Code of the District of Columbia

§ 31–1131.15. Notification to Commissioner of termination.

(a) An insurer, or authorized representative of the insurer, that terminates the appointment, employment, contract, or other insurance business relationship with an insurance producer shall notify the Commissioner within 30 days after the effective date of the termination, on a form prescribed by the Commissioner, if the reason for termination is set forth in § 31-1131.12 or the insurer has knowledge that the producer was found by a court, government body, or self-regulatory organization authorized by law to have engaged in any of the activities in set forth in § 31-1131.12. Upon the written request of the Commissioner, the insurer shall provide additional information, documents, records, or other data pertaining to the termination or activity of the insurance producer.

(b) An insurer, or authorized representative of the insurer, that terminates the appointment, employment, or contract with an insurance producer for any reason not set forth in § 31-1131.12, shall notify the Commissioner within 30 days after the effective date of the termination on a form prescribed by the Commissioner. Upon written request of the Commissioner, the insurer shall provide additional information, documents, records, or other data pertaining to the termination.

(c) The insurer, or the authorized representative of the insurer, shall promptly notify the Commissioner, on a form prescribed by the Commissioner, if, upon further review or investigation, the insurer discovers additional information that would have been reported to the Commissioner in accordance with subsection (a) of this section.

(d)(1) Within 15 days after making the notification required by subsections (a), (b), and (c) of this section, the insurer shall mail a copy of the notification to the insurance producer at his or her last known address. If the insurance producer is terminated for cause for any of the reasons set forth in § 31-1131.12, the insurer shall provide a copy of the notification to the producer at his or her last known address by certified mail, return receipt requested, postage prepaid or by overnight delivery using a nationally recognized carrier.

(2) Within 30 days after the insurance producer has received the original or additional notification, the insurance producer may file written comments concerning the substance of the notification with the Commissioner. The insurance producer shall, by the same means, simultaneously send a copy of the comments to the reporting insurer. The comments shall become a part of the Commissioner’s file and accompany every copy of a report distributed or disclosed for any reason about the insurance producer as permitted under subsection (f) of this section.

(e)(1) In the absence of actual malice, an insurer, the authorized representative of the insurer, an insurance producer, the Commissioner, an organization of which the Commissioner is a member and that compiles the information and makes it available to other insurance commissioners or regulatory or law enforcement agencies, or their agents or employees shall not be subject to civil liability as a result of:

(A) A statement or information required by or provided under this section or any information relating to any statement that may be requested in writing by the Commissioner from an insurer or an insurance producer; or

(B) A statement by a terminating insurer or insurance producer to an insurer or insurance producer limited solely and exclusively to whether a termination for cause under subsection (a) of this section was reported to the Commissioner; provided, that the propriety of a termination for cause under subsection (a) of this section is certified in writing by an officer or authorized representative of the insurer or insurance producer terminating the relationship.

(2) In an action brought against a person that may have immunity under paragraph (1) of this section for making any statement required by this section or providing any information relating to any statement that may be requested by the Commissioner, the party bringing the action shall prove actual malice with particularity.

(3) Paragraph (1) or (2) of this section shall not abrogate or modify any existing statutory or common law privileges or immunities.

(f)(1) Any documents, materials, or other information in the control or possession of the Department of Insurance, Securities, and Banking that is furnished by an insurer, an insurance producer, or an employee or agent thereof acting on behalf of the insurer or producer or obtained by the Commissioner in an investigation pursuant to this section shall be confidential and privileged, shall not be subject to subchapter II of Chapter 5 of Title 2, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in a private civil action; provided, that the Commissioner may use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the Commissioner’s duties.

(2) The Commissioner or any person who received documents, materials, or other information while acting under the authority of the Commissioner shall not testify in a private civil action concerning any confidential documents, materials, or information subject to paragraph (1) of this section.

(3) To assist in the performance of the Commissioner’s duties under this chapter, the Commissioner:

(A) May share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to paragraph (1) of this subsection, with other state, federal, and international regulatory agencies, with the NAIC, its affiliates, or subsidiaries, or with state, federal, and international law enforcement authorities; provided, that the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information;

(B) May receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the NAIC, its affiliates, or subsidiaries or from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and

(C) May enter into agreements governing sharing and use of information consistent with this subsection.

(4) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the Commissioner under this section or as a result of sharing as authorized in paragraph (3) of this subsection.

(5) This chapter shall not prohibit the Commissioner from releasing final, adjudicated actions, including terminations for cause that are open to public inspection under subchapter II of Chapter 5 of Title 2 to a database or other clearinghouse service maintained by the NAIC, its affiliates, or subsidiaries.

(g) An insurer, the authorized representative of the insurer, or producer that fails to report as required under the provisions of this section or that is found to have reported with actual malice by a court of competent jurisdiction may, after notice and hearing, have its license or certificate of authority suspended or revoked and may be fined in accordance with § 31-1131.12(d).


(Mar. 27, 2003, D.C. Law 14-264, § 15, 50 DCR 260; June 11, 2004, D.C. Law 15-166, § 4(g)(2), 51 DCR 2817.)

Effect of Amendments

D.C. Law 15-166, in par. (1) of subsec. (f), substituted “Department of Insurance, Securities, and Banking” for “Department of Insurance and Securities Regulation”.

Emergency Legislation

For temporary (90 day) amendment of section, see § 4(g)(2) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).