Title 31 — Insurance and Securities.

For the purposes of this chapter, the term: (a)(1) “Affiliated company” means a company in the same corporate system as its parent or a member organization by virtue of common ownership, control, operation, or management. (2) “Agency captive insurer” means a captive insurer that …

(a) A captive insurer may be organized and operated in any form of business organization authorized by the Commissioner and may, pursuant to this chapter, transact any insurance or annuity business. (b) Notwithstanding subsection (a) of this section, a captive insurer shall not: …

(a) A captive insurer may be organized in the District in any form of authorized by the Commissioner. (a-1) The articles of incorporation of a captive insurer shall become effective when approved by the Commissioner. (b) The articles of incorporation or organizational documents o…

(a) For the purposes of this chapter, the term: (1) “Incorporated protected cell” means a protected cell that is established as a corporation or other legal entity separate from the protected cell captive insurer of which it is a part. (2) “Protected cell” means a separate accoun…

(a) If a protected cell captive insurer with one or more protected cells is being liquidated under this chapter, the protected cell captive insurer shall not be deemed to have no assets and no liabilities if the protected cell captive insurer continues to have a protected cell. (…

(a)(1) In addition to any other capital required to be maintained pursuant to subsection (c) of this section, a captive insurer (except a protected cell captive insurer) authorized to do business in the District shall at all times maintain a minimum unimpaired capital of $ 100,00…

(a) A captive insurer shall file with the Commissioner a schedule of its proposed investments, and any material changes thereto, which the Commissioner may approve if he or she determines that the investments do not threaten the solvency or liquidity of the captive insurer. The C…

(a) A captive insurer or protected cell may provide reinsurance on risks ceded by any other insurer, captive insurer, or protected cell. (b) A captive insurer or protected cell may take credit for the reinsurance of risks or portions of risks ceded to reinsurers in compliance wit…

(a) A captive insurer shall apply to the Commissioner for a certificate of authority. If one or more protected cells are established as separate legal entities, each protected cell shall apply for a certificate of authority. The application shall include: (1) A proposed copy of t…

A captive insurer shall not use or adopt a name that is the same as, deceptively similar to, or likely to be confused with or mistaken for any other insurer licensed in the District.

(a) A captive insurer shall not transact business in the District unless the captive insurer and, if applicable, each protected cell of a captive insurer, first obtains a certificate of authority from the Commissioner. (b) In determining whether to grant the approval required in …

(a) Except as otherwise provided in this section, a captive insurer shall pay to the District, not later than March 2 of each year, a tax at the rate of: (1) Two hundred fifty thousandths of one percent on the first $25 million of its net direct premiums; (2) One hundred fifty th…

(a)(1) On or before March 2 of each year, a captive insurer, including, if applicable, each protected cell, shall submit to the Commissioner, on a form prescribed by the Commissioner, a report of its financial condition, as prepared by a certified public accountant. A captive ins…

(a) The Commissioner, or his designee, may visit each captive insurer at such times as he or she considers necessary to thoroughly inspect and examine the affairs of the captive insurer or protected cell of a captive insurer to ascertain: (1) The financial condition of the captiv…

(a) The Commissioner may revoke or suspend the certificate of authority to transact insurance business in the District of a captive insurer, including, if applicable, a protected cell, which: (1) Has failed or refused to comply with any provision or requirement of this chapter; (…

(a) A captive insurer shall not join or contribute financially to any risk-sharing plan, risk pool, or insurance insolvency guaranty fund in the District. A captive insurer or its insured, its parent or an affiliated company, or any member organization of its association shall no…

(a) Any captive insurer which is licensed under laws of any jurisdiction may become a domestic captive insurer in the District by complying with all of the requirements of this chapter relative to the organization and licensing of a domestic insurer of the same type and by design…

A captive insurer shall not be required to join a rating organization.

All fees, fines, penalties, and assessments received by the Commissioner under this chapter shall be deposited in, and credited to, the account established by § 31-1202(BB), and expended in accordance with § 31-1202(BB).

