Section 26-A4006. ORGANIZATION OF RECIPROCAL INSURER

4006.1Three or more persons may organize a domestic reciprocal insurer and make application to the Commissioner for a certificate of authority to transact insurance.

4006.2The proposed attorney shall fulfill the requirements of and shall execute and file with the Commissioner when applying for a certificate of authority, a declaration verified by the oath of such attorney, or when such attorney is a corporation by the oath of an officer thereof, setting forth:

(a) The name of the insurer;

(b) The location of the insurer’s registered office, which shall be the same as the registered office of the attorney and shall be maintained within the District;

(c) The kinds of insurance proposed to be transacted;

(d) The names and addresses of the original subscribers;

(e) The designation and appointment of the proposed attorney and a copy of the power of attorney;

(f) The names and addresses of the officer and directors of the attorney, if a corporation, or of its members, if a firm;

(g) The powers of the subscribers’ advisory committee and the names and terms of office of the members thereof;

(h) That all moneys paid to the reciprocal shall, after deducting therefrom any sum payable to the attorney, be held in the name of the insurer and for the purposes specified in the subscribers’ agreement;

(i) A statement that each of the original subscribers has in good faith applied for insurance of a kind proposed to be transacted and that the insurer has received from each such subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than three months at the rate provided therein; and

(j)A pro-forma statement of the financial condition of the insurer, a schedule of its assets and a statement that the surplus as required by the act is available.

4006.3Any domestic stock or mutual insurance company may convert to a domestic reciprocal insurer in accordance with a plan filed with and approved by the Commissioner.  Upon approval of a plan the Commissioner shall issue a new or amended certificate of authority which shall be the final act of conversion.  The new domestic reciprocal insurer shall be the continuation of the converted stock of mutual company and be deemed organized on the date the converted stock or mutual company was organized.

4006.4No declaration shall be required under this section for any reciprocal insurer organized in the District as a result of a conversion under subsection 4006.3 of this section 

authority

The Administrator of the Office of Documents and Administrative Issuances (ODAI), pursuant to the authority set forth in section 309 of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1203; D.C. Official Code § 2-559), and the Commissioner of the Department of Insurance, Securities and Banking (DISB), pursuant to the authority set forth in section 22 of the Captive Insurance Company Act of 2004, effective March 17, 2005 (D.C. Law 15-262; D.C. Official Code § 31-3931.21).

source

Notice of Emergency and Proposed Rulemaking published at 54 DCR 12099 (December 14, 2007)[EXPIRED]; as amended by Notice of Final Rulemaking published at 55 DCR 479, 481 (January 18, 2008); as corrected by Errata Notice published at 58 DCR 2409 (March 18, 2011).