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By 
June 08, 2022 at 03:42 PM
What You Need to Know
- Lara will face the California primary candidate who wins the second highest vote total.
- The candidate now in second place, Robert Howell, is the CEO of Exatron, an electronic equipment manufacturer.
- The winner of the race could play a major role in determining whether the country moves toward a non-variable annuity sales standard based on the SEC's Regulation Best Interest or a fiduciary rule approach.
Current California Insurance Commissioner Ricardo Lara appears to be the top performer in the California commissioner primary, but, at this point, he has just 37% of the 3.3 million votes counted.
Three other candidates — Robert Howell, a Republican; Marc Levine, a Democrat; and Greg Conlon, a Republican — each received between 16.5% and 17.8% of the votes that have been counted so far, according to early results posted by the California secretary of state’s office.
Lara now has a slot on the fall ballot. He will face whoever comes in second place, whether that candidate is a Republican or a Democrat.
In Georgia, meanwhile, John King, the state’s Republican insurance commissioner, will run either against Janice Laws Robinson, a Democrat who owns an insurance agency in Atlanta, or Raphael Baker, a Democrat who owns a professional services firm in Atlanta.
What It Means
Both California and Georgia could offer more than the usual level of insurance commissioner general-election drama.
The winner of the California race could play a major role in determining whether the United States moves toward a non-variable annuity sales standard based on the U.S. Securities and Exchange Commission’s Regulation Best Interest or on the kind of fiduciary rule approach that the U.S. Department of Labor has promoted.
Reg BI appears to allow insurers to continue to use commissions in annuity sales compensation arrangements.
The fiduciary rule approach could push insurers to rely mainly, or entirely, on working with fee-based financial advisors to help consumers apply for annuities.
The Backdrop
Governors in a large majority of states appoint the top insurance regulators, but voters in some states elect those officials. California, Georgia, Kansas and Oklahoma will all have insurance commissioner races on the general election ballot this year, on Nov. 8.
Glen Mulready, Oklahoma’s Republican insurance commissioner, is the only candidate who is now running for insurance commissioner in Oklahoma. The state’s primaries are scheduled to take place on June 28.
The Kansas primary is scheduled to take place on Aug. 2.
Vicki Schmidt, Kansas’ Republican insurance commissioner, is the only Republican who has filed to run for insurance commissioner.
Kiel Corkran, an IRS tax examiner who is studying actuarial science, is the only Democrat candidate now in the race.
California
Lara was a state legislator when he became commissioner in 2018. He was known for promoting a shift to a “single-payer,” entirely government-run, health care finance system.
