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NAIC CEO Vaughan to Step Down in 2013

Dr. Therese M. (Terri) Vaughan announced she will resign her post as chief executive officer of the National Association of Insurance Commissioners during the first quarter of 2013, after holding the position for three and one-half years
August 14, 2012

Dr. Therese M. (Terri) Vaughan announced she will resign her post as chief executive officer of the National Association of Insurance Commissioners during the first quarter of 2013, after holding the position for three and one-half years. The former Iowa insurance commissioner took over as CEO on Feb. 18, 2009, and has cited family obligations and the desire to revise a textbook as reasons for leaving the post.

“It is with mixed emotions that I announce my departure from an organization that has been part of my life for the better part of the past two decades,” said Vaughan. “I am especially proud of the work we’ve accomplished in the areas of U.S. solvency modernization and global insurance regulation. I believe the U.S. system of state-based insurance regulation remains the strongest in the world and the ongoing work by regulators is improving the framework every day.”

NAIC President and Florida Insurance Commissioner Kevin M. McCarty said Vaughan’s “expertise has been key to the critical self-examination of the U.S. system of state-based insurance regulation in light of financial reform and modernization efforts taking shape around the world.”

“Ms. Vaughan has been a leader in state insurance regulation throughout her 30-years associated so closely with the NAIC,” said PIA National Senior Vice President Patricia A. Borowski. “Commissioner McCarty’s comments are testimony to Terri Vaughan’s invaluable combination of intellect, experience, forward thinking and expertise to solve the challenges at hand. PIA will continue its support for the NAIC’s efforts to defend our modern state-based system of insurance regulation and we look forward to executive leadership that continues this unwavering commitment.”

The NAIC says its officers will conduct a national search later this year to find Vaughan’s replacement; however, the National Underwriter is reporting that Diane Koken, who was Pennsylvania’s longest-serving insurance commissioner before stepping down in 2007, is expected to be named to succeed her. Separately, PIA has learned that Iowa Insurance Commissioner Susan Voss (IA) is also rumored to be in contention for the position.

The change in NAIC executive leadership is being announced 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 the 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.

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