District of Columbia Administrative Code

2704 STANDARDS OF SUITABILITY 2704.1 An insurer seeking approval to enter into the variable life insurance business in the District shall establish and maintain a written statement specifying the Standards of Suitability to be used by the insurer. These Standards of Suitability s…

2705 USE OF SALES MATERIAL 2705.1 An insurer authorized to transact variable life insurance business in the District shall not use any sales material, advertising material or descriptive literature or other materials of any kind in connection with its variable life insurance busi…

2706 REQUIREMENTS APPLICABLE TO CONTRACTUAL SERVICES 2706.1 A contract between an insurer and suppliers of consulting, investment, administrative, sales, marketing, custodial or other services with respect to variable life insurance operations shall be in writing and provide that…

2707 REPORTS TO THE COMMISSIONER 2707.1 An insurer authorized to transact the business of variable life insurance in the District shall submit to the Commissioner, in addition to any other materials which may be required by this regulation or any other applicable laws or regulati…

2708 AUTHORITY OF THE COMMISSIONER TO DISAPPROVE 2708.1 Any material required to be filed with and approved by the Commissioner shall be subject to disapproval if at any time it is found by him not to comply with the standards established in this regulation. SOURCE: Final Rulemak…

2709 INSURANCE POLICY REQUIREMENTS 2709.1 Policy Qualification. The Commissioner shall not approve any variable life insurance form filed pursuant to this regulation unless it conforms to the requirements of this chapter. SOURCE: Final Rulemaking published at 42 DCR 1047(February…

2710 FILING OF VARIABLE LIFE INSURANCE POLICIES 2710.1 All variable life insurance policies, and all riders, endorsements, applications and other documents which are to be attached to be made a part of the policy and which relate to the variable nature of the policy, shall be fil…

2711 MANDATORY POLICY BENEFITS AND DESIGN REQUIREMENTS 2711.1 Variable life insurance policies delivered or issued for delivery in the District shall comply with the following minimum requirements: (a) Mortality and expense risks shall be borne by the insurer. The mortality and e…

2712 MANDATORY POLICY PROVISIONS 2712.1 Every variable life insurance policy filed for approval in the District shall be plainly printed in a type size not less than 10-point with a lower case unspaced alphabet length not less than 120-point, and shall contain at least the follow…

2713 POLICY LOAN PROVISIONS 2713.1 A variable life insurance policy, other than term insurance policies and pure endowment policies delivered or issued for delivery in the District shall contain provisions which are not less favorable to the policyholder than the following: (a) A…

2714 OTHER POLICY PROVISIONS 2714.1 The following provision may in substance be included in a variable life insurance policy or related form delivered or issued for delivery in the District: (a) An exclusion for suicide within two (2) years of the issue date of the policy provide…

2715 RESERVE LIABILITIES FOR VARIABLE LIFE INSURANCE 2715.1 Reserve liabilities for variable life insurance policies shall be established under the Standard Valuation Law in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any m…

2716 RESERVE LIABILITIES FOR THE GUARANTEED MINIMUM DEATH BENEFIT 2716.1 Reserve liabilities for the variable life insurance policies shall be established under the Standard Valuation Law, District of Columbia Code, Section 35-501 et seq. in accordance with actuarial procedures t…

2717 INCIDENTAL INSURANCE BENEFIT 2717.1 Reserve liabilities for all fixed incidental insurance benefits and any guarantees associated with variable accidental insurance benefits shall be maintained in the general account and reserve liabilities for all variable aspects of the va…

2718 SEPARATE ACCOUNTS: ESTABLISHMENT AND ADMINISTRATION 2718.1 The following requirements apply to the establishment and administration of variable life insurance separate accounts by any domestic insurer: 2718.2 Any domestic insurer issuing variable life insurance shall establi…

2719 [RESERVED] SOURCE: Final Rulemaking published at 42 DCR 1047 (February 24, 1995).

