NAIC CEO Vaughan to Leave Post Earlier Than Expected

The National Association of Insurance Commissioners announced late Friday that its CEO, Therese M. (Terri) Vaughan, would be leaving earlier than expected, on Nov. 30 rather than in 2013′s first quarter, and that Andrew Beal would become acting CEO until a leader is hired.

Beal has been with the NAIC for 13 years and currently serves as the NAIC's chief operating officer and chief legal officer. He previously served as interim CEO for about six to seven months between Cathy Weaterford's tenure and Vaughan's assumption of the post. 

Earlier, Vaughan had cited family obligations and the desire to revise a father-daughter textbook—now in its 10^th edition—as reasons for leaving the post that she has held since Feb. 18, 2009.

The NAIC CEO position, which used to have a disclosed salary, no longer does. 

In January 2008, the NAIC released pay information for top executives listed Weatherford's salary at $370,000. The managing director of the Securities Valuation Office was the next highest paid, at a base of $307,878, followed by Beal, at $262,500.

After the August announcement, Vaughan said in a statement, "it has become clear that an extended phase-out is unnecessary, and the organization is well-positioned to carry our progress forward. I wish the officers, members, and staff the best of luck in the future, and look forward to continuing to advocate for the protection of U.S. insurance consumers in my future professional activities."

Vaughan said in October she wasn't sure if she would be at the NAIC Fall 2012 National Meeting Nov. 29 – Dec. 2 outside of Washington, D.C., and it was still unclear this week, although some say she will be there to say her goodbyes.

The NAIC has retained executive search firm Egon Zehnder International to help find and recruit a CEO. The cost of recruiting expenses in the NAIC is over-budget in 2012 and due to spike in 2013 due to the search for a new CEO, according to the organization's proposed 2013 budget document.

The majority of the over-budget variance in 2012 is directly related to the CEO search. The 2013 budget assumes additional expenses related to the CEO search and an increase in reliance on external recruiting services for the attraction of NAIC employees in 2013, the NAIC stated in its budget.