground for an order of rehabilitation as specified in § 31-1310, whether or not there has been a prior order directing the rehabilitation of the insurer;
(2) That the insurer is insolvent; or
(3) That the insurer is in such a condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors, or the public.
(Oct. 15, 1993, D.C. Law 10-35, § 16, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2815.
Section References
This section is referenced in § 31-1314, § 31-1349, and § 31-3420.
Cross References
Rehabilitation, liquidation, or conservation of health maintenance organizations, see § 31-3420.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1317. Continuance of coverage

§ 31–1317. Continuance of coverage.
(a) All policies, including bonds and other noncancellable business, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of:
(1) A period of 30 days from the date of entry of the liquidation orders;
(2) The expiration of the policy coverage;
(3) The date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy;
(4) The liquidator has effected a transfer of the policy obligation pursuant to § 31-1319(a)(9); or
(5) The date proposed by the liquidator and approved by the court to cancel coverage.
(b) An order of liquidation under § 31-1316 shall terminate coverages at the time specified in subsection (a) of this section for purposes of any other statute.
(c) Policies of life or health insurance or annuities shall continue in force for such a period and under the terms provided for by any applicable guaranty association or foreign guaranty association.
(d) Policies of life or health insurance or annuities or any period or coverage of any policies not covered by a guaranty association or foreign guaranty association shall terminate under subsections (a) and (b) of this section.
(Oct. 15, 1993, D.C. Law 10-35, § 18, 40 DCR 5773; May 16, 1995, D.C. Law 10-255, § 27(d), 41 DCR 5193; Apr. 18, 1996, D.C. Law 11-110, § 40, 43 DCR 530.)
Prior Codifications
1981 Ed., § 35-2817.
Section References
This section is referenced in § 31-1316.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1318. Dissolution of insurer

§ 31–1318. Dissolution of insurer.
The Commissioner may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in the District at the time he or she applies for a liquidation order. The court shall order dissolution of the corporation upon petition by the Commissioner upon or after the granting of a liquidation order. If the dissolution has not previously been ordered, it shall be effected by operation of law upon the discharge of the liquidator if the insurer is insolvent, but may be ordered by the court upon the discharge of the liquidator if the insurer is under a liquidation order for some other reason.
(Oct. 15, 1993, D.C. Law 10-35, § 19, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2818.
Section References
This section is referenced in § 31-1319.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1320. Notice to creditors and others

§ 31–1320. Notice to creditors and others.
(a) Unless the court otherwise directs, the liquidator shall give, or cause to be given, notice of the liquidation order as soon as possible:
(1) By first class mail and either by telegram or telephone to the insurance commissioner of each jurisdiction in which the insurer is doing business;
(2) By first class mail to any guaranty association or foreign guaranty association which is or may become obligated as a result of the liquidation;
(3) By first class mail to all insurance agents of the insurer;
(4) By first class mail to all persons known or reasonably expected to have claims against the insurer, including all policyholders, at their last known address as indicated by the records of the insurer; and
(5) By publication in a newspaper of general circulation in the county in which the insurer has its principal place of business and in other locations the liquidator deems appropriate.
(b) Notice to potential claimants under subsection (a) of this section shall require claimants to file with the liquidator their claims, together with proper proofs under § 31-1334, on or before a date the liquidator shall specify in the notice. Although an earlier date may be set by the liquidator, the last day to file claims shall be no later than 18 months following the order of liquidation. The liquidator need not require persons claiming cash surrender values or other investment values in life insurance and annuities to file a claim. All claimants shall have a duty to keep the liquidator informed of any changes of address.
(c)(1) Notice under subsection (a) of this section to agents of the insurer and to potential claimants who are policyholders shall include, where applicable, notice that coverage by state guaranty associations may be available for all or part of policy benefits in accordance with applicable state guaranty laws.
(2) The liquidator shall promptly provide to the guaranty associations any information concerning the identities and addresses of the policyholders and their policy coverages as may be within the liquidator’s possession or control, and otherwise cooperate with guaranty associations to assist them in providing to the policyholders timely notice of the guaranty associations’ coverage of policy benefits, including, as applicable, coverage of claims and continuation or termination of coverages.
(d) If notice is given in accordance with this section, the distribution of assets of the insurer under this chapter shall be conclusive with respect to all claimants, whether or not they received notice.
(Oct. 15, 1993, D.C. Law 10-35, § 21, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2820.
Section References
This section is referenced in § 31-1321, § 31-1333, and § 31-1336.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1321. Duties of agents

