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A RESOLUTION
25-83
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
March 7, 2023
To declare the existence of an emergency with respect to the need to amend An Act to provide
for regulation of certain insurance rates in the District of Columbia, and for other
purposes, to change the motor vehicle and homeowner insurance rate filing standard from
“file-and-use” to require prior approval with a 90- day review period, to require notice and
an opportunity for a hearing before a rate filing is determined to be excessive or unfairly
discriminatory, and, beginning on September 1, 2023, to require insurers to provide
policyholders 60 day advance written notice of any rate increase of 10% or more.
RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
resolution may be cited as the “ Motor Vehicle and Homeowner Insurance Prior Approval Rate
Filing Amendment Emergency Declaration Resolution of 2023” .
Sec. 2. (a) The Department of Insurance, Securities , and Banking (“Department”) has
noticed a recent trend in motor vehicle and homeowner insurance market s in the District where
insurers have been requesting double-digit rate increases. In some cases, the increases are in
excess of 20 %.
(b) While insurers are entitled to an adequate premium rate in exchange for the insurance
coverage they provide, the Commissioner is concerned about the impact of these rate increases
on policyholders. Because the rate filings of motor vehicle and hom eowner insurers currently
operate under a “file-and-use” standard in the District, which means that the insurers may
implement their rate increases immediately upon filing their rates with the Commissioner, the
Department is often unable to review the rate filings and consult with the insurers to substantiate
the rate increases before the rate increases take effect.
(c) In addition, the Commissioner is concerned that the large premium increases could
cause policyholders to miss payments due to their inability to afford the increased rates while at
the same time lacking sufficient time to shop for more affordable insurance, which could result
in policies lapsing due to non- payment and an increase in uninsured motorists and homeowners.
(d) By changing the rate filing standard for motor vehicle and homeowner insurer rate
filings from “ file-and-use” to require prior approval, the Department will have time to review the ENROLLED ORIGINAL
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filings and ensure that the rate increases are neither excessive nor discriminatory before the new
rates become effective.
(e) Further, by requiring insurers to provide a 60 -day advance written notice to
policyholders of any rate increase of 10% or more, policyholders will have more time to consider
alternative insurance options .
Sec. 3. The Council determines that the circumstances enumerated in section 2 constitute
emergency circumstances making it necessary that the Motor Vehicle and Homeowner Insurance
Prior Approval Rate Filing Emergency Amendment Act of 2023 be adopted after a single
reading.
Sec. 4. This resolution shall take effect immediately.