District of Columbia Administrative Code

3773 CREDIT FOR REINSURANCE 3773.1 If any provision of this section, or its application to any person or circumstance, is held invalid, such determination shall not affect other provisions or applications of this regulation which can be given effect without the invalid provision …

3774 RISK LIMITATION 3774.1 A risk retention group organized as a stock insurer shall not expose itself to any loss on any one risk or hazard, whether located in the District or outside the District, to an amount exceeding ten percent (10%) of the sum of its capital stock and sur…

3775 GOVERNANCE STANDARDS FOR RISK RETENTION GROUPS These Governance Standards for Risk Retention Groups are effective January 1, 2018 for risk retention groups licensed prior to January 1, 2017 and are effective at the time of licensure for risk retention groups licensed on or a…

3798 APPENDICES 3798.1 FORM A STATEMENT REGARDING THE ACQUISITION OF CONTROL OF OR MERGER WITH A DOMESTIC INSURER ___ Name of Domestic Insurer BY ___ Name of Acquiring Person (Applicant) Filed with the Insurance Department of ___ (jurisdiction of Domicile of insurer being acquire…

3799 DEFINITIONS 3799.1 The following words and phrases shall have the meaning ascribed in this section. Unless the context otherwise requires, other terms found in these regulations and in Section 2 of the Holding Company Act are used as defined in the said Section 2. Other nome…

3800 APPLICABILITY 3800.1 This chapter contains procedures for administrative hearings involving a "contested case" as defined by the District of Columbia Administrative Procedure Act, effective October 21, 1968 (82 Stat. 1203, Pub. L. 90-614) before the Commissioner of the Depar…

3801 DELEGATION OF HEARING AUTHORITY 3801.1 The Commissioner may, in his or her discretion, delegate authority to conduct a hearing to a hearing officer. The Commissioner shall serve a notice of delegation on all parties and on the hearing officer. 3801.2 The designated hearing o…

3802 TIME, PLACE OF FILING, AND COMPUTATION OF TIMING 3802.1 Papers required or permitted to be filed under this chapter shall be filed by delivery of an original and two copies to the Department of Insurance and Securities Regulation, 810 First Street, NE, Suite 701, Washington,…

3803 SUBPOENAS 3803.1 The Commissioner may issue subpoenas for the attendance of witnesses, or the production of books, papers, records, or other documents at any hearing. [a1] 3803.2 Subpoenas issued pursuant to this section shall be under seal of the Commissioner, and shall des…

3804 SHOW CAUSE AND SUMMARY SUSPENSION HEARINGS 3804.1 All of the provisions of these rules, except those in § 3806, shall apply to show cause and summary suspension hearings. 3804.2 The Commissioner shall serve the summary suspension order or notice to show cause upon each respo…

3805 RESERVED SOURCE: Final Rulemaking published at 50 DCR 6433(August 8, 2003).

3806 PUBLIC HEARINGS - PURSUANT TO THE HOLDING COMPANY SYSTEM ACT 3806.1 The provisions of this section shall only apply to hearings held pursuant to D.C. Official Code §§ 31-703(g)(1), (2) and 31-704(e) (2001 Ed.), unless otherwise indicated. Other provisions of these rules, sha…

3807 RESERVED SOURCE: Final Rulemaking published at 50 DCR 6433(August 8, 2003).

3808 CONDUCT OF HEARINGS 3808.1 The Commissioner shall preside at all hearings unless the Commissioner has delegated his or her authority to conduct the hearing to a hearing officer in accordance with these rules. 3808.2 All hearings shall be open to the public. The Commissioner …

3809 APPEARANCE AT PUBLIC HEARING 3809.1 All persons present at a hearing shall conduct themselves in a manner consistent with the standards of decorum commonly observed in the District of Columbia courts. The Commissioner or designated hearing officer may issue orders appropriat…

3810 FAILURE TO APPEAR 3810.1 If a party fails to appear at the hearing, either personally or through counsel, the Commissioner or designated hearing officer may proceed to hold the hearing in that party's or absence. 3810.2 The Commissioner or designated hearing officer may also…

