Maryland Gov. Robert L. Ehrlich Jr. announced that a search isunderway to replace Insurance Commissioner Alfred W. Redmer, whoresigned yesterday and will leave his $136,000 post on Friday.

Mr. Redmer, a former distributor and third-party administratorof employee benefit plans, served two years as commissioner. Thevacancy under law will be filled in an acting capacity by DeputyCommissioner James V. McMahan III.

The commissioner's new job will be as the chief executiveofficer of Coventry Health Care of Delaware, a Wilmington-basedregional health maintenance organization that also serves Maryland,Southern New Jersey and Pennsylvania.

"It's a terrific opportunity. Coventry is a top-performingcompany in the health insurance sector," said Mr. Redmer.

The former Republican Assemblyman endured a fair amount ofcriticism by Democrats during his term, some of it occurring afterHMOs increased rates following the legislature's passage of a 2percent premium tax.

The commissioner said there was nothing in the law that wouldhave allowed him to prevent the increases, which were less than theamount of the premium tax.

An amendment to the tax bill that would have prevented thepass-along by insurers was defeated, he noted.

Gov. Ehrlich said Mr. Redmer had "brought to the MarylandInsurance Administration twenty years experience as a privatesector health insurance executive and 13 years experience as anelected public official. His perspective as the state's topinsurance regulator reflected an expert understanding of theinsurance industry and the need to safeguard and serve thepublic."

The governor said that under Mr. Redmer's leadership, his agencyhad managed a significant expansion of the number of privateinsurance carriers selling insurance in Maryland.

He credited Mr. Redmer with "creating a more competitiveinsurance market and forcing moderation in proposed premiumincreases."

Mr. Redmer, he said, had established a heavily consumer-orientedoffice, creating the first-of-its-kind "Consumer Education andAdvocacy Unit" to expedite claims, respond to citizen complaints,and aggressively promote consumer education.

The commissioner said he was most proud of creating theeducation and advocacy unit and his efforts to improve thecompetitive environment.

Maryland, he said, now has more carriers writing more productsin all lines, adding that more work still needs to be done in thehealth care and medical liability coverage marketplace.