Financial Examination Division
The Financial Examination Division:
- ensures that all licensed insurance companies and health maintenance organizations have sufficient capital and surplus to meet the requirements of District of Columbia law;
- collects and processes the premium, retaliatory and surplus line taxes paid by licensed entities; and
- reviews the premium rate filings, rate manuals and other rate information submitted by licensed entities.
Financial Examination Division has three branches:
 
Financial Surveillance Branch:
- performs analysis and reviews on the annual statement, quarterly financial statements and supplemental exhibits filed by domestic insurance companies and health maintenance organizations to determine compliance with District of Columbia laws;
- performs reviews of the audited financial statements, Management, Discussion and Analysis Statements, Actuarial Opinions, Risk Based Capital filings filed by domestic companies;
- reviews financial information, ratios and documentation provided by the NAIC and other state regulatory agencies when determining the financial condition of domestic companies;
- performs reviews on certain priority-one foreign insurance companies to advise the Commissioner of any financial concerns with a major underwriter of business in the District of Columbia; and
- reviews domestic insurance companies' records for compliance with the Credit for Reinsurance and Business Transacted with Producer Controlled Insurer Act.
Financial Examination Branch:
- conducts financial examinations of domestic insurance companies and health maintenance organizations to ensure that entities doing insurance business in the District of Columbia are in compliance with its insurance laws and regulations;
- prioritizes companies for examination, prepares and reviews planning and examination work papers, and prepares examination reports in accordance with District of Columbia statutes and NAIC Examination Procedures;
- receives, processes and verifies premium, retaliatory and surplus lines brokers taxes;
- verifies insurers' compliance with District of Columbia retaliatory tax laws;
- conducts audits of the taxes paid by unlicensed insurance companies; and
- prepares the annual statement renewal package for all licensed insurance companies.
Actuarial Analysis Branch:
- analyzes rating rules, rate manuals and rating schedules issued by insurance companies and health maintenance organizations;
- conducts actuarial and statistical analysis for the proper analysis of rate increase requests, and maintains a database for claims and investment experience;
- performs reviews on the actuarial opinions provided by domestic companies;
- assists the Financial Examination Division during the examination process by evaluating the loss and loss reserve methodology used by the company;
- prepares an analysis report of the premium rates charged by automobile liability insurance companies in our jurisdiction; and
- prepares reports as requested on all lines of business underwritten in the District.
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