Joint hearings will be held within two weeks, and open to the public.
By Lee Williams
The chair of the House Banking and Insurance Committee announced Thursday he wants Delaware Insurance Commissioner Karen Weldin Stewart to publically answer allegations of impropriety that were raised by the Caesar Rodney Institute, as well as allegations she failed to sufficiently regulate a local insurer.
Rep. Bryon Short, D-Highland Woods, said he’s heard the concerns expressed about the state’s insurance department after CRI released its special report titled: “Delaware Dept. of Insurance: Not in the public interest.”
“The best way to serve the public, is when there are concerns, make it public,” Short told the Caesar Rodney Institute.
The nine-month investigation found that Delaware taxpayers might not be getting their fair share of the millions of dollars the department rakes in.
Based on numerous interviews, court records and nearly a dozen Freedom of Information Act (FOIA) requests, CRI uncovered questionable hiring practices, questionable contracts for campaign donors, failure to comply with state law and millions of taxpayer dollars paid to out-of-state consultants.
Short said he had already planned to investigate whether Stewart ignored allegations Blue Cross Blue Shield of Delaware may have denied medical testing that was ordered by physicians.
“I had spoken to her about meeting with the committee – both the House and the Senate – to discuss the BCBS issue,” Short said. “Then behind that came the captives issue, and others you raised. The game plan is for her to speak to the House Insurance Committee, if not both committees, to share some perspective about these two issues and have a dialogue with the committees.”
Short is still working out last-minute scheduling details with his Senate counterpart Sen. Patricia Blevins, D-Elsmere.
Neither Blevins nor Stewart were willing to be interviewed for this story.
Many of the issues raised by CRI, Short said, were not known to lawmakers.
Most were not aware that Steve Kinion, who was handpicked by Stewart to run the lucrative Captive Insurance Bureau, receives $16,000 per month, even though he is a prominent attorney living and working in Springfield, Illinois.
“I don’t know if that’s good or bad,” Short said. “It will certainly be part of my questioning – questions I’d like to pose to the Insurance Commissioner.”
Stewart recently stated she was unable to find qualified attorneys and consultants in Delaware, which is why her department pays millions of taxpayer dollars to out-of-state firms.
“I have heard her put forth that they’ve got a certain level of expertise, and that they’re the best people we could get,” he said. “I will speak to her about that.”
Rep. Greg Lavelle, R-Sharpley, who serves on Short’s committee, said he strongly supports public hearings.
“Someone has to follow up and confirm that that the taxpayers are getting their money’s worth. We don’t want a Sopranos-type job situation here, with no-show jobs,” Lavelle said. “The article raises some very troubling questions. A legislative committee review is an opportunity to follow up and to provide a forum for the insurance commissioner to explain why it’s not a problem.”
Contact investigative reporter Lee Williams at (302) 242-9272 or lee@caesarrodney.org
The Caesar Rodney Institute is a 501(c)(3) non-partisan research and educational organization and is committed to being a catalyst for improved performance, accountability, and efficiency in Delaware government.
© Copyright April 1, 2010 by the Caesar Rodney Institute
[…] to really get to the bottom of things in a phone interview with Ms. Stewart on WDEL a few days ago, has a story up at CRI on the […]