Section 26-A4601. FILING REQUIREMENTS AND PUBLIC NOTIFICATION

 

4601.1All domestic companies licensed under this chapter shall file a financial report with the Commissioner which details the company’s surplus and examines whether the company’s surplus is considered excessive under the Act.  The financial report shall detail the appropriate level of surplus necessary for the company to meet the National Association of Insurance Commissioners’ Risk Based Capital Requirements for health insurers pursuant to the Health Organizations RBC Amendment Act of 2002, effective June 18, 2003 (D.C. Law 14-312; D.C. Official Code § 31-3851.01 et seq. (2008 Supp.)); and the Blue Cross/Blue Shield Association capital requirements.

 

4601.2The report required by section 4601.1 shall be filed with the Commissioner for his review by June 1st of each year, except that the report with the Commissioner by July 24, 2009.

 

4601.3All filings are required to be submitted electronically in a format prescribed by the Commissioner.

 

4601.4In determining whether the surplus is excessive, the Commissioner shall consider the National Association of Insurance Commissioners’ Risk Based Capital Requirements for health insurers pursuant to the Health Organizations RBC Amendment Act of 2002, effective June 18, 2003 (D.C. Law 14-312; D.C. Official Code §§ 31-3851.01 et seq. (2008 Supp.)); and the Blue Cross/Blue Shield Association capital requirements.

 

4601.5If the preliminary analysis of the Commissioner determines that the company’s surplus is excessive, a public hearing shall be scheduled in accordance with section 4602 to determine whether the company’s surplus is excessive and unreasonably large, and the company shall provide a report to the Commissioner, at least fifteen (15) days prior to the date of the public hearing, a report with the following information:

 

(a)The company’s actuarially determined risk exposures; and

 

(b)The company’s expected and unanticipated contingencies.

 

4601.6The Commissioner shall post on the Department’s website, all public documentation used in determining whether a company’s surplus is excessive and unreasonably large, and whether surplus is adequate to cover the anticipated and unanticipated losses of the company.

 

4601.7The Commissioner shall provide a determination of the amount of surplus attributable to the District of Columbia.

 

4601.8In determining whether a company’s surplus attributable to the District is unreasonably large, the Commissioner may include provisions for actuarially determined risk exposures as well as the expected and unanticipated contingencies of the company.  The anticipated cost of the corporation’s contribution to the open enrollment program required by section 15 of the Act should be included in the surplus determination. 

 

authority

Section 4 of the Department of Insurance, Securities Regulation Establishment Act of 1996, effective May 21, 1997 (D.C. Law 11-268; D.C. Official Code § 31-103(a)(1) (2001), and section 21 of the Hospital and Medical Services Corporation Regulatory Act of 1996, effective April 9, 1997 (D.C. Law11-245; D.C. Official Code § 31-3520 (2001), and section 2(j) of the Medical Insurance Empowerment Amendment Act of 2008 (MIEAA), effective March 25, 2009 (D.C. Law 17-0369, 56 DCR 1346; D.C. Official Code § 31-3524).

source

Notice of Final Rulemaking published at 56 DCR 8841 (November 13, 2009).