20 1 of Columbia for the fiscal year ending June thirtieth, nine2 teen hundred and three, and for other purposes" (32 Stat. 3 591; D.C. Code, sec. 22-702), is amended (a) by striking 4 out "Commissioners" and inserting in lieu thereof "Commis5 sioner" and (b) by striking out "them" and inserting in 6 lieu thereof "him". 92D CONGRESS 1ST SESSION S. 2208 IN THE SENATE OF THE UNITED STATES JUNE 30, 1971 Mr. STEVENSON (by request) introduced the following bill; which was read twice and referred to the Committee on the District of Columbia A BILL To improve the laws relating to the regulation of insurance in 1 the District of Columbia, and for other purposes. Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "District of Columbia 4 Insurance Act." 5 TITLE I-DISTRICT OF COLUMBIA POST ASSESSMENT INSURANCE GUARANTY ASSOCIATION ACT 6 7 8 SEC. 101. This title shall be known and may be cited as 9 the "District of Columbia Insurance Guaranty Association 10 Act." 2 1 SEC. 102. The purpose of this title is to provide a 2 mechanism for the payment of covered claims under certain 3 insurance policies to avoid excessive delay in payment and 4 to avoid financial loss to claimants or policyholders because 5 of the insolvency of an insurer, to assist in the detection and 6 prevention of insurer insolvencies, and to provide an associa7 tion to assess the cost of such protection among insurers. 8 SEC. 103. This title shall apply to all kinds of direct in9 surance, except life, title, disability, and mortgage guaranty 10 insurance. 11 12 SEC. 104. As used in this title (1) "Commissioner" means the Commissioner of the 13 District of Columbia or his designated agent. 14 (2) "Covered claim" means an unpaid claim, including 15 one for unearned premiums, which arises out of and is within 16 the coverage and not in excess of the applicable limits of an 17 insurance policy to which this title applies issued by an in18 surer, if such insurer becomes an insolvent insurer after the 19 effective date of this title and (a) the claimant or insured is 20 a resident of the District of Columbia at the time of the in21 sured event; or (b) the property from which the claim 22 arises is permanently located in the District. "Covered claim" 23 shall not include any amount due any reinsurer, insurer, in24 surance pool, or underwriting association, as subrogation re25 coveries or otherwise. 3 1 (3) "Insolvent insurer" means (a) an insurer au2 thorized to transact insurance in the District either at the 3 time the policy was issued or when the insured event oc4 curred and (b) determined to be insolvent by a court of com5 petent jurisdiction. 6 (4) "Member insurer" means any person who (a) 7 writes any kind of insurance to which this title applies, in8 cluding the exchange of reciprocal or interinsurance con9 tracts, and (b) is licensed to transact insurance in the 10 District. 11 (5) "Net direct written premiums" means direct gross 12 premiums written in the District on insurance policies to 13 which this title applies, less return premiums thereon and 14 dividends paid or credited to policyholders on such direct 15 business. The term does not include premiums on contracts 16 between insurers or reinsurers. 17 (6) "Person" includes individuals, corporations, asso18 ciations, exchanges, and partnerships. 19 SEC. 105. There is created a nonprofit unincorporated 20 legal entity to be known as the District of Columbia Insur21 ance Guaranty Association (hereinafter Association). All 22 member insurers shall be and remain members of the Asso23 ciation as a condition of their authority to transact insurance 24 in the District. The Association shall perform its functions 25 under a plan of operation established and approved by the 222 4 1 Commissioner and shall exercise its powers through a Board 2 of Directors. For purposes of administration and assessment, 3 the Association shall be divided into three separate accounts: 4 (a) the workmen's compensation insurance account; (b) 5 the automobile insurance account; and (c) the account for all 6 other insurance to which this title applies. 7 SEC. 106. (a) The Board of Directors of the Associa8 tion shall consist of not less than five nor more than nine 9 persons serving terms as established in the plan of opera10 tion. The members of the Board shall be selected by member 11 insurers subject to the approval of the Commissioner. Vacan12 cies on the Board shall be filled for the remaining period 13 of the term in the same manner as initial appointments. 14 If no members are selected within sixty days after the effec15 tive date of this title, the Commissioner may appoint the 16 initial members of the Board of Directors. 17 (b) In approving selections to the Board, the Com18 missioner shall consider among other things whether all 19 member insurers are fairly represented. 20 (c) Members of the Board may be reimbursed from the 21 assets of the Association for expenses incurred by them as 22 members of the Board of Directors. 23 SEC. 107. The Association shall have the following 24 duties and powers under this title. |