Section 26-A4023. NONASSESSABLE POLICIES

4023.1Any domestic reciprocal insurer may issue nonassessable policies.

4023.2If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock and surplus required to be maintained by a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved by the subscribers’ advisory committee, the Commissioner shall issue a certificate authorizing the insurer to extinguish the contingent liability of subscribers under all its policies previously issued.

4023.3If required by the laws of another state in which the reciprocal insurer is transacting insurance as an authorized insurer, the reciprocal insurer may issue polices providing for the contingent liability of such of its subscribers as may acquire such policies in such state and need not extinguish the contingent liability applicable to policies theretofore in force in such state.

4023.4Retrospective, audit or other premium adjustments provided for in any policy of insurance shall not be considered assessments.  Any policy of insurance issued by a reciprocal may provide for a minimum and maximum premium.

authority

The Commissioner of the Department of Insurance, Securities, and Banking, 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, 488 (January 18, 2008).