Commissioner Mike Chaney at the Commissioner's Roundtable this morning during the NAIC Summer National Meeting in Chicago, August 2024 (Photo from MID on Facebook)
- Commissioner Mike Chaney said, “You can’t give me a rhyme or reason that it shouldn’t be appointed except that somebody wants to run for it and raise a lot of money.”
Mississippi Insurance Commissioner Mike Chaney, a Republican now in his fifth term, is actively advocating to have his statewide elected position changed to an appointed position by the end of his current term, which expires in January 2028.
In nearly 50 years, Mississippi has only had two Insurance Commissioners. George Dale, a Democrat, served for 32 years before he retired in 2007 as the longest serving Insurance Commissioner in the nation. When he was elected, he was the youngest person elected to the office in state history. Chaney, who won the position in 2007 after having served in the Legislature for 14 years, has held the office ever since.
The statewide elected positions of Insurance Commissioner and Agriculture and Commerce Commissioner are not codified in the Mississippi Constitution, meaning they are subject to the will of the Legislature and would not require a vote of the public.
William Winter successfully lobbied for the position he held to be shifted from elected to appointed in the 1960s. The Democrat, who later became Governor, did so while serving as Tax Collector. In the 1970s, John Ed Ainsworth, a Democrat, successfully advocated for his office as Land Commissioner to be appointed instead of elected. Both were legislatively changed.
Other offices that were once elected and are now appointed include the State Supreme Court Clerk and the State Superintendent of Education. These required state constitutional amendments approved by voters.
Why Change from Elected to Appointed?
Chaney suggested the change to the Insurance Commissioner’s office when he first ran for the post in 2007. Now at 80 years old and with three years left in his fifth term, he’s ramped up his advocacy in hopes that legislative leaders will make the change.
“The real thing about my job is this, it’s pretty simple: If you read the statute, the statute says that my job is to make certain that companies are solvent, that they can pay a valid claim, and the other part of it is to take care of the consumers of the state. If you’re in doubt, you really take care of the consumer. So, to do all of those things, it’s extremely complicated,” Chaney told Magnolia Tribune in an interview. “And the longer I’ve been around, I understand why 44 states and territories appoint their Commissioners and 12 elect their Commissioners.”
Chaney said the bottom-line is, “when you look at it, you take politics out of the regulatory business, and if you can do that you end up trying to run the industry like it needs to be run.”
“The problem I see with those people that are elected, most of us are really good, we care about consumers, but it’s coming to a point that you can’t get good, qualified people willing to run that are able to raise the dollars they need to raise without going to special interests groups,” Commissioner Chaney said. “That’s a concern for me.”
He pointed to “high-dollar trial lawyers” who constantly run ads aimed at suing insurance companies with “deep pockets.”
“Those folks would love to control every insurance department in the country because if they have a friendly Insurance Commissioner they can sue,” Chaney said, adding that that concern was just one side of the coin. “On the other side, you’ve got rich folks that say, ‘Hey, I’ll put up the money and run for that job and use it as a steppingstone to move up to higher office. That’s happen in a couple of states.”
Chaney said the job requires far more than most realize.
“This is not a job where you can get a position and draw a paycheck. This is a real job where you really have to work, you come to work every day, go to seminars and do a lot of public speaking,” the Commissioner said. “I’m not knocking folks who want to run for the job, a lot of people want it, but when they find out what it’s about, they don’t want it.”
The position should be about regulating an industry that needs to be regulated, Chaney emphasized, saying that is done at the state level, “not the federal level although the U.S. government is trying to take that over.”
“So, if you look at it as an appointed position, you expand the pool of qualified candidates and that means you get a better regulator. The business of insurance regulator has become very complicated,” he added.
Getting the Ball Rolling in the Legislature
Commissioner Chaney, a former member of the state House and Senate, said he has been in talks with legislative leaders “but I still have a lot of work to do.” He’s talked with Lt. Governor Delbert Hosemann and others in legislative leadership, asking them to consider it in the 2025 session. Chaney believes the opposition to the change could come mostly from within the House.
As for how an appointed Insurance Commissioner would be appointed, Chaney is suggesting that the position be considered for a six-year term appointed by the Governor with the advice and consent of the State Senate. He said a person should be limited to serving two terms, or 12 years, in the office.
The issue of possible changes in how state government is structured has been a hot topic from the start of this new term, which began in January 2024. The Senate established a new Government Structure Committee while the House made a similar move with its State Affairs Committee. Chaney said his conversations regarding the Insurance Commissioner position “kind of dovetails” with what could be coming in future legislative sessions.
Should PSC or Other Positions be Considered?
When asked about other state elected offices he believes could be shifted to being appointed, Chaney did not sidestep the question. He pointed to the Public Service Commission given their regulatory function similar to that of the Insurance Commissioner.
“I think the Public Service Commission jobs should be eliminated or appointed. They don’t do a lot now,” Chaney said. “To those three guys that are there, I know you’re going to say, “Mike, I can’t believe you’re saying that.’ But just sit down and think about it. I know you raised money to get elected. You can’t take money from utility companies but just think about what I’m saying. That job really should be appointed.”
Chaney said he wouldn’t opine on the Transportation Commissioners, saying, “I’m OK with them staying elected for the time being.”
“But in a perfect world you probably would have more of a cabinet-type structure to run the state similar to what Florida has done,” Chaney explained. “When you look at all of the parts, the State of Mississippi could change the structure of government, maybe making the Governor have more cabinet appointments. But to that end, the Governor’s got to be a good communicator. You can’t be a recluse, if that happens.”
What About the Dual Role as State Fire Marshall?
The Insurance Commissioner is also the State Fire Marshall in Mississippi. The position of State Fire Marshall is responsible for training first responders, investigating arsons, operating the State Fire Academy, and more. When asked if the two roles should be divided, Chaney said after thoroughly considering that prospect, he thinks the two should stay combined.
“We’ve looked at whether the State Fire Marshall should be under another purview, and I’ve come to the conclusion that they need to stay right where they are. The job is totally different from what the Department of Public Safety does,” Chaney said. “We are not only law enforcement but have backgrounds in firefighting, forensics and arson investigations. That’s a very complicated business within itself.”
Chaney said he and DPS Commissioner Sean Tindell have had “some light conversations” about how to mesh the two together but nothing has come of those talks.
“There’s probably a solution. We probably should have one central place because when you look at it, we mimic some of the things that MEMA does and we’ve worked with them so we don’t step on each other’s toes, so to speak,” Chaney said.
The Need for Consumer Advocacy
The one downside Chaney foresees with the change from elected to appointed is that there could be reduced consumer awareness in the office. However, he said he’s had discussions with legislative leadership of implementing a consumer advocacy program.
“One of things we do need, and I’ll be upfront, is consumer advocacy. We need to be more attuned to how decisions affect folks who live every day, who go to work and have to pay these high insurance rates,” Commissioner Chaney said.
Would Chaney Seek a Sixth Term?
For now, Chaney said he’s not planning to seek a sixth term. He hopes he “doesn’t have to.”
“I really think I’d be too old to do that,” he said. “But if I don’t have somebody that’s willing to run that understands the job, I would seek a sixth term.”
Chaney said he’s had “10 or 15 people saying, ‘I know you’re not going to run again. I want the job.'”
“I said I’m hoping you don’t have to run for it. You can go talk to the Governor and let it be appointed. I ought to be done by the time I get out of office, that the job’s appointed,” Commissioner Chaney said. “And I’m going to keep plugging at it until we get to that point. You can’t give me a rhyme or reason that it shouldn’t be appointed except that somebody wants to run for it and raise a lot of money.”
