reglab/statecodes huggingface dataset:
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 39A - Captive Insurance Companies (2004) › Subchapter II - Special Purpose Financial Captive Insurance Companies › § 31–3932.05. Capital and surplus

§ 31–3932.05. Capital and surplus.
(a) In addition to any other capital required to be maintained pursuant to subsection (c) of this section, an SPFC authorized to do business in the District shall at all times maintain a minimum unimpaired capital of $100,000.
(b) Except as otherwise provided by the Commissioner pursuant to subsection (c) of this section, the capital required to be maintained pursuant to this section shall be in the form of cash or an irrevocable letter of credit.
(c) The Commissioner may require an SPFC, including each protected cell, to maintain additional unimpaired capital based on the type, volume, and nature of the insurance business that is transacted by the SPFC and may determine the amount of capital, if any, that may be in the form of an irrevocable letter of credit.
(d) A letter of credit used by an SPFC or segregated account as evidence of capital required pursuant to this section shall:
(1) Be issued by a bank chartered in the District or by a branch of a bank located in the District if such bank is a member of the United States Federal Reserve System, or its deposits are insured by the Federal Deposit Insurance Corporation;
(2) Be issued on a form approved by the Commissioner; and
(3) Include a provision pursuant to which the letter of credit is automatically renewed each year.
(e) An SPFC shall not be issued a certificate of authority, and shall not hold a certificate of authority, unless the SPFC has and maintains, in addition to any other surplus required to be maintained pursuant to subsection (g) of this section, an unencumbered surplus of not less than $150,000.
(f) Except as otherwise provided by the Commissioner pursuant to subsection (c) of this section, the surplus required to be maintained pursuant to this section shall be in the form of cash or an irrevocable letter of credit.
(g) The Commissioner may prescribe additional requirements relating to surplus based on the type, volume, and nature of the insurance business that is transacted by an SPFC or protected cell and requirements regarding which surplus, if any, may be in the form of an irrevocable letter of credit.
(h) A letter of credit used by an SPFC or segregated account as evidence of surplus required pursuant to this section shall meet the same requirements as a letter of credit issued for paid in capital found subsection (d) of this section.
(Mar. 17, 2005, D.C. Law 15-262, § 205; as added Mar. 14, 2007, D.C. Law 16-285, § 2(b), 54 DCR 944.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 39A - Captive Insurance Companies (2004) › Subchapter II - Special Purpose Financial Captive Insurance Companies › § 31–3932.06. Securities of SPFCs

§ 31–3932.06. Securities of SPFCs.
(a) An SPFC may issue securities, including surplus notes and other forms of financial instruments, subject to and in accordance with applicable law, its approved strategic business plan, and its organizational documents.
(b) An SPFC, in connection with the issuance of securities, may enter into and perform all of its obligations under any required contracts to facilitate the issuance of such securities.
(c) Subject to the approval of the Commissioner, an SPFC may:
(1) Account for the proceeds of surplus notes as surplus and not as debt for purposes of statutory accounting;
(2) Submit for prior approval of the Commissioner periodic written requests for payments of interest on and repayments of principal of surplus notes.
(d) Surplus notes issued by an SPFC constitute surplus or contribution notes of the type described in § 31-1340(7).
(e) The Commissioner may approve formulas for an ongoing plan of interest payments or principal repayments, or both, to provide guidance in connection with his ongoing reviews of requests to approve the payments on and principal repayments of the surplus notes.
(f) The obligation to repay principal or interest, or both, on the securities issued by the SPFC shall reflect the risk associated with the obligations of the SPFC to the counterparty under the SPFC contract.
(Mar. 17, 2005, D.C. Law 15-262, § 206; as added Mar. 14, 2007, D.C. Law 16-285, § 2(b), 54 DCR 944.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 39A - Captive Insurance Companies (2004) › Subchapter II - Special Purpose Financial Captive Insurance Companies › § 31–3932.09. Dividends and distributions

§ 31–3932.09. Dividends and distributions.
(a) Dividends may be declared by the management of an SPFC if the dividends do not violate the provisions of this subchapter or jeopardize the fulfillment of the obligations of the SPFC or the trustee pursuant to the SPFC insurance securitization agreements, the SPFC contract, or any related transaction documents and other provisions of this subchapter.
(b) An SPFC shall not declare or pay dividends in any form other than in accordance with the insurance securitization transaction agreements and shall not declare or pay dividends which decrease the capital and surplus of the SPFC below $250,000.
(c) An SPFC or protected cell of an SPFC shall not pay dividends out of, or make any other distribution out of, its capital or surplus, or both, unless the SPFC or protected cell has obtained the prior written approval of the Commissioner to make the payment or distribution. After giving effect to the dividends, the assets of the SPFC, including assets held in trust pursuant to the terms of the insurance securitization, shall be sufficient to satisfy the Commissioner that the SPFC can meet its obligations.
(d) The Commissioner may approve an ongoing plan for the payment of dividends or other distributions by an SPFC or protected cell of an SPFC. Approval by the Commissioner of an ongoing plan for the payment of dividends or other distribution shall be conditioned upon the retention, at the time of each payment, of capital and surplus equal to or in excess of amounts specified by, or determined in accordance with formulas approved for the SPFC or protected cell by, the Commissioner.
(Mar. 17, 2005, D.C. Law 15-262, § 209; as added Mar. 14, 2007, D.C. Law 16-285, § 2(b), 54 DCR 944.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 39A - Captive Insurance Companies (2004) › Subchapter II - Special Purpose Financial Captive Insurance Companies › § 31–3932.10. Confidentiality of examination reports; disclosure of information

