Title 31, Insurance and Securities.

A mutual insurance holding company resulting from a conversion of a domestic reciprocal insurance company shall be incorporated pursuant to Chapter 3 of Title 29 and shall be subject to Chapters 1, 2, and 3 of Title 29 to the extent that those provisions are not in conflict with …

(a) A mutual insurance holding company shall be deemed to be an insurer subject to Chapter 13 of this title (“Insurers Rehabilitation and Liquidation Act”), and shall automatically be a party to any proceeding under the Insurers Rehabilitation and Liquidation Act involving an ins…

(a) A membership interest in a mutual insurance holding company shall not constitute an equity security as defined in § 31-603. (b) A mutual insurance holding company created under this subchapter shall have the same powers to borrow or assume liability as a reciprocal insurance …

If the reciprocal insurance company complies substantially and in good faith with the notice requirements of this subchapter, the reciprocal insurance company’s failure to give any member or members any required notice shall not impair the validity of any action taken under this …

Any action challenging the validity of, or arising out of acts taken or proposed to be taken under, this subchapter shall be commenced within 30 days after the effective date of any plan submitted for approval pursuant to this subchapter.

Chapter 9 of this title shall be applicable to the conversion of a mutual insurance holding company formed under this subchapter to a stock company as if the mutual insurance holding company were a mutual insurance company.

The Mayor, pursuant to subchapter I of Chapter 5 of Title 2 may issue rules and regulations to implement the provisions of this subchapter.

For the purposes of this chapter, the term: (1) “Commissioner” means the Commissioner of Insurance and Securities Regulation [Commissioner of the Department of Insurance, Securities, and Banking]. (2) “Company” means all insurance companies or carriers that are licensed in the Di…

Nothing in this chapter shall limit, waive, or abrogate the scope or nature of any statutory or common law privilege, including work product, the attorney-client privilege, or the subsequent remedial measures exclusion.

(a)(1) An insurance compliance self-evaluative audit document shall be privileged information and shall not be admissible as evidence in any legal action in a civil, criminal, or administrative proceeding, except as provided in subsections (b), (c), and (d) of this section and §§…

A court may, after an in camera review, require disclosure of material for which the privilege is asserted if the court determines: (1) The privilege is asserted for fraudulent purposes; (2) The material is not subject to the privilege; or (3) Even if subject to the privilege, th…

A court may, after an in camera review, require disclosure of material for which the privilege is asserted, if the court determines: (1) The privilege is asserted for a fraudulent purpose; (2) The material is not subject to the privilege; (3) Even if subject to the privilege, the…

(a) The Commissioner, Corporation Counsel, or U.S. Attorney may request, in writing by certified mail, disclosure of an insurance compliance self-evaluative audit document within 30 days after the service of the request. The company that prepared the document or caused the docume…

(a) A company asserting the privilege shall have the burden of demonstrating the applicability of the privilege. If a company has established the applicability of the privilege, a party seeking disclosure under § 31-854 shall have the burden of proving that the privilege is asser…

The privilege shall apply to all litigation or administrative proceedings pending on April 11, 2003, or filed subsequent to April 11, 2003.

For the purposes of this chapter, the term: (1) “Converted stock company” means a District of Columbia domiciled stock company that converted from a District of Columbia mutual company pursuant to this chapter. (1A) “Commissioner” means the Commissioner of Insurance and Securitie…

(a) A mutual company seeking to convert to a stock company shall, by the affirmative vote of a majority of its board of directors, adopt a plan of conversion consistent with the requirements of § 31-906. (b) At any time before approval of a plan by the Commissioner, the mutual co…

(a) After adoption by the mutual company’s board of directors, the plan shall be submitted to the Commissioner for review and approval. The Commissioner shall approve the plan upon finding that: (1) The provisions of this section have been complied with; (2) The plan will not pre…

(a) All eligible members shall be given notice of and an opportunity to vote upon the plan. (b) All eligible members shall be given notice of the members’ meeting to vote upon the plan. A copy of the plan or a summary of the plan shall accompany the notice. The notice shall be ma…

(a) Adoption of the revised articles of incorporation of the converted stock company is necessary to implement the plan and shall be governed by the applicable provisions of District law. (b) For a Class 1 mutual company, the members may adopt the revised articles of incorporatio…

Prior to implementation of a plan of conversion adopted by a mutual company, no person shall knowingly acquire, or make any offer, or make any announcement of an offer, for any security issued, or to be issued, by the mutual company in connection with its plan of conversion, or f…

(a) The plan shall set forth the reasons for the proposed conversion. (b) The plan shall provide that all policies in force on the effective date of conversion shall continue to remain in force under the terms of those policies, except that any voting rights of the policyholders …

(a) The following provisions may be included in the plan: (1) The plan may provide that the directors and officers of the mutual company shall receive, without payment, nontransferable subscription rights to purchase capital stock of the converted stock company or the stock of an…

The board of directors may adopt a plan of conversion that does not rely in whole or in part upon the issuance to members of nontransferable subscription rights to purchase stock of the converted stock company if the Commissioner finds that the plan does not prejudice the interes…

A plan shall become effective when the Commissioner has approved the plan.

