Alaska, Idaho could face new insurance regulators

The insurance commissioner posts in Alaska and Idaho are likely to change, following November’s mid-term elections.

In Idaho, U.S. Rep Butch Otter, R, defeated opponent, newspaper publisher Jerry Brady, in the race for governor of the state, as expected. When the former Gov. Dirk Kempthorne, R, left office earlier in the year to become U.S. Secretary of the Interior, then Insurance Director Gary Smith went with him to Washington, D.C., and interim Gov. Jim Risch did not name a successor.

Acting Director Shad Priest was never named the official commissioner in Idaho. Kenton Brine, northwest regional manager for the Property Casualty Insurers Association of America (PCI), said the state is “almost certain to have a new appointed commissioner,” but whether it’s Priest or someone else, it’s too early to tell.

Nevertheless, Brine said since the leadership remained Republican, he did not see potential for major policy direction shifts.

One position the industry should watch, however, is chairman of the House Judiciary Committee, Brine suggested. In the election, 26-year-old Branden Durst defeated former GOP House Judiciary Committee Chairwoman, Debbie Field.

“I don’t think anyone saw that coming,” Brine said. The House Judiciary Committee created legislation that PCI opposed in 2006 having to do with the amount attorneys are automatically paid in cases with $50,000 awards. PCI is assuming the legislation will be revisited in 2007, and with the new chairmanship, the association is not sure how it will be received, Brine explained.

In Alaska, Republican Sarah Palin defeated former two-term Democratic Gov. Tony Knowles. Earlier this year, she beat incumbent Gov. Frank Murkowski in the GOP primary. The change in leadership means there could be a new insurance administrator.

Current Commissioner Linda Hall has held the position since 2003. According to PCI, “Hall is highly regarded by legislators and the industry,” and she is recognized for improving the state’s insurance climate.

Following the change in governor, “frankly, we don’t know whether the republican will seek Linda Hall or someone new,” Brine said. However, he noted that Palin’s campaign emphasized she was an outsider and it was time for a change, “so one doesn’t know if there will be a clean house mentality,” Brine added.

One key issue that surfaced in 2004 and 2005 is the issue of providing a stable environment for workers’ compensation, according to PCI. “We’re not sure of how the fate of that is going to go now, for two reasons,” Brine said. “One reason is the new governor. [The second reason] is the champion and head of the legislative workers’ compensation reform task force, Sen. Ralph Seekins, a Republican from Fairbanks, was defeated in his bid for reelection. That might stall the whole workers’ comp reform effort.”