reglab/statecodes huggingface dataset:
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 8A - Insurance Compliance Self-Evaluation Privilege › § 31–857. Burden of proof

§ 31–857. Burden of proof.
(a) A company asserting the privilege shall have the burden of demonstrating the applicability of the privilege. If a company has established the applicability of the privilege, a party seeking disclosure under § 31-854 shall have the burden of proving that the privilege is asserted for a fraudulent purpose or that the company failed to undertake reasonable corrective action or eliminate the noncompliance within a reasonable time. The Commissioner, Corporation Counsel, or U. S. Attorney seeking disclosure under § 31-855 shall have the burden of proof.
(b) The parties may at any time agree to entry of an order directing that specific information contained in an insurance compliance self-evaluative audit document be disclosed.
(Apr. 11, 2003, D.C. Law 14-293, § 8, 50 DCR 296.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 8A - Insurance Compliance Self-Evaluation Privilege › § 31–858. Applicability

§ 31–858. Applicability.
The privilege shall apply to all litigation or administrative proceedings pending on April 11, 2003, or filed subsequent to April 11, 2003.
(Apr. 11, 2003, D.C. Law 14-293, § 9, 50 DCR 296.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–901. Definitions

§ 31–901. Definitions.
For the purposes of this chapter, the term:
(1) “Converted stock company” means a District of Columbia domiciled stock company that converted from a District of Columbia mutual company pursuant to this chapter.
(1A) “Commissioner” means the Commissioner of Insurance and Securities [Commissioner of the Department of Insurance, Securities, and Banking].
(2) “District” means the District of Columbia.
(3) “Eligible member” means a member whose policy is in force as of the date the mutual company’s board of directors adopts a plan of conversion.
(A) A person insured under a group policy is not an eligible member, unless:
(i) The person is insured or covered under a group life policy or group annuity contract under which funds are accumulated and allocated to the respective covered person;
(ii) The person has the right to direct the application of the funds so allocated;
(iii) The group policyholder makes no contribution to the premiums or deposits for the policy or contract; and
(iv) The mutual company has the names and addresses covered under the group policy or group annuity contract.
(B) A person whose policy is issued after the board of directors adopts the plan but before the plan’s effective date is not an eligible member, but shall have those rights set forth in § 31-910.
(4) “Plan of conversion” or “plan” means a plan adopted by a District of Columbia domestic mutual company’s board of directors pursuant to this chapter to convert the mutual company into a District of Columbia domiciled stock company.
(5) “Policy” includes an annuity contract.
(6) Repealed.
(May 24, 1996, D.C. Law 11-126, § 2, 43 DCR 1551; Mar. 24, 1998, D.C. Law 12-81, § 43(a), 45 DCR 745.)
Prior Codifications
1981 Ed., § 35-4201.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–902. Adoption of the plan of conversion by the board of directors

§ 31–902. Adoption of the plan of conversion by the board of directors.
(a) A mutual company seeking to convert to a stock company shall, by the affirmative vote of a majority of its board of directors, adopt a plan of conversion consistent with the requirements of § 31-906.
(b) At any time before approval of a plan by the Commissioner, the mutual company, by the affirmative vote of a majority of its board of directors, may amend or withdraw the plan.
(May 24, 1996, D.C. Law 11-126, § 3, 43 DCR 1551; Mar. 24, 1998, D.C. Law 12-81, § 43(b), 45 DCR 745; Apr. 3, 2001, D.C. Law 13-214, § 2(a), 47 DCR 9580.)
Prior Codifications
1981 Ed., § 35-4202.
Effect of Amendments
D.C. Law 13-214 substituted “a majority” for “2/3” in subsecs. (a) and (b).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–903. Approval of the plan of conversion by the Commissioner of the Department of Insurance, Securities, and Banking

