Maryland Insurance Commissioner Ralph S. Tyler’s recent appointment of a second deputy commissioner is raising questions about who would take over for the commissioner.

State insurance law says “a Deputy Commissioner” appointed by the insurance commissioner and “subject to the approval of the Governor” would take over the MIA’s top office if the commissioner is unable to fulfill his duties or leaves office.

With the promotion of Karen Stakem Hornig, from associate commissioner to deputy commissioner in August, the Maryland Insurance Administration now has two deputy commissioners. Beth Sammis, who was appointed in December 2007, remains a deputy commissioner.

Ralph S. Tyler

Tyler told IFAwebnews.com that Sammis would replace him, if the need arose.

But Gov. Martin O’Malley expects that “both Deputies as well as others would possibly be considered,” according to Christine N. Hansen, a deputy press secretary for the governor.

“We cannot speculate on what a succession plan would be if Mr. Tyler was unable to fulfill his duties,” Hansen said in an email.

Both deputy commissioner appointments were approved by the governor’s office.

Agency’s ‘evolution’

Tyler characterized Hornig’s promotion as a reward for an employee who has performed well. She did not receive a pay raise from her salary of $122,970, Tyler said.

“It isn’t a story,” Tyler told IFAwebnews.com. “Tell anyone who has a problem with it to call me.”

Hornig earned her promotion for assuming “ever greater responsibilities,” Tyler said. “It seems completely appropriate,” he added.

Karen Stakem Hornig

Hornig’s promotion is part of a broader restructuring of the agency, which Tyler characterized as part of the agency’s “evolution.” He said many of the changes come from what he has learned on the job in the last two years.

The restructuring “is good for the people and good for agents and everybody,” Tyler said. “We have more competent people doing more important jobs.”

When Nikhil Divecha, who served as associate commissioner for administration from October 2001 to March 2009, retired, Hornig took over his duties, according to Tyler. His position and salary of $112,070 were then eliminated.

Tyler appointed Sammis, a former vice president of government affairs for UnitedHealthcare, as his deputy commissioner in December 2007, five months after O’Malley chose him to succeed R. Steven Orr, whose term ended in May 2007. Sammis is paid $123,708.

New deputy’s duties

As a deputy commissioner, Hornig oversees all administrative and operational functions of the agency, as well as information technology, building maintenance and human resources, Tyler said.

Hornig, who led the MIA’s move to new offices in Baltimore, also now serves as Tyler’s designee for quasi-judicial hearings. As a result, more hearings are being conducted by the MIA, Tyler said.

“The quality of the decisions has improved,” Tyler said. “You ask if the industry wants those cases to go to people outside the agency.”

Sen. Thomas “Mac” Middleton (D-Charles County), chairman of the Senate Insurance Committee, said he was not aware of Hornig’s promotion, nor did it cause him concern because any matter requiring additional funds would necessitate Senate Budget and Taxation Committee approval.

Tyler said Hornig’s promotion is not a reflection on Sammis’ work. Sammis “knows more about health care than probably anyone in Maryland,” Tyler said.

This story originally appeared in the December 2009 print edition of Insurance & Financial Advisor.