Interim state Insurance Superintendent Thomas Rushton will retire effective June 22, Public Regulation Commission (PRC) Chairman David King confirmed Monday evening.
Rushton was appointed Interim Insurance Superintendent May 4, immediately upon the resignation of former superintendent Morris “Mo” Chavez.
Commissioner Marks has asked commissioners at their May 13 meeting to consider replacing Rushton with former superintendent Don Letherer, who was fired in 2001. PRC commissioners had accused Letherer of “negligence, inefficiency, misconduct, insubordination, incompetence and performance which continues to be unsatisfactory.”
“I did get a letter late Friday,” King told The Independent. “I was surprised. He gave no reason in the letter, but the indication was it was (PRC Commissioner Jason) Marks pushing Letherer. He (Rushton) thinks that is a terribly wrong move.”
King denied that Rushton had been pressured to quit.
“I haven’t had an opportunity to discuss his resignation with him,” Marks said Monday evening. “Tom Rushton has been an key staffer in the Insurance Division as our senior deputy superintendent, with great knowledge of the field and a real dedication to his job.”
At the May 13 meeting, commissioners directed Rushton to reverse his predecessor’s controversial approval of a Blue Cross and Blue Shield of New Mexico health insurance rate hike. Rushton had declined to do so voluntarily, telling commissioners he had recused himself from further involvement in the rate hike settlement, and that proper procedures had been followed by staff in approving the 21.3 percent rate hike.
Rushton could not be reached for comment Monday evening. The Independent has submitted a public records request for his resignation letter.
Letherer is a controversial figure at the PRC.
“I am not encouraged about (Letherer),” King said Monday. “He’s a fine guy but the staff has questions with how helpful it would be. He didn’t get along with staff.”
In 2002, Letherer filed a federal civil rights lawsuit against then-PRC Chairman Tony Schaefer and former commissioner Jerome Block Sr. (who is current commissioner Jerome Block Jr.’s father), former commissioner Bill Pope, and former commission chief of staff Jack Hiatt.
Letherer accused Hiatt of misappropriating Division funds. Commissioners acknowledged in 2001 that they had used $150,000 in Division fraud investigation funds on office renovations.
Letherer’s lawsuit was settled later that year for an undisclosed sum.