§ 31–3932.10. Confidentiality of examination reports; disclosure of information.
(a) Except as provided in this section, all examination reports, preliminary examination reports or results, working papers, recorded information, documents, and copies of documents produced by, obtained by, or disclosed to, the Commissioner or any other person in the course of an examination made pursuant to this section shall be confidential, shall not be subject to subpoena, and shall not be made public by the Commissioner or an employee or agent of the Commissioner without the written consent of the SPFC. This subsection shall not prevent the Commissioner from using this information in furtherance of the Commissioner’s regulatory authority as provided by this subchapter. The Commissioner may grant access to this information to public officers having jurisdiction over the regulation of insurance in another state or country, or to law enforcement officers of the District or another state or agency of the federal government at any time; provided, that the officers receiving the information agree in writing to hold it in a manner consistent with this section.
(b) Information submitted pursuant to this subchapter shall be confidential and shall not be made public by the Commissioner or an agent or employee of the Commissioner without the prior written consent of the SPFC; provided, that:
(1) Information submitted pursuant to the provisions of this subchapter shall be discoverable by a party in a civil action or contested case to which the submitting SPFC is a party upon a specific finding by the court that:
(A) The SPFC is a necessary party to the action and not joined only for the purposes of evading the confidentiality provisions of this subchapter;
(B) The party seeking the information demonstrates by a clear and convincing standard that the information sought is relevant, material to, and necessary for the prosecution or defense of the claim asserted in the action; and
(C) The information sought is unavailable from other nonconfidential sources.
(2) The Commissioner may disclose the information to the public official having jurisdiction over the regulation of insurance in another state if:
(A) The public official agrees in writing to maintain the confidentiality of the information; and
(B) The laws of the state in which the public official serves require the information to be confidential.
(Mar. 17, 2005, D.C. Law 15-262, § 210; as added Mar. 14, 2007, D.C. Law 16-285, § 2(b), 54 DCR 944.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 39A - Captive Insurance Companies (2004) › Subchapter II - Special Purpose Financial Captive Insurance Companies › § 31–3932.11. Reinsurance

§ 31–3932.11. Reinsurance.
An SPFC contract which complies with this subchapter shall be granted credit for reinsurance treatment or otherwise qualifies as an asset or a reduction from liability for reinsurance ceded by a domestic insurer to an SPFC as an assuming insurer pursuant to § 31-502, for the benefit of the counterparty; provided, that:
(1) Credit shall be granted only to the extent of the fair value of the assets held in trust for, or irrevocable letters of credit issued by a bank chartered by the District or a member bank of the Federal Reserve System or as approved by the Commissioner, for the benefit of the counterparty under the SPFC contract;
(2) The assets are held in trust pursuant to this subchapter;
(3) The assets are administered in the manner and pursuant to arrangements as provided in this subchapter; and
(4) The assets are held or invested in one or more of the forms allowed by § 31-3932.07.
(Mar. 17, 2005, D.C. Law 15-262, § 211; as added Mar. 14, 2007, D.C. Law 16-285, § 2(b), 54 DCR 944.)
Section References
This section is referenced in § 31-3932.07.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 39A - Captive Insurance Companies (2004) › Subchapter II - Special Purpose Financial Captive Insurance Companies › § 31–3932.13. Discount on reserves; report on reserves

§ 31–3932.13. Discount on reserves; report on reserves.
(a) An SPFC may discount its reserves at discount rates as approved by the Commissioner.
(b) An SPFC shall file annually an actuarial opinion on reserves provided by an approved independent actuary.
(Mar. 17, 2005, D.C. Law 15-262, § 213; as added Mar. 14, 2007, D.C. Law 16-285, § 2(b), 54 DCR 944.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 39A - Captive Insurance Companies (2004) › Subchapter II - Special Purpose Financial Captive Insurance Companies › § 31–3932.14. Standards and criteria applicable in a contested case brought by a third party and certain actions by the Commissioner

