Missouri Governor Merges Insurance into Financial Regulatory Department

Missouri Governor Matt Blunt, through an executive order, has created a new department to regulate finances, merging the duties previously performed by the Economic Development Department with those of the state Insurance Department.

The move was implemented on the recommendation of a government review commission Blunt created in 2005.

According to an Associated Press account, the commission panel also recommended that securities oversight be transferred from the secretary of state’s office to the new financial department. Blunt, a Republican, said he believed the transfer would be good for consumers but opted against it because Democratic Secretary of State Robin Carnahan opposed it.

The merger of the Insurance Department and certain divisions of the Economic Development Department will take effect Aug. 28, 2006 upon approval of the Missouri Legislature. The Insurance Department will be renamed the Department of Insurance, Financial Institutions and Professional Registration.

Blunt’s Missouri State Government Review Commission noted that some financial service firms now offer securities, banking and insurance products. The commission’s report said, “it makes sense administratively and as a matter of public policy” to combine the regulatory oversight of all three areas.

Insurance regulation was a part of the Department of Economic Development until voters adopted a state constitutional amendment in 1990 creating a freestanding Department of Insurance. The constitution says the organization and duties of the Insurance Department are to be determined by state law.

Source: Associated Press

Topics Legislation Missouri