District of Columbia Administrative Code

1308 INSOLVENCY 1308.1 If any Member fails, by reason of insolvency to pay its proportion of any expense or of any loss incurred by the Facility, the unpaid loss or the remaining Members shall pay expense, each contribution in the manner provided for distribution of expenses and …

1309 AMENDMENTS The Facility's Constitution may be amended by the Members subject to the powers of the Commissioner as set forth in the Statute. SOURCE: Final Rulemaking published at 51 DCR 11573 (December 24, 2004).

1310 PLAN OF OPERATION 1310.1 The revised Plan of Operation, which was approved by the Commissioner and deemed effective as of April 1, 2004, replaces the prior Plan of Operation that had been effective as of October 1, 1972, as amended, provides that the Plan of Operation shall …

1311 INSPECTIONS AND REPORTS 1311.1 Any property owner is entitled to an inspection by the Facility of property that is eligible for Basic Property Insurance or Homeowners Insurance and, if unable to obtain such insurance in the normal market, may apply to the Facility for such i…

1312 PROCEDURE AFTER INSPECTION 1312.1 In order to achieve maximum uniformity in the definition and application of reasonable underwriting standards, the Board of Directors shall specify criteria that are contained in the Rules of the Plan of Operation, which shall be used by the…

1313 PLACEMENT OF INSURANCE 1313.1 Premiums are payable by licensed insurance producers on a net basis to the Facility by means and in a form acceptable to the Facility. The Facility must have on file a copy of the producer's current license issued by the Department of Insurance,…

1314 IMMEDIATE BINDING Eligible risks shall be subject to immediate binding in accordance with procedures adopted by the Board in the Rules of the Plan of Operation. SOURCE: Final Rulemaking published at 51 DCR 11573 (December 24, 2004).

1315 STANDARD POLICY COVERAGE 1315.1 All policies issued shall be for Basic Property Insurance or Homeowners Insurance on standard policy forms and shall be issued for a term of one (1) year. Policies may be continued on a year-to-year basis only upon the annual submission of a p…

1316 CANCELLATIONS 1316.1 Grounds for Cancellation shall be: (a) Non-payment of premium; (b) Evidence of incendiarism; (c) Cause which would have been grounds for non-acceptance of the risk at the time of acceptance; (d) Cause arising subsequent to the inspection, which would hav…

1317 RIGHT OF APPEAL 1317.1 Any applicant for insurance, any person insured pursuant to the Plan of Operation or any affected insurer may appeal to the Board within fifteen (15) days after any ruling, action or decision of the Facility. The Board or an appeals committee designate…

1318 COMMISSIONS 1318.1 Commissions to the licensed producers, designated by the Property Owner or the insured, shall be twelve percent 12% until the Board determines a different amount and that amount is approved by the Commissioner. 1318.2 If a policy is canceled, or if an endo…

1319 STATISTICS AND REPORTS 1319.1 All business written pursuant to the Plan of Operation shall be coded separately in order that the experience of the business may be viewed separately from the experience on general business. 1319.2 The Facility shall furnish to all Members, to …

1320 CANCELLATION OR NON-RENEWAL OF ELIGIBLE RISKS 1320.1 Each Member Company agrees that on cancellations and non-renewals that it initiates on risks eligible for insurance under the Plan of Operation (except in cases of non-payment of premium, or evidence of incendiarism), it w…

1321 CONTINUING EDUCATION The Facility shall undertake a continuing education program to assure that this program receives adequate public attention. SOURCE: Final Rulemaking published at 51 DCR 11573 (December 24, 2004); as amended by ERRATA published at 52 DCR 51(January 7, 200…

1322 MODIFICATION The Plan of Operation may be amended by the Board in any manner not inconsistent with the Constitution of the Facility, subject to disapproval by the Commissioner in whole or in part in accordance with the provisions of the Statute. SOURCE: Final Rulemaking publ…

1399 DEFINITIONS When used in this chapter, the following terms shall have the meanings ascribed: "Commissioner" means the Commissioner of Insurance, Securities and Banking of the District of Columbia or his designated agent. "Basic Property Insurance" means insurance against dir…

1400 SECURITIES "HELD OF RECORD" 1400.1 For the purposes of determining whether the equity securities of an insurer are "held of record" by one hundred (100) or more persons, securities shall be considered to be "held of record" by each person who is identified as the owner of su…

1401 TRANSACTIONS EXEMPTED FROM THE OPERATION OF SECTION 3(b) OF THE ACT 1401.1 Any acquisition or disposition of any equity security by a director or officer of an insurer within six (6) months prior to the date on which the Act shall first become applicable with respect to the …