§ 31–3932.14. Standards and criteria applicable in a contested case brought by a third party and certain actions by the Commissioner.
(a) A contested case brought by a third party based on a decision of the Commissioner pursuant to this subchapter shall be governed by applicable civil law; provided, that, the aggrieved party shall:
(1) Prove the appeal through clear and convincing evidence;
(2) Demonstrate irreparable harm;
(3) Not have another adequate remedy at law; and
(4) Post a bond of sufficient surety to protect the interests of the holders of the SPFC securities and policyholders in an amount not less than 15% of the total amount of the securitized transaction.
(b) If the Commissioner decides to reverse, amend, or modify a certificate of authority issued to an SPFC or the order issued in connection with them for a reason other than that specified in § 31-3931.15, the Commissioner shall meet the standards and criteria provided in subsection (a) of this section.
(Mar. 17, 2005, D.C. Law 15-262, § 214; as added Mar. 14, 2007, D.C. Law 16-285, § 2(b), 54 DCR 944.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 39A - Captive Insurance Companies (2004) › Subchapter II - Special Purpose Financial Captive Insurance Companies › § 31–3932.15. Rulemaking

§ 31–3932.15. Rulemaking.
The Commissioner may promulgate rules necessary to effectuate the purposes of this subchapter. Rules promulgated pursuant to this section shall not affect an SPFC insurance securitization in effect at the time of the promulgation.
(Mar. 17, 2005, D.C. Law 15-262, § 215; as added Mar. 14, 2007, D.C. Law 16-285, § 2(b), 54 DCR 944.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 40 - Liability Coverage for Child Development Homes › § 31–4001. Definitions

§ 31–4001. Definitions.
For the purposes of this chapter, the term:
(1) “Insurer” means any individual, partnership, corporation, company, organization, professional association, or other business entity that issues, amends, or renews motor vehicle liability or homeowner’s liability insurance policies or contracts in the District of Columbia (“District”).
(2) “Child development home” means a child development program provided in a private residence for up to a total of 5 children and infants, with no more than 2 infants in the group. The total of 5 children and infants shall not include the children of the child development home caregiver who are 6 years of age or older if the total number of children of the child development home caregiver between the ages of 6 and 15 years of age does not exceed 3 children, and of those 3 children, no more than 2 are 10 years old or younger.
(3) “Child development program” means a program responsive to the stages of physical, emotional, social, and intellectual growth and behavior of infants or children.
(4) “Caregiver” means a person whose duties include direct care, supervision, and guidance of infants or children in a child development home.
(5) “Infant” means an individual between the ages of birth and 2 years.
(6) “Child” means an individual between the ages of 2 and 15 years.
(7) “Commissioner” means the Commissioner of the Department of Insurance, Securities, and Banking.
(8) “Person” means any individual, firm, partnership, company, corporation, trustee, or association.
(June 13, 1990, D.C. Law 8-140, § 2, 37 DCR 2651; May 21, 1997, D.C. Law 11-268, § 10(x), 44 DCR 1730; June 11, 2004, D.C. Law 15-166, § 4(y), 51 DCR 2817.)
Prior Codifications
1981 Ed., § 35-2501.
Effect of Amendments
D.C. Law 15-166, in par. (7), substituted “Commissioner of the Department of Insurance, Securities, and Banking” for “Commissioner of Insurance and Securities”.
Emergency Legislation
For temporary (90 day) amendment of section, see § 4(y) 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 40 - Liability Coverage for Child Development Homes › § 31–4002. General provisions

§ 31–4002. General provisions.
(a) An insurer shall offer to any person who is a licensed caregiver pursuant to 29 DCMR 301, optional liability and comprehensive coverage for up to a total of 5 children and infants. The optional protection shall provide liability coverage for a child or infant who is injured while attending the child development home and comprehensive coverage for property damage to the child development home.
(b) An insurer who offers motor vehicle liability insurance in the District, pursuant to Chapter 24 of this title, may offer to any policyholder who is licensed pursuant to 29 DCMR 301 as a child development home caregiver, optional personal injury protection to cover a child or infant who suffers an injury while a passenger in an automobile operated out of the insured’s activities as a child development home caregiver. The coverage required pursuant to this subsection shall be in an amount approved by the Commissioner.
(c) Nothing in this chapter shall prohibit an insurer from denying a child development home caregiver’s application for optional insurance or denying liability coverage to an insured for an injury that results from abuse or neglect.
(June 13, 1990, D.C. Law 8-140, § 3, 37 DCR 2651; May 21, 1997, D.C. Law 11-268, § 10(x), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2502.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 40 - Liability Coverage for Child Development Homes › § 31–4003. Commissioner to establish liability coverage levels