2720 AMOUNTS IN THE SEPARATE ACCOUNTS 2720.1 The insurer shall maintain in each separate account assets with a value at least equal to the greater of the valuation reserves for the variable portion of the variable life insurance policies or the benefit base for such policies. SOU…

2721 INVESTMENTS BY THE SEPARATE ACCOUNT 2721.1 A sale, exchange, or other transfer of assets may not be made by an insurer or any of its affiliates between any of its separate accounts or between any other investment account and one or more of its separate accounts unless: (a) I…

2722 LIMITATIONS ON OWNERSHIP 2722.1 A variable life insurance separate account shall not purchase or otherwise acquire the securities of any issuer, other than securities issued or guaranteed as to principal and interest by the United States, if immediately after such purchase o…

2723 VALUATION OF SEPARATE ACCOUNT ASSETS 2723.1 Investments of the separate account shall be valued at their market value on the date of valuation, or at amortized cost if it approximates market value. SOURCE: Final Rulemaking published at 42 DCR 1047 (February 24, 1995).

2724 SEPARATE ACCOUNT INVESTMENT POLICY 2724.1 The investment policy of a separate account operated by a domestic insurer shall not be changed without first filing such change with the Insurance Commissioner. 2724.2 Any change filed pursuant to this section shall be effective six…

2725 CHARGES AGAINST SEPARATE ACCOUNT 2725.1 The insurer must disclose in writing, prior to or contemporaneously with delivery of the policy, all charges that may be made against the separate account, including, but not limited to, the following: (a) Taxes or reserves for taxes a…

2726 STANDARDS OF CONDUCT 2726.1 An insurer seeking approval to enter into the variable life insurance business in the District shall adopt by formal action of its Board of Directors a written statement specifying the Standards of Conduct of the insurer, its officers, directors, …

2727 CONFLICTS OF INTEREST 2727.1 Rules under any provision of the Insurance Laws of the District or any regulation applicable to the officers and directors of insurance companies with respect to conflicts of interest shall also apply to members of any separate account's committe…

2728 INVESTMENT ADVISORY SERVICES TO A SEPARATE ACCOUNT 2728.1 An insurer shall not enter into a contract under which any person undertakes, for a fee, to regularly furnish investment advice to such insurer with respect to its separate accounts maintained for variable life insura…

2729 INFORMATION FURNISHED TO APPLICANTS 2729.1 An insurer delivering or issuing for delivery in the District any variable life insurance policies shall deliver to the applicant for such policy, and obtain a written acknowledgement of receipt from such applicant coincident with o…

2730 APPLICATIONS 2730.1 The application for a variable life insurance policy shall contain: (a) A prominent statement that the death benefit may be variable or fixed under specified conditions; (b) A prominent statement that cash values may increase or decrease in accordance wit…

2731 REPORTS TO POLICYHOLDERS 2731.1 Any insurer delivering or issuing for delivery in the District any variable life insurance policies shall mail to each variable life insurance policyholder at this or her last known address the following reports: (a) Within thirty (30) days af…

2732 FOREIGN COMPANIES 2732.1 If the law or regulation in the place of domicile of a foreign company provides a degree of protection to the policyholders and the public which is substantially similar to that provided by these regulations, the Commissioner, to the extent deemed ap…

2733 QUALIFICATIONS OF AGENTS FOR THE SALE OF VARIABLE LIFE INSURANCE 2733.1 No person may sell or offer for sale in the District any variable life insurance policy unless such person is an agent and has filed with the Commissioner, in a form satisfactory to the Commissioner, evi…

2734 REPORTS OF DISCIPLINARY ACTIONS 2734.1 Any person qualified in the District under this chapter to sell or offer to sell variable life insurance (a) Any suspension or revocation of his agent's license in any other state or territory of the United States; (b) The imposition of…

2735 REFUSAL TO QUALIFY AGENT TO SELL VARIABLE LIFE INSURANCE: SUSPENSION, REVOCATION, OR NONRENEWAL OF QUALIFICATION 2735.1 The Commissioner may reject any application or suspend or revoke or refuse to renew any agent's qualification under this chapter to sell or offer to sell v…

2736 SEPARABILITY ARTICLE 2736.1 If any provision of this regulation or the application thereof to any person or circumstances is for any reason held to be invalid, the remainder of the regulation and the application of such provision to other persons or circumstances shall not b…

2799 DEFINITIONS 2799.1 As used in this chapter, the following words and phrases shall have the meanings ascribed: Affiliate of an insurer - any person, directly or indirectly, controlling, controlled by, or under common control with such insurer; any person who regularly furnish…

