District Of Columbia § 31-1371.06 - Loans to officers and directors.
Full text of District Of Columbia D.C. Code § 31-1371.06 — Loans to officers and directors., with citation guidance and answers to common questions.
§ 31-1371.06. Loans to officers and directors.
31-1371.06Except as provided in subsection (b) of this section, an insurer shall not, without the prior written approval of the Commissioner, directly or indirectly:
Make a loan to or other investment in an officer or director of the insurer or a person in which the officer or director has any direct or indirect financial interest;
Make a guarantee for the benefit of or in favor of an officer or director of the insurer or a person in which the officer or director has any direct or indirect financial interest; or
Enter into an agreement for the purchase or sale of property from or to an officer to director of the insurer or a person in which the officer or director has any direct or indirect financial interest.
For purposes of this section, an officer or director shall not be deemed to have a financial interest by reason of:
An interest that is held directly or indirectly through the ownership of equity interests representing less than 2% of all outstanding equity interests issued by a person that is a party to the transaction; or
The individual’s position as a director or officer of a person that is a party to the transaction.
Paragraph (1) of this subsection shall not:
Permit an investment that is prohibited by ; or
Apply to a transaction between an insurer and any of its subsidiaries or affiliates that is entered into in connection with , other than a transaction between an insurer and its officer or director.
An insurer may make, without the prior written approval of the Commissioner:
Policy loans in accordance with the terms of the policy or contract and ;
Advances to officers or directors for expenses reasonably expected to be incurred in the ordinary course of the insurer’s business or guarantees associated with credit or charge cards issued or credit extended for the purpose of financing these expenses;
Loans secured by the principal residence of an existing or new officer of the insurer made in connection with the officer’s relocation at the insurer’s request, if the loans comply with the requirements of or and the terms and conditions otherwise are the same as those generally available from unaffiliated third parties;
Secured loans to an existing or new officer of the insurer made in connection with the officer’s relocation at the insurer’s request, if the loans:
Do not have a term exceeding 2 years;
Are required to finance mortgage loans outstanding at the same time on the prior and new residences of the officer;
Do not exceed an amount equal to the equity of the officer in the prior residence; and
Are required to be fully repaid upon the earlier of the end of the 2-year period or the sale of the prior residence; or
Loans and advances to officers or directors made in compliance with state or federal law specifically related to the loans and advances by a regulated non-insurance subsidiary or affiliate of the insurer in the ordinary course of business and on terms no more favorable than available to other customers of the entity.
Annotations
Source: official District Of Columbia text · Last verified 2026-08-27
Frequently Asked Questions About District Of Columbia § 31-1371.06
What does D.C. Code § 31-1371.06 cover?
Section 31-1371.06 ("Loans to officers and directors.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite District Of Columbia § 31-1371.06?
A common citation format is "D.C. Code § 31-1371.06" (District Of Columbia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of District Of Columbia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the District Of Columbia official source linked on this page or consult a licensed District Of Columbia attorney.
How does District Of Columbia § 31-1371.06 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in District Of Columbia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in District Of Columbia.