§ 31–4003. Commissioner to establish liability coverage levels.
For purposes of this chapter, the Commissioner shall establish liability coverage levels in rulemaking pursuant to the provisions of subchapter I of Chapter 5 of Title 2.
(June 13, 1990, D.C. Law 8-140, § 4, 37 DCR 2651; May 21, 1997, D.C. Law 11-268, § 10, 44 DCR 1730; Mar. 24, 1998, D.C. Law 12-81, § 34, 45 DCR 745.)
Prior Codifications
1981 Ed., § 35-2503.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41 - Risk Retention › § 31–4104. Restrictions

§ 31–4104. Restrictions.
(a) No risk retention group shall be required or permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in the District, nor shall any risk retention group or its insureds or claimants against its insureds, receive any benefit from such a fund for claims arising under the insurance policies issued by the risk retention group.
(b) When a purchasing group obtains insurance covering its members from an insurer not authorized in this state, or a risk retention group, no risks, resident or located, shall be covered by any insurance guaranty fund or similar mechanism in the District.
(c) When a purchasing group obtains insurance covering its members’ risks from an authorized insurer, only risks resident or located in the District shall be covered by the District property and liability guaranty fund.
(Oct. 21, 1993, D.C. Law 10-46, § 5, 40 DCR 6082.)
Prior Codifications
1981 Ed., § 35-2904.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41 - Risk Retention › § 31–4105. Countersignatures not required

§ 31–4105. Countersignatures not required.
A policy of insurance issued to a risk retention group, or any member of that group, shall not be required to be countersigned as otherwise provided in the District of Columbia insurance law.
(Oct. 21, 1993, D.C. Law 10-46, § 6, 40 DCR 6082.)
Prior Codifications
1981 Ed., § 35-2905.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41 - Risk Retention › § 31–4106. Purchasing groups — Exemption from certain laws

§ 31–4106. Purchasing groups — Exemption from certain laws.
A purchasing group and its insurer or insurers shall be subject to all applicable laws of the District, except that a purchasing group and its insurer or insurers shall be exempt, in regard to liability insurance for the purchasing group, from any law that would:
(1) Prohibit the establishment of a purchasing group;
(2) Make it unlawful for an insurer to provide, or offer to provide, insurance on a basis providing to a purchasing group or its members advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages, or other matters;
(3) Prohibit a purchasing group or its members from purchasing insurance on a group basis described in paragraph (2) of this section;
(4) Prohibit a purchasing group from obtaining insurance on a group because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time;
(5) Require that a purchasing group must have a minimum number of common ownership or affiliation, or certain legal form;
(6) Require that a certain percentage of a purchasing group must obtain insurance on a group basis;
(7) Otherwise discriminate against a purchasing group or any of its members; or
(8) Require that any insurance policy issued to a purchasing group or any of its members be countersigned by an insurance agent or broker residing in the District.
(Oct. 21, 1993, D.C. Law 10-46, § 7, 40 DCR 6082.)
Prior Codifications
1981 Ed., § 35-2906.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41 - Risk Retention › § 31–4107. Notice and registration requirements of purchasing groups

§ 31–4107. Notice and registration requirements of purchasing groups.
(a) A purchasing group which intends to do business in the District shall, prior to doing business, furnish notice to the Commissioner which shall:
(1) Identify the state in which the group is domiciled;
(2) Identify all other states in which the group intends to do business;
(3) Specify the lines and classifications of liability insurance which the purchasing group intends to purchase;
(4) Identify the insurance company or companies from which the group intends to purchase its insurance and the domicile of each company;
(5) Specify the method by which, and the person or persons, if any, through whom, the insurance will be offered to its members whose risks are resident or located in the District;
(6) Identify the principal place of business of the group; and
(7) Provide any other information required by the Commissioner to verify that the purchasing group is qualified under § 31-4101(11).
(b) A purchasing group shall, within 10 days, notify the Commissioner of any changes in any of the items set forth in subsection (a) of this section.
(c) The purchasing group shall register with the District and provide proof of compliance with the service of process provisions of § 31-202, for which a filing fee shall be determined by the Commissioner, except that these requirements shall not apply in the case of a purchasing group which only purchases insurance that was authorized under the federal Product Liability Risk Retention Act of 1981 (15 U.S.C. § 3901 et seq.), and:
(1) Which was domiciled in any state of the United States before April 1, 1986, and after October 27, 1986;
(2) Which purchased insurance from an insurance carrier licensed in any state before October 27, 1986, and since October 27, 1986; or
(3) Which was a purchasing group under the requirements of the federal Product Liability Risk Retention Act of 1981 (15 U.S.C. § 3901 et seq.), before October 27, 1986.
(d) Each purchasing group that is required to give notice pursuant to subsection (a) of this section shall also furnish information required by the Commissioner to:
(1) Verify that the entity qualifies as a purchasing group;
(2) Determine where the purchasing group is located; and
(3) Determine appropriate tax treatment.
(e) Any purchasing group which was doing business in the District prior to the enactment of this chapter shall, within 30 days after October 21, 1993, furnish notice to the Mayor pursuant to the provisions of subsection (a) of this section and furnish the information required pursuant to subsections (b) and (c) of this section.
(Oct. 21, 1993, D.C. Law 10-46, § 8, 40 DCR 6082; Mar. 21, 1995, D.C. Law 10-233, § 9, 42 DCR 24; May 21, 1997, D.C. Law 11-268, § 10(aa)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2907.
Section References
This section is referenced in § 31-4111.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41 - Risk Retention › § 31–4108. Restrictions on insurance purchased by purchasing groups

