Fla. CFO Clarifies His Position on Commissioner, Reforms

Tom Gallagher, CEO of Florida’s Department of Financial Services and a Republican candidate for governor indicates he supports the state’s present system of appointing an insurance commissioner and would like to see comprehensive insurance reforms.

In a position paper, Gallagher pointed out that on Feb. 15, Florida Governor Jeb Bush said he prefers the current system of an appointed insurance commissioner as opposed to an elected commissioner. In the past, Gallagher has stated an appointed insurance commissioner, overseen by an elected cabinet, ensures accountability to Floridians. In addition, on the subject of improving Florida’s insurance market, he has been a clear and outspoken proponent of comprehensive reforms.

Gallagher criticized his opponent Florida Attorney General Charlie Crist for being unclear about where he stands on insurance reform or where he stands on an elected vs. appointed insurance commissioner.

“Last year, while speaking before the Government Affairs Committee of the DeLand Area Chamber of Commerce, Charlie Crist went on the record in support of a new insurance commissioner to solve Florida’s insurance problems,” the paper said. “When asked by a small businessman how he would improve insurance in Florida Charlie Crist was quick to reply, “I think we need a new insurance commissioner…really.” (Nov. 1, 2005)

As one of four members of the Florida Cabinet, Crist shares responsibility in appointing the current insurance commissioner. In addition, he can make a motion at any time to ask for removal or replacement of the current insurance commissioner.

“If he believes the answer to improving Florida’s insurance market is to remove the current insurance commissioner, it is unclear why he has not made a motion to do so in the three months since making that comment,” Gallagher said. “It is unclear whether Charlie Crist will now make a motion for a new insurance commissioner.

“Furthermore, it is not clear whether Charlie Crist supports the idea of having an elected vs. appointed insurance commissioner (Charlie Crist was at one time an outspoken advocate of having an elected Public Service Commission),” Gallagher said. “It is also unclear whether Charlie Crist supports insurance rate-relief, as proposed by Tom Gallagher, for all Floridians.”

The paper emphasized, “What is clear is that Tom Gallagher is the only candidate for governor working on behalf of Florida’s families and small businessmen and women to reform the insurance system in Florida, stabilize rates, provide immediate rate-relief and ensure long-term availability and affordability of insurance.”

Detailed information about Gallagher’s comprehensive insurance reform plan and other legislative priorities are available at: http://www.fldfs.com/PressOffice/2006Legislative/.