§ 31–903. Approval of the plan of conversion by the Commissioner of the Department of Insurance, Securities, and Banking.
(a) After adoption by the mutual company’s board of directors, the plan shall be submitted to the Commissioner for review and approval. The Commissioner shall approve the plan upon finding that:
(1) The provisions of this section have been complied with;
(2) The plan will not prejudice the interests of the members; and
(3) The plan’s method of allocating subscription rights is fair and equitable.
(a-1) The Commissioner, in his discretion, may order that a hearing on the plan be held, which hearing shall be conducted in accordance with the contested case procedures set forth in § 2-509.
(a-2) A decision or order of the Commissioner, after a hearing conducted in accordance with the contested case procedures as set forth in subsection (a-1) of this section, may be reviewed as provided in § 2-510.
(b) Prior to the members’ approval of the plan, a mutual company seeking the Commissioner’s approval of a plan shall file the following documents with the Commissioner for review and approval:
(1) The plan of conversion, including the independent evaluation of pro forma market value required by § 31-906(f);
(2) The form of notice required by § 31-904(b) for eligible members of the meeting to vote on the plan;
(3) Any proxies to be solicited from eligible members pursuant to § 31-904(c);
(4) The form of notice required by § 31-910(a) for persons whose policies are issued after adoption of the plan but before its effective date; and
(5) The proposed articles of incorporation and bylaws of the converted stock company. Once filed, these documents shall be approved or disapproved by the Commissioner within a reasonable time.
(c) After the members have approved the plan, the converted stock company shall file the following documents with the Commissioner:
(1) The minutes of the meeting of the members at which the plan was voted upon; and
(2) The revised articles of incorporation and bylaws of the converted stock company.
(d) The Commissioner may retain, at the mutual company’s expense, any qualified expert not otherwise a part of the Commissioner’s staff to assist in reviewing the plan and the independent evaluation of the pro forma market value which is required by § 31-906(i).
(May 24, 1996, D.C. Law 11-126, § 4, 43 DCR 1551; Mar. 24, 1998, D.C. Law 12-81, § 43(c), 45 DCR 745; Apr. 3, 2001, D.C. Law 13-214, § 2(b), 47 DCR 9580; Oct. 19, 2002, D.C. Law 14-213, § 19, 49 DCR 8140.)
Prior Codifications
1981 Ed., § 35-4203.
Section References
This section is referenced in § 31-1371.05.
Effect of Amendments
D.C. Law 13-214 inserted subsecs. (a-1) and (a-2).
D.C. Law 14-213, in subsec. (a-2), validated a previously made technical correction.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–904. Approval of the plan by the members

§ 31–904. Approval of the plan by the members.
(a) All eligible members shall be given notice of and an opportunity to vote upon the plan.
(b) All eligible members shall be given notice of the members’ meeting to vote upon the plan. A copy of the plan or a summary of the plan shall accompany the notice. The notice shall be mailed to each member’s last known address, as shown on the mutual company’s records, within 45 days of the Commissioner’s approval of the plan. The meeting to vote upon the plan shall not be set for a date less than 10 days and no more than 60 days after the date when the notice of the meeting is mailed by the mutual company. If the meeting to vote upon the plan is held coincident with the mutual company’s annual meeting of policyholders, only one combined notice of meeting is required.
(c) After approval by the Commissioner, the plan shall be adopted upon receiving the affirmative vote of at least a majority of the votes cast by eligible members. Members entitled to vote upon the proposed plan may vote in person or by proxy. Any proxies to be solicited from eligible members shall be filed with and approved by the Commissioner. The number of votes each eligible member may cast shall be determined by the mutual company bylaws. If the bylaws are silent, each eligible member may cast one vote.
(May 24, 1996, D.C. Law 11-126, § 5, 43 DCR 1551; Mar. 24, 1998, D.C. Law 12-81, § 43(d), 45 DCR 745; Apr. 3, 2001, D.C. Law 13-214, § 2(c), 47 DCR 9580.)
Prior Codifications
1981 Ed., § 35-4204.
Section References
This section is referenced in § 31-903.
Effect of Amendments
D.C. Law 13-214, in subsec. (b), substituted “10 days and no more than 60 days” for “60 days”.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–905. Adoption of revised articles of incorporation

§ 31–905. Adoption of revised articles of incorporation.
(a) Adoption of the revised articles of incorporation of the converted stock company is necessary to implement the plan and shall be governed by the applicable provisions of District law.
(b) For a Class 1 mutual company, the members may adopt the revised articles of incorporation at the same meeting at which the members approve the plan.
(c) For a Class 2 or 3 mutual company, the revised articles of incorporation may be adopted solely by the board of directors or trustees, as provided by District law.
(May 24, 1996, D.C. Law 11-126, § 6, 43 DCR 1551.)
Prior Codifications
1981 Ed., § 35-4205.
Emergency Legislation
For temporary amendment of section, see § 2(a) of the Insurance Demutualization Emergency Amendment Act of 1998 (D.C. Act 12-528, December 16, 1998, 45 DCR 476).
For temporary (90-day) amendment of section, see § 2(a) of the Insurance Demutualization Congressional Review Emergency Amendment Act of 1999 (D.C. Act 13-35, March 18, 1999, 46 DCR 3004).
Temporary Legislation
For temporary (225 day) amendment of section, see § 2(a) of the Insurance Demutualization Temporary Amendment Act of 1998 (D.C. Law 12-221, April 13, 1999, law notification 46 DCR 3843).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–905.01. Acquiring, offering securities issued in connection with a plan of conversion

§ 31–905.01. Acquiring, offering securities issued in connection with a plan of conversion.
Prior to implementation of a plan of conversion adopted by a mutual company, no person shall knowingly acquire, or make any offer, or make any announcement of an offer, for any security issued, or to be issued, by the mutual company in connection with its plan of conversion, or for any security issued by any other company authorized as an alternative for purposes of effecting the conversion pursuant to § 31-906(e), except in compliance with the maximum purchase limitations imposed by § 31-906(l) or the terms of the plan of conversion as approved by the Commissioner.
(May 24, 1996, D.C. Law 11-126, § 6a, 43 DCR 1551; as added July 17, 1999, D.C. Law 13-13, § 2(a), 46 DCR 4428.)
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–907. Optional provisions in a plan of conversion

