Finke Lands Missouri Commissioner Spot, Draws Fire

Missouri Gov. Matt Blunt announced the appointment of W. Dale Finke to head the Missouri Department of Insurance. Finke, CEO and president of Corporate Insurance Management in St. Louis, quickly drew fire from critics over the manner in which he was selected.

Finke was president of the Missouri Association of Insurance Agents in 1974 and was named Insurance Man of the Year by the association in 1977, according to a statement from MAIA. He most recently served as chairman of the MAIA’s government relations committee. Finke’s appointment is subject to Senate confirmation.

Doug Ommen, who is currently commissioner of securities in the Missouri Secretary of State’s office, is expected to assume the role of chief legal counsel and deputy director at the insurance department.

According to a press release distributed by Blunt’s office, Finke shares the governor’s goal of controlling the cost of insurance premiums so that Missouri businesses and physicians can be allowed to operate effectively. Finke told reporters a lot of work needs to be done to improve insurance services in the state, but he supports Blunt’s goal of changing the way civil lawsuits are filed, tried and resolved in Missouri.

“Gov. Blunt’s appointment of MAIA Past President Dale Finke as director of insurance certainly puts someone in the director’s chair who thoroughly understands insurance operations,” said MAIA Executive Vice President Larry Case in a statement.

However, critics quoted by the Associated Press questioned Blunt’s decision to use a panel of insurance industry insiders to help select the new commissioner. The committee included members from St. Louis-based, Welsch, Flatness & Lutz Inc., Blue Cross Blue Shield of Missouri and the Missouri State Medical Association, who questioned Finke about “everything from experience to philosophy to goals,” according to Finke. After the panel recommended Finke, he then spoke with Blunt by telephone.

Former insurance director Jay Angoff told the AP the selection process was “shockingly inappropriate.” A Blunt spokesman told the AP that “all the decisions that have been made, have been made by the governor.”

Democrats call for hearings
This tussle came the same week the fight over capping medical liability rates got into full gear, with Senate Democrats proposing to increase regulation of insurers’ rating as a way to keep costs down for doctors. Senate Bill 83, proposed by St. Louis Democrat Joan Bray, would require the insurance commissioner to hold a public hearing if rates are increased by 15 percent or more.

Republicans, including Blunt, have argued that runaway jury awards are to blame for high premiums and introduced legislation capping pain-and-suffering awards. However, Blunt sounded a note of accomodation on the Democrats’ proposal.

“I think, for example, we ought to have public hearings whenever there are large spikes in insurance premiums,” he told the AP. “I would like to think we might be able to pass a good insurance reform bill that requires more public involvement in the process, that requires insurance companies to explain in full disclosure why changes in insurance premiums might be necessary.”