|
August 29, 2003
First Company Licensed Under Washington, DC Due Deference Initiative
(Washington, DC) Lawrence H. Mirel, Commissioner, DC Department of Insurance and Securities Regulation (DISR) is pleased to announce that Fidelity Insurance Company, a health insurance company licensed in Maryland, has received the first license granted under the Washington, DC Due Deference Initiative (DCDD). The license was issued on August 28, 2003.
The Washington, DC Due Deference Initiative (DCDD) went into effect in January of this year and is the first of its kind in the country. The DCDD seeks to remove one of the current hindrances imposed on multi-state and national insurers while still providing adequate protection to District of Columbia insurance consumers. DCDD allows non-domestic companies (companies not domiciled in the District) to become licensed in the District by presenting proof of licensure and good standing in the company's domestic jurisdiction or the state where it writes most of its business.
"This is a pioneering effort by the District", said Commissioner Mirel, "Multi state companies are frustrated with having to get separate licenses from each U.S. jurisdiction and are pushing Congress to set up a federal licensing system. This initiative intended to demonstrate that states can work together to improve licensing efficiency without federal intervention."
The DCDD is modeled on the European Union "passport" system that is designed to improve licensing efficiency and allows insurers to operate throughout Europe with a single license.
Fidelity will write health insurance lines of business in the District. | 