3811 PREHEARING CONFERENCES 3811.1 The Commissioner or designated hearing officer may require parties to appear at a specified date, time, and place for a pre-hearing conference for the purpose of addressing the following matters: (a) Simplification of issues; (b) Admissions or s…

3812 RECORD OF PROCEEDINGS 3812.1 The Department shall cause all oral proceedings, including testimony, to be recorded by a stenographer or by tape recorder or other device. The recording of the proceedings, which need not be transcribed, shall be maintained in the custody of the…

3813 MOTIONS AND OTHER PLEADINGS: COMMUNICATIONS WITH THE COMMISSIONER 3813.1 Except by leave of the Commissioner or designated hearing officer during a hearing, a party seeking an order or other relief or action regarding a pending matter that is the subject of public hearing, s…

3814 SERVICE OF PLEADINGS 3814.1 Written motions and all other pleadings shall be served on all parties. 3814.2 When filed, all pleadings shall be accompanied by proof of service upon all parties. Proof of service of any pleading shall be by certificate of service, affidavit or a…

3815 EX PARTE COMMUNICATIONS 3815.1 From the start of the proceeding until the rendering of a final decision, no person may communicate ex parte with the Commissioner or designated hearing officer regarding the merits of the proceeding. 3815.2 The Commissioner shall not be prohib…

3816 POST-HEARING PROCEDURES 3816.1 If the matter is heard before a hearing officer, the hearing officer shall serve proposed findings of fact, proposed conclusions of law, and a proposed order on all parties and the Commissioner within twenty (20) calendar days of the close of t…

3817 APPEAL RIGHTS 3817.1 Judicial review of an adverse decision of the Commissioner shall be by petition to the District of Columbia Court of Appeals. [a11] SOURCE: Final Rulemaking published at 50 DCR 6433(August 8, 2003).

3818 SEVERABILITY 3818.1 If any section or portion of a section of these rules, or the applicability thereof to any person or circumstance is held invalid by any court of competent jurisdiction, the remainder of these rules, or the applicability thereof to other persons or circum…

3819 DEFINITIONS "Commissioner" means the Commissioner of the Department of Insurance and Securities Regulation or designated hearing officer. [a12] "District" means the District of Columbia. "Party" means any person or agency named or admitted as a party, in any proceeding befor…

3900 GENERAL PROVISIONS 3900.1 No person shall act as or hold himself out as a public insurance adjuster unless the person has been issued a license in accordance with these rules. 3900.2 An applicant for licensure as a public insurance adjuster shall submit a properly completed …

3901 LICENSING EXAMINATION 3901.1 Except as provided in § 3900.10, no person shall act as a public insurance adjuster in the District unless that person has taken and passed a licensing examination, which may be administered by the Department or by a vendor under contract to the …

3902 RENEWAL OF LICENSES 3902.1 A license issued pursuant to these rules shall expire on April 30th of each odd numbered year. 3902.2 At least thirty (30) days prior to the expiration of a license the Commissioner shall send an application for renewal by first class mail to the l…

3903 REINSTATEMENT OF AN EXPIRED LICENSE 3903.1 This section shall apply to an applicant for reinstatement of an expired license issued under these rules. 3903.2 An applicant for reinstatement under this section shall file an application with the Department on the prescribed form…

3904 REINSTATEMENT AFTER SUSPENSION OR REVOCATION 3904.1 A person whose license to do business as a public insurance adjuster has been revoked shall be ineligible to apply for licensure as a public insurance adjuster for a period of three (3) years from the date of the revocation…

3905 ESCROW OR TRUST ACCOUNTS 3905.1 Any public insurance adjuster who receives, accepts or holds any moneys, on behalf of an insured, towards the settlement of a claim for loss or damage, shall deposit such moneys in an interest bearing escrow or trust account in a financial ins…

3906 MINIMUM RECORD KEEPING REQUIREMENTS 3906.1 Each licensee shall maintain accurate files, books and records reflecting all insurance-related transactions in which the licensee or his or her employees take part. These records shall be maintained by either separate books of reco…

