Insurers Caution Against Making Maryland Commissioner An Elected Office

ANNAPOLIS, MD – Maryland legislators asking to change the office of insurance commissioner from an appointed to an elected office should be careful what they ask for, according to the Property Casualty Insurers Association of America (PCI).

In a hearing today before the House Economic Matters Committee, legislators heard arguments from the insurance industry on several insurance-related bills. H.B. 701, sponsored by Rep. Herman L. Taylor would repeal the authority of the Governor to appoint the Maryland Insurance Commissioner after January 9, 2007; require the commissioner to be elected at a general election every four years beginning with the November general election in 2006; and establish a term of four years for the elected commissioner.

Bob Enten, PCI's Maryland local counsel, argued against the bill, cautioning that by making the office an elected position, they would be denying future governors the right to appoint their own commissioner. Additionally, the state should not rely on calling for an elected regulator every time the Legislature disagrees with how a commissioner is doing his or her job, Enten added.

PCI is concerned that elected regulators could unnecessarily politicize agencies and issues. No other regulatory agency in Maryland or across the nation – banking, securities, utilities, or commerce – has an elected commissioner for good reason. The same sound public policy should apply to regulation of the insurance industry.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write $173.6 billion in annual premium, 39.1 percent of the nation's property/casualty insurance. Member companies write 49.1 percent of the U.S. automobile insurance market, 37.8 percent of the homeowners market, 31.8 percent of the commercial property and liability market, and 38.5 percent of the private workers compensation market.

Source: PCI