District of Columbia Administrative Code

3689 RESERVED SOURCE: Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48…

3690 RESERVED SOURCE: Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48…

3691 RESERVED SOURCE: Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48…

3692 RESERVED SOURCE: Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48…

3693 RESERVED SOURCE: Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48…

3694 RESERVED SOURCE: Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48…

3695 RESERVED SOURCE: Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48…

3696 RESERVED SOURCE: Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48…

3697 RESERVED SOURCE: Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48…

3698 RESERVED SOURCE: Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48…

3699 DEFINITIONS Affiliate means any company that controls, is controlled by, or is under common control with another company. Clear and conspicuous means that a notice is reasonably understandable and designed to call attention to the nature and significance of the information i…

3700 APPLICABILITY 3700.1 This regulation shall apply to all captive insurance companies formed or licensed under the provisions of the Captive Insurance Company Act of 2000, effective October 21, 2000 (D.C. Law 13-192; 47 DCR 7320), and the Captive Insurance Company Act of 2004,…

3701 ANNUAL REPORTING REQUIREMENTS All captive insurance companies licensed to do business in the District shall annually submit to the Commissioner a report of its financial condition, verified by oath of two of its executive officers. SOURCE: Final Rulemaking published at 48 DC…

3702 ANNUAL AUDIT 3702.1 All captive insurance companies shall have an annual audit by an independent certified public accountant, authorized by the Commissioner and shall file such audited financial report with the Commissioner. A captive insurer not licensed as domestic risk re…

3703 DESIGNATION OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT Captive insurance companies, after becoming subject to this regulation, shall within ninety days report to the Commissioner in writing, the name and address of the independent certified public accountant retained to cond…

3704 NOTIFICATION OF ADVERSE FINANCIAL CONDITION A captive insurance company shall require the certified public accountant to immediately notify in writing the chief executive officer and all members of the Board of Directors of the company of any determination by the independent…

3705 AVAILABILITY AND MAINTENANCE OF WORKING PAPERS OF THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT 3705.1 Each captive insurance company shall require the independent certified public accountant to make available for review by the Commissioner the work papers prepared in the cond…

3706 DEPOSIT REQUIREMENT 3706.1 Whenever the Commissioner deems that the financial condition of the captive insurance company warrants additional security, he or she may require a company to deposit in the Commissioner's custodial account cash or securities approved by the Commis…

3707 CAPITAL AND SURPLUS REQUIREMENTS 3707.1 A captive insurer using a letter of credit as evidence of capital permitted by Section 7(d) of the Act shall not enter into any agreement with the issuer of the letter of credit granting the issuer any of the following: (a) a right of …

3708 REVIEW OF CAPTIVE APPLICATION 3708.1 The Commissioner may retain, at the applicant’s expense, any attorneys, actuaries, accountants, consultants, or other experts as may be reasonably necessary to assist the Commissioner in reviewing a captive application. SOURCE: Final Rule…

3709 BOARD MEETINGS 3709.1 The board of directors of a captive insurer shall meet at least annually in the District of Columbia (District). The board of directors may permit any or all directors to participate in any regular or special meeting by the use of any means of communica…

3710 CAPTIVE MANAGERS AND INTERMEDIARIES 3710.1 No person shall, in or from within the District, act as a captive manager, broker, agent, salesman, or reinsurance intermediary for captive business without the authorization of the Commissioner. SOURCE: Final Rulemaking published a…

3711 DIRECTORS 3711.1 Every company shall report to the Commissioner within thirty (30) days after any change in its executive officers or directors, including in its report a statement of the business and professional affiliations of any new executive officer or director. 3711.2…

3712 CONFLICT OF INTEREST 3712.1 Each captive insurer licensed in the District shall adopt a code of ethics. Each officer, director and key employee of the captive insurer shall be subject to the code of ethics, which shall include, at a minimum, the following requirements: (a) H…

3713 SUSPENSION OR REVOCATION OF CAPTIVE LICENSE 3713.1 The Commissioner may, subject to the provisions of this section, by order suspend or revoke the license of the company: (a) if the company has not commenced business according to its plan of operation within two years of bei…

3714 ACQUISITION OF CONTROL OR MERGER WITH DOMESTIC CAPTIVE 3714.1 No person other than the issuer shall make a tender offer of or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire in the open market or oth…

3715 CHANGE OF BUSINESS 3715.1 Any change in the nature of the captive business from that stated in the company's plan of operation filed with the Commissioner upon application requires prior written approval from the Commissioner. 3715.2 Any change in any other information filed…

3716 CAPTIVE INSURANCE COMPANIES ISSUING ANNUITIES 3716.1 This regulation establishes reserve requirements, separate accounts and the form of the annual statement required of any captive insurance company that issues annuity contracts, which may have life or other benefits that c…

3750 REGULATIONS APPLICABLE TO RISK RETENTION GROUPS 3750.1 Sections 3750 through 3774 shall apply only to captive insurers licensed as risk retention groups. SOURCE: Final Rulemaking published at 59 DCR 13088 (November 16, 2012). AUTHORITY: DC-DCMR Section 22 of the Captive Insu…

3751 FORMS - GENERAL REQUIREMENTS 3751.1 Forms A, B, C, and D, set forth in the appendices 1 through 4 to chapter 37, are intended to identify the information to be included in the statements required by sections 3, 4, and 5 of the Holding Company System Act of 1993, effective Oc…

