
PRC Chairman David King‘s executive assistant, Craig Dunbar, was named the state’s new interim insurance superintendent Thursday afternoon.
“Right now, I feel like there’s a morale gap in the Insurance (Division),” Dunbar told commissioners Thursday morning. “I just hope to plug that gap. … I have high morals and ethics, and can lead the (Division).”
Dunbar worked for 35 years in the title insurance industry in several states, including New Mexico.
“I’m very familiar with the title insurance industry,” Dunbar said. “I admit I am not familiar with other industries regulated by the Division, but I’m comfortable with that because the Division has an excellent staff to assist me.”
Dunbar started working in the insurance business immediately after graduating from Eastern New Mexico University. He has been King’s executive assistant for six months.
Dunbar will replace outgoing interim superintendent Tom Rushton, who resigned last week after commissioners voted to direct the Division to rescind predecessor Morris “Mo” Chavez‘s approval of a controversial 21.3 percent health insurance rate hike settlement with Blue Cross and Blue Shield of New Mexico.
Chavez resigned May 4 in the face of public furor — and the ire of commissioners — over his approval of the settlement.
Among Dunbar’s first tasks will be formally rescinding the Division’s approval of the Blue Cross and Blue Shield of New Mexico rate hike settlement, King said.
“We’ll get a letter to him by Monday on that,” King said. “We anticipate that he’ll now become the hearing officer on the (Blue Cross rate hike) case. We want somebody totally removed from the (previous) process.”
Rushton had helped negotiate the rate hike settlement. Deputy Insurance Rushton named Superintendent Darlene Gomez hearing officer for the rate hike reconsideration, last week.
Commissioners defiant over threatened Blue Cross lawsuit
King dismissed as misinformed a letter from Blue Cross and Blue Shield attorney Paul Bardacke, threatening a lawsuit should the rate hike settlement be rescinded. The PRC does not have authority or jurisdiction to rescind the approval, Bardacke argued in the letter.
“I understand he is asserting that the Commission intends to review or vacate the superintendent’s order approving the settlement,” King said. “As discussed at the Commission’s May 13 meeting, the Commission intends simply to issue a letter requesting the superintendent to vacate the order approving the stipulation and to hold a hearing on whether the stipulation should be approved.”
The lawsuit threat is not surprising, Marks said.
“(But) the course the commission laid out is legal,” Marks said. “The commission is requesting an employee to do something. I’d hope Blue Cross would cooperate with the hearing and understand the public interest in having the facts put forward. If they’re not able to make their case and their settlement cannot be accepted, I would hope they would not bring a challenge to the process, when it is clearly in the public interest. If the facts support the rate increase, they should have nothing to fear.”
The settlement had outraged PRC commissioners because it came after a weekend negotiation, prior to a public hearing they had ordered. Commissioner Jason Marks of Albuquerque described the settlement as a “back room deal.”
Commissioners King, Marks and Jerome Block, Jr. have all told The Independent they want to see the commission more closely oversee insurance rate hikes in the future.
Dunbar spoke to commissioners Thursday morning, but other candidates for the interim position who were expected to do likewise, did not show up. Chris Krahling withdrew his name in deference to Dunbar, King said. Deputy Insurance Superintendent Darlene Gomez withdrew her name from consideration because she intends to apply for the permanent Insurance Superintendent position, King said.
The only other candidate for the interim position was former insurance superintendent Don Letherer, whose candidacy had been advanced by Marks.
Marks was traveling Thursday and was not present for the appointment of Dunbar as interim superintendent.
Rushton would not comment on his resignation or anything else, Thursday morning.