Who is Tennessee’s Head Honcho in Insurance Regulation?

Funny you should ask.

Last October 2019, Governor Bill Lee appointed Hodgen Mainda to fill the position left vacant by long-time commissioner, Julie Mix McPeak, who left to work in the public sector in Nashville. Tennessee’s Department of Commerce & Insurance commissioner is appointed by the governor. Most states appoint this post, while ten or so other states elect their state’s commissioner. As we are coming off an election, I got to wondering about this position, so imagine my surprise when I saw the tinge of controversy surrounding the latest appointment and pending resignation.

Hodgen Mainda

Mr. Hodgen submitted his resignation last week and reportedly faces an investigation over allegations of sexual misconduct by one of his department’s employees.

The report of possible sexual harassment was received Sept. 15 and was referred to Lee’s office on Sept. 23.

According to a Department of Commerce and Insurance investigation summary report, there was “insufficient evidence” to substantiate the allegation against Tennessee Department of Commerce and Insurance Commissioner Hodgen Mainda stemming from a February conference in Florida.

Now for a review, just what are the responsibilities of the TDCI Commissioner? In a nutshell, he or she is charged with protecting Tennesseans through balanced oversight of insurance and regulated professions while enhancing consumer advocacy, education, and public safety. The Insurance Division is comprised of seven sections tasked with protecting consumers and ensuring a viable insurance marketplace in the State. This Division regulates and licenses both individuals and corporations, assesses suspicions of fraud, and provides resources to compare various insurance providers for citizens of Tennessee.

As Tennessee’s Commissioner of Commerce and Insurance, Hodgen is the state fire marshal and is responsible for the divisions of insurance, fire prevention, regulatory boards, including twenty-six regulatory entities, TennCare Oversight, and the administratively attached Tennessee Law Enforcement Training Academy, Tennessee Police Officer Standards and Training Commission and Tennessee Emergency Communications Board.  In 2018, the department collected $1.145 billion in fees and premium taxes and had expenditures of $220.9 million. [www.tn.gov]

“Today Commissioner Mainda offered his resignation and intent to return to Chattanooga and the private sector,” Ferguson said. “The Governor accepted his resignation.”

Lee’s spokesman Gillum Ferguson

“I have an opportunity to transition to the private sector and at the same time, spend more time with my young family,” Mainda wrote to Lee in his resignation letter on Monday, pledging to make the transition as smooth as possible.

His last day in office is November 13th. Stay tuned for the update when Tennessee’s next Commissioner is announced.

UPDATE from TN.gov—Today Tennessee Governor Bill Lee announced Carter Lawrence will serve in his cabinet as commissioner of the Tennessee Department of Commerce & Insurance, effective immediately.

Carter Lawrence: A lifelong Tennessean and Nashville native, Lawrence earned his Doctor of Jurisprudence and a Master of Business Administration at the University of Tennessee, Knoxville. Prior, he graduated from Wheaton College in Illinois.

Carter is a proven public servant who has stewarded key priorities for the administration throughout his tenure and I’m confident he’ll continue to support TN businesses and consumers with integrity. We appreciate his dedication to @TNCommerceInsur.

—Governor Bill Lee on Twitter, November 13, 2020
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Author: Kate Rymer

I am a second-year licensed independent agent at Herron-Connell Insurance Group in Oak Ridge, TN. I love to learn about all facets of insurance, specifically in Tennessee.

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