Commissioners in Missouri, Vermont Face Possible Replacement After GOP Takes Governor Spots
November 16, 2016 by Thomas Harman
WASHINGTON – Missouri Insurance Commissioner John Huff and Vermont Commissioner Michael Pieciak are among those whose jobs may be at risk when governors from parties different than those who appointed them take office in January.
In Missouri, Republican Eric Greitens, a former Navy SEAL who styled himself as a “conservative outsider,” captured the governor’s chair in a narrow victory on Nov. 8. Huff was appointed by outgoing Democrat Gov. Jay Nixon, who will reach the end of his two-term limit in January.
Steve Schneider, the American Insurance Association’s vice president, state affairs, Midwest Region, said he was uncertain whether the Greitens administration would bring in its own team, but said if Huff were asked to step down as commissioner it would “represent a significant shift” for Missouri. Schneider said Huff has been extraordinary as a commissioner, a deeply committed public servant who is knowledgeable about the insurance business and is a superb regulator. Huff is the current president of the National Association of Insurance Commissioners.
Neil Alldredge, senior vice president, state and local affairs with the National Association of Mutual Insurance Companies, said Huff has been involved with the NAIC in major domestic issues and has made himself a large presence on the international stage. Huff, he said, “has a well-earned reputation for being fair.” But should he leave the commissioner’s spot, Alldredge said there were changes his group would like to see within the department, which he said was well known for vigilant or even punitive market conduct examinations.
Huff’s experience includes two terms on the U.S. Financial Stability Oversight Council created by the Dodd-Frank Wall Street Reform and Consumer Protection Act to which he was appointed in September 2010 by the NAIC.
In Vermont, Republican Phil Scott won the governor’s chair in an open race. Current Democrat Gov. Peter Shumlin, whose term expires in January, recently appointed Pieciak to the post left open when Susan Donegan departed in June (Best’s News Service, July 6, 2016).
Alison Cooper, AIA’s vice president for the Northeast Region, told Best’s News Service it was probably too early to tell what Scott might decide regarding the insurance commissioner’s position. However, Cooper said during Pieciak’s short time as commissioner, he had taken a pro-business stance on issues and has an appreciation for concerns facing the industry. However, Alldredge said it was likely Vermont would have a new commissioner.
Before becoming insurance commissioner, Pieciak served as deputy commissioner of the Department of Financial Regulation’s Securities Division.
The Property Casualty Insurers Association of America said in a statement it is early in the transition period for the newly elected governors. Scott and Greitens “have not given any indication on who they will select for these appointments,” PCI said.
A third state, New Hampshire, also saw the governor’s mansion change political parties as Republican Chris Sununu won the gubernatorial race. State Insurance Commissioner Roger Sevigny, an NAIC past president, was re-appointed to his third five-year term in 2013 by outgoing Democratic Gov. Maggie Hassan. All gubernatorial appointments to insurance commissioner must also be approved by a five-member Executive Council, which remains 3-2 Republican following the Nov. 8 election. Sevigny’s office said because his term runs through June 2018, the governor-elect will have the opportunity to select a commissioner at that time.
(By Thomas Harman, Washington Bureau manager, BestWeek: Tom.Harman@ambest.com)
BN-NJ-11-15-2016 1617 ET #
