{"data":{"id":"us-dc/d.c.-code-31-1371.05","jurisdiction":"us-dc","citation":"D.C. Code § 31-1371.05","heading":"Prohibited investments.","body":"(a)\nAn insurer shall not, directly or indirectly:\n(1)\nInvest in an obligation or security or make a guarantee for the benefit of or in favor of an officer or director of the insurer, except as provided in § 31-1371.06;\n(2)\nInvest in an obligation or security, make a guarantee for the benefit of or in favor of, or make other investments in a business entity of which 10% or more of the voting securities or equity interests are owned, directly or indirectly, by or for the benefit of one or more officers or directors of the insurer, except as authorized in § 31-701, or provided in § 31-1371.06;\n(3)\nEngage on its own behalf or through one or more affiliates in a transaction or series of transactions designed to evade the prohibitions of this chapter;\n(4)\nInvest in a partnership as a general partner; provided, that an insurer may make an investment as a general partner:\n(A)\nIf all other partners in the partnership are subsidiaries of the insurer;\n(B)\nFor the purpose of:\n(i)\nMeeting cash calls committed to prior to April 11, 2003;\n(ii)\nCompleting those specific projects or activities of the partnership in which the insurer was a general partner as of April 11, 2003, that had been undertaken as of that date; or\n(iii)\nMaking capital improvements to property owned by the partnership on April 11, 2003, if the insurer was a general partner as of that date; or\n(C)\nIn accordance with § 31-1371.03(c); or\n(5)\nInvest in or lend its funds upon the security of shares of its own stock, except that an insurer may acquire shares of its own stock, which shall not be admitted assets of the insurer for the following purposes:\n(A)\nConversion of a stock insurer into a mutual or reciprocal insurer or a mutual or reciprocal insurer into a stock insurer;\n(B)\nIssuance to the insurer’s officers, employees, or agents in connection with a plan approved by the Commissioner for converting a publicly-held insurer into a privately-held insurer under § 31-903, or in connection with other stock option and employee benefit plans; or\n(C)\nIn accordance with any other plan approved by the Commissioner.\n\n(b)\nSubsection (a)(3) of this section shall not prohibit a subsidiary or other affiliate of the insurer from becoming a general partner.","path":["Title 31. Insurance and Securities.","Chapter 13A. Investments of Insurers.","Subchapter I. General Provisions."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/31-1371.05","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"e007d1adf514282e57723bd4b9b6f63df8b799cb49bf5754161635685a721a88","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-31-1371.04","next":"us-dc/d.c.-code-31-1371.06"},"notice":"GroundRules: Original legal text. Not legal advice."}