ORLANDO, Fla. and Baltimore, Md.

The leadership of the National Association of InsuranceCommissioners fully expects some major turnover in its ranks in thecoming months, but they've seen it before and expect to continuewith their work unabated.

In interviews with National Underwriter during the NAICannual meeting here, NAIC leaders said they fully expect to see asignificant number of new regulators based on a combination ofretirements and the results of the upcoming midterm election.

"We are expecting significantturnover," said Therese Vaughan, chief executive officer of theNAIC. "We expect a number of new members who will not be familiarwith the work that [the NAIC does]. We are thinking hard about howto bring them into the fold and continue to do the important workthat we are doing."

"We are doing some very hard thinking about it," said Ms.Vaughan, a former insurance commissioner for the state of Iowa,during an interview at the annual meeting in Orlando.

Early last week, during a separate roundtable discussion held inconjunction with the American Council of Life Insurers' meeting inBaltimore, several state legislators warned that up to 17 newinsurance commissioners could take office as a result of the Nov. 3elections.

The legislators voiced particular concern about the race forCalifornia commissioner and the fate of appointed commissioners inIowa and Florida.

In advance of the ACLI meeting, ACLI staff officials noted thatthere are 37 governors' races this year–24 of which are open seatsbecause the incumbents are not eligible to run or are not seekingre-election.

"Regardless of which party fares better this fall, for ourindustry new governors typically mean new appointed insurancecommissioners," the ACLI staff report said.

"The prospect of one-third to one-half of the insurancecommissioners turning over in the next several months is not out ofthe question," the report said.

The ACLI staff paper presented at the meeting also voicedconcerns about staffing.

"Furloughs and early retirements of state employees because ofbudget cutbacks, and turnover of commissioners due to the 2010gubernatorial elections, could mean a fair amount of instabilitywithin the ranks of the regulatory community during a time of rapidand significant changes in our regulatory system," the reportsaid.

One particular concern not discussed at the meeting but beingvoiced in health care circles is the fate of incoming NAICChairwoman Susan E. Voss, insurance commissioner of Iowa. A newgovernor will be elected in Iowa, these people say, placing Ms.Voss in jeopardy.

In a midweek interview at the NAIC meeting, current NAICPresident and West Virginia Insurance Commissioner Jane L. Clinesaid there is likely to be some turnover between the election ofnew commissioners, retirements and appointments, "but the depth ofthat can't be determined."

However, the NAIC has gone through significant change in itsmembership in the past and survived that experience. She said sheexpects nothing different this time.

She said there is also a substantial amount of experience withinthe state insurance departments. New commissioners often lean onthe knowledge and experience of the staff of the NAIC for help.

"Change does happen," said Commissioner Cline, and the NAIC hasin place a training program for new commissioners. The associationalso offers a mentoring program for sister departments, sheadded.

She said she doubted the commissioner changes within the NAICwould amount to disruption of its ongoing work and is confidentthat those who remain will reach out to their newercounterparts.

"The personnel in each department and the significant amount ofexperience that they have, that makes change easier," shenoted.

Without commenting directly on any elections, she seemed todismiss speculation that Ms. Voss would be replaced, noting thatshe has seen the governorship change in her own state, yet she hasremained in her post.

As for other states, at the ACLI meeting, Juan Vargas,Democratic State-Senator-elect in California, warned small insurersattending the meeting that David Jones, the Democratic candidateand apparent leader in the polls, "would be an activist insurancecommissioner with a lot of power."

Mike Villines is the Republican candidate.

Both Mr. Jones and Mr. Villines are running for the job becausethey are term-limited in the legislature.

Rep. Clay Ford, R-Fla., said at the ACLI meeting that it islikely that if Republican Rick Scott is elected governor, he wouldreplace Kevin McCarty, current insurance commissioner.

Rep. Ford, a supporter of Mr. Scott, opposes Mr. McCarty, whom,he charged, has erected "a firewall" between the Florida executivebranch and the state legislature.

At the meeting, it was also noted that appointed VirginiaCommissioner Al Gross will be retiring in December. CommissionerGross is 64 and has been with the Virginia Bureau of Insurancesince 1981, serving as commissioner since 1996.

Those speaking at the ACLI meeting said that Mr. Gross hadplayed an active role in financial solvency matters at the NAIC,and that he will be missed.