(a) All members whose policies are issued after the proposed plan has been adopted by the board of directors and before the effective date of the plan shall be given written notice of the plan of conversion. The notice shall specify the member’s right to terminate that policy as …

(a) Upon the conversion of a mutual company to a converted stock company according to provisions of this chapter, the corporate existence of the mutual company shall be continued in the converted stock company. All the rights, franchises, and interest of the mutual company in and…

No director, officer, agent, or employee of the mutual company, or any other person, shall receive any fee, commission, or other valuable consideration, other than his or her usual regular salary and compensation, for in any manner aiding, promoting, or assisting in the conversio…

All costs and expenses connected with a plan of conversion shall be paid for or reimbursed by the mutual company or the converted stock company from the proceeds of the offering; provided, that if the plan provides either for a holding company to acquire the stock of the converte…

If the mutual company complies substantially and in good faith with the notice requirements of this chapter, the mutual company’s failure to give any member or members any required notice does not impair the validity of any action taken under this chapter.

Any action challenging the validity of or arising out of acts taken or proposed to be taken under this chapter shall be commenced within 30 days after the effective date of the plan.

(a) Every insurer domiciled in the District of Columbia shall file a report with the Commissioner of the Department of Insurance, Securities, and Banking (“Commissioner”) disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations or revisio…

(a) No acquisition or disposition of assets need be reported pursuant to § 31-1001 if the acquisitions or dispositions are not material. For purposes of this chapter, a material acquisition (or the aggregate of any series of related acquisitions during any 30-day period) or dispo…

(a) No nonrenewals, cancellations, or revisions of ceded reinsurance agreements need be reported pursuant to § 31-1001 if the nonrenewals, cancellations, or revisions are not material. (b) For purposes of this chapter, a material nonrenewal, cancellation, or revision is one that …

(a) All reports obtained by or disclosed to the Commissioner under this chapter in the possession or control of the Department of Insurance, Securities, and Banking shall be confidential and privileged; shall not be subject to subchapter II of Chapter 5 of Title 2; shall not be s…

The provisions of this chapter shall not apply with respect to: (1) Any insurance company licensed to do business in the District; (2) Any banking institution, trust, loan, mortgage, safe deposit, or title company, building association, credit union, moneylenders, or common trust…

For the purposes of this chapter: (1) The term “insurance premium finance company” means a person engaged in the business of entering into insurance premium finance agreements. (2) The term “premium finance agreement” means an agreement by which an insured or prospective insured …

(a) No person shall engage in the business of financing insurance premiums in the District without first having obtained a license as a premium finance company from the Commissioner. Any person who shall engage in the business of financing insurance premiums in the District witho…

(a) Upon the filing of an application and the payment of the license fee the Commissioner shall make an investigation of each applicant and shall issue a license if the applicant is qualified in accordance with this chapter. If the Commissioner does not so find, he shall, within …

(a) The Commissioner may revoke or suspend the license of any premium finance company when and if after investigation it appears to the Commissioner that: (1) Any license issued to such company was obtained by fraud; (2) There was any misrepresentation in the application for the …

(a) Every licensee shall maintain records of its premium finance transactions and the said records shall be open to examination and investigation by the Commissioner. The Commissioner may at any time require any licensee to bring such records as he may direct to the Commissioner’…

The Commissioner shall have authority to make and enforce such reasonable rules and regulations as may be necessary in making effective the provisions of this chapter, but such rules and regulations shall not be contrary to nor inconsistent with the provisions of this chapter.

(a) A premium finance agreement shall: (1) Be dated, signed by or on behalf of the insured, and the printed portion thereof shall be in at least 8-point type; (2) Contain the name and place of business of the insurance agent negotiating the related insurance contract, the name an…

(a) A premium finance company shall not charge, contract for, receive, or collect a service charge other than as permitted by this chapter. (b) The service charge is to be computed on the balance of the premiums due (after subtracting the downpayment made by the insured in accord…

A premium finance agreement may provide for the payment by the insured of a delinquency charge of $1 to a maximum of 5% of the delinquent installment which is in default for a period of 5 days or more.

(a) When a premium finance agreement contains a power of attorney enabling the premium finance company to cancel any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be canceled by the premium finance company unless such cance…