§ 31–907. Optional provisions in a plan of conversion.
(a) The following provisions may be included in the plan:
(1) The plan may provide that the directors and officers of the mutual company shall receive, without payment, nontransferable subscription rights to purchase capital stock of the converted stock company or the stock of another corporation that is participating in the conversion plan as provided in § 31-906(e). Those subscription rights shall be allocated among the directors and officers by a fair and equitable formula.
(2) The total number of shares that may be purchased under subsection (a)(1) of this section may not exceed 85% of the total number of shares to be issued in the case of a mutual company with total assets of less than $50 million, or 25% of the total shares to be issued in the case of a mutual company with total assets or more than $500 million. For mutual companies with total assets between $50 million and $500 million, the total number of shares that may be purchased shall be interpolated.
(3) Stock purchased by a director or officer under subsection (a)(1) of this section shall not be sold within one year following the effective date of the conversion.
(4) The plan may also provide that a director or officer or person acting in concert with a director or officer of the mutual company may not acquire any capital stock of the converted stock company for 3 years after the effective date of the plan, except through a broker or dealer, without the permission of the Commissioner. That provision may not apply to prohibit the directors and officers from purchasing stock through subscription rights received in the plan under subsection (a)(1) of this section.
(b) The plan may allocate to a tax-qualified employee benefit plan nontransferable subscription rights to purchase up to 10% of the capital stock of the converted stock company, or the stock of another corporation that is participating in the conversion plan as provided in § 31-906(e) and (l). The employee benefit plan shall be entitled to exercise its subscription rights regardless of the amount of shares purchased by other persons.
(May 24, 1996, D.C. Law 11-126, § 8, 43 DCR 1551; Mar. 24, 1998, D.C. Law 12-81, § 43(f), 45 DCR 745; July 17, 1999, D.C. Law 13-13, § 2(b), 46 DCR 4428.)
Prior Codifications
1981 Ed., § 35-4207.
Section References
This section is referenced in § 31-906.
Effect of Amendments
D.C. Law 13-13 in subsecs. (a) and (b) modified the statutory referents.
Emergency Legislation
For temporary amendment of section, see § 2(b) of the Insurance Demutualization Emergency Amendment Act of 1998 (D.C. Act 12-528, December 16, 1998, 45 DCR 476).
For temporary (90-day) amendment of section, see § 2(b) of the Insurance Demutualization Congressional Review Emergency Amendment Act of 1999 (D.C. Act 13-35, March 18, 1999, 46 DCR 3004).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–908. Alternative plan of conversion

§ 31–908. Alternative plan of conversion.
The board of directors may adopt a plan of conversion that does not rely in whole or in part upon the issuance to members of nontransferable subscription rights to purchase stock of the converted stock company if the Commissioner finds that the plan does not prejudice the interest of the members, is fair and equitable, and is based upon an independent appraisal of the market value of the mutual company by a qualified person and a fair and equitable allocation of any consideration to be given eligible members. The Commissioner may retain, at the mutual company’s expense, any qualified expert not otherwise a part of the Commissioner’s staff to assist in reviewing whether the plan may be approved by the Commissioner.
(May 24, 1996, D.C. Law 11-126, § 9, 43 DCR 1551; Mar. 24, 1998, D.C. Law 12-81, § 43(g), 45 DCR 745.)
Prior Codifications
1981 Ed., § 35-4208.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–909. Effective date of the plan

§ 31–909. Effective date of the plan.
A plan shall become effective when the Commissioner has approved the plan.
(May 24, 1996, D.C. Law 11-126, § 10, 43 DCR 1551; Mar. 24, 1998, D.C. Law 12-81, § 43(h), 45 DCR 745; Apr. 3, 2001, D.C. Law 13-214, § 2(e), 47 DCR 9580.)
Prior Codifications
1981 Ed., § 35-4209.
Effect of Amendments
D.C. Law 13-214 rewrote the section which had read:
“A plan shall become effective when the Commissioner has approved the plan, the members have approved the plan, and the revised articles of incorporation have been filed.”
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–910. Rights of members whose policies are issued after adoption of the plan and before its effective date