§ 31–4108. Restrictions on insurance purchased by purchasing groups.
(a) A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed agent or broker acting pursuant to the surplus lines laws and regulations of such a state.
(b) A purchasing group which obtains liability insurance from an insurer not admitted in the District or a risk retention group shall inform each of the members of the group that has a risk resident or located in the District that such a risk is not protected by an insurance insolvency guaranty fund in the District, and that the risk retention group or the insurer may not be subject to all the insurance laws and regulations of the District.
(c) No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole; however, coverage may provide for a deductible or self-insured retention applicable to individual members.
(d) Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits which are applicable to all purchases of group insurance.
(Oct. 21, 1993, D.C. Law 10-46, § 9, 40 DCR 6082.)
Prior Codifications
1981 Ed., § 35-2908.
Section References
This section is referenced in § 31-4111.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41 - Risk Retention › § 31–4109. Purchasing group taxation

§ 31–4109. Purchasing group taxation.
Premium taxes and taxes on premiums paid for coverage of risks resident or located in the District by a purchasing group or any members of the purchasing groups shall be:
(1) Imposed at the same rate and subject to the same interest, fines, and penalties as that applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insureds; and
(2) Paid first by the insurance source, and if not by the source by the agent or broker for the purchasing group, and if not by the agent or broker then by the purchasing group, and if not by the purchasing group then by each of its members.
(Oct. 21, 1993, D.C. Law 10-46, § 10, 40 DCR 6082.)
Prior Codifications
1981 Ed., § 35-2909.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41 - Risk Retention › § 31–4110. Administrative and procedural authority regarding risk retention groups and purchasing groups

§ 31–4110. Administrative and procedural authority regarding risk retention groups and purchasing groups.
The Commissioner is authorized to make use of any of the powers established under the Insurance Code of the District of Columbia to enforce the laws of the District of Columbia not specifically preempted by the federal Liability Risk Retention Act of 1986 (15 U.S.C. § 3901 et seq.), including the Commissioner’s administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, impose penalties, and seek injunctive relief. With regard to any investigation, administrative proceedings, or litigation, the Commissioner can rely on the procedural laws of the District. The injunctive authority of the Commissioner, in regard to risk retention groups, is restricted by the requirement that any injunction be issued by a court of competent jurisdiction.
(Oct. 21, 1993, D.C. Law 10-46, § 11, 40 DCR 6082; Apr. 9, 1997, D.C. Law 11-255, § 41, 44 DCR 1271; May 21, 1997, D.C. Law 11-268, § 10(aa)(2), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-2910.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41 - Risk Retention › § 31–4111. Duty of agents or brokers to obtain license

§ 31–4111. Duty of agents or brokers to obtain license.
(a) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance in the District from a risk retention group unless the person, firm, association, or corporation is licensed as an insurance agent or broker in accordance with the District of Columbia insurance licensing laws.
(b)(1) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance in the District for a purchasing group from an authorized insurer or a risk retention group chartered in a state unless the person, firm, association, or corporation is licensed as an insurance agent or broker in accordance with the District of Columbia insurance licensing laws.
(2) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance coverage in the District for any member of a purchasing group under a purchasing group’s policy unless the person, firm, association, or corporation is licensed as an insurance agent or broker in accordance with the District of Columbia insurance licensing laws.
(3) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance from an insurer not authorized to do business in the District on behalf of a purchasing group located in this state unless the person, firm, association, or corporation is licensed as a surplus lines agent or excess line broker in accordance with the District of Columbia insurance licensing laws.
(c) For purposes of acting as an agent or broker for a risk retention or purchasing group pursuant to subsections (a) and (b) of this section, the requirement of residence in the District shall not apply.
(d) Every person, firm, association, or corporation licensed pursuant to the provisions of Chapter 28 of Title 47, on business placed with risk retention groups or written through a purchasing group, shall inform each prospective insured of the provisions of the notice required by § 31-4108(b) in the case of a risk retention group and § 31-4107(c) in the case of a purchasing group.
(Oct. 21, 1993, D.C. Law 10-46, § 12, 40 DCR 6082; Feb. 27, 1996, D.C. Law 11-90, § 3(g), 42 DCR 7155.)
Prior Codifications
1981 Ed., § 35-2911.
Section References
This section is referenced in § 31-4103.
Emergency Legislation
For temporary amendment of section, see § 3(g) of the Insurance Omnibus Emergency Amendment Act of 1995 (D.C. Act 11-48, May 15, 1995, 42 DCR 2544) and § 3(g) 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 § 3(g) 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 41 - Risk Retention › § 31–4112. Binding effect of orders issued in United States District Court

