Insurance Commissioner Adam Hamm of North Dakota will be leadingthe National Association of Insurance Commissioners (NAIC) in 2014with a focus on what's in front of him, he says, not what's in the"rear-view mirror."

Joining Hamm in leadership will be Commissioner Sharon Clark ofKentucky as secretary-treasurer. Julie Mix McPeak of Tennessee andWayne Goodwin of North Carolina were also up for the position. NAICPresident Jim Donelon is exiting — although he will still be partof the leadership as immediate past president.

Donelon also revealed that during his time at the helm he hasstruggled with prostate cancer and undergone 39 days of radiationin late summer and fall. Donelon awaits news on remission now thathis treatment is complete and feels well enough to run forre-election in Louisiana if he can.

Hamm, in a press conference with reporters after the conclusionof the meeting, says he really doesn't think he is in a difficultposition, is looking forward to focusing on the work before him,and using the tools of collaborative and consensus building he hasformed over his career as a federal prosecutor and now as anelected insurance commissioner from North Dakota.

What's in front of him first and foremost, he says, is theimplementation of the Patient Protection and Affordable Care Act(PPACA) with forms and enrollment issues. Add to that, the clarioncall from multiple quarters for more transparency for captivereinsurance transactions by life companies and a full plate offederal and international regulatory oversight issues — not tomention an organization that some say has to heal its family riftover its own publicly-exposed corporate governance issues.

Regarding the drama at the Washington NAIC Winter meeting: "Ihave seen these things come and go—we have been strong for 150years and will continue to be strong for another 150. We are afamily, and there are disagreements within the family," Hammsaid.

Connecticut Insurance Commissioner Tom Leonardi fought to push for an outside consultant to review the NAIC'scorporate governance after what he felt were egregious decisions bymembers and various executive committee regulators to divide andundermine the mission and the good name of the NAIC.

Although Leonardi's motion to hire an outside consultantimmediately was rejected and debate shut down, Hamm said it will bediscussed by the ad hoc committee on corporate governance manned byMissouri Insurance Director John Huff. If a recommendation comesbefore the executive committee at the February commissionersretreat in Arizona, they will vote on the recommendation.

Hamm said the decision to not attend the PPACA meeting withPresident Obama was the lack of consensus on a full discussion bythe body and a general lack of consensus on the agenda.Pennsylvania Insurance Commissioner Michael Consedine, now incomingNAIC vice president, said "it was never about spurning aninvitation to meet with the president." He said the NAIC is aprocess-oriented body and they had to approach a meeting with thepresident with some sensitivity.

Hamm is also looking forward to continued dialogue with the FIO,the Federal Reserve, U.S. Treasury and global supervisory andassociation counterparts in the coming year.

Although the NAIC has not formulated a response to the FIOreport on its more specific recommendations, Hamm identified acouple of his own issues with a report that on whole, he said, hasa "balanced nature."

The first, which he raised during the meeting with TreasurySecretary Jacob Lew on Tuesday, Dec. 17, was the call for federaloversight of most aspects of mortgage insurance (states will stillbe able to collect premiums.)

Hamm said there would be "much more dialogue with Treasury andwith FIO on that."

"The other thing that immediately jumped out at me was thesection on supervisory colleges, Hamm said. NAIC leadership hassaid before, but feels it bears repeating, that "FIO is not aregulator," and the supervisory colleges, which are chock full ofsensitive information and company data, are not usually a place fornon-regulators.

Hamm said he wanted to drill down on the FIO report's use of theword "engage" about its intended involvement in the colleges. "Itis not just an issue for us but an issue for the Europeans aswell," said Consedine, who serves on multiple supervisorycolleges.

"I think there can be a way forward that we can find," Hammsaid.

With regard to inclusion at top levels of global supervisiondiscussions, the state regulators want a seat at the table. Theglobal Financial Stability Board (FSB), except for theInternational Association of Insurance SupervisorsSecretary-General Yoshi Kawai, doesn't really have a strictlydefined insurance person in its ranks, and this concern was alsoraised with Lew yesterday.

The FSB has an increasing role internationally on insurance,Hamm agreed. "It is a concern we don't have a voice on that body. Iguarantee that will have more discussion on in 2014." Hamm addedthat the NAIC isn't where it wants to be with Lew on FSB yet, butwe "put it on his radar screen."

Also expected is more work on captives and their transparencyissues in 2014 as federal agencies and states call for moredisclosure at the state and interstate level about transactions tooffload life insurance reserves for products seen as requiring toohigh a level of reserving. The principles-based reservingimplementation will be folding this into its work this year. Justyesterday, the Treasury's Office of Financial Research discussedgaps in financial data with regard to the growing captives marketas cause for concern in market stability.