§ 31–910. Rights of members whose policies are issued after adoption of the plan and before its effective date.
(a) All members whose policies are issued after the proposed plan has been adopted by the board of directors and before the effective date of the plan shall be given written notice of the plan of conversion. The notice shall specify the member’s right to terminate that policy as provided in subsection (b) of this section within 30 days after the effective date of the plan. A copy of the plan or a summary of the plan shall accompany the notice. The form of the notice shall be filed with and approved by the Commissioner.
(b) Any member entitled to receive the notice described in subsection (a) of this section shall be entitled to terminate his or her policy and receive a pro rata refund of any amounts paid for the policy or contract within 15 days after receipt of the notice.
(May 24, 1996, D.C. Law 11-126, § 11, 43 DCR 1551; Mar. 24, 1998, D.C. Law 12-81, § 43(i), 45 DCR 745; Apr. 3, 2001, D.C. Law 13-214, § 2(f), 47 DCR 9580.)
Prior Codifications
1981 Ed., § 35-4210.
Section References
This section is referenced in § 31-901 and § 31-903.
Effect of Amendments
D.C. Law 13-214, in subsec. (a), substituted “terminate” for “rescind”, and substituted “30” for “45”; and rewrote subsec. (b) which had read:
“(b) Any member entitled to receive the notice described in subsection (a) of this section shall be entitled to rescind his or her policy and receive a full refund of any amounts paid for the policy or contract within 10 days after the receipt of the notice.”
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–911. Corporate existence

§ 31–911. Corporate existence.
(a) Upon the conversion of a mutual company to a converted stock company according to provisions of this chapter, the corporate existence of the mutual company shall be continued in the converted stock company. All the rights, franchises, and interest of the mutual company in and to every type of property, real, personal, and mixed, and things in action thereunto belonging, is deemed transferred to and vested in the converted stock company without any deed or transfer. Simultaneously, the converted stock company is deemed to have assumed all the obligations and liabilities of the mutual company.
(b) The directors and officers of the mutual company, unless otherwise specified in the plan of conversion, shall serve as directors and officers of the converted stock company until new directors and officers of the converted stock company are duly elected pursuant to the articles of incorporation and bylaws of the converted stock company.
(May 24, 1996, D.C. Law 11-126, § 12, 43 DCR 1551.)
Prior Codifications
1981 Ed., § 35-4211.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–912. Conflict of interest

§ 31–912. Conflict of interest.
No director, officer, agent, or employee of the mutual company, or any other person, shall receive any fee, commission, or other valuable consideration, other than his or her usual regular salary and compensation, for in any manner aiding, promoting, or assisting in the conversion except as set forth in the plan approved by the Commissioner. This provision does not prohibit the payment of reasonable fees and compensation to attorneys, accountants, and actuaries for services performed in the independent practice of their professions, even if the attorney, accountant, or actuary is also a director of the mutual company.
(May 24, 1996, D.C. Law 11-126, § 13, 43 DCR 1551; Mar. 24, 1998, D.C. Law 12-81, § 43(j), 45 DCR 745.)
Prior Codifications
1981 Ed., § 35-4212.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–913. Costs and expenses

§ 31–913. Costs and expenses.
All costs and expenses connected with a plan of conversion shall be paid for or reimbursed by the mutual company or the converted stock company from the proceeds of the offering; provided, that if the plan provides either for a holding company to acquire the stock of the converted stock company or for the merger of the mutual company into a stock insurance company as provided in § 31-906(h), the acquiring holding company or the stock insurance company shall pay for or reimburse all the costs and expenses connected with the plan.
(May 24, 1996, D.C. Law 11-126, § 14, 43 DCR 1551; Apr. 3, 2001, D.C. Law 13-214, § 2(g), 47 DCR 9580.)
Prior Codifications
1981 Ed., § 35-4213.
Effect of Amendments
D.C. Law 13-214 rewrote the section which had read:
“All the costs and expenses connected with a plan of conversion shall be paid for or reimbursed by the mutual company or the converted stock company except where the plan provides either for a holding company to acquire the stock of the converted stock company or for the merger of the mutual company into a stock insurance company as provided in § 31-906(e). In those cases, the acquiring holding company or the stock insurance company shall pay for or reimburse all the costs and expenses connected with the plan.”
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–914. Failure to give notice

§ 31–914. Failure to give notice.
If the mutual company complies substantially and in good faith with the notice requirements of this chapter, the mutual company’s failure to give any member or members any required notice does not impair the validity of any action taken under this chapter.
(May 24, 1996, D.C. Law 11-126, § 15, 43 DCR 1551.)
Prior Codifications
1981 Ed., § 35-4214.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 9 - Insurance Demutualization › § 31–915. Limitation of actions

§ 31–915. Limitation of actions.
Any action challenging the validity of or arising out of acts taken or proposed to be taken under this chapter shall be commenced within 30 days after the effective date of the plan.
(May 24, 1996, D.C. Law 11-126, § 16, 43 DCR 1551.)
Prior Codifications
1981 Ed., § 35-4215.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 10 - Insurance Industry Material Transactions Disclosures › § 31–1001. Report requirement