§ 31–4112. Binding effect of orders issued in United States District Court.
An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating in any state, or in all states or in any territory or possession of the United States, upon finding that such a group is in hazardous financial or financially impaired condition shall be enforceable in the courts of the state.
(Oct. 21, 1993, D.C. Law 10-46, § 13, 40 DCR 6082.)
Prior Codifications
1981 Ed., § 35-2912.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41A - Risk Management and Own Risk and Solvency Assessment › § 31–4121.01. Definitions

§ 31–4121.01. Definitions.
For the purposes of this chapter, the term:
(1) "Commissioner" means the Commissioner of the Department of Insurance, Securities and Banking.
(2) "Department" means the Department of Insurance, Securities and Banking.
(3) "Holding Company System Act" means subchapter I of Chapter 7 of this title.
(4) "Insurance group" means those insurers and affiliates included within an insurance holding company system as defined in § 31-701(4).
(5) "Insurer" means the same as provided in § 31-301(3); except, that it shall not include, agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state.
(6) "Own Risk and Solvency Assessment" or "ORSA" means a confidential internal assessment appropriate to the nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or insurance group, of the material and relevant risks associated with the insurer or insurance group's current business plan and the sufficiency of capital resources to support those risks.
(7) "ORSA Guidance Manual" means the current version of the Own Risk and Solvency Assessment Guidance Manual developed and adopted by NAIC.
(8) "ORSA Summary Report" means a confidential high-level summary of an insurer's or insurance group's ORSA.
(9) "NAIC" means the National Association of Insurance Commissioners.
(Mar. 28, 2019, D.C. Law 22-269, § 2, 66 DCR 1438.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41A - Risk Management and Own Risk and Solvency Assessment › § 31–4121.02. Risk management framework

§ 31–4121.02. Risk management framework.
(a)(1) An insurer shall maintain a risk management framework, as described in the ORSA Guidance Manual, to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks.
(2) A change in the ORSA Guidance Manual shall be effective on the January 1 following the calendar year in which the changes are adopted by NAIC.
(b) The requirement set forth in subsection (a) of this section may be satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
(Mar. 28, 2019, D.C. Law 22-269, § 3, 66 DCR 1438.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41A - Risk Management and Own Risk and Solvency Assessment › § 31–4121.03. ORSA requirement

§ 31–4121.03. ORSA requirement.
Except as provided in § 31-4121.05, an insurer, or the insurance group of which the insurer is a member, shall conduct an ORSA using a process comparable to the applicable process contained in the ORSA Guidance Manual annually and any time there is significant change to the risk profile of the insurer or the insurance group of which the insurer is a member.
(Mar. 28, 2019, D.C. Law 22-269, § 4, 66 DCR 1438.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41A - Risk Management and Own Risk and Solvency Assessment › § 31–4121.04. ORSA Summary Report

§ 31–4121.04. ORSA Summary Report.
(a) Upon the Commissioner's request, and no more than once each year, an insurer shall submit to the Commissioner an ORSA Summary Report or any combination of reports applicable to the insurer or the insurance group of which it is a member that together contain the information described in the ORSA Guidance Manual ("reports"). If the insurer is a member of an insurance group, the insurer shall annually submit the reports required by this subsection to the lead state commissioner of the insurance group as determined by the procedures within the Financial Analysis Handbook adopted by the NAIC regardless of whether the Commissioner has made a request.
(b) The reports shall be signed by the insurer or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process. The executive shall attest that to the best of the executive's belief and knowledge the insurer has applied the enterprise risk management process described in the ORSA Summary Report and that a copy of the report has been provided to the insurer's board of directors or the appropriate committee of the board.
(c) An insurer may comply with subsection (a) of this section by providing the most recent and substantially similar report provided by the insurer or another member of an insurance group of which the insurer is a member to the commissioner of another state or to a supervisor or regulator of a foreign jurisdiction; provided, that the report provides information that is comparable to the information described in the ORSA Guidance Manual; provider further, that a report in a language other than English shall be accompanied by an English translation of the report.
(Mar. 28, 2019, D.C. Law 22-269, § 5, 66 DCR 1438.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41A - Risk Management and Own Risk and Solvency Assessment › § 31–4121.06. Contents of ORSA Summary Report

§ 31–4121.06. Contents of ORSA Summary Report.
(a) The ORSA Summary Report, and any additional requests for information, shall be prepared:
(1) In consistence with the ORSA Guidance Manual; and
(2) Using procedures consistent with § 31-707 and Chapter 14 of this title.
(b) Documentation and supporting information shall be maintained for a period to be determined by the Commissioner and made available upon request of the Commissioner.
(Mar. 28, 2019, D.C. Law 22-269, § 7, 66 DCR 1438.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41A - Risk Management and Own Risk and Solvency Assessment › § 31–4121.08. Sanctions

