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Newcomer Sink, veteran Oxendine elected key insurance players

A veteran Republican Georgian commissioner and a Democratic novice Florida financial chief promise to play key roles in insurance issues in the Southeast in the years ahead as a result of the midterm elections.

When the dust settled after the race for Florida’s Chief Financial Officer, Democrat Alex Sink defeated veteran Republican Tom Lee by more than 325,000 votes. Operating on only three hours of sleep on Election Day plus one, Sink’s voice was audibly beleaguered though determined as she spoke with the Insurance Journal.

When asked what she will do in her first 100 hours in office, Sink said she plans to hit the ground running: “We will have a sound transition process and concentrate on getting people in place and employees settled down.”

Acutely aware of the weighty issues she must address in those first 100 hours, Sink added, “I’ll be the single elected official responsible for paying the state’s bills and making sure finances are in order. And by the time I take office in January, I’m sure there will have been several suggestions on the table about insurance reform.”

A veteran banker and business leader, Sink will be required to multi-task as a member of the Florida State Cabinet, not the least of the jobs being oversight of the Office of Insurance Regulation.

“It’s time to stop forming commissions and start finding solutions,” Sink said in an earlier interview with the Insurance Journal. “Though no one can solve the property insurance crisis alone and there are no easy answers, I’m going to use my unique financial leadership experience to fight for some common-sense solutions. I’ll stand up to companies who don’t pay their claims, fight fraud that increases everyone’s rates and work with neighboring states to spread the insurance risk of hurricanes across the region.”

Sink said she is anticipating a special session tentatively scheduled for the first week in December. She said she believes outgoing Gov. Jeb Bush will go ahead with the proposed session in Tallahassee to discuss property and casualty insurance reform.

William Stander, assistant vice president and regional manager of Professional Insurance Agents Association of America in Tallahassee, said in addition to overseeing banking and insurance regulation in Florida, Sink will have direct influence in the ongoing appointment (or discontinuation) of Kevin McCarty, current Florida insurance commissioner.

“There’s no way of knowing at this moment who they may choose,” Stander said. “It might not be McCarty.”

Stander said Sink was “more subdued on the campaign trail” than her opponent. “We expect her to be a good and reasonable CFO.”

Jeff Grady, president of the Florida Association of Insurance Agents, said his organization is ecstatic. “The voters saw it clearly,” Grady said. “They didn’t vote on politics – they voted on qualifications. It’s a good day.”

On choosing the winning candidate, Grady said, “It’s good to be right.”

Bob Lotane, communication director for McCarty, said the commissioner and the entire Florida Office of Insurance Regulation feel that Sink will be a good CFO. “She will add a fresh perspective to the cabinet,” He said.

Sink will not be along in her influence over insurance issues and the choice of insurance commissioner for the state.

Republican Charlie Crist beat Democrat Jim Davis for the right to be sworn in as Florida’s new governor, succeeding Gov. Jeb Bush, who was barred from running for reelection by term limits. Crist will also have input into the choice of insurance commissioner.

Georgia race

The Georgia Insurance Commissioner slot was up for renewal and first time challenger Gaeton “Guy” Drexinger boldly, though unsuccessfully, threw the gauntlet down before Republican incumbent John Oxendine.

“It’s tough to be a Democrat in Georgia,” Drexinger said. “I wound up facing a huge challenge, and as I said all along, I was financially at a disadvantage.”

Drexinger was referring to the cornerstone of his campaign platform – removing industry contributions from political races. He said Commissioner Oxendine “out-raised” him by 6-to-1 and “out-televised” him by 10-to-1.

“I am proud of the support we got throughout the state,” Drexinger said. “But with his (Oxendine’s) contributions from the insurance industry, it was tough.”

Oxendine said he had spent $3 million in his bid for a fourth term.

“My campaign drew the highest number of voters and the highest percentage of votes for an insurance commissioner in state history – for the second time in a row,” Oxendine said. “We will continue to work hard for the Georgia consumers, to be their advocate and to nurture a competitive business environment.”

Oxendine said he will focus on health insurance needs for those who cannot afford conventional coverage, adding that he will work toward “tax reorganization,” making employee contributions to health insurance tax deductible. He said he will also shine a light on civil litigation reform.

According to Oxendine, his reelection makes him the only insurance commissioner in Georgia state history to garner a fourth term victory.

Oxendine would not comment on Drexinger’s desire to remove industry contributions from political races, other than to say, “My opponent ran a negative campaign.”