§ 31–1321. Duties of agents.
(a) Every person who receives notice in the form prescribed in § 31-1320 that an insurer which he represents as an agent is the subject of a liquidation order shall, within 30 days of the notice, provide to the liquidator (in addition to the information he may be required to provide pursuant to § 31-1305) the information in the agent’s records related to any policy issued by the insurer through the agent, and, if the agent is a general agent, the information in the general agent’s records related to any policy issued by the insurer through an agent under contract to him or her, including the name and address of such subagent. A policy shall be deemed issued through an agent if the agent has a property interest in the expiration of the policy, or if the agent has had in his or her possession a copy of the declarations of the policy at any time during the life of the policy, except where the ownership of the expiration of the policy has been transferred to another.
(b) Any agent failing to provide information to the liquidator as required in subsection (a) of this section may be subject to payment of a penalty of not more than $1,000 and may have his or her licenses suspended, the penalty to be imposed after a hearing held by the Commissioner.
(Oct. 15, 1993, D.C. Law 10-35, § 22, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2821.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1322. Actions by and against liquidator

§ 31–1322. Actions by and against liquidator.
(a) Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in the District, no action at law or equity or in arbitration shall be brought against the insurer or liquidator, whether in the District or elsewhere, nor shall any existing actions be maintained or further presented after issuance of the order. The courts of the District shall give full faith and credit to injunctions against the liquidator or the company, or the continuation of existing actions against the liquidator or the company, when the injunctions are included in an order to liquidate an insurer issued pursuant to corresponding provisions in other states. Whenever, in the liquidator’s judgment, protection of the estate of the insurer necessitates intervention in an action against the insurer that is pending outside the District, he or she may intervene in the action. The liquidator may defend any action in which he or she intervenes under this section at the expense of the estate of the insurer.
(b) The liquidator may, upon or after an order for liquidation, within 2 years, or other longer time as applicable law may permit, institute an action or proceeding on behalf of the estate of the insurer upon any cause of action against which the period of limitation fixed by applicable law has not expired at the time of the filing of the petition upon which the order is entered. Where, by any agreement, a period of limitation is fixed for instituting a suit or proceeding upon any claim, or for filing any claim, proof of claim, proof of loss, demand, notice, or the like, or where in any proceeding, judicial or otherwise, a period of limitation is fixed, either in the proceeding or by applicable law, for taking any action, filing any claim or pleading, or doing any act, and where in such a case the period had not expired at the date of the filing of the petition, the liquidator may, for the benefit of the estate, take any action or do any act required of or permitted to the insurer within a period of 180 days subsequent to the entry of an order for liquidation, or within any further period shown to the satisfaction of the court not to be unfairly prejudicial to the other party.
(c) No statute of limitation or defense of laches shall run with respect to any action against an insurer between the filing of a petition for liquidation against an insurer and the denial of the petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least 60 days after the petition is denied.
(d) Any guaranty association or foreign guaranty association shall have standing to appear in any court proceeding concerning the liquidation of an insurer if the association is or may become liable to act as a result of the liquidation.
(Oct. 15, 1993, D.C. Law 10-35, § 23, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2822.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1323. Collection and list of assets

§ 31–1323. Collection and list of assets.
(a) As soon as practicable after the liquidation order, but not later than 120 days thereafter, the liquidator shall prepare in duplicate a list of the insurer’s assets. The list shall be amended or supplemented from time to time as the liquidator may determine. One copy shall be filed in the office of the Clerk of the Superior Court of the District of Columbia, and 1 copy shall be retained for the liquidator’s files. All amendments and supplements shall be similarly filed.
(b) The liquidator shall reduce the assets to a degree of liquidity that is consistent with the effective execution of the liquidation.
(c) A submission to the court for disbursement of assets in accordance with § 31-1332 fulfills the requirements of subsection (a) of this section.
(Oct. 15, 1993, D.C. Law 10-35, § 24, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2823.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1325. Fraudulent transfer after petition

