Texas Insurance Commissioner Geeslin to Step Down
Texas Insurance Commissioner Mike Geeslin announced in early January that he will not seek another term as head of the Texas Department of Insurance. His term ends Feb. 1, 2011.
Commissioner Geeslin has been with TDI for eight years, and has served as commissioner for five and a half years. Gov. Rick Perry appointed Geeslin to the post in June 2005, just months before Hurricanes Katrina and Rita struck the Texas and Louisiana coasts in August and September of that year.
Geeslin, who had served as Deputy Commissioner for Policy at the Texas Department of Insurance since 2003, found himself not only faced with presiding over one of the largest insurance markets in the nation, but directing recovery efforts in Texas for both hurricanes, as well. In addition, a complete overhaul of the state’s workers’ compensation system was initiated in September 2005. Less than a year later, Geeslin was faced with placing one of Texas’ largest homeowners insurers, Vesta Texas Select, into rehabilitation and liquidation.
Geeslin’s tenure also has been marked by disputes with two of the state’s largest homeowners insurers — State Farm and Allstate — over homeowners insurance rates.
In 2007, Geeslin ordered Allstate Lloyd’s to refund Texas policyholders for alleged overcharges stemming from 2004. The department in 2008 reached an agreement with Allstate under which the company would pass on to policyholders an estimated $71,300,000 in refunds, credits and rate reductions.
In 2009, Geeslin ordered State Farm to refund some $310 million to policyholders for what the department determined were overcharges beginning in 2003. The insurer appealed and the case has been tied up in court since that time.
In a letter to the Gov. Perry, Geeslin said his decision to resign was based on many considerations, the foremost being family. He also said he realized “it is time for someone else to lead.”
During Geeslin’s time as commissioner, the Texas market has grown from $78 billion to $102 billion, according to the insurance department. The department resolved consumer complaints totaling more than $220 million and took regulatory action against carriers and other regulated entities in excess of $800 million, with more than $600 million of these dollars attributable to homeowner rate actions.
The commissioner’s job is a tough one, and Geeslin gained the respect of insurance industry representatives during his tenure.
“Commissioner Geeslin has balanced the needs of consumers and the insurance industry with skill and genuine concern for the well-being of both groups. He will be hard to replace,” said David VanDelinder, executive director of the Independent Insurance Agents of Texas.
The job of Texas insurance commissioner is “one of the most difficult and demanding jobs in state government,” said Mark Hanna, manager of public relations and membership for the Insurance Council of Texas. “We certainly wish Commissioner Geeslin all the best in his future endeavors.”
Jerry Johns, president of the Southwestern Insurance Information Service, acknowledged that insurers have had disagreements with Commissioner Geeslin. However, Johns said, “we have found him to be open minded and willing to consider the positions of a variety of special interest groups. His knowledge of how insurance works to the benefit of consumers and the insurance industry cannot be disputed. We wish him only the best moving forward and thank him for his service to Texas.”
Announcing his resignation, Geeslin commended TDI staff for their service and credited them with historic efforts. Among them:
- Responding to major hurricanes, including Hurricane Ike in 2008
- Merging the workers’ compensation and insurance departments
- Undergoing two consecutive sunset reviews
- Ensuring solvency of key market sectors in an historic global economic downturn
- Increasing anti-fraud activity and continuing efforts to improve upon fire safety and investigation
The commissioner said he does not have any immediate future plans, and remains committed to ensuring a smooth transition. He described his tenure at TDI as “the experience of a lifetime,” but added that “it is time to commence with change.”
At press time, Gov. Perry had not yet named an appointee to replace Geeslin.
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