Facing sky-rocketing insurance costs, Fidelity Investments has decided to drop default insurance on all of its money market funds, said Jim Griffin, a spokesman with the company.

Fidelity had been offering default insurance on its funds covering up to $100 million in losses but has decided not to renew the insurance in 2002 because the costs have become prohibitive, he said. Griffin said in some instances default insurance costs have risen as much as 250% to 400% compared to last year.

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