§ 31–1325. Fraudulent transfer after petition.
(a) After a petition for rehabilitation or liquidation has been filed, a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid, for which amount the transferee shall have a lien on the property so transferred. The commencement of a proceeding in rehabilitation or liquidation shall be constructive notice upon the recording of a copy of the petition for or order of rehabilitation or liquidation with the recorder of deeds in the county where any real property in question is located. The exercise by a court of the United States or any state or jurisdiction to authorize or effect a judicial sale of real property of the insurer within any county in any state shall not be impaired by the pendency of such a proceeding unless the copy is recorded in the county prior to the consummation of the judicial sale.
(b) After a petition for rehabilitation or liquidation has been filed and before either the receiver takes possession of the property of the insurer or an order of rehabilitation or liquidation is granted:
(1) A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid, for which amount the transferee shall have a lien on the property so transferred.
(2) A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part thereof, to the insurer or upon his or her order, with the same effect as if the petition were not pending.
(3) A person having actual knowledge of the pending rehabilitation or liquidation shall be deemed not to act in good faith.
(4) A person asserting the validity of a transfer under this section shall have the burden of proof. Except as elsewhere provided in this section, no transfer by or on behalf of the insurer after the date of the petition for liquidation by any person other than the liquidator shall be valid against the liquidator.
(c) Every person receiving any property from the insurer or any benefit thereof which is a fraudulent transfer under subsection (a) of this section shall be personally liable therefor and shall be bound to account to the liquidator.
(d) Nothing in this chapter shall impair the negotiability of currency or negotiable instruments.
(Oct. 15, 1993, D.C. Law 10-35, § 26, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2825.
Section References
This section is referenced in § 31-1312.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1327. Claims of holders of void or voidable rights

§ 31–1327. Claims of holders of void or voidable rights.
(a) No claims of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance voidable under this chapter shall be allowed unless he or she surrenders the preference, lien, conveyance, transfer, assignment, or encumbrance. If the avoidance is effected by a proceeding in which a final judgment has been entered, the claim shall not be allowed unless the money is paid or the property is delivered to the liquidator within 30 days from the date of the entering of the final judgment, except that the court having jurisdiction over the liquidation may allow further time if there is an appeal or other continuation of the proceeding.
(b) A claim allowable under subsection (a) of this section by reason of the avoidance, whether voluntary or involuntary, or a preference, lien, conveyance, transfer, assignment, or encumbrance, may be filed as an excused last filing under § 31-1333 if filed within 30 days from the date of the avoidance, or within the further time allowed by the court under subsection (a) of this section.
(Oct. 15, 1993, D.C. Law 10-35, § 28, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2827.
Section References
This section is referenced in § 31-1333.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1329. Assessments

§ 31–1329. Assessments.
(a) As soon as practicable but not more than 2 years from the date of an order of liquidation under § 31-1316 of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth:
(1) The reasonable value of the assets of the insurer;
(2) The insurer’s probable total liabilities;
(3) The probable aggregate amount of the assessment necessary to pay all claims of creditors and expenses in full, including expenses of administration and costs of collecting the assessment; and
(4) A recommendation as to whether or not an assessment should be made and in what amount.
(b)(1) Upon the basis of the report provided in subsection (a) of this section, including any supplements and amendments, the Superior Court of the District of Columbia may levy 1 or more assessments against all members of the insurer who are subject to assessment.
(2) Subject to any applicable legal limits on assessability, the aggregate assessment shall be for the amount that the sum of the probable liabilities, the expenses of administration, and the estimated cost of collection of the assessment exceeds the value of existing assets, with due regard being given to assessments that cannot be collected economically.
(c) After the levy of assessment under subsection (b) of this section, the liquidator shall issue an order directing each member who has not paid the assessment pursuant to the order to show cause why the liquidator should not pursue a judgment therefor.
(d) The liquidator shall give notice of the order to show cause by publication and by first class mail to each member liable mailed to his or her last known address as it appears on the insurer’s records, at least 20 days before the return date of the order to show cause.
(e)(1) If a member does not appear and serve duly verified objections upon the liquidator on or before the return date of the order to show cause under subsection (c) of this section, the court shall issue an order adjudging the member liable for the amount of the assessment against him or her pursuant to subsection (c) of this section, together with costs, and the liquidator shall have a judgment against the member.
(2) If on or before the return date, the member appears and serves duly verified objections upon the liquidator, the Commissioner may hear and determine the matter, or may appoint a referee to hear it, and issue such an order as the facts warrant. In the event that the Commissioner determines that the objections do not warrant relief from assessment, the member may request that the court review the matter and vacate the order to show cause.
(f) The liquidator may enforce any order or collect any judgment under subsection (e) of this section by any lawful means.
(Oct. 15, 1993, D.C. Law 10-35, § 30, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2829.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1330. Reinsurer’s liability

