Coverage line

A raised drawbridge breaks the route between two trading ports.Illustration for The General Average

Contract Frustration Insurance in the District of Columbia

The District's Property and Liability Insurance Guaranty Association Act excludes financial-guaranty insurance and other insurance protecting investment risks. Because the statute does not classify every contract-frustration policy, ask the issuing insurer to state the policy's D.C. insurance class and whether the exclusion applies before relying on association protection.

What Is Contract Frustration Insurance?

Contract frustration may fit your business when an international contract is exposed to political disruption or government action. If your main risk is a customer who cannot pay, compare trade-credit coverage instead. Read the national Contract frustration guide.

District of Columbia Contract Frustration Insurance Requirements

Requirement	Details
Get a written statement about guaranty-association scope	D.C. law ties Association membership to insurers writing kinds of insurance covered by its act, and it excludes financial-guaranty insurance from those kinds. Ask the insurer to identify the class for the policy and state whether it considers the policy within that exclusion. ^1,²

What to Watch for With Contract Frustration in District of Columbia

Financial-guaranty insurance is outside this Association Act
The District's Property and Liability Insurance Guaranty Association Act excludes financial-guaranty insurance and other insurance offering protection against investment risks. If the issuing insurer classifies a contract-frustration placement as financial guaranty, do not assume the District Association covers the policy if the insurer becomes insolvent; ask the insurer to confirm the classification and explain the limitation in writing. ¹
An insurer's membership does not make every class covered
The D.C. code defines a member insurer by whether it writes a kind of insurance to which the Association Act applies; financial-guaranty insurance is excluded from that act. Confirm the policy's class rather than treating an insurer's District license or Association membership as proof that this coverage has Association protection. ^2,¹
Association protection and policy coverage answer different questions
The District statute addresses which kinds of insurance fall within the Association Act. It does not describe the events that trigger a contract-frustration claim or the amount the policy will pay. Review the actual policy for its covered events, scheduled contracts, exclusions, waiting periods, and loss calculation separately from the Association question. ¹

Providers With District of Columbia License Records

No provider in our research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Who Regulates Insurance in District of Columbia?

District of Columbia Department of Insurance, Securities and Banking

DISB licenses and supervises insurance companies and producers, enforces District insurance laws, and provides consumer complaint assistance. Its licensing search covers insurance entities and representatives; consumers can contact the agency’s complaints unit for help. ^4,^5,⁷

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint
Phone: (202) 727-8000

Surplus-Lines Tax and Stamping Office in District of Columbia

Reported tax rate. Generally 2% of gross premium, including qualifying placement fees ^6,^8,^9,^10,³

When the District is the insured’s home state, surplus-lines agents and brokers generally owe a 2% tax on gross premium, including necessary fees incidental to placement when separately itemized. An agent or broker procuring insurance on behalf of the District government is exempt for that government business; claiming the exemption requires identifying its allocation in the required affidavit and does not waive other statutory duties. Ask the broker which taxes and fees your agreement passes through to you. DISB generally requires a diligent effort to place risks with authorized insurers. For a purchaser meeting the federal exempt-commercial-purchaser definition, the broker may skip that search only after disclosing that insurance may or may not be available from the admitted market, which may provide greater protection with more regulatory oversight, followed by the purchaser’s written request for nonadmitted placement. This record does not state a District-specific guaranty-fund conclusion.

Questions to Ask Before You Buy Contract Frustration in District of Columbia

Which legal entity issues the policy, and what class of insurance does it report for this D.C. risk?
Does the insurer classify this placement as financial-guaranty insurance or another form of political-risk cover, and what facts support that classification?
If the insurer classifies it as financial guaranty, does the insurer consider the D.C. Property and Liability Insurance Guaranty Association Act exclusion applicable to this policy?
Which government actions, payment failures, contracts, waiting periods, exclusions, and loss calculations are stated in the issued policy?

Contract Frustration Insurance in District of Columbia: FAQ

Would the D.C. Property and Liability Insurance Guaranty Association cover a contract-frustration policy?

The answer depends on the insurance class of the policy. D.C. law excludes financial-guaranty insurance and other investment-risk insurance from the Property and Liability Insurance Guaranty Association Act. Ask the insurer whether it classifies the policy in one of those excluded classes; the product label alone does not answer that question. ¹

Does an insurer's D.C. license or Association membership confirm this policy has Association protection?

Not by itself. The code defines member insurers by the kinds of insurance covered by the Association Act, and the Act excludes financial-guaranty insurance. Ask about the policy's own classification and whether the exclusion applies. ^2,¹

Sources

17 documents, numbered as cited. Open the sources

Sources for Contract Frustration Insurance in District of Columbia

1
D.C. Official Code § 31-5502: Applicability. District of Columbia Council, D.C. Law Library; Property and Liability Insurance Guaranty Association Act, § 31-5502(2); exclusions for financial-guaranty and investment-risk insurance; full current text opened 2026-09-28. Accessed 2026-09-28.
2
D.C. Official Code Chapter 55: Property and Liability Insurance Guaranty Association. District of Columbia Council, D.C. Law Library; § 31-5501(9), defining member insurer by reference to § 31-5502, and § 31-5503, establishing Association accounts for insurance covered by the chapter; full chapter text opened 2026-09-28. Accessed 2026-09-28.
3
D.C. Code §31–2502.40: License to procure policies from unauthorized companies. Council of the District of Columbia; Subsection (a): broker/agent tax and diligent effort; (c)(1)–(3): District-government procurement tax exemption, allocation statement and continuing duties. Accessed 2026-09-28.
4
Department of Insurance, Securities and Banking. District of Columbia DISB; Official insurance regulator homepage. Accessed 2026-09-28.
5
Verify a Financial Institution or Representative Licensed with DISB. District of Columbia DISB; Official license verification for companies and representatives. Accessed 2026-09-28.
6
Surplus Line Information. District of Columbia DISB; Current 2% tax base including incidental placement fees; fees must be necessary and separately itemized; diligent-effort rule. Accessed 2026-09-28.
7
File a Complaint or Report Fraud. District of Columbia DISB; Official insurance complaint information and filing form. Accessed 2026-09-28.
8
15 U.S.C. §8201: Reporting, payment, and allocation of premium taxes. U.S. House of Representatives, Office of the Law Revision Counsel; §8201(a): exclusive insured home-State authority to require nonadmitted premium tax; (c): separate allocation reporting. Accessed 2026-09-28.
9
15 U.S.C. § 8205: Streamlined application for commercial purchasers. U.S. House of Representatives, Office of the Law Revision Counsel; §8205(1)-(2): admitted-market disclosure about possible availability, greater protection and oversight followed by the qualified purchaser’s written request; eligibility separately defined in §8206(5). Accessed 2026-09-28.
10
15 U.S.C. §8206: Definitions. U.S. House of Representatives, Office of the Law Revision Counsel; §8206(5) exempt-commercial-purchaser criteria; (6) home State and affiliated-insured rules; (13) qualified risk manager. Accessed 2026-09-28.
11
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
12
Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
13
Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
14
About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
15
Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
16
Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
17
Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.