Spitzer Taps His Ex-Prosecutor For Insurance Supt.

New York Governor-elect Eliot Spitzer has tapped Eric R. Dinallo, the chief prosecutor behind allegations of financial industry misconduct, to become the state's insurance superintendent.

Mr. Dinallo, currently the general counsel of Willis Group Holdings, was chief of the Investment Protection Bureau for then Attorney General Spitzer's office. He was responsible for heading up a series of investigations into unethical practices of the financial services industry. As a result, the largest insurance brokers in the world were involved in allegations of wrongdoing and paid billions of dollars in settlements.

Mr. Dinallo served with the New York Attorney General's Office until September 2003, when he joined Morgan Stanley as a managing director and head of regulatory matters.

In March of this year, Mr. Dinallo joined Willis as general counsel responsible for the firm's legal and regulatory affairs globally.

Before joining the Attorney General's Office in 1999, he served as assistant district attorney in the New York County District Attorney's Office. He was a litigation associate at Paul Weiss and clerked for Judge David M. Ebel, U.S. Court of Appeals, 10th Circuit in Denver.

In reaction to the news, Joe Plumeri, chairman and chief executive officer for Willis, said in a statement that while he is sorry to see Mr. Dinallo leave, he believed he would make an important contribution to promoting regulatory reform in the state.

"There is near universal agreement that the regulation of the insurance industry needs reform, and Eric is well suited, given his time with Willis, and previously with Morgan Stanley, to oversee this effort in New York," Mr. Plumeri said.

Richard A. Poppa, president and chief executive officer for the Independent Insurance Agents & Brokers of New York, said: "We are delighted that the governor-elect has moved so quickly to fill the spot of insurance superintendent and have a point person in the administration we can work with for improving the coastal market and workers' compensation issues that need to be reformed, together."

Of the alleged wrongdoing found in the industry, and Mr. Dinallo's connection with those prosecutions, Mr. Poppa said he believed both the governor-elect and Mr. Dinallo understand that the problem was with a few individuals and not the entire industry.

"[They understand] that the activity of a few does not apply to the vast majority of the system," he said. "I believe the new superintendent understands that distinction."

Outgoing Insurance Superintendent Howard Mills said in a statement: "Governor-elect Spitzer has made an outstanding choice for superintendent of insurance in Eric Dinallo. Along with his experience in and knowledge about this critical industry, his demonstrated commitment to consumer rights will serve all New Yorkers well. I extend my heartiest congratulations to Mr. Dinallo, and look forward to working with him to ensure a smooth transition."