§ 31–1330. Reinsurer’s liability.
The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contracts or other agreements. The reinsurance shall be payable under contracts reinsured by the assuming insurer on the basis of reported claims allowed by the Superior Court of the District of Columbia, without diminution because of the insolvency of the ceding insurer. The payments shall be made directly to the ceding insurer or to its domiciliary liquidator, except where:
(1) The contracts or other written agreements specifically provide for another payee of the reinsurance in the event of the insolvency of the ceding insurer; or
(2) The assuming insurer, with the consent of the direct insureds, has assumed the policy obligations of the ceding insurer as the direct obligation of the assuming insurer to the payees under such policies and in substitution for the obligations of the ceding insurer to the payees.
(Oct. 15, 1993, D.C. Law 10-35, § 31, 40 DCR 5773; Oct. 21, 2000, D.C. Law 13-185, § 2, 47 DCR 7068.)
Prior Codifications
1981 Ed., § 35-2830.
Effect of Amendments
D.C. Law 13-185 rewrote this section which prior thereto provided: “The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement. Payment made directly to an insured or other creditor shall not diminish the reinsurer’s obligation to the insurer’s estate except when the reinsurance contract provided for direct coverage of a named insured and the payment was made in discharge of that obligation.”
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1331. Recovery of premiums owed

§ 31–1331. Recovery of premiums owed.
(a)(1) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay any unpaid premium for the full policy term due the insurer at the time of the declaration of insolvency, whether earned or unearned, as shown on the records of the insurer. The liquidator shall also have the right to recover from such a person any part of an unearned premium that represents the commission of such a person. Credits or setoffs, or both, shall not be allowed to an agent, broker, or premium finance company for any amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured.
(2) An insured shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency, as shown on the records of the insurer.
(b) Upon satisfactory evidence of a violation of this section, the Commissioner may pursue either one or both of the following courses of action:
(1) Suspend, revoke, or refuse to renew the licenses of the offending party or parties; or
(2) Impose a penalty of not more than $1,000 for each act in violation of this section by the party or parties.
(c) Before the Commissioner takes any action as set forth in subsection (b) of this section, he or she shall give written notice to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation, and fixing a time and place, at least 10 days thereafter, when a hearing on the matter shall be held. After the hearing, or upon failure of the accused to appear at the hearing, the Commissioner, if he or she finds the violation, shall impose any of the penalties under subsection (b) of this section as he or she deems advisable.
(d) When the Commissioner takes action in any or all of the ways set out in subsection (b) of this section, the party aggrieved may appeal from the action to the Superior Court of the District of Columbia.
(Oct. 15, 1993, D.C. Law 10-35, § 32, 40 DCR 5773; May 21, 1997, D.C. Law 11-268, § 10(z)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2831.
Section References
This section is referenced in § 31-1328.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1333. Filing of claims