§ 31–1001. Report requirement.
(a) Every insurer domiciled in the District of Columbia shall file a report with the Commissioner of the Department of Insurance, Securities, and Banking (“Commissioner”) disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations or revisions of ceded reinsurance agreements unless such acquisitions and dispositions of assets or material nonrenewals, cancellations or revisions of ceded reinsurance agreements that have been submitted to the Commissioner for review, approval, or information purposes pursuant to other provisions of the insurance code, laws, regulations, or other requirements.
(b) The report required in subsection (a) of this section is due within 15 days after the end of the calendar month in which any of the transactions enumerated in subsection (a) of this section occur.
(c) One complete copy of the report, including any exhibits or other attachments, shall be filed with:
(1) The insurance department of the insurer’s state of domicile; and
(2) The National Association of Insurance Commissioners.
(d) Repealed.
(May 24, 1996, D.C. Law 11-123, § 2, 43 DCR 1542; Mar. 24, 1998, D.C. Law 12-81, § 42(a), 45 DCR 745; Oct. 21, 2000, D.C. Law 13-191, § 6(a), 47 DCR 7311; Apr. 13, 2005, D.C. Law 15-354, § 42, 52 DCR 2638.)
Prior Codifications
1981 Ed., § 35-4101.
Section References
This section is referenced in § 31-1002 and § 31-1003.
Effect of Amendments
D.C. Law 13-191 repealed subsec. (d) providing:
“(d) All reports obtained by or disclosed to the Commissioner pursuant to this chapter shall be given confidential treatment and shall not be subject to subpoena, shall not be subject to disclosure under subchapter II of Chapter 15 of Title 1 1981 Ed., and shall not be made public by the Commissioner, the National Association of Insurance Commissioners, or any other person except to insurance departments of other states, without the prior written consent of the insurer to which it pertains, unless the Commissioner, after giving the insurer who would be affected notice and an opportunity to be heard, determines that the interest of policyholders, shareholders, or the public will be served by the publication thereof, in which event the Commissioner may publish all or any part in the manner the Commissioner may deem appropriate.”
D.C. Law 15-354, in subsec. (a), substituted “of the Department of Insurance, Securities, and Banking” for “of Insurance and Securities”.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 10 - Insurance Industry Material Transactions Disclosures › § 31–1002. Acquisition and disposition of assets

§ 31–1002. Acquisition and disposition of assets.
(a) No acquisition or disposition of assets need be reported pursuant to § 31-1001 if the acquisitions or dispositions are not material. For purposes of this chapter, a material acquisition (or the aggregate of any series of related acquisitions during any 30-day period) or disposition (or the aggregate of any series of related dispositions during any 30-day period) is one that is nonrecurring and not in the ordinary course of business and involves more than 5% of the reporting insurer’s total admitted assets as reported in its most recent statutory statement filed with the insurance department of the insurer’s state of domicile.
(b)(1) Asset acquisitions subject to this chapter include every purchase, lease, exchange, merger, consolidation, succession, or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials for such purpose.
(2) Asset dispositions subject to this chapter include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment (whether for the benefit of creditors or otherwise), abandonment, destruction, or other disposition.
(c) The following information is required to be disclosed in any report of a material acquisition or disposition of assets:
(1) Date of the transaction;
(2) Manner of acquisition or disposition;
(3) Description of the assets involved;
(4) Nature and amount of the consideration given or received;
(5) Purpose of, or reason for, the transaction;
(6) Manner by which the amount of consideration was determined;
(7) Gain or loss recognized or realized as a result of the transaction; and
(8) Names of the persons from whom the assets were acquired or to whom they were disposed.
(d) Insurers are required to report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or 100% reinsurance agreement that affects the solvency and integrity of the insurer’s reserves and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if:
(1) The insurer has less than $1,000,000 total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement; and
(2) The net income of the business not subject to the pooling arrangement represents less than 5% of the insurer’s capital and surplus.
(May 24, 1996, D.C. Law 11-123, § 3, 43 DCR 1542.)
Prior Codifications
1981 Ed., § 35-4102.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1101. Applicability of provisions

§ 31–1101. Applicability of provisions.
The provisions of this chapter shall not apply with respect to:
(1) Any insurance company licensed to do business in the District;
(2) Any banking institution, trust, loan, mortgage, safe deposit, or title company, building association, credit union, moneylenders, or common trust fund authorized to do business in the District;
(3) The inclusion of a charge for insurance in connection with an installment sale of a motor vehicle make in accordance with Chapter 6 of Title 50; or
(4) The financing of insurance premiums in the District in accordance with the provisions of §§ 28-3301 and 28-3302 relating to rates of interest.
(Oct. 9, 1940, ch. 792, ch. III, § 51; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1.)
Prior Codifications
1981 Ed., § 35-1551.
1973 Ed., § 35-1361.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1102. Definitions