§ 31–4121.08. Sanctions.
An insurer failing without just cause, as defined by the Commissioner by rule, to timely file an ORSA Summary Report required by this chapter shall, after notice and a hearing conducted according to the rules for contested cases set forth in Chapter 38 of Title 26 of the District of Columbia Municipal Regulations, be subject to a penalty in an amount not to exceed $1,000 per day. The maximum penalty assessed under this section shall be $25,000. The Commissioner shall recover this penalty.
(Mar. 28, 2019, D.C. Law 22-269, § 9, 66 DCR 1438.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 41A - Risk Management and Own Risk and Solvency Assessment › § 31–4121.09. Rulemaking

§ 31–4121.09. Rulemaking.
The Commissioner, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this chapter.
(Mar. 28, 2019, D.C. Law 22-269, § 10, 66 DCR 1438.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 42 - General Provisions › § 31–4201. Short title; applicability of provisions

§ 31–4201. Short title; applicability of provisions.
This subdivision shall be known as the “Life Insurance Act.” All life insurance companies now or hereafter incorporated or formed by authority of any general or special law of this District or by other act of Congress, and all foreign and alien companies authorized to do business in this District, shall be subject to said chapters.
(June 19, 1934, 48 Stat. 1127, ch. 672, ch. I, § 1.)
Prior Codifications
1981 Ed., § 35-301.
1973 Ed., § 35-301.
Cross References
Application of chapter to existing companies, see § 31-4420.
Hospital and medical services corporations, applicability of this section, see § 31-3503.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 43 - Department of Insurance, Securities, And Banking with Respect to Life Companies › § 31–4302. Collection of charges and fees

§ 31–4302. Collection of charges and fees.
(a) All charges and fees provided for in this section shall be collected by the Commissioner and made payable to the District of Columbia.
(b) For filing charter or articles of incorporation or association, or deed of settlement or copy thereof, required by law, $300; for each company certificate of authority, $200, renewal fee, $200; for license of each general agent, $100, renewal fee, $100; for license of each agent, or solicitor, $50, renewal fee $50; for license of each broker, $100, renewal fee, $100. For each appointment fee for each agent, general agent, or each solicitor, $25 fee, $25 renewal fee; provided, however, that beginning October 1, 1994, the license and renewal fee of each general agent, agent or solicitor, and broker shall be payable biennially in accordance with the rulemaking procedures in section 3(a)(2).
(c) The Mayor may amend all fees referred to in this chapter by rulemaking pursuant to subchapter I of Chapter 5 of Title 2.
(June 19, 1934, 48 Stat. 1130, ch. 672, ch. II, § 2; Feb. 23, 1980, D.C. Law 3-52, § 2, 27 DCR 26; June 14, 1994, D.C. Law 10-128, § 401, 41 DCR 2096; Feb. 27, 1996, D.C. Law 11-90, § 10, 42 DCR 7155; May 21, 1997, D.C. Law 11-268, § 10(i), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-402.
1973 Ed., § 35-402.
Section References
This section is referenced in § 31-3503.
Cross References
Hospital and medical services corporations, applicability of this section, see § 31-3503.
Taxation and fiscal affairs of insurance companies, see § 47-2601 et
Emergency Legislation
For temporary amendment of section, see § 11 of the Insurance Omnibus Emergency Amendment Act of 1995 (D.C. Act 11-48, May 15, 1995, 42 DCR 2544) and § 10 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 § 10 of Insurance Omnibus Temporary Amendment Act of 1995 (D.C. Law 11-36, September 8, 1995, law notification 42 DCR 5305).
References in Text
“Section 3(a)(2),” referred to in (b), is § 3(a)(2) of chapter II of the Life Insurance Act, approved June 19, 1934, Pub. L. 73-436, 48 Stat. 1130, ch. 672.
Editor's Notes
Department of Insurance abolished: See Historical and Statutory Notes following § 31-4301.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 43 - Department of Insurance, Securities, And Banking with Respect to Life Companies › § 31–4303. Disposition of excess in fees, charges, or taxes

