(a)(1) A risk retention group shall be chartered as an association captive insurer licensed pursuant to § 31-3931.01, and licensed to write only liability insurance pursuant to this chapter, and shall comply with all of the laws, rules, and regulations, and requirements applicable to captive insurers chartered and licensed in the District and with § 31-4103, to the extent the requirements are not a limitation on laws, rules, regulations, or requirements of the District.
(2) All risk retention groups chartered in the District shall file with the Mayor and the NAIC annual and quarterly statements in a form prescribed by the NAIC and in any other form required by the Mayor.
(3) Any license issued pursuant to this section shall be issued as a Financial Services endorsement to a basic business license under the basic business license system as set forth in subchapter I-A of Chapter 28 of Title 47.
(b) Before it may offer insurance in any state, each risk retention group shall also submit to the Mayor a plan of operation or feasibility study. The risk retention group shall submit an appropriate revision in the event of any subsequent material change in any item of the plan of operation or feasibility study, within 10 days of any change. The group shall not offer any additional kinds of liability insurance, in the District or in any other state, until a revision of the plan or study is approved by the Commissioner.
(c)(1) At the time of filing its application for a charter, the risk retention group shall provide to the Commissioner, in summary form, the following information:
(A) The identity of the initial members of the group;
(B) The identity of those individuals who organized the group or who will provide administrative services or otherwise influence or control the activities of the group;
(C) The amount and nature of initial capitalization;
(D) The coverages to be afforded; and
(E) The states in which the group intends to operate.
(2) Upon receipt of this information, the Mayor shall forward the information to the NAIC. Providing notification to the NAIC is in addition to and shall not be sufficient to satisfy the requirements of § 31-4103 or any other sections of this chapter.
(Oct. 21, 1993, D.C. Law 10-46, § 3, 40 DCR 6082; Apr. 26, 1994, D.C. Law 10-103, § 4(b), 41 DCR 1005; May 21, 1997, D.C. Law 11-268, § 10(aa)(2), 44 DCR 1730; Apr. 20, 1999, D.C. Law 12-261, § 2003(ll), 46 DCR 3142; Oct. 28, 2003, D.C. Law 15-38, § 3(z), 50 DCR 6913; Mar. 17, 2005, D.C. Law 15-262, § 26, 52 DCR 1205; Mar. 10, 2015, D.C. Law 20-203, § 3, 61 DCR 12572.)
1981 Ed., § 35-2902.
This section is referenced in § 31-4103.
Effect of Amendments
D.C. Law 15-38, in subsec. (a)(3), substituted “Financial Services endorsement to a basic business license under the basic” for “Class A Financial Services endorsement to a master business license under the master”.
D.C. Law 15-262 rewrote subsec. (a)(1) which had read:
“(a)(1) A risk retention group shall be chartered and licensed to write only liability insurance pursuant to this chapter, and, except as provided elsewhere in this chapter, must comply with all of the laws, rules, regulations, and requirements applicable to an insurer chartered and licensed in the District and with § 31-4103 to the extent the requirements are not a limitation on laws, rules, regulations, or requirements of the District.”
The 2015 amendment by D.C. Law 20-203 substituted “insurers” for “insurance companies” in (a)(1); and substituted “annual and quarterly statements” for “an annual statement” in (a)(2).
For temporary (90 day) amendment of section, see § 3(z) of Streamlining Regulation Emergency Act of 2003 (D.C. Act 15-145, August 11, 2003, 50 DCR 6896).
For temporary (90 day) amendment of section, see § 26 of Captive Insurance Company Emergency Act of 2004 (D.C. Act 15-640, November 30, 2004, 52 DCR 1238).
For temporary (225 day) amendment of section, see § 4(b) of Insurance Omnibus Temporary Amendment Act of 1993 (D.C. Law 10-76, March 17, 1994, law notification 41 DCR 1626).