§ 31–1102. Definitions.
For the purposes of this chapter:
(1) The term “insurance premium finance company” means a person engaged in the business of entering into insurance premium finance agreements.
(2) The term “premium finance agreement” means an agreement by which an insured or prospective insured promises to pay to a premium finance company the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent or broker in payment of premiums on an insurance contract together with a service charge as authorized and limited by this chapter.
(3) The term “licensee” means a premium finance company holding a license issued by the Commissioner under this chapter.
(Oct. 9, 1940, ch. 792, ch. III, § 52; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1; May 21, 1997, D.C. Law 11-268, § 10, 44 DCR 1730; Mar. 24, 1998, D.C. Law 12-81, § 29(d), 45 DCR 745.)
Prior Codifications
1981 Ed., § 35-1552.
1973 Ed., § 35-1362.
Editor's Notes
Department of Insurance abolished: See Historical and Statutory Notes following § 31-2501.03.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1103. Licenses — Persons required to obtain; fees; other requirements

§ 31–1103. Licenses — Persons required to obtain; fees; other requirements.
(a) No person shall engage in the business of financing insurance premiums in the District without first having obtained a license as a premium finance company from the Commissioner. Any person who shall engage in the business of financing insurance premiums in the District without obtaining a license as provided hereunder shall, upon conviction in the Superior Court of the District of Columbia, be guilty of a misdemeanor and shall be subject to the penalties in § 31-2502.42.
(b) The annual license fee shall be $150. Licenses may be renewed from year to year as of the 1st day of May of each year upon payment of the fee of $150. The fee for said license shall be paid through the Commissioner to the District of Columbia Treasurer.
(c) The person to whom the license or the renewal thereof may be issued shall file sworn answers, subject to the penalties of perjury, to such interrogatories as the Commissioner may require. The Commissioner shall have authority, at any time, to require the applicant fully to disclose the identity of all stockholders, partners, officers, and employees and he may, in his discretion, refuse to issue or renew a license in the name of any firm, partnership, or corporation if he is not satisfied that any officer, employee, stockholder, or partner thereof who may materially influence the applicant’s conduct meets the standards of this chapter.
(d) Any license issued pursuant to this section shall be issued as a Financial Services endorsement to a basic business license under the basic business license system as set forth in subchapter I-A of Chapter 28 of Title 47.
(Oct. 9, 1940, ch. 792, ch. III, § 53; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1; July 29, 1970, 84 Stat. 570, Pub. L. 91-358, title I, § 155(a); June 14, 1994, D.C. Law 10-128, § 403(b), 41 DCR 2096; May 21, 1997, D.C. Law 11-268, § 10(r)(3), 44 DCR 1730; Apr. 20, 1999, D.C. Law 12-261, § 2003(ii), 46 DCR 3142; Oct. 28, 2003, D.C. Law 15-38, § 3(v), 50 DCR 6913.)
Prior Codifications
1981 Ed., § 35-1553.
1973 Ed., § 35-1363.
Effect of Amendments
D.C. Law 15-38, in subsec. (d), substituted “Financial Services endorsement to a basic business license under the basic” for “Class A Financial Services endorsement to a master business license under the master”.
Emergency Legislation
For temporary (90 day) amendment of section, see § 3(v) of Streamlining Regulation Emergency Act of 2003 (D.C. Act 15-145, August 11, 2003, 50 DCR 6896).
Editor's Notes
Department of Insurance abolished: See Historical and Statutory Notes following § 31-2501.03.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1104. Licenses — Issuance or renewal

§ 31–1104. Licenses — Issuance or renewal.
(a) Upon the filing of an application and the payment of the license fee the Commissioner shall make an investigation of each applicant and shall issue a license if the applicant is qualified in accordance with this chapter. If the Commissioner does not so find, he shall, within 30 days after he has received such application, at the request of the applicant, give the applicant a full hearing.
(b) The Commissioner shall issue or renew a license as may be applied for when he is satisfied that the person to be licensed:
(1) Is competent and trustworthy and intends to act in good faith in the capacity involved by the license applied for;
(2) Has a good business reputation and has had experience, training, or education so as to be qualified in the business for which the license is applied for; and
(3) If a corporation, is a corporation incorporated under the laws of the District or a foreign corporation authorized to transact business in the District.
(Oct. 9, 1940, ch. 792, ch. III, § 54; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1; May 21, 1997, D.C. Law 11-268, § 10, 44 DCR 1730; Mar. 24, 1998, D.C. Law 12-81, § 29(e), 45 DCR 745.)
Prior Codifications
1981 Ed., § 35-1554.
1973 Ed., § 35-1554.
Editor's Notes
Department of Insurance abolished: See Historical and Statutory Notes following § 31-2501.03.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1105. Licenses — Revocation, suspension or refusal to renew; penalty in lieu of revocation or suspension; right of applicant or licensee to administrative or judicial hearing

