Dr. Theresa “Terri” Vaughan has announced her retirement today, effective in February, as chief executive officer of the National Association of Insurance Commissioners.
Diane Koken, Pennsylvania’s longest-serving insurance commissioner before stepping down in 2007, is expected to be named to succeed her.
Vaughan would be stepping down after completing her four-year term as the first NAIC CEO.
According to multiple industry and regulatory sources, the changing of the guard is expected to be announced at the plenary session that will mark the end of the NAIC summer meeting, being held in Atlanta.
NAIC spokespeople were not immediately available for comment.
Ironically, Koken’s appointment may occur in the same week as the Treasury Department could unveil its long-delayed report on how state insurance regulation should be reformed and modernized.
Multiple sources have told National Underwriter that they anticipate the Treasury Department will unveil the long-awaited report this week. The report was mandated by the Dodd-Frank financial (DFA) services reform law, and was supposed to be released in January.
Michael McRaith, director of the Federal Insurance Office that is mandated by the DFA to prepare the report, gave hints as to what the report might cover at the Aug. 6 meeting of the Federal Advisory Committee on Insurance. McRaith created the FACI to gain input from industry and regulatory officials on insurance issues.
McRaith said the report would like likely view U.S. insurance regulation through the wide-angle lens of internationalization, and also seek input on the shortcomings of, and the need for updating, state insurance regulation.