{"data":{"id":"us-dc/d.c.-code-31-4103","jurisdiction":"us-dc","citation":"D.C. Code § 31-4103","heading":"Risk retention groups not chartered in the District.","body":"Risk retention groups chartered and licensed in states other than the District seeking to do business as a risk retention group in the District shall comply with the laws of the District as follows:\n\n(1)\n(A)\nBefore offering insurance in the District, a risk retention group shall submit to the Mayor on a form prescribed by the NAIC:\n(i)\nA statement identifying the state or states in which the retention group is chartered and licensed as a liability insurance company, charter date, its principal place of business, and any other information, including information on its membership, as the Mayor may require to verify that the risk retention group is qualified under § 31-4101(12); and\n(ii)\nA copy of its plan of operations or feasibility study and revisions of the plan or study submitted to the state in which the risk retention group is chartered and licensed; provided, however, that the provision relating to the submission of a plan of operation or feasibility study shall not apply with respect to any line or classification of liability insurance which was defined in the federal Product Liability Risk Retention Act of 1981 (15 U.S.C. § 3901 et seq.), before October 27, 1986, and which was offered before the date by any risk retention group which had been chartered and operating for not less than 3 years before the date.\n(B)\nThe risk retention group shall submit a copy of any revision to its plan of operation or feasibility study required by § 31-4102(b) at the same time that the revision is submitted to the commissioner of its chartering state.\n(C)\nThe risk retention group shall submit a statement of registration, for which a filing fee shall be determined by the Mayor, proof of compliance with the service of process provisions of § 31-202.\n\n(2)\nAny risk retention group doing business in the District shall submit to the Mayor:\n(A)\nA copy of the group’s financial statement submitted to the state in which the risk retention group is chartered and licensed which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist under criteria established by the NAIC;\n(B)\nA copy of each examination of the risk retention group as certified by the Commissioner or public official conducting the examination;\n(C)\nUpon request by the Commissioner, a copy of any information or document pertaining to any outside audit performed with respect to the risk retention group; and\n(D)\nAny information required to verify its continuing qualification as a risk retention group under § 31-4101(12).\n\n(3)\n(A)\nEach risk retention group shall be liable for the payment of premium taxes and taxes on premiums of direct business for risks resident or located within the District, and shall report to the Commissioner the net premiums written for risks resident or located within the District. Such a risk retention group shall be subject to taxation, and any related applicable fines and penalties, on the same basis as a foreign admitted insurer.\n(B)\nTo the extent licensed agents or brokers are utilized pursuant to § 31-4111, they shall report to the Commissioner the premiums for direct business for risks resident or located within the District which these licensees have placed with or on behalf of a risk retention group not chartered in the District of Columbia.\n(C)\nTo the extent that insurance agents or brokers are utilized pursuant to § 31-4111, the agent or broker shall keep a complete and separate record of all policies procured from each risk retention group, which record shall be open to examination by the Commissioner, as provided by the insurance laws of the District of Columbia. These records shall contain each policy and each kind of insurance provided thereunder, and shall include the following:\n(i)\nThe limit of liability;\n(ii)\nThe time period covered;\n(iii)\nThe effective date;\n(iv)\nThe name of the risk retention group which issued the policy;\n(v)\nThe gross premium charged; and\n(vi)\nThe amount of return premiums, if any.\n\n(4)\nAny risk retention group, its agents, and representatives shall comply with District law governing fraud or deceptive practices. If the Mayor seeks an injunction regarding this conduct, the injunction shall be obtained from a court of competent jurisdiction.\n\n(5)\nAny risk retention group shall comply with the laws governing the proper transaction of insurance business as provided by the District.\n\n(6)\nAny risk retention group must submit to an examination by the Commissioner to determine its financial condition if the superintendent or Commissioner of the jurisdiction in which the group is chartered and licensed has not initiated an examination within 60 days after a request by the Commissioner of the District. Any examination shall be coordinated to avoid unjustified repetition and conducted in an expeditious manner and in accordance with the NAIC’s Examiner Handbook. Cost of the examination shall be borne by the risk retention group.\n\n(7)\n\n      “ NOTICE\n    \n\n(8)\nThe following acts by a risk retention group are prohibited:\n(A)\nThe solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in the group; and\n(B)\nThe solicitation or sale of insurance by, or operation of, a risk retention group that is in hazardous financial condition or financially impaired.\n\n(9)\nAfter April 26, 1994, risk retention groups shall not be allowed to do business in the District if an insurance company is directly or indirectly a member or owner of the risk retention group, other than in the case of a risk retention group all of whose members are insurance companies.\n\n(10)\nThe terms of any insurance policy issued by risk retention groups shall not provide, or be construed to provide, coverage prohibited generally by a statute of the District or declared unlawful by the highest court of the District whose law applies to such a policy.\n\n(11)\nA risk retention group not chartered in the District and doing business in the District shall comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by a state insurance commissioner if there has been a finding of financial impairment after an examination under paragraph (6) of this section.\n\n(12)\nA risk retention group that violates any provision of this chapter will be subject to fines and penalties, including revocation of its right to do business in the District, applicable to licensed insurers generally.\n\n(13)\nIn addition to complying with the requirements of this section, any risk retention group operating in the District prior to enactment of this chapter shall, within 30 days after October 21, 1993, comply with paragraph (1) of this section.","path":["Title 31. Insurance and Securities.","Chapter 41. Risk Retention."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/31-4103","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"2552af68805b46bdf420d4d9d467058de55b1a3e5a790c82e9f98feb46d150c4","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-31-4102","next":"us-dc/d.c.-code-31-4104"},"notice":"GroundRules: Original legal text. Not legal advice."}