§ 31-1801 — Definitions.

District of Columbia § 31-1801

• Jurisdiction: District of Columbia
• Title 31: Insurance and Securities.
• Ch. 18: Reinsurance Intermediaries.

Text

For the purposes of this chapter, the term:

(1) “Actuary” means a person who is a member in good standing of the American Academy of Actuaries.

(2) “Controlling person” means any person, firm, association, or corporation who directly or indirectly has the power to direct, or cause to be directed, the management, control, or activities of the reinsurance intermediary.

(3) “District” means the District of Columbia.

(4) “Holding Company Act” means the Holding Company System Act of 1993, Chapter 7 of this title .

(5) “Insurer” means any person, firm, association, or corporation duly licensed in the District pursuant to the applicable provisions of District insurance law as an insurer.

(6) “Licensed producer” means an agent, broker, or reinsurance intermediary licensed pursuant to the applicable provision of insurance law.

(7) “Reinsurance intermediary” means a reinsurance intermediary-broker or a reinsurance intermediary-manager as these terms are defined in paragraphs (8) and (9) of this section.

(8) “Reinsurance intermediary-broker” (“RB”) means any person, other than an officer or employee of the ceding insurer, firm, association, or corporation who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of the insurer.

(9) “Reinsurance intermediary-manager” (“RM”) means any person, firm, association, or corporation that has authority to bind or manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department, or underwriting office, and acts as an agent for the reinsurer whether known as a RM, manager, or other similar term. Notwithstanding the above, for the purposes of this chapter, the following persons shall not be considered a RM, with respect to such a reinsurer:

(A) An employee of the reinsurer;

(B) A United States manager of the United States branch of an alien reinsurer;

(C) An underwriting manager that, pursuant to contract, manages all the reinsurance operations of the reinsurer, is under common control with the reinsurer, subject to Chapter 7 of this title , and whose compensation is not based on the volume of premiums written; or

(D) The manager of a group, association, pool, or organization of insurers that engage in joint underwriting or joint reinsurance and who are subject to examination by the insurance commissioner or superintendent of insurance of the state in which the manager’s principal business office is located.

(10) “Reinsurer” means any person, firm, association, or corporation duly licensed in the District pursuant to the applicable provisions of insurance law of the District as an insurer with the authority to assume reinsurance.

(11) “ To be in violation” means that the reinsurance intermediary, insurer, or reinsurer for whom the reinsurance intermediary was acting failed to substantially comply with the provisions of this chapter.

(12) “Qualified United States financial institution” means an institution that:

(A) Is organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States, any state, or the District;

(B) Is regulated, supervised, and examined by United States federal, state, or District authorities having regulatory authority over banks and trust companies; and

(C) Has been determined, by either the Mayor or the Securities Valuation Office of the National Association of Insurance Commissioners, to meet the standards of financial condition and standing considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the Mayor.

Legislative History

Oct. 21, 1993, D.C. Law 10-47, § 2, 40 DCR 6093; May 16, 1995, D.C. Law 10-255, § 30, 41 DCR 5193