D.C. Mun. Regs. tit. 16, r. 16-326
In each retail installment contract in which a charge is included for insurance, if the holder is unable to purchase the insurance, or if the amount included for insurance is later determined to be more than the premium for the insurance actually purchased, it shall be the duty of the holder to so advise the purchaser in writing by certified or registered mail, within five (5) calendar days of the date the holder learns of the inability to purchase or the increased amount.
If the holder is unable to purchase the insurance or if the amount included in the contract for insurance exceeds the premium for the insurance actually purchased by the holder, then the holder shall refund or credit to the purchaser the amount included for insurance or the excess amount, as the case may be.
Except to the extent that the credit under § 326.2 is applied toward payment for similar insurance, it shall be applied to the earliest installments of the contract maturing thereafter; or, at the option of the holder, the credit, plus interest thereon at the rate of eight percent (8%) per annum from the date on which the credit becomes available to the date it is applied to the indebtedness of the purchaser, may be applied to installments maturing subsequent to the earliest installments.
Notwithstanding the provisions of this section and the provisions of § 337, whenever a seller includes in a retail installment contract any charge for insurance protecting the buyer against legal liability arising from bodily injury or property damage caused others, that seller shall not permit the buyer to take possession of the motor vehicle which is the subject of the retail installment contract unless and until the insurance has become effective under a standard contract of bodily injury and property damage insurance.
D.C. Mun. Regs. tit. 16, r. 16-326