(1) “Alien” means organized under the laws of any country other than the United States or a territory or insular possession of the United States.
(2) “District” means the District of Columbia.
(3) “Domestic” means organized under the laws of the District of Columbia or under federal legislation.
(4) “Foreign” means organized under the laws of any state of the United States, or of any territory or insular possession of the United States.
(5) “Foreign country” means a country where an insurer, not organized under the laws of the United States, is organized or formally located.
(6) “Mayor” means the Mayor of the District of Columbia.
(7) “Net premium receipts” or “consideration received” means gross premiums or consideration received less the sum of the following:
(A) Premiums received for reinsurance assumed and consideration returned on contracts not taken or cancelled; and
(B) Dividends paid in cash or used by policyholders to pay renewal premiums.
(8) “State” means the Commonwealth of Puerto Rico, a state in the United States of America, or a United States possession or territory other than the District of Columbia.
§ 47–2602. Domicile of insurer organized in foreign country.
Except for insurers organized under the laws of Canada, the domicile of an insurer organized or formally located in a foreign country shall be the insurer’s principal place of business in the United States of America. The domicile of a Canadian insurer shall be the Canadian province where the insurer’s headquarters are located.
§ 47–2603. Licenses; fee; term.
(a) On and after the first day of September 1937, every domestic, foreign, or alien company organized as a stock, mutual, reciprocal, Lloyd’s fraternal, or any other type of insurance company or association, before issuing contracts of insurance against loss of life or health, or by fire, marine, accident, casualty, fidelity and surety, title guaranty, or other hazard not contrary to public policy, shall obtain from the Commissioner of Insurance and Securities [Commissioner of the Department of Insurance, Securities, and Banking] of the District of Columbia an annual license or certificate of authority, upon payment of a fee of $100 per year or fraction thereof to the District of Columbia and collected by the Commissioner of Insurance and Securities [Commissioner of the Department of Insurance, Securities, and Banking]. All licenses for insurance companies who may apply for permission to do business in the District of Columbia shall date from the first of the month in which application is made, and expire on the 30th day of April following.
(b) Any license issued pursuant to this chapter 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 this title.
§ 47–2604. Penalty for engaging in business without license or certificate of authority.
Any such company issuing contracts of insurance in the District of Columbia, without first having obtained license or certificate of authority from the Commissioner of Insurance and Securities [Commissioner of the Department of Insurance, Securities, and Banking] so to do, shall upon conviction be subject to a fine of $100 per day for each day it shall engage in business without such license or certificate of authority. Civil fines, penalties, and fees may be imposed as alternative sanctions for any infraction of the provisions of this chapter, or any rules or regulations issued under the authority of this chapter, pursuant to Chapter 18 of Title 2. Adjudication of any infraction of this chapter shall be pursuant to Chapter 18 of Title 2.
§ 47–2605. Prosecutions.
All prosecutions for violations of this chapter shall be in the Superior Court of the District of Columbia by the Attorney General for the District of Columbia or any of his assistants.
§ 47–2606. Annual statements; filing fee.
Each of such companies shall file an annual statement, in the form prescribed by the Superintendent, before March 1 of each year, of its operations for the year ending December 31 immediately preceding. Such statement shall be verified by oath of the president and secretary or in their absence by 2 other principal officers. The fee for filing said statement shall be $50 and payment thereof shall be collected by the Superintendent and made payable to the District of Columbia.
§ 47–2607. Revocation of license for failure to file statement.
If any such company shall fail to file the annual statement herein required, the Commissioner of Insurance and Securities [Commissioner of the Department of Insurance, Securities, and Banking] may thereupon revoke its license or certificate of authority to transact business in the District of Columbia.
§ 47–2608. Rates on insurance companies; exceptions; marine insurance excluded; payment schedule; revocation of certificate of authority for failure to pay tax.
(a)(1) Except as provided in paragraph (1A) of this subsection, all such companies, including companies which issue annuity contracts, shall also pay to the District of Columbia, for each calendar year, a sum of money as taxes equal to 1.7% of their policy and membership fees and net premium receipts or consideration received in such calendar year on all insurance and annuity contracts on risks in the District of Columbia. Such tax shall be in lieu of all other taxes except:
(A) Taxes upon real estate; and
(B) Fees and charges provided for by the insurance laws of the District including amendments made to such laws by this chapter.
