§ 31–3931.01. Definitions.
For the purposes of this chapter, the term:
(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 is owned by an insurance agency or brokerage and that only insures risks of policies that are placed by or through the agency or brokerage.
(3) “Alien captive insurer” means any non-U.S. insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of a foreign country that imposes statutory or regulatory standards in a form acceptable to the Commissioner on companies transacting the business of insurance in the jurisdiction.
(4) “Association” means a legal entity consisting of 2 or more individuals, corporations, partnerships, associations, or other forms of business organization.
(5) “Association captive insurer” means a captive insurer that only insures risks of the member organizations of an association and the affiliated companies of those members, including:
(A) Groups formed pursuant to the Product Liability Risk Retention Act of 1981, approved September 25, 1981 (95 Stat. 949; 15 U.S.C. § 3901 et seq.), and the employee benefit plans or trusts of such organizations or companies; and
(6) “Branch business” means any insurance business transacted by a branch captive insurer in the District.
(7) “Branch captive insurer” means any alien captive insurer licensed by the Commissioner to transact the business of insurance in the District through a business unit with a principal place of business in the District.
(8) “Branch operations” means any business operations of a branch captive insurer in the District.
(9) “Captive insurer” means any insurer that insures the risks of its parent or affiliated companies of its parent, any member organizations of an association and the affiliated companies of the member organizations, or any other policyholders or participants that have entered into a contractual relationship with the insurer for the purchase of insurance, including any pure captive insurer, association captive insurer, agency captive insurer, branch captive insurer, protected cell captive insurer, and rental captive insurer licensed pursuant to this chapter.
(10) “Commissioner” means the Commissioner of the Department of Insurance, Securities, and Banking.
(11) “Common ownership and control” means:
(A) In the case of a stock insurer, the direct or indirect ownership of 51% or more of the voting stock of 2 or more corporations by the same member or members; and
(B) In the case of a mutual insurer, the direct or indirect ownership of 51% or more of the surplus and the voting power of 2 or more corporations by the same member or members.
(12) “Department” means the Department of Insurance, Securities, and Banking.
(13) “Excess workers’ compensation insurance” means insurance in excess of the specified per-incident or aggregate limit, if any, established by:
(A) The Commissioner, if the insurance is being transacted in the District; or
(B) The chief regulatory officer for insurance in the jurisdiction in which the insurance is being transacted.
(13A) “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.
(14) “Member organization” means any individual, corporation, partnership, association, or other form of business organization that belongs to an association.
(15) “Mutual insurer” means an incorporated insurer without any issued and outstanding stock whose capital and surplus are owned by its policyholders.
(16) “Net direct premiums” means the direct premiums collected or contracted for on policies or contracts of insurance written by a captive insurer during the preceding calendar year, less the amounts paid to policyholders as return premiums, including dividends on unabsorbed premiums or premium deposits returned or credited to policyholders.
(17) “Parent” means a corporation, partnership, association, or other form of business organization that directly or indirectly owns, controls, or holds power to vote more than 51% or more of the outstanding voting securities of a pure captive insurer.
(18) “Participant” means any individual or organization, and any affiliates thereof, that are insured by a protected cell captive insurer if the losses of the person are limited through a participant contract to the assets of a protected cell.
(19) “Participant contract” means a contract by which a protected cell captive insurer insures the risks of a participant and limits the losses of the participant to the assets of the protected cell.
(20) “Person” means any individual, corporation, partnership, limited liability company, limited liability partnership, joint venture, an association, joint stock company, trust, unincorporated organization, similar entity, or any combination of the foregoing.
(20A) “Protected cell” means a separate account established and maintained by a protected cell captive insurer and includes an incorporated protected cell.
(20B) “Protected cell captive insurer” means a captive insurer that:
(A) Is formed and licensed under the provisions of this chapter;
(B) Insures the risks of separate participants through a contract; and
(C) Segregates each participant’s liability through one or more protected cells.
(21) “Provisional certificate of authority” means a certificate of authority issued to a captive insurer that authorizes the captive insurer to engage in limited activities authorized by the Commissioner.
(22) “Pure captive insurer” means a captive insurer that only insures or reinsures risks of its parent and affiliated companies or controlled unaffiliated business. The parent of a pure captive insurer includes an employee benefit plan or trust.
(23) “Reciprocal insurer” includes an interinsurance exchange or a risk retention group as defined in § 31-4101(12).
(24) “Redomestication” means the transfer to the District of the insurance domicile of an authorized foreign or alien insurance company.
(25) “Rental captive insurer” means a captive insurer formed to enter into contractual agreements with policyholders or associations to offer some or all of the benefits of a program of captive insurance and that only insures risks of the policyholders or associations.
(27) “Stock insurer” means an incorporated insurer with issued and outstanding stock whose capital and surplus is owned by its stockholders.