New Commissioners Named, More Expected as a Result of Elections

The recent mid-term elections in November 2006 produced a number of state gubernatorial changes, which are expected to result in the appointment of new insurance commissioners in several states. In six states with new governors (Arkansas, Colorado, Maryland, Massachusetts, New York, and Ohio), a change in insurance commissioner is considered likely, since the new governors are from a different political party than the incumbents and the governors in those states have at least some control over the appointment of the state insurance regulator.

While not all insurance commissioners' terms of office coincide exactly with the dates governors assume and leave office (e.g., Maryland Insurance Commissioner Orr's appointment runs until June 2007), some of the new insurance leaders' names have already been announced. New York Governor-elect Eliot Spitzer (D) recently named Eric Dinallo as his nominee for superintendent of insurance, subject to confirmation by the state senate. Dinallo is currently general counsel of Willis Group Holdings Limited, a global insurance broker, and he previously headed Morgan Stanley's regulatory affairs department.

In addition, newly elected Alaska Governor Sarah Palin (R), who assumed office in early December, announced the appointment of Emil Notti as commissioner of the Department of Commerce, Community & Economic Development, which includes the Division of Insurance. Notti is a prominent leader with broad experience in public service. He previously served as president of Doyon Limited and also served as commissioner of the Department of Community & Regional Affairs.

McCarran-Ferguson Amendment Proposed

A Senate bill (S. 4025) entitled the "Insurance Industry Antitrust Enforcement Act" was introduced in the fall of 2006 by Senator Arlen Specter (R-Pa.). The proposed bill would amend the McCarran-Ferguson Act to extend the jurisdiction of the Federal Trade Commission to include insurance antitrust matters. While states would not lose the authority to otherwise regulate the insurance industry, federal antitrust law enforcement would gain the authority to carry out antitrust laws and regulations pertaining to the industry, with some exceptions. The bill, which is cosponsored by Senators Patrick Leahy (D-Vt.), Trent Lott (R-Miss.), and Mary Landrieu (D-La.), was referred to the Judiciary Committee.