NM insurance superintendent Morris Chavez resigns, doesn’t elaborate on the reason why

NM insurance superintendent Chavez resigns

ALBUQUERQUE, N.M. — New Mexico Insurance Superintendent Morris Chavez announced Tuesday he will step down from his post, but he did not elaborate on why he decided to resign.

Chavez turned in a short resignation letter to the chairman of the New Mexico Public Regulation Commission, which oversees the Insurance Division.

“After careful deliberation with my family, I have decided to tender my resignation as superintendent of insurance effective close of business today, May 4, 2010. It has been an honor to serve the citizens of New Mexico,” the letter says.

Commission members indicated they would accept Chavez’s resignation.

Chavez, who has served as head of the Insurance Division since October 2006, did not immediately return a message seeking comment left by The Associated Press.

His resignation comes a week after the Insurance Division wrapped up a contentious rate case involving Blue Cross and Blue Shield of New Mexico and about 40,000 of the company’s customers. A settlement agreement was signed by the division, the company, the state attorney general’s office and insurance customer Jody Neal-Post shortly before a public hearing that had been called to give critics a chance to talk about the planned rate increase.

Public Regulation Commissioner Jason Marks criticized the agreement, saying people were not given a chance to voice their concerns.

Chavez, who had said he learned of the settlement during a conference 45 minutes before the hearing, argued that protests over the increase had been heard by the division and that the settlement would end up saving consumers millions of dollars.

The dust is settling from the Blue Cross case, but Marks said Tuesday it’s time for change within the Insurance Division.

“I’m hoping that we can step up our game when it comes to health insurance rate issues and other issues,” he said. It’s becoming more and more essential, both with what’s going on in the industry and the fact that we’re going to be implementing federal health care reform.”

Other health insurers have pending rate cases before the Insurance Division, and Marks said he’s aware of other insurers that plan to submit filings soon.

The commission has appointed deputy superintendent Tom Rushton as interim superintendent. No time table was given for appointing a permanent replacement for Chavez.

Commission chairman David King thanked Chavez for his service and wished him well.

“We appreciate the work he’s done here on behalf of the state,” King said in a statement.

Before heading the Insurance Division, Chavez was the state’s gaming representative. He had worked for the state Gaming Control Board since 2004 and was responsible for monitoring whether Indian tribes were complying with state compacts that govern casinos on tribal lands.

He received his law degree from the University of New Mexico in 1998 and worked for insurance companies in Albuquerque and Santa Fe before becoming the state gaming representative.