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District of Columbia Code Division V. Local Business Affairs § 31-3931.14. Financial examination.

Current as of January 01, 2024 | Updated by Findlaw Staff

(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 captive insurer;

(2) The ability of the captive insurer to fulfill its obligations; and

(3) Whether the captive insurer has complied with the provisions of this chapter and the regulations adopted pursuant thereto.

(b) The Commissioner may require a captive insurer to retain qualified independent legal, financial, and examination services from outside the Department to conduct the examination and make recommendations to the Commissioner. The cost of the examination shall be paid by the captive insurer.

(c) The provisions of Chapter 14 of this title, shall apply to examinations conducted pursuant to this section. The Commissioner may waive the requirement in § 31-1402(a) that a captive insurer must be examined at least once every 5 years, if the:

(1) Captive insurer has filed unqualified audited financial statements each year since the captive insurer's last financial examination or the date of licensure;

(2) Commissioner determines that the audited financial statements demonstrate that the captive insurer maintains sufficient surplus to satisfy all of its obligations to its policyholders and creditors;

(3) Captive insurer is in compliance with all applicable District laws and regulations; and

(4) Captive insurer is not a risk retention group licensed as a captive insurer.

(d) For purposes of subsection (a) of this section, protected cells of a captive insurer shall not be separately examined unless the Commissioner has sufficient cause to examine one or more protected cells.

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Cite this article: FindLaw.com - District of Columbia Code Division V. Local Business Affairs § 31-3931.14. Financial examination. - last updated January 01, 2024 | https://codes.findlaw.com/dc/division-v-local-business-affairs/dc-code-sect-31-3931-14/

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