South Carolina Governor Mark Sanford appointed State Senator Scott Richardson, R-Beaufort, as acting director of the Department of Insurance yesterday, replacing Eleanor Kitzman, who resigned abruptly.

Gov. Sanford said in a statement, "While Eleanor has certainly done a lot of good things at the Department of Insurance--particularly with regard to the captives industry--when you look at the situation that has developed for all of U.S. coastal insurance as a result of Hurricane Katrina, we thought Scott would bring a skill-set to the position key to addressing that situation."

Joel Sawyer, the governor's press secretary, told National Underwriter that the state is facing some "real challenges with regard to coastal insurance right now, largely due to Hurricane Katrina and the effect it's had on the insurance market in every coastal state."

Mr. Richardson's focus as insurance director, Mr. Sawyer said, will be on "addressing the situation that exists with coastal insurance right now."

He added that between Mr. Sawyer's private sector experience and his time in the Legislature, "he brought a really unique skill-set to this position that's going to be particularly key to addressing the challenges we're facing with regard to coastal insurance."

Sen. Richardson's appointment is pending Senate confirmation, the department said, noting that Ms. Kitzman would remain with the agency for an interim period.

Mr. Richardson was elected to the S.C. Senate in 2000 and previously served in the S.C. House from 1993 through 1996. He worked as an insurance sales associate for Carswell of Carolina Insurance Agency in Hilton Head, S.C.

He currently works with Sea Pines Real Estate and resides on Hilton Head Island. In the Senate, he serves on the Finance Committee and the Banking and Insurance Committee.

The resignation of Ms. Kitzman and the appointment of Sen. Richardson yesterday shouldn't impact the state's burgeoning captive department, according to the governor's office.

"Captives is one area [Ms. Kitzman] has done a particularly good job in, and that's a focus we expect to continue through the new administration of the department," he said.

The switch in regulators indicates "a potential lack of political stability," according to Michael R. Mead, president of Meeting Street Management, LLC, in Charleston, S.C., which manages captives domiciled in South Carolina.

Still, he said, he doesn't see "any impact" on the state's captive department.

Despite upheavals in the agency's leadership, Mr. Mead said he believes the captive division is "stable."

He said Jeff Kehler, program manager Alternative Risk Transfer Services, "is doing a good job there. They've spent some money, added staff, and I think they've made a lot of progress under Jeff. So we're not expecting any big changes in the captive arena."

Ms. Kitzman was appointed in February 2005, replacing Ernst Csiszar, who was credited with developing the captive industry in the state. Mr. Csiszar resigned abruptly to take a post with the Property Casualty Insurers Association of America.

Prior to her appointment, Ms. Kitzman founded Driver's Choice Insurance Services, a South Carolina automobile insurance organization, and held management positions with several insurers and reinsurers, according to the Department of Insurance Web site.

Ms. Kitzman reorganized the department, moving the Alternative Risk Transfer Services division to the Financial Services Division and appointing Mr. Kehler to his post, replacing Leslie Jones. Ms. Jones assumed a new position as executive assistant and consulting actuary.

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Richardson Replaces Kitzman As S.C. DOI Director

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