§ 31–1333. Filing of claims.
(a) Proof of all claims shall be filed with the liquidator in the form required by § 31-1334 on or before the last day for filing specified in the notice required under § 31-1320, except that proof of claims for cash surrender values or other investment values in life insurance and annuities need not be filed unless the liquidator expressly so requires.
(b) The liquidator may permit a claimant making a late filing to share in distributions, whether past or future, as if he or she were not late, to the extent that such a payment will not prejudice the orderly administration of the liquidation, under the following circumstances:
(1) The existence of the claim was not known to the claimant and that he or she filed his or her claim as promptly thereafter as reasonably possible after learning of it;
(2) A transfer to a creditor was avoided under §§ 31-1324 through 31-1326, or was voluntarily surrendered under § 31-1327, and that the filing satisfies the conditions of § 31-1327; or
(3) The valuation under § 31-1339 of security held by a secured creditor shows a deficiency, which is filed within 30 days after the valuation.
(c) The liquidator shall permit late filing claims to share in distributions, whether past or future, as if they were not late, if the claims are claims of a guaranty association or foreign guaranty association for reimbursement of covered claims paid or expenses incurred, or both, subsequent to the last day for filing where the payments were made and expenses incurred as provided by law.
(d) The liquidator may consider any claim filed late, which is not covered by subsection (b) of this section, and permit it to receive distributions which are subsequently declared on any claims of the same or lower priority if the payment does not prejudice the orderly administration of the liquidation. The late-filing claimant shall receive, at each distribution, the same percentage of the amount allowed on his or her claim as is then being paid to claimants of any lower priority. This shall continue until his or her claim has been paid in full.
(Oct. 15, 1993, D.C. Law 10-35, § 34, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2833.
Section References
This section is referenced in § 31-1327, § 31-1335, and § 31-1354.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1334. Proof of claim

§ 31–1334. Proof of claim.
(a) Proof of claim shall consist of a statement signed by the claimant that includes all of the following that are applicable:
(1) The particulars of the claim including the consideration given for it;
(2) The identity and amount of the security on the claim;
(3) The payments made on the debt, if any;
(4) That the sum claimed is justly owing and that there is no setoff, counterclaim, or defense to the claim;
(5) Any right of priority of payment or other specific right asserted by the claimants;
(6) A copy of the written instrument which is the foundation of the claim; and
(7) The name and address of the claimant and the attorney who represents him or her, if any.
(b) No claim need be considered or allowed if it does not contain all the information in subsection (a) of this section which may be applicable. The liquidator may require that a prescribed form be used, and may require that other information and documents be included.
(c) At any time the liquidator may request the claimant to present information or evidence supplementary to that required under subsection (a) of this section and may take testimony under oath, require production of affidavits or depositions, or otherwise obtain additional information or evidence.
(d) No judgment or order against an insured or the insurer entered after the date of filing of a successful petition for liquidation, and no judgment or order against an insured or the insurer entered at any time by default or by collusion, need be considered as evidence of liability or of quantum of damages. No judgment or order against an insured or the insurer entered within 4 months before the filing of the petition need be considered as evidence of liability or of the quantum of damages.
(e) All claims of a guaranty association or foreign guaranty association shall be in the form and contain the substantiation agreed to by the association and the liquidator.
(Oct. 15, 1993, D.C. Law 10-35, § 35, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2834.
Section References
This section is referenced in § 31-1320, § 31-1333, and § 31-1354.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1335. Special claims

§ 31–1335. Special claims.
(a) The claim of a third party which is contingent only on his first obtaining a judgment against the insured shall be considered and allowed as if there were no contingency.
(b) A claim may be allowed even if contingent, if it is filed in accordance with § 31-1333. It may be allowed and may participate in all distributions declared after it is filed to the extent that it does not prejudice the orderly administration of the liquidation.
(c) Claims that are due except for the passage of time shall be treated as absolute claims are treated, except that the claims may be discounted at the legal rate of interest.
(d) Claims made under employment contracts by directors, principal officers, or persons in fact performing similar functions or having similar powers are limited to payment for services rendered prior to the issuance of any order of rehabilitation or liquidation under § 31-1311 or § 31-1316.
(Oct. 15, 1993, D.C. Law 10-35, § 36, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2835.
Section References
This section is referenced in § 31-1316.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1337. Disputed claims

