Updated - with no comment from Mayor's office, comment fromWhite.

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The insurance commissioner of Washington, D.C. has apparentlybecome a casualty over the controversy dealing with PresidentObama’s “you can keep your own insurance policy” commitment.

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Commissioner William P. White was notified Friday by DeputyMayor Victor Hoskins, who works for D.C. Mayor Vincent Gray,that his services are no longer needed.

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This article is based on a written copy of White’s resignationobtained by The National Underwriter; Gray’soffice did not respond to requests for comment Saturday.

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White, right, issued a press statementNov. 14 saying that the action by President Obama allowingextension of policy contracts not meeting the Essential HealthBenefits provision of the Patient Protection and Affordable CareAct “undercuts the purpose of the exchanges, including theDistrict’s D.C. Health Link, by creating exceptions that make itmore difficult for them to operate.”

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White, an independent who is not affiliated with a politicalparty, said in an interview Saturday, Nov. 16, that he concurredwith the National Association of Insurance Commissioner’ssentiment, which stated that “This decision continuesdifferent rules for different policies and threatens to underminethe new market, and may lead to higher premiums and marketdisruptions in 2014 and beyond.”

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The decision is effective Dec. 2, although, in practice,White left the office the day he was notified. His email refers toNov. 16 as his last day in government service. He was notifiedjust after returning from an insurance-regulation-related trip toKorea.

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White said in an interview that Hoskins told him the city“was moving in a different direction.”

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White said he wasn’t entirely surprised at the mayor’s decision,given that this is an election year and things are alwayssensitive.

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White said he was keeping his options open, and although heoversaw banking and securities as part of his office, he is aninsurance man by trade.

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White was confirmed by the City Council of the District ofColumbia on June 7, 2011, by a unanimous vote. He is the chiefregulator of the District of Columbia’s financial-servicesindustries but played a large part on the national andinternational regulatory stages, as well.

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White has been very active in policy discussions withthe InternationalAssociation of Insurance Supervisors, the EU-U.S.Dialogue, the National Association of Insurance Commissioners, aswell as in the District on local policy health insurance matters. White is also member of the Federal Insurance Office Federal Advisory Committee onInsurance.

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"I thought he was very bright and articulate, and one of a smallnumber of commissioners who was very involved in internationalissues," said Connecticut Insurance Commissioner and thechair of the NAIC's International Committee, Tom Leonardi, viaemail. "He will be sorely missed at the NAIC and I am saddenedby the news that he is no longer the D.C. Commissioner." White wasLeonardi's vice chair.

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White’s issues include insurance and reinsurance captivesregulation, solvency, international insurancestandards, availability and affordability of insurance andreserving, among others. From 2003 to 2004, White wasdirector of the captive insurance division for Washington, D.C. In2006, then Delaware Insurance Commissioner Matt Denn hired White,who was then living in New Jersey as a senior vice presidentat Heartland Fidelity Insurance Co., to administer a newprogram for the Delaware Department of Insurance aimed atattracting captive insurance companies to the state.

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In the interview Saturday, White said he was very proud of theDISB’s track record, and what his rehabilitation team was able toaccomplish with the rehabilitation of CharteredHealth Plan, especially when a year ago such prospectsseemed dim.

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White said he was able to meet the three key objectives he laidout, namely making sure all policyholders continued to get theirMedicaid benefits, making sure all employees were able to keeptheir job or be offered one, and making sure the providers werepaid. Chartered’s assets were sold to Amerihealth,effective May 1.

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Medicaid benefits continues for all, all Chartered employeeswere offered jobs at Amerihealth and health care providers havereceived more than 80 cents on the dollar for what they were owned,White noted.

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White said he was also leaving the department in a position ofstrength. The DISB has continued to contribute more than $100million to general fund every year that he has been commissioner --not on taxpayer money, but industry fees and premium taxes -- andthat is due to a very good team of professionals at the DISB, hesaid.

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White also said his realignment of the DISB's bankingbureau has created a resurrection of that arm of the DISB,especially since it was on life support when he arrived. It nowprovides market services support for small businesses. Whitecredited Gray for a lot of the progress in the District and theDISB.

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Deputy Chester McPherson will now service interim commissioner aDISB news release related Sunday; White's email directed allcommissioner questions to him. He did not respond this weekend.

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To be sure, other state insurance commissioners havereported displeasure with the extension of substandard (below thenew EHB standards) policies because of its potential to keep peopleout of the state-based or federaly-run exchange marketplaces, allcalibrated for a spread of risk, and cause premiumsspikes.

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Montana Insurance and Securities Commissioner and NAIC executiveCommittee Vice President Monica Lindeen stated about the Obamacarepolicy extension, according to the Flathead Beacon, (MT), "I am in theprocess of deciding what authority I have or I don’t have. I amalso in conversations with Montana’s insurance companies to see howthis announcement affects their business plans and Montanaconsumers. This kind of confusion is precisely why I havealways fought for keeping insurance regulation at the state level.We know our markets, our companies and our neighbors better thanWashington, D.C. does.”

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Immediate past president of the NAIC, Kevin McCarty, Florida’scommissioner, however, “pledged” to work with any company thatchooses to continue coverage in accordance with the president’stransitional policy...”

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CommissionerMike Kreidler of Washington State, the longest-serving stateinsurance commissioner active now, flat-out rejected the new Obama fix, statingthat “I do not believe his proposal is a good deal for the state ofWashington. In the interest of keeping the consumer protections wehave enacted and ensuring that we keep health insurance costs downfor all consumers, we are staying the course. We will not beallowing insurance companies to extend their policies.”

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For his part, White added Monday that his comments "onissues affecting insurance, securities, and banking markets in DChave always been understood to be from the regulatoryperspective. I do not speak for the Mayor and have neverindicated otherwise. I was not criticizing the President, butI was calling into question the course of action being suggestedbecause of its potential impact on the DC marketplace and itsresidents. The statement reflected concerns but also made clearthat DISB would work with stakeholders to determine what would bethe best course of action for DC. In this instance the politicalaspects overshadowed what I believe were the more importantmarketplace concerns. I have been committed to the exchangeidea because I believed it would improve the delivery of healthcareto District residents. I think what we have accomplished goesa long way toward making that a reality. I thought I was doing myjob by protecting what we have built."

UPDATE: The Mayor's office says it does not comenton personnel matters.

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