P.O. Box 34757
Washington DC, 20043
Phone: (202) 797-0757
FAX: (202) 797-0758
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P.O. Box 34757
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 About Us
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About usOn This Page
(This topic is consolidated into one page to simplify printing.) Overview
The District of Columbia Insurance Federation represents carriers writing all lines of insurance. Our Member companies include property and casualty (P&C) companies as well as life and health carriers (including HMOs). Our companies offer a wide range of coverage including disability, automobile, homeowners, workers’ compensation, life, directors and officers (D&O), reinsurance, and other lines. In order to be a Member of the Federation, the company must have a current license issued by the District of Columbia Department of Insurance and Securities Regulation (DISR). Our Members include insurance companies, both large and small, as well as insurance trade associations representing hundreds of insurance companies writing a variety of policies. Our Associate Members include organizations that represent agents and brokers. Agents represent the companies who sell insurance to residents and businesses; brokers represent purchasers, whether they are large corporations, small businesses, or individuals seeking coverage from companies licensed in DC. DC laws require that agents and brokers obtain a license from the Department of Insurance and Securities Regulation (DISR). Recent legislation enacted by the DC Council requires that agents and brokers receive continuing education in order to retain their licenses. Our Member companies typically operate in other states and may be active abroad. We work together to create a progressive and balanced business and regulatory environment that will enable insurance companies, agents, and brokers to provide affordable insurance coverage to District consumers without burdensome, costly, or inefficient regulatory requirements. Insurance is a necessary part of how businesses and households operate. District of Columbia businesses and residents rely on insurance to protect them against financial losses due to theft, fire, accident, and other perils. Insurance protects employees and families in times of illness and injury. This information is designed to inform our Members and the general public to understand how insurance affects residents of Washington, DC. We invite the public to find out more about who we are and what we do. We look forward to receiving your comments about insurance companies and your concerns about the insurance industry in the District of Columbia. For further information, please contact us at our administrative offices. Thank you and we look forward to your participation and involvement. What are the Federation’s objectives?Promote a supportive business climate in the District of ColumbiaThe Federation seeks to promote a progressive and balanced business climate for insurance companies operating in the District of Columbia. Insurance is a regulated industry. The Federation believes insurance regulation best serves the public when it promotes vigorous competition that guarantees the widest range of insurance choices at affordable prices. The Federation also seeks to ensure effective financial solvency regulation. To achieve these goals, it is important to avoid onerous or unnecessary laws or regulations that make it more difficult for insurers to operate, thereby increasing costs that ultimately District of Columbia businesses and residents must pay. Partner with public and private sector groups to expand insurance choices and make premiums more affordable to DC businesses and residentsAn important aspect of promoting a fair and balanced business climate is to work with individuals and groups who can help improve insurance laws and regulations in the District of Columbia. Private sector groups that help expand insurance choices include Federation Members who are licensed insurance companies. Federation Associate Members include agent and broker trade associations, attorneys and other persons who are involved in providing insurance services in the District of Columbia. Together, we work to improve the economic and regulatory environment in the District to make insurance more affordable to District residents and business consumers. Work with the DC Council to draft legislationOne of the primary ways the Federation represents the concerns of our Members is by monitoring the activities of the DC Council. The DC Council enacts laws that impact the way insurance companies as well as agents and brokers can operate. In recent years DC has enacted important legislation to fight insurance fraud. The DC Council has passed legislation that protects consumers, businesses, and insurance companies against fraud and abuses; ultimately these laws save money and inure to the benefit of all affected parties. The Federation works closely with the DC Council to draft legislation to ensure that laws do not unduly burden insurance companies. Unreasonable laws or burdensome regulations limit choices and increase costs that, ultimately, are passed onto consumers. Work with the DC Executive Branch, DC Department of Insurance and Securities Regulation, and DC Insurance Commissioner to regulate insuranceThe Federation works closely with the Executive Branch of the DC Government. The DC Executive Branch is charged with enforcing the laws passed by the DC Council. The agency with primary responsibility to enforce these laws in the District of Columbia is the DC Department of Insurance and Securities Regulation (DISR). The director of DISR, the Insurance Commissioner, is in charge of regulating insurance companies, agents, and brokers, as well as securities dealers all of whom must be licensed. (A separate