Bakke Resigns As New Jersey Regulator

By Daniel Hays

NU Online News Service, Feb. 3, 12:03 p.m. EST?Holly C. Bakke, New Jersey's banking and insurance commissioner, who helped shepherd the state's successful auto insurance reform measures, has resigned effective March 1.[@@]

Ms. Bakke, a Republican, had been asked to stay on in her post with the Democratic administration of Acting Governor Richard J. Codey when he took his post in November.

He replaced Democrat Jim McGreevey, who resigned after confessing to a homosexual affair.

Ms. Bakke said in her letter of resignation that she wanted to spend more time with her teenage son and become involved in her community

Her action is not exactly a surprise. She has for some time expressed concerns that the job, which involves an hour-and-a-half commute to Trenton from Lebanon, N.J., was taking a toll on her family.

Mr. Codey in announcing he had accepted her resignation said he appreciated the fact that she stayed on through the changeover in administrations and "I recognize the importance her family played in her decision to resign."

He added, "Through her leadership, New Jersey residents have protection from predatory lenders, have more choices in coverage, cost and companies when they select their auto insurance, and have a consumer outreach program that is second to none."

Ms. Bakke, a career public servant, before she was appointed commissioner by Gov. McGreevy in 2002 spent 11 years as executive director of the state's guaranty fund, and before that was a deputy commissioner for insurance litigation practices.

During her tenure the state adopted auto insurance reforms that included the nation's toughest penalties for auto insurance fraud, a variety of consumer protections, new methods for trimming the number of uninsured motorists, and steps to put downward pressure on rates for good drivers.

The reforms prompted two carriers to enter New Jersey?Mercury and GEICO, the nation's fifth-largest private passenger auto insurer?and encouraged State Farm to remain in the state.

The reforms have led to more than $300 million in rate reductions for more than two million New Jersey drivers. In addition, 41,000 previously uninsured drivers are now insured and contributing to the system and 1,200 new agents are now serving consumers across the state.

Ms. Bakke in her letter Tuesday to Mr. Codey said she was "pleased that I will complete the second status report to the governor on the Auto Insurance Marketplace before my departure."