Annual Board Meeting Requirements for Captive Insurers Domiciled in the District of Columbia
DISB issued a notice to captive managers reminding them of the annual board meeting requirement. DC Official Code § 31-3931.11 (d) mandates that the board of directors of each captive insurer domiciled in the District meet at least once per year in the District. The notice stated:
- There must be at least a quorum of the board physically in the District of Columbia
- The company shall maintain minutes of the board meeting, which must be made available to DISB for inspection
- during an examination of the company
- and/or at such other reasonable times as the agency may request
- A waiver of the annual board meeting may be requested, however, the captive insurer must submit a written request and the request must be supported by facts and circumstances establishing good cause for the waiver to be granted.
- DISB’s Commissioner has the authority to impose administrative fines not to exceed $5,000 for violation of this requirement.
- Should the captive insurer be a habitual offender of the meeting requirement, the captive insurer may also face a temporary suspension or permanent revocation of their certificate of authority.
For more information, please contact Associate Commissioner Dana Sheppard at (202) 727-5074 or email email@example.com.
DISB Licenses 18 New Captive Insurers in 2009
In 2009, DISB licensed 14 new captive insurers and four incorporated cells in the District of Columbia. This included one company previously licensed as a cell captive and converted to a pure captive. The new captive insurers include 10 pure captives, six cell captives, one association captive and one agency captive. The captives are varied to include captives covering the construction industry, aircraft painting, auto manufacturers and soda bottlers to name a few. Since 2001, when the captive law came into effect, DISB has licensed 121 captives and incorporated cells.
Captive relocates to the District
Five Star Assurance, a captive insurer previously domiciled in Vermont, has relocated to the District. Five Star is approved to write terrorism insurance, including nuclear, biological, chemical and radiological coverage for approximately 20 Millennium Hotels located throughout the United States. Five Star Assurance is a subsidiary of Millennium & Copthorne Hotels plc, an international hotel company, headquartered in the United Kingdom. Millennium & Copthorne owns, manages and operates more than 120 hotels in 19 countries around the world.