2800 [REPEALED] SOURCE: Final Rulemaking published at 43 DCR 2318 (May 3, 1996); as amended by Final Rulemaking published at 68 DCR 6518 (June 25, 2021). District of Columbia Municipal Regulations Insurance 26-A DCMR § 2800 AUTHORITY: DC-DCMR Section 5 of the Law on Credit for Re…

2801 CREDIT FOR REINSURANCE - REINSURER LICENSED IN THE DISTRICT OF COLUMBIA 2801.1 Pursuant to section 2(a) (1)of the act, D.C. Code section 35-3301(a) (1),the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to assuming insurers which were licensed in…

2802 CREDIT FOR REINSURANCE – ACCREDITED REINSURERS 2802.1 Pursuant to section 2(a)(2) of the act, D.C. Code section 35-3301(a)(2), the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer which is accredited as a reinsurer in the Dis…

2803 CREDIT FOR REINSURANCE - REINSURER DOMICILED AND LICENSED IN ANOTHER STATE 2803.1 Pursuant to section 2(a)(3)(A) and (B) of the act, D.C. Code section 35-3301(a)(3)(A) and (B) the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insu…

2804 CREDIT FOR REINSURANCE - REINSURANCE MAINTAINING TRUST FUNDS 2804.1 Pursuant to section 4 of the act, D.C. Code section 35-3301(a)(4), the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer which, as of the date of the ceding i…

2805 CREDIT FOR REINSURANCE – CERTIFIED REINSURERS 2805.1 Pursuant to Section 2 of the Law on Credit for Reinsurance Act of 1993, D.C. Code § 31-501, the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that has been certified as …

2806 CREDIT FOR REINSURANCE REQUIRED BY LAW 2806.1 Pursuant to § 2(g) of the Law on Credit for Reinsurance Act of 1993 (D.C. Official Code § 31-501(g)), the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirem…

2807 REDUCTION FROM LIABILITY FOR REINSURANCE CEDE TO AN UNAUTHORIZED ASSUMING INSURER 2807.1 Pursuant to Section 3 of the act, D.C. Code section 35 3302, the Commissioner shall allow a reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer no…

2808 TRUST AGREEMENTS QUALIFIED UNDER SECTION 2807 2808.1 As used in this section: (a) "Beneficiary" means the entity for whose sole benefit the trust has been established and any successor of the beneficiary by operation of law. If a court of law appoints a successor in interest…

2809 LETTERS OF CREDIT QUALIFIED UNDER SECTION 2807 2809.1 The letter of credit must be clean, irrevocable and unconditional and issued or confirmed by a qualified United States financial institution as defined in section 4(a) of the act, D.C. Code section 35-3303(a). The letter …

2810 OTHER SECURITY 2810.1 A ceding insurer may take credit for unencumbered funds withheld by the ceding insurer in the United States subject to withdrawal solely by the ceding insurer and under its exclusive control. SOURCE: Final Rulemaking published at 43 DCR 2318 (May 3, 199…

2811 REINSURANCE CONTRACT 2811.1 Credit will not be granted to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of Sections 2801, 2802, 2803, 2804 or 2806 of this regulation or otherwise in compliance with section 2 of the Law on Credit fo…

2812 CONTRACTS AFFECTED 2812.1 All new and renewal reinsurance transactions entered into after the effective date of these regulations shall conform to the requirements of the act and this regulation if credit is to be given to the ceding insurer for such reinsurance. APPENDIX 28…

2813 CREDIT FOR REINSURANCE—RECIPROCAL JURISDICTIONS 2813.1 The Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is licensed to write reinsurance by, and has its head office or is domiciled in, a Reciprocal Jurisdiction and w…

2850 TERM AND UNIVERSAL LIFE INSURANCE RESERVE FINANCING – PURPOSE AND INTENT 2850.1 The purpose and intent of §§ 2850-2855 is to implement within the District of Columbia uniform, national standards governing reserve financing arrangements pertaining to life insurance policies c…

2851 APPLICABILITY 2851.1 The provisions of this chapter shall apply to reinsurance treaties that cede liabilities pertaining to Covered Policies, as that term is defined in § 2899, issued by any life insurance company domiciled in this state; provided, that in the event of a dir…