D.C. Mun. Regs. tit. 26, r. 26-A4008

Current through Register Vol. 71, No. 44, November 1, 2024

Rule 26-A4008 - POWER OF ATTORNEY

4008.1

The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers.

4008.2

The power of attorney must be set forth:

(a) The powers of the attorney;

(b) The general services to be performed by the attorney;

(c) The maximum amount to be deducted from advance premiums or deposits to be paid to the attorney and the general items of expense in addition to losses to be paid by the insurer; and

(d) A provision for a contingent several liability of each subscriber who is issued an assessable policy in a specified amount, which amount shall not be less than one or more than ten times the premium or premium deposit stated in the policy.

4008.3

The power of attorney may:

(a) Provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder.

(b) Impose such restrictions upon the exercise of the power as are agreed upon by the subscribers;

(c) Provide for the exercise of any right reserved to the subscribers directly or through their advisory committee;

(d) Provide that only non-assessable policies shall be issued; and

(e) Contain other lawful provisions deemed advisable.

4008.4

The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable, and no such power or agreement or modification thereof shall be used by a domestic reciprocal or be effective in the District until approved by the Commissioner.

D.C. Mun. Regs. tit. 26, r. 26-A4008

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, 482 (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 ).