Page:United States Statutes at Large Volume 87.djvu/329

 87 STAT. ]

297

PUBLIC LAW 93-89-AUG. 14, 1973

Public Law 93-89 AN ACT To improve the laws relating to the regulation of insurance in the District of Columbia, and for other purposes. Be it enacted by the Seriate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "District of Columbia Insurance Act".

August 14, l')73 [H. R. 4083]

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TITLE I — D I S T K ICT OF COLUMBIA P O S T A S S E S S M E N T INSURANCE GUARANTY ASSOCIATION ACT SEC. 101. This title shall be known and may be cited as the "District of Columbia Insurance Guaranty Association Act". SEC. 102. The purpose of this title is to provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, and to provide an association to assess the cost of such protection among insurers. SEC. 103. This title shall apply to all kinds of direct insurance, except life, title, disability, and mortgage guaranty insurance. SEC. 104. As used in this title— (1) The term "Commissioner" means the Commissioner of the District of Columbia or his designated agent. (2) The term "covered claim" means an unpaid claim, including one for unearned premiums, which arises out of and is within the coverage and not in excess of the applicable limits of an insurance policy to which this title applies issued by an insurer, if such insurer' becomes an insolvent insurer after the effective date of this title and (a) the claimant or insured is a resident of the District of Columbia at the time of the insured event; or (b) the property from which the claim arises is permanently located in the District of Columbia. Such term shall not include any amount due any reinsurer, insurer, insurance pool, or underwriting association, as subrogation recoveries or otherwise. (3) The term "insolvent insurer" means (a) an insurer authorized to transact insurance in the District of Columbia, either at the time the policy was issued or when the insured event occurred, who has been determined to be insolvent by a court of competent jurisdiction. (4) The term "member insurer" means any person who (a) writes any kind of insurance to which this title applies, including the exchange of reciprocal or interinsurance contracts, and (b) is licensed to transact insurance in the District of Columbia. (5) The term "net direct written premiums" means direct gross premiums written in the District on insurance policies to which this title applies, less return premiums thereon and dividends paid or credited to policyholders on such direct business. Such term does not include premiums on contracts between insurers or reinsurers. (6) The term "person" includes individuals, corporations, associations, exchanges, and partnerships. SEC. 105. There is created a nonprofit unincorporated legal entity to be known as the District of Columbia Insurance Guaranty Association (hereafter in this title referred to as the "Association"). All member insurers shall be and remain members of the Association as a condiiion of their authority to transact insurance in the District of Columbia. The Association shall perform its functions under a plan of operation established and approved by the Commissioner and shall exercise its powers through a Board of Directors (hereafter in this

Citation of title.

Definitions.

D.C, Insurance Guaranty Association. Establishment.

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