3907 VIOLATIONS AND PENALTIES 3907.1 The Commissioner may deny, suspend, revoke, refuse to renew a public insurance adjuster's license, or impose a civil penalty based on any violation of the Act or these rules, or for the commission or omission of any act by a public insurance a…

3908 DISCLOSURES 3908.1 A public insurance adjuster shall disclose in writing to the client any interest the public insurance adjuster has in loss proceeds other than those acquired by his employment contract. 3908.2 A public insurance adjuster in soliciting a client for employme…

3909 FORM OF CONTRACT No public insurance adjuster shall enter into an employment contract except in conformity with these rules. There shall be a true copy of the employment contract which shall be given to the client at the time the contract is signed. The contract and copy(ies…

3999 DEFINITIONS 3999.1 For the purposes of this chapter, the following words and phrases shall have meaning ascribed in this section: "Act" - the Public Insurance Adjuster Licensure Act of 2002, effective March 27, 2003 (D.C. Law 14-256; D.C. Official Code § 31-1631.01 et seq.).…

4001 AUTHORIZATION AND APPLICABILITY 4001.1 Any captive insurer may organize or reorganize and operate as a reciprocal insurer, subject to the act and these regulations. These regulations shall apply to all captive insurers organized as reciprocal insurers. It specifies the terms…

4002 EXISTING RECIPROCALS 4002.1 Existing authorized reciprocal insurers shall, after January 1, 2009, comply with these regulations and shall make such amendments to their subscribers’ agreement, power of attorney, policies, and other documents and accounts and perform such othe…

4003 INSURING POWERS OF RECIPROCALS 4003.1 A reciprocal insurer may, upon qualifying under the act, transact any kind or kinds of insurance defined by the act. 4003.2 A reciprocal insurer may purchase reinsurance upon the risk of any subscribers and may grant reinsurance as to an…

4004 NAME, SUITS, AND POWERS 4004.1 No reciprocal insurer shall be authorized to transact business in the District unless the name under which reciprocal contracts are to be exchanged shall include the word “reciprocal” or be supplemented by the following words immediately below …

4005 ATTORNEY, SUBSCRIBERS, AND RECIPROCAL INSURER A SINGLE ENTITY 4005.1 “Attorney”, as used in this chapter, means the attorney-in-fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation. 4005.2 The attorney of a foreign reciprocal insurer, which i…

4006 ORGANIZATION OF RECIPROCAL INSURER 4006.1 Three or more persons may organize a domestic reciprocal insurer and make application to the Commissioner for a certificate of authority to transact insurance. 4006.2 The proposed attorney shall fulfill the requirements of and shall …

4007 CERTIFICATE OF AUTHORITY 4007.1 The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer. 4007.2 The Commissioner may refuse to issue, suspend, or revoke the certificate of authority, in addition to any other applicable …

4008 POWER OF ATTORNEY 4008.1 The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers. 4008.2 The power of attorney must be set forth: (a) The powers of the attorney; (b) The general services to be pe…

4009 MODIFICATIONS 4009.1 Modifications of the terms of the subscribers’ agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers’ advisory committee. Without additional notice, execution, or acceptance, ever…

4010 ATTORNEY’S BOND 4010.1 Concurrently with the filing of the declaration provided for in section 4006 of this chapter, the attorney of a domestic reciprocal insurer shall file with the Commissioner a bond in favor of the reciprocal for the benefit of all persons damaged as a r…

4011 DEPOSIT IN LIEU OF BOND In lieu of the bond required under section 4011 of this chapter, the attorney may maintain on deposit, through the office of the Commissioner, a like amount in cash or in value of securities qualified under section 8 of the act. Source: Notice of Emer…

4012 ACTION ON BOND Action on the attorney’s bond or to recover against any such deposit made in lieu thereof may be brought at any time by the subscriber’s advisory committee or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall be deposited in and b…

4013 SERVICE OF PROCESS Legal process shall be served upon a domestic reciprocal insurer by serving the insurer’s attorney at the attorney’s registered offices or by serving the Commissioner’s as the insurer’s process agent the “Insurers Service of Process Act of 1994,” effective…

4014 CONTRIBUTIONS TO INSURER The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer and, except upon li…