NU Online News Service, Nov. 3, 3:05 p.m.EDT

As many as half the nation's insurance commissioners could benew following Tuesday's elections, as one incumbent commissionerlost her bid to be re-elected while Republicans won the governor'soffice in 10 states.

Oklahoma Democrat incumbent commissioner Kim Holland, the vicepresident of the National Association of Insurance Commissioners(NAIC), lost to challenger John Doak.

Of the four elections for insurance commissioner on Tuesday, theonly incumbent commissioner to keep the seat was Sandy Praeger inKansas, and she ran unopposed.

It looks as if Democrat Dave Jones beat out Republican MikeVillines in California, and Ralph Hudgens, a Republican, won overhis Democratic opposition, Mary Squires, in Georgia.

Commissioners are elected in 11 states. In all other states,insurance commissioners are appointed by the governor, which meansmany more new faces will be introduced by newly electedgovernors.

Of the states that do not elect commissioners, possibly twodozen will welcome in new governors due to term limits on theprevious governor, incumbents choosing not to run, or incumbentdefeats.

Before the election, Democrats held a 26-23 advantage ingovernorships, with one Independent governor. Today the Republicanshave a 27-15 advantage (with one Independent winner in RhodeIsland), while as many as seven races are too close tocall–including in some key states such as Florida, Connecticut andIllinois.

Incumbents were running for re-election in 14 states–Alaska,Arizona, Arkansas, Idaho, Illinois, Indiana, Iowa, Kentucky,Maryland, Massachusetts, Nebraska, Ohio, Texas and Utah. They lostin Ohio, Indiana and Iowa.

NAIC President and Iowa Insurance Commissioner Susan E. Vosscould be headed out as incumbent Gov. Chet Culver, D, lost his bidfor re-election.

Some say Florida Insurance Commissioner Kevin McCarty, NAICpresident-elect, could be out no matter who wins the governor'sseat out of Alex Sink, a Democrat, and Republican Rick Scott.Republican Jeff Atwater won the race to become the state's chieffinancial officer. The office has oversight of the Office ofInsurance Regulation.

No matter the outcome of the race for governor, newcommissioners will also be appointed in Nebraska, Virginia andConnecticut due to resignations.

In most cases new commissioners are appointed even if the opengovernors' offices remain in the hands of the same political party,said Neil Alldredge, senior vice president of state and policyaffairs for the National Association of Mutual Insurance Companies(NAMIC).

"People want their own guy, and it is a natural place [forcommissioners] to look for something else," he said. The office istypically considered a stepping stone in careers.

Some state legislative races were downright surprising, Mr.Alldredge said. For instance, Republicans gained control of thelegislature in Alabama and North Carolina for the first time sincebefore 1900.

The industry will have to sit back and wait for agendas to takeshape because insurance is not normally a talking point during anelection in most states.

"There is going to be a major shift in the people in power, andthat means that priorities will change," Mr. Alldredge said. "It istoo soon to tell what that will mean, but we hope the changes meanwe can get away from playing defense on issues like credit scoringand bad faith and move toward an offensive approach to makereforms."

He said the transition to a new commissioner could differ fromstate to state. If a new political party won the governor's office,Mr. Alldredge said he can see a quick appointment. But if theoffice remains in the hands of the same party, a new commissionermight not be named as fast.