(1A)(A) All companies that issue contracts of insurance against accident and loss of health shall pay to the District of Columbia, for each calendar year, a sum of money as taxes equal to 2% of their policy and membership fees and net premium receipts or consideration received in that calendar year on all policies or contracts in the District of Columbia. Such tax shall be in lieu of all other taxes except:
(i) Taxes upon real estate; and
(ii) Fees and charges provided for by the insurance laws of the District.
(B) This paragraph shall apply as of October 1, 2008.
(2) Net premium receipts or consideration received means gross premiums or consideration received, not including premiums received in connection with a tax exempt “pension business” as defined in section 1012(c)(4)(D) of the Tax Reform Act of 1986 (26 U.S.C. § 833, note), by a corporation referred to in section 1012(c)(4)(B) of the Tax Reform Act of 1986, less the sum of the following:
(A) Premiums received for reinsurance assumed and premiums or consideration returned on policies or contracts cancelled or not taken; and
(B) Dividends paid in cash or used by the policyholders in payment of renewal premiums.
(C) All premiums received from policies or contracts issued in connection with a pension, annuity, profit-sharing plan or individual retirement annuity qualified or exempt under section 401, 403, 404, 408, or 501(a) of the Internal Revenue Code, or successor provisions.
(3) Nothing contained in this section or in § 47-2603 or § 47-2609 shall apply with respect to marine insurance written within the said District and reported, taxed, and licensed under Chapter 26 of Title 31.
(a-1) A hospital service corporation or medical service corporation may deduct, in an amount not to exceed $550,000, the corporation’s payment to the rate stabilization fund under § 31-3514 and payments and expenditures pursuant to a public-private partnership entered into in accordance with the provisions of Chapter 5 of Title 31 from the amount otherwise due by the corporation under subsection (a) of this section.
(b)(1) The tax imposed by subsection (a) of this section shall, for each calendar year prior to calendar year 1977, be paid before the first day of March of the next succeeding calendar year.
(2) Except as provided in paragraph (3) of this subsection, the tax imposed for calendar year 1999, and for each calendar year thereafter, shall be paid on or before the first day of June of the calendar year in which the income to be taxed is received and before the first day of March following the close of each calendar year. The June payment shall be an amount equal to 1/2 of the total premium tax liability determined for the preceding calendar year. In accordance with rules prescribed by the Mayor, each company shall determine its total tax liability for each calendar year and pay the remainder, if any, on or before the first day of March following the close of each calendar year. Overpayments of tax may be refunded to the company or credited to the company’s next installment payment, at the election of the company.
(3) The installment payment provision of subsection (b)(2) of this section shall not apply in the case of any company having a tax liability for the preceding calendar year less than $1,000. In such cases the tax shall be paid on or before the first day of March following the close of the calendar year.
(c) The certificate of authority of any company may be revoked for failure to pay the tax required by this chapter.
§ 47–2608.01. Health service corporations. [Repealed]
Repealed.
§ 47–2609. Liability for failure to pay tax.
If any such company shall fail to pay the tax herein required, it shall be liable to the District of Columbia for the amount thereof, and in addition thereof a penalty of 8% per month thereafter until paid.
§ 47–2610. Reciprocity.
(a)(1) When a state or foreign country charges domestic companies aggregate taxes and fees which exceed the aggregate taxes and fees that the District charges under the same circumstances, then the Mayor may charge, in retaliation, the same taxes and fees to companies of the state or the foreign country when the companies are within the taxing jurisdiction of the District.
(2) When a state or a foreign country charges fines, deposits, or establishes obligations, or the restrictions which the District establishes under the same circumstances, then the Mayor may establish, in retaliation, the same fines, deposits, obligations, or restrictions for companies of the state or the foreign country when the companies are within the jurisdiction of the District.
(b) Subsection (a) of this section shall not apply to the following:
(1) Personal income taxes;
(2) Ad valorem taxes on real or personal property; and
(3) Special assessments charged by a state in connection with insurance, other than property insurance.
(c) The Mayor shall consider the amount of real and personal property taxes deducted from the taxes charged against a domestic company by a foreign jurisdiction when the Mayor determines the propriety and the extent of the retaliatory charges described in subsection (a) of this section.
§ 47–2611. Exemption of nonprofit relief associations.
Nothing contained in this chapter shall apply to any relief association, not conducted for profit, composed solely of officers and enlisted men of the United States Army, Navy, or Air Force, or solely of employees of any other branch of the United States government service or solely of employees of the District of Columbia government, or solely of employees of any individual, company, firm, or corporation or to any fraternal organization which issues contracts of insurance exclusively to its own members.
