The commissioner of the District of Columbia Department of Insurance, Securities and Banking has left office days before a public hearing on a health insurer’s surplus.
Thomas E. Hampton
The DISB announced Aug. 28 that Thomas E. Hampton ended his tenure as commissioner of the agency he joined in 1988 and headed since May 2006. The department said its deputy commissioner, Gennet Purcell, was named as Hampton’s replacement as of today (Aug. 31) by D.C. Mayor Adrian Fenty.
Michelle Phipps-Evans, a spokeswoman for the DISB, told IFAwebnews.com that she could not comment on whether Hampton resigned or was fired, indicating it was “a personnel matter.”
She added that “as far as we know,” Hampton’s departure was not connected to an upcoming hearing on the surplus of CareFirst affiliate, Group Hospitalization and Medical Services, directing further inquiry to Fenty’s office.
A call to the mayor’s office was not immediately returned for comment.
Purcell, who has served as deputy commissioner since December 2008, is an attorney and member of both the Maryland and Virginia bar. She must still be confirmed by the D.C. Council to assume the post on a full-time basis.
Phipps-Evans said the council is in recess until Sept. 15, and a hearing will be scheduled upon its return.
“We look forward to a speedy confirmation,” she said.
Hampton was appointed by former Mayor Anthony Williams to oversee the DISB after the sudden departure of Commissioner Larry Mirel in 2005.
In a statement, the DISB said during his tenure, Hampton “demonstrated a strong commitment to consumer protection and access to financial services.”
Hampton said in a statement that he is “appreciative” to the Fenty Administration “for allowing me the opportunity to lead such a dynamic financial services regulatory agency, especially during the current economic crisis.”
“We were able to help residents prevent foreclosures, provide financial literacy and investor-education seminars throughout the city, and increased our consumer education and outreach presence at community events,” Hampton said.
Surplus decision looming
His departure comes just a little over a week before the DISB is to hold a hearing on whether the surplus for CareFirst affiliate GHMSI is “excessive” under D.C. law. That hearing is scheduled for Sept. 10 at 10 a.m. Phipps-Evans said the hearing remains on schedule with Purcell acting as commissioner.
In July, the D.C. Council gave Hampton an extension until Sept. 25 to complete his review of the insurer’s surplus funds. If the surplus is deemed “excessive,” under the Medical Insurance Empowerment Act of 2008 passed by the D.C. Council last year, the DISB must then determine how to divide reserves for policyholders in Maryland, Virginia and the District of Columbia.
Hampton recently told IFAwebnews.com that he did not see “excessive” surplus as a bad thing with the goal of ensuring an insurer was ready for known and unknown issues.
“It is not necessarily a bad thing, but being in excess of the [risk-based capital] requirement,” he said. “The public sees the word ‘excessive’ and thinks ‘wow, that means too much surplus,’ but excessive means the company has more than the required amount. We want all insurance companies to have surplus excessive of the RBC requirement.”
In June, Hampton told IFAwebnews.com that determining how to divide any “excessive” surplus would be “something that is difficult.”
CareFirst declined comment on Hampton’s exit when asked by IFAwebnews.com.
Rising through the ranks
Prior to his appointment as commissioner in 2006, Hampton served as deputy commissioner for the DISB, responsible for organization-wide policy development and oversight of fraud activities, among other duties.
In 2004, the DISB said Hampton was responsible for “effectuating the merger” between the former Department of Insurance and Securities Regulation and the Deaprtment of Banking and Financial Institutions to create the DISB.
Prior to joining the DISB, Hampton worked in the insurance industry, mostly in property-casualty insurance. He managed the accounting and financial activities of captive insurance companies in Bermuda and Cayman Islands for CIGNA Worldwide in New York, the DISB said, and was a general accounting supervisor with American International Group.
Thomas Hampton abruptly departs as head of D.C. insurance department via IFAwebnews.com .
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