Key Midwest Election Battles Could Impact Insurers

The mid-term elections tomorrow will definitely have an impact on the insurance industry depending on who emerges from the key battles for governor, insurance commissioner, congressional seats and attorney general spots. Below is an abbreviated, down and dirty, quick look at some of the key races in the Midwest.

Illinois
Rod Blagojevich had big plans, and even bigger challenges, when he was sworn in as Illinois’ 40th governor in January 2003, the first Democrat to hold the office in 26 years. Blagojevich spent time in the Illinois House and three terms in Congress. The incumbend says he raised the minimum wage, poured more than $1 billion extra into public schools, initiated a programs to offer health insurance and preschool to every child in the state. He kept his pledge not to raise income or sales taxes and says he’s erased a multibillion-dollar state deficit. On the down side, he has drawn the attention of federal prosecutors, who are investigating his administration’s role in alleged hiring fraud and a kickback scheme in the teachers’ pension program.

Blagojevich’s challenger, current state treaurer Judy Baar Topinka, though trailing, is a formidable foe. As state treasurer, she created a college tuition savings program and took over stewardship of the state’s unclaimed property, turning it into the high-profile “Cash Dash” program. Topinka served 14 years in the Illinois Legislature.

Since insurance commissioner is an appointed position in Illinois, the outcome of this race could have an impact on the industry.

Iowa
The contest between U.S Rep. Jim Nussle (R) and Secretary of State Chet Culver (D) remains too close to call, although polls show Culver holding a slim lead. Just as the race for governor is evenly split, the current Senate has a 50-50 split between Republicans and Democrats. Observers see Democrats gaining a clear majority. On the House side, Republicans hold a 51-49 majority.

Kansas
U.S. House Rep. Dennis Moore (D) from Kansas’ 3rd District faces a potentially competitive race. He has been an outspoken supporter of positions on issues ranging from wind damage to surplus lines. His seat on the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises provided a forum for him to articulate the need for Terrorism Risk Insurance Act (TRIA) reauthorization in 2005. Moore is described as a moderate, pro-business Democrat.

Insurance Commissioner Sandy Praeger (R) is running for re-election against state Rep. Bonnie Sharp (D). Praeger was first elected in 2002.

Michigan
Polls give incumbent Gov. Jennifer Granholm (D) a slim-to-none margin against Republican opponent, multimillionaire Dick DeVos. Granholm has tried to limit insurers ability to use credit and pushed several proposals that the insurance industry has actively opposed, such as a 20 percent rate rollback of auto and homeowners insurance premiums. The Attorney General’s Office and all Senate and House seats are also on the ballot. Republicans hold a three-seat majority in each house and, and with a climate of voter discontent over the state’s future direction,control of the Legislature is up for grabs. A change could impact the industry.

Minnesota
While Gov. Tim Pawlenty (R) is favored to win re-election over former Department of Commerce head and current Attorney General Mike Hatch (D), recent polls show the race is a statistical dead heat. Hatch has been known to oppose insurers’ interests on key issues. With all House and Senate seats on the ballot, control of either chamber could change hands.

Nebraska
Sen. Ben Nelson (D) is expected to win reelection because he is a moderate and his GOP competition is lagging in recent polls. He has also been endorsed by many members of the business community, including the U.S. Chamber of Commerce and National Federation of Independent Business. Nelson has a long history with the insurance industry, including serving as Nebraska’s insurance director, executive vice president for the National Association of Insurance Commissioners, and general counsel, president and chief executive officer of Central National Group Insurance. Control of either chamber could change hands.

Source: Property Casualty Insurers Association of America