D.C. Mun. Regs. tit. 26, r. 26-A4015

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 26-A4015 - METHOD OF DETERMINING FINANCIAL CONDITION

4015.1

In determining the financial condition of a reciprocal insurer, the Commissioner shall apply the following rules:

(a) The Commissioner shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis.

(b) The surplus deposits of subscribers shall be allowed as assets, except that any premium deposits delinquent for 90 days shall first be charged against such surplus deposit.

(c) The surplus deposits of subscribers shall not be charged as a liability.

(d) The subscribers' and other accounts as provided in subsection 4016.2 of this section shall not be charged as a liability unless and until the subscriber or other person entitled to the account has a right to withdraw the account.

(e) All premium deposits delinquent less than 90 days shall be allowed as assets.

(f) An assessment levied upon subscribers and not collected shall not be allowed as an asset.

(g) The contingent liability of subscribers shall not be allowed as an asset.

(h) The computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for expenses and the compensation of the attorney.

(i) The Commissioner shall permit any reciprocal that is a captive insurer or risk retention group to use such accounting rules, principles, procedures and practices as are permitted for mutual captive insurers or risk retention groups.

4015.2

A reciprocal insurer may establish one or more categories or types of subscriber and other surplus accounts with such terms and conditions as may be provided in the subscriber's agreement or power of attorney and allocate to such accounts amounts as may be determined by the subscribers advisory committee.

D.C. Mun. Regs. tit. 26, r. 26-A4015

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, 484 (January 18, 2008)

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 ).