§ 31–1105. Licenses — Revocation, suspension or refusal to renew; penalty in lieu of revocation or suspension; right of applicant or licensee to administrative or judicial hearing.
(a) The Commissioner may revoke or suspend the license of any premium finance company when and if after investigation it appears to the Commissioner that:
(1) Any license issued to such company was obtained by fraud;
(2) There was any misrepresentation in the application for the license;
(3) The holder of such license has otherwise shown himself untrustworthy or incompetent to act as a premium finance company;
(4) Such company has violated any of the provisions of this chapter; or
(5) Such company has been rebating part of the service charge as allowed and permitted herein to any insurance agent or any employee of an insurance agent or to any other person as an inducement to the financing of any insurance policy with the premium finance company.
(b) Before the Commissioner shall revoke, suspend, or refuse to renew the license of any premium finance company, he shall give to such person an opportunity to be fully heard and to introduce evidence in his behalf. In lieu of revoking or suspending the license for any of the causes enumerated in this section, after hearing as herein provided, the Commissioner may subject such company to a penalty of not more than $200 for each offense when in his judgment he finds that the public interest would not be harmed by the continued operation of such company. The amount of any such penalty shall be paid by such company through the office of the Commissioner to the District of Columbia Treasurer. At any hearing provided by this section, the Commissioner shall have authority to administer oaths to witnesses. Anyone testifying falsely, after having been administered such oath, shall be subject to the penalty of perjury.
(c) If the Commissioner refuses to issue or renew any license or if any applicant or licensee is aggrieved by any action of the Commissioner, said applicant or licensee shall have the right to a hearing and court proceeding as provided for in §§ 31-2502.35 [repealed], 31-2502.43 [repealed] and 31-2502.44 [repealed].
(Oct. 9, 1940, ch. 792, ch. III, § 55; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1; May 21, 1997, D.C. Law 11-268, § 10(r)(3), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-1555.
1973 Ed., § 35-1365.
Section References
This section is referenced in § 31-2231.17.
Cross References
Administrative procedure, see § 2-501 et seq.
Judicial review, see §§ 2-510 and 11-722.
Editor's Notes
Department of Insurance abolished: See Historical and Statutory Notes following § 31-2501.03.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1106. Records

§ 31–1106. Records.
(a) Every licensee shall maintain records of its premium finance transactions and the said records shall be open to examination and investigation by the Commissioner. The Commissioner may at any time require any licensee to bring such records as he may direct to the Commissioner’s office for examination.
(b) Every licensee shall preserve its records of such premium finance transactions, including cards used in a card system, for at least 3 years after making the final entry in respect to any premium finance agreement. The preservation of records in photographic form shall constitute compliance with this requirement.
(Oct. 9, 1940, ch. 792, ch. III, § 56; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1; May 21, 1997, D.C. Law 11-268, § 10(r)(3), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-1556.
1973 Ed., § 35-1366.
Editor's Notes
Department of Insurance abolished: See Historical and Statutory Notes following § 31-2501.03.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1107. Rules and regulations

§ 31–1107. Rules and regulations.
The Commissioner shall have authority to make and enforce such reasonable rules and regulations as may be necessary in making effective the provisions of this chapter, but such rules and regulations shall not be contrary to nor inconsistent with the provisions of this chapter.
(Oct. 9, 1940, ch. 792, ch. III, § 57; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1; May 21, 1997, D.C. Law 11-268, § 10(r)(3), 44 DCR 1730.)
Prior Codifications
1981 Ed., § 35-1557.
1973 Ed., § 35-1367.
Editor's Notes
Department of Insurance abolished: See Historical and Statutory Notes following § 31-2501.03.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1108. Form and contents of agreements

§ 31–1108. Form and contents of agreements.
(a) A premium finance agreement shall:
(1) Be dated, signed by or on behalf of the insured, and the printed portion thereof shall be in at least 8-point type;
(2) Contain the name and place of business of the insurance agent negotiating the related insurance contract, the name and residence or the place of business of the premium finance company to which payments are to be made, a description of the insurance contracts involved and the amount of the premium therefor; and
(3) Set forth the following items where applicable:
(A) The total amount of the premiums;
(B) The amount of the downpayment;
(C) The principal balance (the difference between subparagraphs (A) and (B) of this paragraph);
(D) The amount of the service charge;
(E) The balance payable by the insured (sum of subparagraphs (C) and (D) of this paragraph); and
(F) The number of installments required, the amount of each installment expressed in dollars, and the due date or period thereof.
(b) The items set out in subsection (a)(3) of this section need not be stated in the sequence or order in which they appear in such paragraph, and additional items may be included to explain the computations made in determining the amount to be paid by the insured.
(Oct. 9, 1940, ch. 792, ch. III, § 58; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1.)
Prior Codifications
1981 Ed., § 35-1558.
1973 Ed., § 35-1368.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1109. Service charges

§ 31–1109. Service charges.
(a) A premium finance company shall not charge, contract for, receive, or collect a service charge other than as permitted by this chapter.
(b) The service charge is to be computed on the balance of the premiums due (after subtracting the downpayment made by the insured in accordance with the premium finance agreement) from the effective date of the insurance coverage, for which the premiums are being advanced, to and including the date when the final installment of the premium finance agreement is payable.
(c) The service charge shall be a maximum of $10 per $100 per year plus an additional charge of $20 per premium finance contract which need not be refunded upon cancellation or prepayment.
(Oct. 9, 1940, ch. 792, ch. III, § 59; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1; Nov. 15, 1983, D.C. Law 5-40, § 2(a), 30 DCR 4994.)
Prior Codifications
1981 Ed., § 35-1559.
1973 Ed., § 35-1369.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1110. Delinquency charges

