NU Online News Service, March 18, 12:34 p.m.EDT

Michael McRaith, the Illinois insurance director whowill become the first head of the Federal Insurance Office, hastold his staff that he will continue at his present job "through atleast the end of May."

Mr. McRaith informed his staff that he would be heading up the FIO just after Treasury Secretary TimothyGeithner made the announcement late Thursday.

In his statement to his staff, Mr. McRaith said, "I have beenoffered, and accepted, the position of director of the FederalInsurance Office in the U.S. Dept. of Treasury.

"I will be working with you through at least the end of May,however, and look forward to communicating more personally beforethen."

He added, "In the meantime, thank you for your hard work,professionalism and your commitment to consumerprotection. As with every day I have served as director, Iam excited to work with you in the coming weeks."

Mr. McRaith is currently the secretary-treasurer of the NationalAssociation of Insurance Commissioners (NAIC).

When he takes over as the FIO director, he will be a TreasuryDept. employee and will not be subject to Senate confirmation.

The job will pay between $119,554 and $179,700 a year.

The FIO director is supposed to be a non-voting member on the13-member Financial Stability Oversight Council (FSOC). He willreport directly to Mr. Geithner.

At the same time, the administration still has not named anindependent FSOC member with insurance expertise, as required bythe provisions of the Dodd-Frank Wall Street Reform and ConsumerProtection Act.

Mr. Geithner recently said that several names are underconsideration by the White House. That job is subject to Senateconfirmation.

The Dodd-Frank Act gives the FIO no direct domestic regulatoryauthority, but the office will have the authority to monitor allactivities related to the business of insurance except for healthinsurance and long-term-care insurance.

The FIO will advise the Treasury secretary on the financialhealth of insurers, and the office will help federal officialsdecide whether an insurer poses a potential risk to the stabilityof the financial system and ought to be subject to federaloversight as well as state oversight.

The FIO also will share negotiating authority on bilateralinsurance trade agreements with the U.S. Trade Representative.