Republican Steve Poizner took office as California's new insurance commissioner yesterday and announced he would keep key staff from his Democratic predecessor.

The former commissioner, Democrat John Garamendi, is now serving as the state's lieutenant governor. Mr. Poizner announced that high-profile members of Mr. Garamendi's staff, including Chief Deputy Rick Baum and General Counsel Gary Cohen, will stay on at the department.

"I intend to run the Department of Insurance in a nonpartisan manner, independent and citizen-focused," Mr. Poizner said in his inaugural address at the Tech Museum of Innovation in San Jose, Calif. He added that the mantra for the department will be "California First."

Mr. Poizner noted that the state insurance commissioner effectively regulates roughly 15 percent of the state's economy, and said that his goal would be to ensure that the market remains stable and accessible.

"Insurance must be made available to all Californians at fair and reasonable prices," he said. "Essential to that goal is an insurance marketplace where competition is robust and insurance companies are held accountable for solvency, for claims practices, and for representations and recommendations they make."

Among the first orders off business, Mr. Poizner said, would be removing politics from the office of insurance commissioner.

"I didn't take money from insurance companies in my campaign. I won't accept their donations during my tenure," he said. "To do so would be like refereeing a game while being on one of the team's payroll.

"When I return to Sacramento, I'll ask the Legislature to pass a new law banning contributions to my office from those who are regulated by, or do business with, the Department of Insurance."

Mr. Poizner's opponent in the November election, former Democratic Lt. Gov. Cruz Bustamante, suffered political damage when it was revealed that he had taken donations from insurance interests despite pledging not to do so.

Among the other major goals for his tenure, Mr. Poizner said, are reducing insurance fraud and re-evaluating the state's earthquake insurance coverage.

"It's time to review the insurance coverage offered by the California Earthquake Authority," he said, "especially given the fact that only one in eight homeowners in California even has earthquake insurance."

Overall, Mr. Poizner said he envisioned transforming the position of insurance commissioner "from simply a compliance officer... into the state's chief risk manager."

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GOP's Poizner Now Calif. Commissioner

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