Section 26-A2101. CREATION OF A SINKING FUND

 

2101.1Any owner of a taxicab maintaining an existing sinking fund or seeking to create a sinking fund shall file with the Commissioner of Insurance the following:

 

(a)An original copy of a written trust agreement (hereinafter Sinking Fund Trust Agreement) governing the maintenance of the sinking fund to be approved by Commissioner;

 

(b)Except as provided in paragraphs (c) and (d), an original copy of the trust’s (hereafter Sinking Fund Trust) financial statement evidencing that the sinking fund has a minimum net worth of six hundred thousand ($600,000) dollars;

 

(c)A notarized actuarial statement evidencing a minimum net worth of two hundred and fifty thousand ($250,000) dollars for all sinking funds created on or before June 23, 1987;

 

(d)For sinking funds created on or before June 23, 1987, a plan, acceptable to the Commissioner, to increase the fund's net worth to the level of six hundred thousand ($600,000) dollars within a reasonable period.

 

(e)A verified financial statement that includes a valuation of the fund’s assets and liabilities using statutory accounting principles;

 

(f)An application to create or maintain a sinking fund in a form prescribed by the Commissioner;

 

(g)In the case of a corporation, a certificate of good standing from the District of Columbia’s office of Business Regulation Administration;

 

(h)A form appointing the Commissioner of Insurance agent for service of process; and

 

(i)Biographical data for all administrators, officers, and recommended trustees of the sinking fund.

 

2101.2The management of the sinking fund shall purchase a collateral instrument on or before April 1 of each year in an amount deemed sufficient by the Commissioner. On or before March 1 of each year, the management of the sinking fund shall submit to the Commissioner an actuarial certified financial statement for the year ending December 31st immediate preceding and any other relevant information requested by the Commissioner, so that the Commissioner may make a determination as to the dollar value of the collateral instrument to be submitted.

 

2101.3The collateral instrument shall be deposited in a bank designated by the management of the sinking fund.

 

2101.4At the time of such deposit into the designated bank, representatives from the following District of Columbia government agencies are to be present:

 

(a)The Insurance Administration of the Department of Consumer and Regulatory Affairs;

 

(b)The Department of Finance and Revenue; and

 

(c)The Office of the Inspector General.

 

2101.5In order for any transaction to be effectuated upon the collateral instrument, written authorization from the above referenced District of Columbia agencies is required.

 

source

Final Rulemaking published at 36 DCR 5113 (July 21, 1989).