3752 FORMS - INCORPORATION BY REFERENCE, SUMMARIES AND OMISSION 3752.1 Information required by any item of Forms A, B, or D may be incorporated by reference in answer or partial answer to any other item. Information contained in any financial statement, annual report, proxy state…

3753 FORMS - INFORMATION UNKNOWN OR UNAVAILABLE AND EXTENSION OF TIME TO FURNISH 3753.1 Required information should be given only insofar as it is known or reasonably available to the person filing the statement. If any required information is unknown and not reasonably available…

3754 FORMS - ADDITIONAL INFORMATION AND EXHIBITS 3754.1 In addition to the information expressly required to be included in Forms A, B, C, and D, there shall be added such further material information, if any, as may be necessary to make the information contained therein not misl…

3755 SUBSIDIARIES OF DOMESTIC INSURERS 3755.1 The authority to invest in subsidiaries under Section 3 of the Holding Company Act is in addition to any authority to invest in subsidiaries which may be contained in any other provision of the Insurance Code. SOURCE: Final Rulemaking…

3756 ACQUISITION OF CONTROL - STATEMENT FILING 3756.1 A person required to file a statement pursuant to Section 4 of the Holding Company Act shall furnish the required information on Form A, hereby made a part of this regulation. SOURCE: Final Rulemaking published at 59 DCR 13088…

3757 AMENDMENTS TO FORM A 3757.1 The applicant shall promptly advise the Commissioner of any changes in the information furnished on Form A arising subsequent to the date upon which such information was furnished but prior to the Commissioner's disposition of the application. SOU…

3758 ACQUISITION OF SECTION 4(b) INSURERS 3758.1 If the person being acquired is deemed to be a "domestic insurer" solely because of the provisions of Subsection 4(b) of the Holding Company Act, the name of the domestic insurer on the cover page should be indicated as follows: "A…

3759 ANNUAL REGISTRATION OF INSURERS - STATEMENT FILING 3759.1 An insurer required to file an annual registration statement pursuant to Section 6 of the Holding Company Act shall furnish the required information on Form B, hereby made a part of these regulations. SOURCE: Final Ru…

3760 SUMMARY OF REGISTRATION - STATEMENT FILING 3760.1 An insurer required to file an annual registration statement pursuant to Section 6 of the Holding Company Act shall also furnish the required information on Form C, hereby made a part of these regulations. An insurer shall fi…

3761 AMENDMENTS TO FORM B [RESERVED] SOURCE: Final Rulemaking published at 59 DCR 13088 (November 16, 2012). AUTHORITY: DC-DCMR Section 22 of the Captive Insurance Company Act of 2004, effective March 17, 2005 (D.C. Law 15-262; D.C. Official Code § 31-3931.21 (2011 Repl.)).…

3762 ALTERNATIVE AND CONSOLIDATED REGISTRATIONS 3762.1 Any authorized insurer may file a registration statement on behalf of any affiliated insurer or insurers which are required to register under section 6 of the Holding Company Act. A registration statement may include informat…

3763 DISCLAIMERS AND TERMINATION OF REGISTRATION 3763.1 A disclaimer of affiliation or a request for termination of registration claiming that a person does not, or will not upon the taking of some proposed action, control another person (hereinafter referred to as the "Subject" …

3764 TRANSACTIONS SUBJECT TO PRIOR NOTICE - NOTICE FILING 3764.1 An insurer required to give notice of a proposed transaction pursuant to Section 7 of the Holding Company Act shall furnish the required information on Form D, hereby made a part of these regulations. SOURCE: Final …

3765 EXTRAORDINARY DIVIDENDS AND OTHER DISTRIBUTIONS 3765.1 Requests for approval of extraordinary dividends or any other extraordinary distribution to shareholders shall include the following: (a) The amount of the proposed dividend; (b) The date established for payment of the d…

3766 ADEQUACY OF SURPLUS 3766.1 The factors set forth in Subsection 7(d) of the Holding Company Act are not intended to be an exhaustive list. In determining the adequacy and reasonableness of an insurer's surplus no single factor is necessarily controlling. The Commissioner, ins…

3768 VALUATION OF BONDS 3768.1 All bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued based on Generally Accepted Accounting Principles (GAAP), or at the disc…

3769 VALUATION OF OTHER SECURITIES 3769.1 Securities, other than those referred to in Section 3768, held by an insurer shall be valued, in the discretion of the Commissioner, at their market value, or at their appraised value, or at prices determined by it as representing their f…

3770 OTHER INVESTED ASSETS 3770.1 A captive’s other invested assets shall be valued in accordance with procedures promulgated by the National Association of Insurance Commissioners’ Accounting Practices and Procedures Manual, or as prescribed by the Commissioner. A prescribed val…

3771 GAAP TO SAP RECONCILIATION 3771.1 All captives using Generally Accepted Accounting Principles (GAAP) or modified GAAP shall include a reconciliation from GAAP or modified GAAP to Statutory Accounting Principles (SAP) in the notes to its financial statements. SOURCE: Final Ru…

3772 ANNUAL STATEMENT FILING REQUIREMENTS 3772.1 Insurers required to file annual and quarterly statements pursuant to Section 3(a)(2) of the Risk Retention Act of 1993, effective October 23, 1993 (D.C. Law 10-46; D.C. Official Code § 31-4101(a)(2)), shall use the annual and quar…