The District of Columbia Council has passed a new bill that updates its captive insurance legislation to authorise the government-run captive, District of Columbia Captive Agency, to write more diverse risks.
CB 220420 proposes the introduction of the Captive Insurance Agency Amendment Act 2017 which amends the District of Columbia’s Medical Liability Captive Insurance Agency Establishment Act of 2008, the legislation that authorised the creation of the captive.
Additionally, the partisan bill defines the terms “liability insurance”, “personal property insurance”, “personal property asset”, and amends the definition of “real property insurance”.
The amendment authorises the District of Columbia Captive Agency to write property, terrorism and general liability for District of Columbia government-related risks, which is not permitted under current law.
The District of Columbia Captive Agency was initially set up to provide medical malpractice insurance to medical clinics in the district that provide free services to District of Columbia residents.
A fiscal impact statement from Jeffrey DeWitt, CFO of the District of Columbia, concluded that there were sufficient funds in the fiscal year 2018 through fiscal year 2021 budget and financial plan necessary to implement the proposed bill.
The act become effective following a 30-day period of congressional review and publication in the District of Columbia Register.
Sean O’Donnell, director of financial examination, risk finance bureau, at the District of Columbia Department of Insurance, Securities and Banking, explained: “The recent legislation was proposed by the District of Columbia Government Office of Risk Management, which runs the District of Columbia owned captive.”
“This legislation amends the act that created the District’s captive but it does not amend District of Columbia captive act.”
“These amendments will only be applicable to this one captive, and not the District of Columbia captive market generally.”
