NAIC May See 20% Plus Turnover After Nov. 5

NAIC May See 20% Plus Turnover After Nov. 5

NU Online News Service, Oct. 21, 3:16 p.m. EST?The top insurance regulator posts in perhaps 13 states could get a new face following the Nov. 5 elections, according to the Alliance of American Insurers.

States likely to see a change are Alabama, Alaska, Hawaii, Illinois, Maine, Michigan, New Hampshire, New Mexico, Pennsylvania and Wisconsin, based on polling data showing non-incumbents ahead in gubernatorial contests, the Alliance said.

In addition, California, Florida and Kansas will get a new regulator because the incumbent is barred from, or has chosen not to seek the office, the group based in Downers Grove, Ill. said.

The Alliance noted that, in cases where the new governor is the same political party as the old governor, the insurance regulator may be asked to stay on.

Some polling data indicates that incumbent governors, who would likely keep the regulators they have, are leading in Arkansas, Connecticut, Idaho, Nebraska, Nevada, New York, Ohio, and Texas, the Alliance found.

The Alliance noted that a shakeup in the membership of the National Association of Insurance Commissioners would probably occur in any event since the average tenure in the job is 18 months.

The ensuing turnover means that "insurers, agents, and their trade associations will most likely be spending a great deal of time in 2003 working on new relationships in state insurance departments and at NAIC meetings," the Alliance said.

The group added that "an unfortunate outcome for everyone is that regulators who favor modernizing and simplifying insurance regulation may not be around next year.''