D.C. Law 24-26. Insurer Corporate Governance Annual Report Act of 2021.
To require insurers to file an annual report that describes the insurer's or insurer's group's corporate governance structure, policies, and practices.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Insurer Corporate Governance Annual Report Act of 2021".
Sec. 2. Definitions.
For the purposes of
(1) "Commissioner" means the Commissioner of the Department of Insurance, Securities, and Banking.
(2) "Corporate Governance Annual Disclosure" means the report filed by an insurer or insurance group under
(3) "Insurance group" means those insurers and affiliates included within an insurance holding company system, as defined in
(4) "Insurer" shall have the same meaning as defined in
(5) "NAIC" means the National Association of Insurance Commissioners.
Sec. 3. Applicability and scope.
(b) Nothing in
Sec. 4. Disclosure requirement.
(a)(1) By June 1 of each year, an insurer, or the insurance group of which the insurer is a member, shall submit to the Commissioner a Corporate Governance Annual Disclosure that contains the information required by
(2) An insurer not required to submit a Corporate Governance Annual Disclosure to the Commissioner under this subsection shall provide a copy of the insurer's Corporate Governance Annual Disclosure to the Commissioner upon the Commissioner's request.
(b) The Corporate Governance Annual Disclosure shall include a signature of the insurer or insurance group's chief executive officer or corporate secretary attesting, to the best of that individual's belief and knowledge, that the insurer has implemented the corporate governance practices described in the Corporate Governance Annual Disclosure and that a copy of the Corporate Governance Annual Disclosure has been provided to the insurer's board of directors or the appropriate committee of the insurer's board of directors.
(c) For purposes of completing the Corporate Governance Annual Disclosure, the insurer or insurance group may provide information regarding corporate governance at the ultimate controlling parent level, an intermediate holding company level, or the individual legal entity level depending upon how the insurer or insurance group has structured its system of corporate governance.
Sec. 5. Contents of Corporate Governance Annual Disclosure.
(a)(1) The Corporate Governance Annual Disclosure shall be prepared in accordance with rules issued pursuant to
(2) The Commissioner may request any additional information considered material to providing the Commissioner with a clear understanding of the corporate governance policies and the reporting or information system or controls implementing those policies.
(b) Documentation and supporting information for the Corporate Governance Annual Disclosure shall be maintained by the insurer or insurance group and made available for examination or upon request of the Commissioner.
Sec. 6. Confidentiality.
(a) Documents, materials, and other information, including the Corporate Governance Annual Disclosure, in the possession or control of the Commissioner that are obtained by, created by, or disclosed to the Commissioner or any other person under
(b) Documents obtained by, created by, or disclosed to the Commissioner or any other person under
Sec. 7. NAIC and third-party consultants.
(a) The Commissioner may disclose information received pursuant to
(b)(1) The Commissioner may retain, at the insurer's expense, third-party consultants, including attorneys, actuaries, accountants, and other experts not otherwise a part of the Commissioner's staff, as may be reasonably necessary, to assist the Commissioner in reviewing the Corporate Governance Annual Disclosure and related information or in evaluating the insurer's compliance with
(2) The Commissioner shall have the authority to enter into a written agreement with the NAIC or a third-party consultant governing the sharing and use of information provided pursuant to
(3) A third-party consultant retained pursuant to this subsection shall serve under the direction and control of the Commissioner and shall act in an advisory capacity to the Commissioner.
(4) The NAIC, and third-party consultants retained pursuant to this subsection, shall be subject to the same confidentiality standards and requirements as the Commissioner.
(c) As part of the retention process, a third-party consultant shall verify to the Commissioner, with notice to the insurer, that it is free of a conflict of interest and has internal procedures in place to identify conflicts and monitor compliance with any measures taken to cure any conflicts and to comply with the confidentiality standards and requirements of
Sec. 8. Sanctions.
An insurer or insurance group failing, without just cause, to timely file a Corporate Governance Annual Disclosure as required in
Sec. 9. Rulemaking.
The Commissioner may, in accordance with
Sec. 10. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by
Sec. 11. Effective date.
This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), a 30-day period of congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of Columbia Register.