§ 31–4303. Disposition of excess in fees, charges, or taxes.
Whenever it appears to the satisfaction of the Commissioner that, because of some error, mistake, or erroneous interpretation of a statute, a company has paid fees, charges, or taxes in excess of the amount legally chargeable against it, the Commissioner shall, on application of the company, present the matter to the Mayor, with the view of refunding to such company any such excess, or applying the excess or portion thereof toward the payment of fees, charges, or taxes already due from such company.
(June 19, 1934, 48 Stat. 1131, ch. 672, ch. II, § 4; May 21, 1997, D.C. Law 11-268, § 10(i), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-403.
1973 Ed., § 35-403.
Section References
This section is referenced in § 31-3503.
Cross References
Hospital and medical services corporations, applicability of this section, see § 31-3503.
Tax refunds, see §§ 47-1317, 47-1318.
Editor's Notes
Department of Insurance abolished: See Historical and Statutory Notes following § 31-4301.
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 401 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 a single Commissioner. 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 43 - Department of Insurance, Securities, And Banking with Respect to Life Companies › § 31–4306. Annual financial statement — Forms to be furnished by Superintendent. [Repealed]

§ 31–4306. Annual financial statement — Forms to be furnished by Superintendent. [Repealed]
Repealed.
(Oct. 21, 1993, D.C. Law 10-42, § 7(b), 40 DCR 6020.)
Prior Codifications
1981 Ed., §§ 35-406, 35-407.
Editor's Notes
D.C. Law 11-268, § 10(i) ( 44 DCR 1730), eff. May 21, 1997, amends these sections subsequent to their repeal.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 43 - Department of Insurance, Securities, And Banking with Respect to Life Companies › § 31–4307. Annual financial statement — Companies required to file; failure to file; publication of summary [Repealed]

§ 31–4307. Annual financial statement — Companies required to file; failure to file; publication of summary [Repealed]
Repealed.
(Oct. 21, 1993, D.C. Law 10-42, § 7(b), 40 DCR 6020.)
Prior Codifications
1981 Ed., §§ 35-406, 35-407.
Editor's Notes
D.C. Law 11-268, § 10(i) ( 44 DCR 1730), eff. May 21, 1997, amends these sections subsequent to their repeal.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 43 - Department of Insurance, Securities, And Banking with Respect to Life Companies › § 31–4308. Companies or agents not to make or publish false statements. [Repealed]

§ 31–4308. Companies or agents not to make or publish false statements. [Repealed]
Repealed.
(June 19, 1934, 48 Stat. 1132, ch. 672, ch. II, § 9; Apr. 3, 2001, D.C. Law 13-265, § 126(a), 48 DCR 1225; redesignated § 301, Oct. 19, 2002, D.C. Law 14-213, § 20(b), 49 DCR 8140.)
Prior Codifications
1981 Ed., § 35-408.
1973 Ed., § 35-408.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 43 - Department of Insurance, Securities, And Banking with Respect to Life Companies › § 31–4309. Representation of financial standing—All companies or agents. [Repealed]

§ 31–4309. Representation of financial standing—All companies or agents. [Repealed]
Repealed.
(June 19, 1934, 48 Stat. 1132, ch. 672, ch. II, § 10; Apr. 3, 2001, D.C. Law 13-265, § 126(a), 48 DCR 1225; redesignated § 301, Oct. 19, 2002, D.C. Law 14-213, § 20(b), 49 DCR 8140.)
Prior Codifications
1981 Ed., § 35-409.
1973 Ed., § 35-409.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 43 - Department of Insurance, Securities, And Banking with Respect to Life Companies › § 31–4310. Representation of financial standing — Alien companies; violations

§ 31–4310. Representation of financial standing — Alien companies; violations.
(a) Every advertisement or public announcement and every sign, circular, or card issued by an alien company doing business in the District, representing its financial standing, shall exhibit as capital stock and assets only the capital stock and assets held by its United States branch, the liabilities, including therein the premium and loss reserves required by law, and the amount of surplus, and shall correspond to the next preceding verified statement made by such company to the Commissioner; provided, however, that this section shall not be deemed to prevent an alien company from furnishing to its policyholders in the District of Columbia its annual report to policyholders of its domicile. This subsection shall not apply to an alien company which maintains in the United States, as required by law, assets held in trust for the benefit of the United States policyholders in an amount not less than the sum of its required capital deposit and the amount of its outstanding liabilities arising out of its insurance transactions in the United States.
(b) Any violation of this section or § 31-4309 [repealed] shall be a misdemeanor, and any person convicted of such violation shall, for the 1st offense, be liable to a fine of not more than $500, and for each subsequent offense shall be liable to a fine of not more than $1,000.
(June 19, 1934, 48 Stat. 1132, ch. 672, ch. II, § 11; Dec. 5, 1963, 77 Stat. 347, Pub. L. 88-193, § 2; Sept. 7, 1966, 80 Stat. 705, Pub. L. 89-559,§ 1; Aug. 8, 1968, 82 Stat. 662, Pub. L. 90-467; May 21, 1997, D.C. Law 11-268, § 10(i), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-410.
1973 Ed., § 35-410.
Section References
This section is referenced in § 31-3503.
Cross References
Hospital and medical services corporations, applicability of this section, see § 31-3503.
Editor's Notes
Department of Insurance abolished: See Historical and Statutory Notes following § 31-4301.