Legislation to reduce government regulation of commercial insurance in Washington, D.C. achieved final passage Tuesday through a unanimous vote of the District of Columbia Council.
The Insurance Trade and Economic Development Act of 2000 offers certain D.C. businesses exemption from filing requirements for rates and policy forms if they meet any one of the following seven optional criteria: pay annual insurance premiums over $10,000; retain or employ a qualified risk manager to negotiate insurance coverage; have a net worth over $2 million; generate annual revenues over $2 million; employ more than 10 people; have total insured property value of more than $2 million; or are a non-profit organization generating annual budgeted expenditures of at least $5 million.
“This is the most far-reaching commercial deregulation legislation passed to date,” said Brenda O’Connor, public affairs director of the American Insurance Association, mid-Atlantic region. “D.C. will now have one of the most favorable regulatory structures in the country for commercial insurance with its new, streamlined, market-oriented system.”
The deregulation measure has been sent to Mayor Anthony Williams for his signature, following which it will be sent to the Financial Control Board for its approval. Finally, the U.S. Congress will review the measure for 30 days.
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