Securities Bureau has been established within DISR. The Federation generally does not monitor activities of the Securities Bureau unless they impact the operations of the Insurance Bureau.) The current Commissioner of the DC Department of Insurance and Securities Regulation is Lawrence (“Larry”) Mirel. The Federation maintains regular meetings with Commissioner Mirel and his staff to identify and resolve problems, draft legislation, and provide input on regulations the Department is writing. The Commissioner has been a frequent speaker at Federation membership meetings, conferences, and events. Educate the public about insuranceAn important role of the Federation is public awareness and education. The Federation participates in educational forums and conferences to provide information about insurance to both government and the private sector. Since it was first established, the Federation has held seminars and conferences that have been attended by guests from:
The purpose of these programs is to educate the public about insurance laws and regulations, and about relevant activities of the insurance industry in Washington, DC. At its 2000 Conference, District of Columbia Mayor Anthony Williams was the keynote speaker. Mayor Williams spoke favorably about the role the insurance community and the Federation have played in advancing business and economic development in Washington, DC. Network with senior government officials and business leadersThe Federation hosts bi-monthly membership meetings. At these meetings, guest speakers from the public and private sector are invited to inform our membership of important current events and activities. Guest speakers may include the Mayor of Washington, DC, Chairman of the DC Council, DC Councilmembers, Federal officials including Congressmen and Senators who have oversight of DC operations, and local business leaders (such as the Executive Director of the DC Chamber of Commerce.) Maintaining a dialogue involving representatives of many sectors and industries will enable the public to better understand how insurance works and foster a more positive climate toward insurance laws and regulations. We welcome your participation and involvement! What is insurance and why do we need it?Insurance is a mechanism for protecting people against losses, damage, injuries, and costs associated with unforeseen events. Insurance is generally defined as a method of spreading risk of loss through a pooling mechanism. Insurance provides protection against a predictable event that arises unexpectedly. Those who are likely to suffer from the loss buy insurance by paying premiums into a fund (or a pool). These funds are used to pay losses that arise. These losses may arise through natural events, such earthquakes, floods, hurricanes, windstorms, and other natural causes. They may also arise from manmade events as were experienced on September 11, 2001. Following that tragic event, insurance companies provided billions of dollars in coverage from the losses that arose. Additionally, insurance provides coverage for human losses arising due to sickness, injury, and death. That’s why most everyone purchases health and life insurance. Both businesses and individuals buy insurance to protect themselves against the uncertainties that cause financial as well as personal loss. The smooth functioning of our families, businesses, corporations—or society itself—cannot function effectively without insurance that protects against these unforeseen losses that may affect us at some point in our lives. In the event of losses covered by an insurance policy, the insurance carrier will pay for losses in accordance with the terms of the policy. A policy specifically describes the losses that are covered, certain exclusions for which coverage will not be provided, and the limits of coverage. For example, if the policy limit is $100,000 on a homeowner’s policy and the house is destroyed by fire, the insurance company’s maximum level of coverage will be $100,000. That’s why it is very important for policyholders to purchase the right amount of coverage to protect them against potential losses they may suffer. How does insurance benefit the public?Insurance benefits District of Columbia residents and businesses in many ways, as described below:
What role does the Federation play in shaping insurance laws in the District?Insurance is a highly regulated industry. Under Federal legislation, regulation of insurance companies was specifically left to the States. State insurance trade associations have been established in most States. The Federation is the only state insurance trade association representing all lines of coverage in the District of Columbia. The Federation monitors laws and regulations in DC that may impact the insurance industry, including insurance companies, agent, or broker activities. The Federation monitors other laws that may indirectly impact the insurance industry. This may include business and economic development proposals, tax laws, public safety, building codes, and a wide variety of issues. The Federation strives to ensure any proposed laws or regulations, or changes to existing laws and regulations, will enable insurance carriers to operate economically and to provide protection to consumers without unnecessary cost or burden. It is important that laws are fair and reasonable for insurance companies, agents, and brokers, as well as for the consumers they are designed to protect. Regulation is necessary to ensure that insurance companies are financially sound and provide consumer protections. Insurance regulation provides a sense of security. Issuance of an insurance license is the “good housekeeping seal of approval,” and provides consumers with the confidence they need when they purchase insurance. |
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