Upon Resignation, Ohio Commissioner Says Insurance Markets ‘Not Partisan’

Ohio Insurance Director Mary Jo Hudson will resign Jan. 10 after four years in office, one day before new Gov. John Kasich takes the oath of office.

Hudson said she is proud to have expanded protections to seniors and other consumers while expanding health insurance coverage and protecting the marketplace. "Your insurance markets are not partisan," she said.

A Democratic appointee, Hudson said she hopes her successor and fellow commissioners will keep partisan and ideological differences aside when it comes to hot-button issues such as implementing health reform, for which much of the nuts-and-bolts work has been tasked to the National Association of Insurance Commissioners. She also called for the NAIC and the U.S. Department of Health and Human Services to make collaboration a true two-way street and to make any changes market conditions make necessary, including terms for medical loss ratio regulations.

"It's been an exciting time to be an insurance commissioner," Hudson said.

Kasich, a Republican former congressman, defeated Gov. Ted Strickland in November. Kasich has not yet named a successor for Hudson. Strickland appointed Hudson to lead the insurance department when he took office in 2007. She previously served on the Columbus City Council from 2004 to 2006.

In October, members of the Interstate Insurance Product Regulation Commission re-elected Hudson as chairwoman of the compact's managing committee. The compact enables state insurance regulators to develop uniform national standards for asset protection insurance products, such as life insurance, annuities, disability income and long-term care insurance. The compact, which includes 36 states and Puerto Rico, also provides a central point for digital filing capability (BestWire, Oct. 20, 2010).

Hudson took an active role on certain life insurance issues at the National Association of Insurance Commissioners. She spoke against a form of annuities fraud targeted at the elderly and terminally ill known as stranger-originated annuity transactions (BestWire, May 20, 2010).

She was a strong proponent of the NAIC adoption of controversial accounting changes long sought by life insurers. The changes extended the period over which deferred tax assets are projected to be realized from one year to three years and increased the limit of DTAs as a percentage of statutory capital and surplus from 10% to 15% (BestWire, Dec. 8, 2009). Prior to the NAIC action, Hudson acted in Ohio to approve approximately $698 million in financial relief for six insurance groups pertaining to the accounting treatment of DTAs (BestWire, March 16, 2009).

(By Sean P. Carr, Washington Bureau Manager: [email protected])