(a) Any captive insurer aggrieved by any act, determination, rule, regulation, order, or any other action taken by Commissioner pursuant to this chapter, and which was the subject of a contested case, may appeal to the District of Columbia Court of Appeals, in accordance with § 2…

The Commissioner may issue rules and regulations relating to captive insurers as are necessary to enable him or her to carry out the provisions of this chapter.

(a) Except as otherwise expressly provided in this chapter, only the following laws relating to insurance shall apply to risk retention groups licensed as captive insurers: (1) Chapter 4 of this title notwithstanding the definition of the term “licensed insurer” or “insurer” in §…

(a) Chapter 39 of this title is repealed, subject to the provisions of this section. (b) All existing fees set forth in Chapter 39 of this title, shall remain in effect under the corresponding provisions of this chapter, and shall be applicable to protected cells, unless modified…

This subchapter provides for the creation of special purpose financial captive insurance companies for the exclusive purpose of facilitating the securitization of one or more risks as a means of accessing alternative sources of capital and achieving the benefits of securitization…

In addition to the terms defined in § 31-3931.01, for the purposes of this subchapter, the term: (1)(A) “Control” (including the terms “controlling”, “controlled by”, and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the di…

(a) Except as otherwise provided, §§ 31-3931.03, 31-3931.04, 31-3931.05, 31-3931.09, 31-3931.10, 31-3931.11, 31-3931.12, 31-3931.13, 31-3931.14, 31-3931.15, 31-3931.16, 31-3931.17, 31-3931.18, 31-3931.19, 31-3931.20, 31-3931.21, and 31-3931.09 through 31-3931.22 shall apply under…

(a)(1) An SPFC shall apply to the Commissioner for a certificate of authority. The application for a certificate of authority shall include the items required by § 31-3931.09. (2) If an SPFC will have one or more protected cells, the SPFC shall include in its application for a ce…

(a) In addition to any other capital required to be maintained pursuant to subsection (c) of this section, an SPFC authorized to do business in the District shall at all times maintain a minimum unimpaired capital of $100,000. (b) Except as otherwise provided by the Commissioner …

(a) An SPFC may issue securities, including surplus notes and other forms of financial instruments, subject to and in accordance with applicable law, its approved strategic business plan, and its organizational documents. (b) An SPFC, in connection with the issuance of securities…

(a) An SPFC shall insure only the risks of a counterparty and shall not issue a contract for assumption of risk or indemnification of loss other than an SPFC contract; provided, that an SPFC may cede risks assumed through an SPFC contract to third party reinsurers through the pur…

(a) Assets of the SPFC that are pledged to secure obligations of the SPFC to a counterparty under an SPFC contract shall be held in trust that is administered by a qualified United States financial institution. The qualified United States financial institution shall not control, …

(a) Dividends may be declared by the management of an SPFC if the dividends do not violate the provisions of this subchapter or jeopardize the fulfillment of the obligations of the SPFC or the trustee pursuant to the SPFC insurance securitization agreements, the SPFC contract, or…

(a) Except as provided in this section, all examination reports, preliminary examination reports or results, working papers, recorded information, documents, and copies of documents produced by, obtained by, or disclosed to, the Commissioner or any other person in the course of a…

An SPFC contract which complies with this subchapter shall be granted credit for reinsurance treatment or otherwise qualifies as an asset or a reduction from liability for reinsurance ceded by a domestic insurer to an SPFC as an assuming insurer pursuant to § 31-502, for the bene…

(a)(1) Notwithstanding the provisions of Chapter 13 of this title, the Commissioner may apply to the Superior Court of the District of Columbia for an order authorizing the Commissioner to conserve, rehabilitate, or liquidate an SPFC domiciled in the District on one or more of th…

(a) An SPFC may discount its reserves at discount rates as approved by the Commissioner. (b) An SPFC shall file annually an actuarial opinion on reserves provided by an approved independent actuary.

(a) A contested case brought by a third party based on a decision of the Commissioner pursuant to this subchapter shall be governed by applicable civil law; provided, that, the aggrieved party shall: (1) Prove the appeal through clear and convincing evidence; (2) Demonstrate irre…

The Commissioner may promulgate rules necessary to effectuate the purposes of this subchapter. Rules promulgated pursuant to this section shall not affect an SPFC insurance securitization in effect at the time of the promulgation.