(a) No person, firm, association, or corporation shall act as a reinsurance broker in the District if the reinsurance broker maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation:
(1) In the District, unless the reinsurance broker is a licensed broker in the District; or
(2) In another state, unless the reinsurance broker is a licensed broker in the District or another state having a law substantially similar to this chapter or the reinsurance broker is licensed in the District as a nonresident reinsurance intermediary.
(b) No person, firm, association, or corporation shall act as a reinsurance manager:
(1) For a reinsurer domiciled in the District unless the reinsurance manager is a licensed broker in the District;
(2) In the District, if the reinsurance manager maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation in the District, unless the reinsurance manager is a licensed broker in the District; or
(3) In another state for a nondomestic insurer, unless the reinsurance manager is a licensed broker in the District or another state having a law substantially similar to this chapter or the person is licensed in the District as a nonresident reinsurance intermediary.
(c) The Mayor may require a reinsurance manager subject to subsection (b) of this section to:
(1) File a bond in an amount from an insurer acceptable to the Mayor for the protection of the reinsurer; and
(2) Maintain an errors and omissions policy in an amount acceptable to the Mayor.
(d)(1) The Mayor may issue a reinsurance intermediary license to any person, firm, association, or corporation that has complied with the requirements of this chapter. Such a license issued to a firm or association will authorize all the members of the firm or association, and any designated employees, to act as reinsurance intermediaries under the license, and all those persons shall be named in the application and any subsequent supplements. Such a license issued to a corporation shall authorize all of the officers, and any designated employees and directors, to act as reinsurance intermediaries on behalf of the corporation, and all those persons shall be named in the application and any subsequent supplements.
(2) If the applicant for a reinsurance intermediary license is a nonresident, such an applicant, as a condition precedent to receiving or holding a license, shall comply with the service of process provisions of § 31-202. Such a licensee shall promptly notify the Mayor in writing of every change in its designated agent for service of process, and no change shall become effective until acknowledged by the Mayor.
(e) The Mayor may refuse to issue a reinsurance intermediary license if, in his or her judgment, the applicant, anyone named on the application, or any member, principal, officer, or director of the applicant, is not trustworthy, or that any controlling person of such an applicant is not trustworthy to act as a reinsurance intermediary, or that any of the foregoing has given cause for revocation or suspension of such a license, or has failed to comply with any prerequisite for the issuance of such a license. Upon written request, the Mayor will furnish a summary of the basis for refusal to issue a license, which document shall be privileged and not subject to subchapter II of Chapter 5 of Title 2.
(f) Licensed attorneys at law of the District, when acting in their professional capacity, shall be exempt from this section.
(g) Any license issued pursuant to this section for a reinsurance intermediary shall be issued as a Financial Services endorsement to a basic business license under the basic business license system as set forth in subchapter I-A of Chapter 28 of Title 47.
(Oct. 21, 1993, D.C. Law 10-47, § 3, 40 DCR 6093; Apr. 26, 1994, D.C. Law 10-103, § 6(a), 41 DCR 1005; Mar. 21, 1995, D.C. Law 10-233, § 10, 42 DCR 24; Apr. 20, 1999, D.C. Law 12-261, § 2003(mm), 46 DCR 3142; Oct. 28, 2003, D.C. Law 15-38, § 3(w), 50 DCR 6913.)
Prior Codifications1981 Ed., § 35-3102.
Section ReferencesThis section is referenced in § 31-1805 and § 31-1808.
Effect of AmendmentsD.C. Law 15-38, in subsec. (g), substituted “Financial Services endorsement to a basic business license under the basic” for “Class A Financial Services endorsement to a master business license under the master”.
Emergency LegislationFor temporary (90 day) amendment of section, see § 3(w) of Streamlining Regulation Emergency Act of 2003 (D.C. Act 15-145, August 11, 2003, 50 DCR 6896).
Temporary LegislationFor temporary (225 day) amendment of section, see § 6(a) of Insurance Omnibus Temporary Amendment Act of 1993 (D.C. Law 10-76, March 17, 1994, law notification 41 DCR 1626).