§ 31–1110. Delinquency charges.
A premium finance agreement may provide for the payment by the insured of a delinquency charge of $1 to a maximum of 5% of the delinquent installment which is in default for a period of 5 days or more.
(Oct. 9, 1940, ch. 792, ch. III, § 60; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1; Nov. 15, 1983, D.C. Law 5-40, § 2(b), 30 DCR 4994.)
Prior Codifications
1981 Ed., § 35-1560.
1973 Ed., § 35-1370.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11 - Insurance Premium Finance Companies › § 31–1112. Validity of agreements as secured transactions

§ 31–1112. Validity of agreements as secured transactions.
No filing of the premium finance agreement shall be necessary to perfect the validity of such agreement as a secured transaction as against creditors, subsequent purchasers, pledges, and encumbrances, successors, or assigns.
(Oct. 9, 1940, ch. 792, ch. III, § 62; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1.)
Prior Codifications
1981 Ed., § 35-1562.
1973 Ed., § 35-1372.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11A - Insurance Producers › § 31–1131.01. Short title

§ 31–1131.01. Short title.
This chapter may be cited as “the Producer Licensing Act of 2002.”
(Mar. 27, 2003, D.C. Law 14-264, § 1, 50 DCR 260.)
Section References
This section is referenced in § 31-631, § 31-5041.01, and § 31-5041.12.
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11A - Insurance Producers › § 31–1131.03. License required

§ 31–1131.03. License required.
(a) A person shall not sell, solicit, or negotiate insurance in the District for any class of insurance unless the person is licensed for that line of authority in accordance with this chapter. The license itself shall not create any authority in the licensee to represent or commit an insurance carrier.
(b)(1) A person who maintains his or her principal place of residence and principal place of business in the District shall apply for a resident insurance producer license.
(2) A person who maintains his or her principal place of residence and principal place of business outside the District shall apply for a nonresident insurance producer license.
(3) A person who maintains either, but not both, his or her principal place of residence or principal place of business in the District shall apply for:
(A) A nonresident insurance producer license if the person is licensed as a resident insurance producer in another state; or
(B) A resident insurance producer license if the person is not licensed as a resident insurance producer in another state.
(Mar. 27, 2003, D.C. Law 14-264, § 3, 50 DCR 260; May 13, 2008, D.C. Law 17-155, § 2(b), 55 DCR 3683.)
Effect of Amendments
D.C. Law 17-155 designated the existing text as subsec. (a); and added subsec. (b).
2023 District of Columbia Code › Title 31 - Insurance and Securities › Chapter 11A - Insurance Producers › § 31–1131.05. Examination prior to licensure

§ 31–1131.05. Examination prior to licensure.
(a) An individual applying for a resident insurance producer license shall pass a written examination unless the individual is:
(1) Applying for a limited lines insurance producer license or a license in the surplus lines line of authority; or
(2) Exempt from examination under § 31-1131.05b or § 31-1131.09.
(a-1) The examination required by subsection (a) of this section shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer, and the insurance laws and regulations of the District.
(b) The Commissioner may make arrangements, including contracting with an outside testing service, for administering examinations and collecting a nonrefundable fee for the examination.
(c) Each individual applying for an examination shall remit a nonrefundable fee for the examination as prescribed by the Commissioner.
(d) An individual who fails to appear for the examination as scheduled or fails to pass the examination may reapply for an examination. The individual shall remit all required fees and forms before being rescheduled for another examination.
(Mar. 27, 2003, D.C. Law 14-264, § 5, 50 DCR 260; May 13, 2008, D.C. Law 17-155, § 2(c), 55 DCR 3683; Sept. 24, 2010, D.C. Law 18-223, § 2166(a), 57 DCR 6242.)
Section References
This section is referenced in § 31-1131.05a, § 31-1131.05b, § 31-1131.07, and § 31-1131.08.
Effect of Amendments
D.C. Law 17-155 rewrote the section name line which had read as follows: “ Application for examination”; rewrote subsec. (a); added subsec. (a-1); and, in subsec. (d), substituted “may reapply for an examination. The individual shall remit” for “shall reapply for an examination and remit”. Prior to amendment, subsec. (a) read as follows: “(a) A resident individual applying for an insurance producer license shall pass a written examination unless exempt under § 31-1131.09. The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer, and the insurance laws and regulations of the District. Examinations required by this section shall be developed and conducted under rules and regulations promulgated by the Commissioner.”
D.C. Law 18-223 substituted “§ 31-1131.05b or § 31-1131.09” for “§ 31-1131.09”.
Emergency Legislation
For temporary (90 day) amendment of section, see § 2166(a) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).