New Mexico Insurance Superintendent Eric Serna resigned his post last week just over a month after he was sidelined as a result of a corrupt practices investigation.
Mr. Serna's resignation will require an election by the National Association of Insurance Commissioners at its summer meeting next month in Washington to fill the NAIC secretary-treasurer's post he held.
Last month, Mr. Serna went on administrative leave on the recommendation of the state attorney general.
Sam Thompson, spokesperson for Attorney General Patricia Madrid, said yesterday the inquiry into Mr. Serna is still open and relates primarily to his actions regarding Santa Fe-based Century Bank, which controls a custodial bank account.
The chief of staff of the state Public Regulation Commission, which regulates the Insurance Division, was not available to comment on the exact circumstances and terms of Mr. Serna's resignation.
In a letter to the PRC last month, Ms. Madrid said "it has become clear that there is an inadequate controls environment within the Insurance Division that has existed for a long time."
The attorney general cited "questionable payment levels to Insurance Division vendors" and contracts resulting from "questionable procurement processes."
"In both matters, contracts were issued without any legal review," Ms. Madrid wrote. "Public confidence in the Insurance Division will be further damaged if Superintendent Serna remains in charge at the Insurance Division."
In a report issued last fall, the New Mexico Legislative Finance Committee criticized the division for high contract examiner compensation.
"The PRC has no formal written policies that cover the use of contract examiners, and in this environment one contract firm has performed 87 percent of all recent examinations," the report said.
Deputy Superintendent Tom Rushton has taken over the top job on an interim basis.
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