1402 FILING OF STATEMENTS 1402.1 Initial statements of beneficial ownership of equity securities required by Section 3(a) of the Act shall in all respects comply with the instructions set forth in Schedule A of Appendix 14-1 and shall be filed in a form as the Commissioner may pr…

1403 OWNERSHIP OF MORE THAN TEN PER CENT OF AN EQUITY SECURITY 1403.1 For the purposes of Section 3(a) of the Act, in determining whether a person is the beneficial owner, directly or indirectly, of more than ten per cent (10%) of any class of any equity security, a class shall b…

1404 DISCLAIMER OF BENEFICIAL OWNERSHIP 1404.1 Any person filing a statement may expressly declare that the filing of a statement shall not be construed as an admission that the person is the beneficial owner of any equity securities covered by the statement.

1405 EXEMPTIONS FROM SECTIONS 3(a) AND 3(b) 1405.1 During the period of twelve (12) months following their appointment and qualification, securities held by the following persons shall be exempt from Section 3(a) and 3(b) of the Act: (a) Executors or administrators of the estate …

1406 EXEMPTION FROM THE ACT OF SECURITIES PURCHASED OR SOLD BY ODD-LOT DEALERS 1406.1 Securities purchased or sold by an odd-lot dealer in odd-lots so far as reasonably necessary to carry on odd-lot transactions or in round lots to offset odd-lot transactions previously or simult…

1407 CERTAIN TRANSACTIONS SUBJECT TO SECTION 3(a) OF THE ACT 1407.1 The acquisition or disposition of any transferable option, put, call, spread or straddle shall be considered a change in the beneficial ownership of the security to which a privilege relates as to require the fil…

1408 OWNERSHIP OF SECURITIES HELD IN TRUST 1408.1 Beneficial ownership of a security for the purpose of Section 3(a) shall include the following: (a) The ownership of securities as a trustee where either the trustee or members of his or her immediate family have a vested interest…

1409 EXEMPTION FOR SMALL TRANSACTIONS 1409.1 Any acquisition of securities shall be exempt from Section 3(a) if it meets the following requirements: (a) The person effecting the acquisition does not within six (6) months thereafter effect any disposition, otherwise than by gift, …

1410 EXEMPTION FROM SECTION 3(b) OF THE ACT OF TRANSACTIONS WHICH NEED NOT BE REPORTED UNDER SECTION 3(a) 1410.1 Any transaction which has been or shall be exempted from the requirements of Section 3(a) of the Act shall, insofar as it is otherwise subject to the provisions of Sec…

1411 EXEMPTION FROM SECTION 3(b) OF CERTAIN TRANSACTIONS EFFECTED IN CONNECTION WITH A DISTRIBUTION 1411.1 Any transaction of purchase and sale, or sale and purchase of a security which is effected in connection with the distribution of a substantial block of securities shall be …

1412 EXEMPTION FROM SECTION 3(b) OF ACQUISITIONS OF SHARES OF STOCK AND STOCK OPTIONS UNDER CERTAIN STOCK BONUS, STOCK OPTION OR SIMILAR PLANS 1412.1 Any acquisition of shares of stock (other than stock acquired upon the exercise of an option, warrant or right) pursuant to a stoc…

1413 EXEMPTION FROM SECTION 3(b) OF CERTAIN TRANSACTIONS IN WHICH SECURITIES ARE RECEIVED BY REDEEMING OTHER SECURITIES 1413.1 Any acquisition of an equity security (other than a convertible security or right to purchase a security) by a director or officer of the insurer issuing…

1414 EXEMPTION OF LONG TERM PROFITS INCIDENT TO SALES WITHIN SIX MONTHS OF THE EXERCISE OF AN OPTION 1414.1 To the extent specified in §1414.2, the Mayor shall exempt, as not comprehended within the purposes of Section 3(b) of the Act, any transaction(s) involving the purchase an…

1415 EXEMPTION FROM SECTION 3(b) OF CERTAIN ACQUISITIONS AND DISPOSITIONS OF SECURITIES PURSUANT TO MERGER OR CONSOLIDATIONS 1415.1 The following transactions shall be exempt from the provisions of Section 3(b) of the Act as not comprehended within the purpose of this section: (a…

1416 EXEMPTION FROM SECTION 3(b) OF CERTAIN SECURITIES RECEIVED UPON SURRENDER OF SIMILAR EQUITY SECURITIES 1416.1 Any receipt by a person from an insurer of shares of stock of a class having general voting power, upon the surrender by such person of an equal number of shares of …