§ 31–1337. Disputed claims.
(a) When a claim is denied in whole or in part by the liquidator, written notice of the determination shall be given to the claimant, or his or her attorney, by first class mail at the address shown in the proof of claim. Within 60 days from the mailing of the notice, the claimant may file his or her objections with the liquidator. If no filing is made, the claimant may not further object to the determination.
(b) Whenever objections are filed with the liquidator and the liquidator does not alter his or her denial of the claim as a result of the objections, the liquidator shall ask the court for a hearing as soon as practicable and give notice of the hearing by first class mail to the claimant, or his or her attorney, and to any other persons directly affected, not less than 10 nor more than 30 days before the date of the hearing. The matter may be heard by the court or by a court-appointed referee who shall submit findings of fact along with his or her recommendation.
(Oct. 15, 1993, D.C. Law 10-35, § 38, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2837.
Section References
This section is referenced in § 31-1341 and § 31-1354.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1338. Claims of surety

§ 31–1338. Claims of surety.
Whenever a creditor whose claim against an insurer is secured, in whole or in part, by the undertaking of another person fails to prove and file that claim, the other person may do so in the creditor’s name, and shall be subrogated to the rights of the creditor, whether the claim has been filed by the creditor or by the other person in the creditor’s name, to the extent that he or she discharges the undertaking. In the absence of an agreement with the creditor to the contrary, the other person shall not be entitled to any distribution, however, until the amount paid to the creditor on the undertaking plus the distributions paid on the claim from the insurer’s estate to the creditor equals the amount of the entire claim of the creditor. Any excess received by the creditor shall be held by him in trust for such other person. The term “other person”, as used in this section, is not intended to apply to a guaranty association or foreign guaranty association.
(Oct. 15, 1993, D.C. Law 10-35, § 39, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2838.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1339. Secured creditor’s claims

§ 31–1339. Secured creditor’s claims.
(a) The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct:
(1) By converting the same into money according to the terms of the agreement pursuant to which the security was delivered to the creditors; or
(2) By agreement, arbitration, compromise, or litigation between the creditor and the liquidator.
(b) The determination shall be under the supervision and control of the court with due regard for the recommendation of the liquidator. The amount so determined shall be credited upon the secured claim, and any deficiency shall be treated as an unsecured claim. If the claimant shall surrender his or her security to the liquidator, the entire claim shall be allowed as if unsecured.
(Oct. 15, 1993, D.C. Law 10-35, § 40, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2839.
Section References
This section is referenced in § 31-1333 and § 31-1356.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1341. Liquidator’s recommendations to the court

§ 31–1341. Liquidator’s recommendations to the court.
(a) The liquidator shall review all claims duly filed in the liquidation and shall make any further investigation he or she deems necessary. He or she may compound, compromise, or in any other manner negotiate the amount for which claims will be recommended to the court, except where the liquidator is required by law to accept claims as settled by any person or organization, including any guaranty association or foreign guaranty association. Unresolved disputes shall be determined under § 31-1337. As soon as practicable, the liquidator shall present to the court a report of the claims against the insurer with his or her recommendations. The report shall include the name and address of each claimant and the amount of the claim finally recommended, if any. If the insurer has issued annuities or life insurance policies, the liquidator shall report the persons to whom, according to the records of the insurer, amounts are owed as cash surrender values or other investment value and the amounts owed.
(b) The court may approve, disapprove, or modify the report on claims by the liquidator. The reports not modified by the court within a period of 60 days following submission by the liquidator shall be treated by the liquidator as allowed claims, subject to later modification or to rulings made by the court pursuant to § 31-1337. No claim under a policy of insurance shall be allowed for an amount in excess of the applicable policy limits.
(Oct. 15, 1993, D.C. Law 10-35, § 42, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2841.
Section References
This section is referenced in § 31-1354.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 13 - Insurers Rehabilitation and Liquidation Procedures › § 31–1342. Distribution of assets

§ 31–1342. Distribution of assets.
Under the direction of the court, the liquidator shall pay distributions in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the liquidation and the protection of unliquidated and undetermined claims, including third party claims. Distribution of assets in kind may be made at valuations set by agreement between the liquidator and the creditor and approved by the court.
(Oct. 15, 1993, D.C. Law 10-35, § 43, 40 DCR 5773.)
Prior Codifications
1981 Ed., § 35-2842.