District of Columbia Code
Subchapter I - Holding Company System
§ 31–701. Definitions

For the purposes of this subchapter, the term:
(1) “Affiliate” means a person that directly, or indirectly through 1 or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.
(1A) “Commissioner” means the Commissioner of Insurance and Securities [Commissioner of the Department of Insurance, Securities, and Banking].
(2) “Control”, including the terms “controlling”, “controlled by”, and “under common control with”, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing 10% or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by § 31-705(k) that control does not exist in fact. The Mayor may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support such a determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.
(3) “District” means the District of Columbia.
(3A) “Enterprise risk” means any activity, circumstance, event, or series of events involving one or more affiliates of an insurer that if not remedied promptly is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including anything that would cause the insurer’s risk-based capital to fall into company action level as set forth in Chapter 20 of this title [§ 31-2001 et seq.], and Chapter 34A of title [§ 31-.01 et seq.], or would cause the insurer to be in hazardous financial condition as provided in § 31-2101.
(3B) "Group-wide supervisor" means the regulatory official authorized to engage in conducting and coordinating group-wide supervision activities who is determined and acknowledged by the Commissioner under § 31-706.01 to have sufficient significant contacts with the internationally active insurance group.
(3C) “Hospital service plan” means a plan for providing hospital and related services by hospitals and others which entitles a subscriber to certain hospital and related services, or to benefits and indemnification for such services.
(4) “Insurance holding company system” means an arrangement which consists of 2 or more affiliated persons, one or more of whom is an insurer.
(5) “Insurer” includes any company defined by §§ 31-2501.03 and 31-4202, authorized to do the business of insurance in the District, except that it shall not include agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District, or a state or political subdivision of a state.
(5A) "Internationally active insurance group" means an insurance holding company system that includes an insurer registered pursuant to § 31-704 that:
(A) Writes premiums in at least 3 countries;
(B) Has a percentage of gross premiums written outside the United States that is at least10% of its total gross written premiums; and
(C) Based on a 3-year rolling average, has total assets that are at least $50 billion or total gross written premiums of at least $10 billion.
(5B) “Medical service plan” means a plan for providing medical services and related services by physicians and others which entitles a subscriber to certain medical and related services, or to benefits and indemnification for such services.
(5C) "NAIC" means the National Association of Insurance Commissioners.
(5D) “Party” means the Mayor and any person or District government agency named or admitted as a party, or properly seeking and entitled as of right to be admitted as a party, in any proceeding before the Mayor or an agency, but nothing herein shall be construed to prevent the Mayor or an agency from admitting the Mayor or any person or agency as a party for limited purposes.
(6) “Person” means an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity, or any combination of the foregoing acting in concert, but shall not include any joint venture partnership exclusively engaged in owning, managing, leasing, or developing real or tangible personal property.
(7) “Securityholder” means an individual who owns any security of a specified person, including common stock, preferred stock debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing.
(8) “Subsidiary” means an affiliate controlled by a specified person directly or indirectly through 1 or more intermediaries.
(9) Repealed.
(10) “Voting security” means any security convertible into or evidencing a right to acquire a voting security.
(Oct. 21, 1993, D.C. Law 10-44, § 2, 40 DCR 6027; May 21, 1997, D.C. Law 11-268, § 10(gg)(1), 44 DCR 1730; Dec. 9, 2003, D.C. Law 15-56, § 2(a), 50 DCR 9188; Apr. 13, 2005, D.C. Law 15-354, § 41, 52 DCR 2638; Mar. 11, 2015, D.C. Law 20-235, § 2(a) 62 DCR 461; Apr. 11, 2019, D.C. Law 22-292, § 101(a), 66 DCR 1691.)
1981 Ed., § 35-3701.
This section is referenced in § 31-301, § 31-401, § 31-704, § 31-1371.05, § 31-1371.06, § 31-3510, and § 31-5031.13.
D.C. Law 15-56 added pars. (3A), (4A), and (5A).
D.C. Law 15-354, in subsec. (a), validated a previously made technical correction.
The 2015 amendment by D.C. Law 20-235 redesignated former (3A) as (3B); and added (3A).
Business transacted with producer controlled insurer, see § 31-401 et seq.
Section 401 of D.C. Law 22-292 provided that the changes made to this section by D.C. Law 22-292 shall apply to all insurance policies issued or renewed in the District 90 days after April 11, 2019.
For temporary (90 day) amendment of section, see § 2(a) of Department of Insurance and Securities Regulation Merger Review Emergency Amendment Act of 2002 (D.C. Act 14-457, July 23, 2002, 48 DCR 8132).
For temporary (90 day) amendment of section, see § 2(a) of Department of Insurance and Securities Regulation Merger Review Congressional Review Emergency Amendment Act of 2002 (D.C. Act 14-513, October 23, 2002, 49 DCR 10475).
For temporary (90 day) amendment of section, see § 2(a) of Department of Insurance and Securities Regulation Merger Review Congressional Review Emergency Amendment Act of 2003 (D.C. Act 15-8, January 27, 2003, 50 DCR 1473).
For temporary (90 day) amendment of section, see § 2(a) of Department of Insurance and Securities Regulation Merger Review Emergency Amendment Act of 2003 (D.C. Act 15-205, October 24, 2003, 50 DCR 9845).
For temporary (90 day) amendment of section, see § 2(a) of Department of Insurance and Securities Regulation Merger Review Second Congressional Review Emergency Amendment Act of 2003 (D.C. Act 15-257, November 25, 2003, 50 DCR 11006).
For temporary (225 day) amendment of section, see § 2(a) of Department of Insurance and Securities Regulation Merger Review Temporary Amendment Act of 2002 (D.C. Law 14-217, March 25, 2003, law notification 50 DCR 2730).
Because of the codification of D.C. Law 11-159 as subchapter II of Chapter 37 of Title 35 [subchapter II of Chapter 7 of Title 31, 2001 Ed.[, and the designation of the preexisting text as subchapter I, “subchapter” has been substituted for “chapter” in the introductory language.
Delegation of authority pursuant to D.C. Law 10-44, the Holding Company System Act of 1993, see Mayor’s Order 94-54, March 7, 1994 ( 41 DCR 1433).