1417 EXEMPTION FROM SECTION 3(b) OF CERTAIN TRANSACTIONS INVOLVING AN EXCHANGE OF SIMILAR SECURITIES 1417.1 Any acquisition or disposition of securities made in an exchange of shares of a class (or series) of stock of an insurer for an equivalent number of shares of another class…

1418 EXEMPTION OF CERTAIN SECURITIES FROM SECTION 3(c) OF THE ACT 1418.1 Any security shall be exempt from the operation of Section 3(c) of the Act to the extent necessary to render lawful under the section the execution by a broker of an order for an account in which he or she h…

1419 EXEMPTION FROM SECTION 3(c) OF THE ACT OF CERTAIN TRANSACTIONS EFFECTED IN CONNECTION WITH A DISTRIBUTION 1419.1 Any security shall be exempt from the operation of Section 3(c) of the Act to the extent necessary to render lawful under the section any sale made by or on behal…

1420 EXEMPTION FROM SECTION 3(c) OF THE ACT OF SALES OF SECURITIES TO BE ACQUIRED 1420.1 Whenever any person is entitled, as an incident to his or her ownership of an issued security and without the payment of consideration, to receive another security "when issued" or "when dist…

1421 ARBITRAGE TRANSACTIONS UNDER SECTION 3(e) OF THE ACT 1421.1 It shall be unlawful for any director or officer of an insurer to effect any foreign or domestic arbitrage transaction in any equity security of the insurer, unless he or she include the transaction in the statement…

1422 AUTHORITY AND EFFECTIVE DATE 1422.1 These regulations were approved by the then Board of Commissioners pursuant to the authority contained in Public Law 89-402 (D.C. Code, Title 35, Chapter 2, Subchapter II), and became effective on June 30, 1966.

1499 DEFINITIONS 1499.1 When used in this title, the following terms and phrases shall have the meanings ascribed, in accordance with the provisions of this section: ACT - the Act of Congress approved April 18, 1966, Public Law 89-402. CLASS - all securities of an insurer which a…

1500 APPLICABILITY 1500.1 This chapter is applicable to all insurers having one hundred (100) or more stockholders; Provided, that this chapter shall not apply to any insurer if ninety-five percent (95%) or more of its stock is owned or controlled by a parent or an affiliated ins…

1501 PROXIES, CONSENTS, AND AUTHORIZATIONS 1501.1 No stock insurer, nor any director, officer, or employee of that insurer subject to §1500, nor any other person, shall solicit, or permit the use of his or her name to solicit, by mail or otherwise, any proxy, consent or authoriza…

1502 DISCLOSURE OF EQUIVALENT INFORMATION 1502.1 Unless proxies, consents, or authorizations in respect of a stock of an insurer subject to §1500 are solicited by or on behalf of the management of that insurer from the holders of record of stock of that insurer in accordance with…

1503 INFORMATION TO BE FURNISHED TO STOCKHOLDERS 1503.1 No solicitation subject to this chapter shall be made unless each person solicited is concurrently furnished or has previously been furnished with a written proxy statement containing the information specified in Schedule A …

1504 REQUIREMENTS AS TO PROXY 1504.1 The form of proxy shall do the following: (a) Indicate in bold-face type whether or not the proxy is solicited on behalf of the management; (b) Provide a specifically designated blank space for dating the proxy; and (c) Identify clearly and im…

1505 MATERIAL REQUIRED TO BE FILED 1505.1 Two (2) preliminary copies of the proxy statement and form of proxy and any other soliciting material to be furnished to stockholders concurrently therewith shall be filed with the Commissioner at least ten (10) days prior to the day defi…

1506 FALSE OR MISLEADING STATEMENTS 1506.1 No solicitation subject to this chapter shall be made by means of any proxy statement, form of proxy, notice of meeting, or other communication, written or oral, containing any statement which at the time and in the light of the circumst…

1507 PROHIBITION OF CERTAIN SOLICITATIONS 1507.1 No person making a solicitation which is subject to this chapter shall solicit any undated or postdated proxy or any proxy which provides that it shall be deemed to be dated as of any date subsequent to the date on which it is sign…

1508 SPECIAL PROVISIONS APPLICABLE TO ELECTION CONTESTS 1508.1 This section shall apply to any solicitation subject to this chapter by any person or group for the purpose of opposing a solicitation subject to this chapter by any other person or group with respect to the election …

1599 DEFINITIONS 1599.1 The definitions and instructions set out in Schedule SIS (in effect as of the date of adoption of this chapter), as promulgated by the National Association of Insurance Commissioners, shall be applicable for purposes of this chapter. In addition, the follo…