Monica Lindeen, regulator, watchdog, or commissar?

Sometimes I don't know what to think. Today a young lady showed up unannounced, a Ms. Amber Worman. She works for the Montana Commissioner of Securities and Insurance.

The State of Montana pays her to go around the state visiting insurance agents like me to ask two things: 1) are the agents listed on my insurance license supposed to be there, and 2) am I displaying the current year Montana insurance license?

This person, given the Orwellian title of "Public Outreach Coordinator," is more appropriately deemed a compliance officer. She was checking my office for compliance. She was not here to reach out or coordinate anything.

You see, insurance agents in Montana are licensed by the state and are required to display this license in public view. One might ask why, since the paper license really serves no purpose. Well, there is one purpose. The license is the official government stamp of approval that the agent has filed the proper paperwork and paid the proper fees, and also, has taken the 24 hours of continuing education coursework every two years. That is, the license is a certificate of achievement, something that documents that you have jumped through all the government's hoops.

One would think that people like used car salesman or Walmart employees should be put the through the licensing wringer, but no such luck. For some reason the state takes its insurance regulation duties very seriously, but doesn't seem to care that much if you get an incompetent waitress at Applebee's.

I suppose the state wants insurance agents to be minimally conversant regarding insurance policy coverages so that they can advise their customers properly. But I'd rather that the clerk at Home Depot be certified so that I don't have to make three trips to find the right sized plumbing fitting.

Ms. Worman asked me her two questions, looked at my proudly displayed licenses on the wall, and left me her card and five copies of a brochure, which is displayed below. I wish to note that the brochure apparently costs $.50 each, and cost nothing to distribute. Hmm.

You'll note on the above page that Monica Lindeen, the Commissioner of Securities and Insurance, describes here role as being "responsible for the regulation of this industry."  Indeed, that is what she is charged with under state law. Which apparently includes checking to make sure the right piece of paper is hanging on my office wall.

Now on this page she describes her department as a "watchdog for the citizens of Montana," charged with "protecting Montana's consumers through informing the public about securities and insurance issues." Are you starting to wonder what Ms. Lindeen's department is actually supposed to do?

The Montana Constitution establishes the office of auditor, and informs us in Article VI, Section 4.5 that "The...auditor shall have such duties as are provided by law." The Montana Code Annotated, in 2-15-1902, tells us: "Insurance department. (1) There is an insurance department of this state which shall be located in or convenient to the office occupied by the state auditor. (2) The insurance department shall be under the control and supervision of the commissioner," followed by  2-15-1903: "Commissioner of insurance designated. The state auditor shall be ex officio the commissioner of insurance of this state."

So there we have it. Part of the job of State Auditor is to be the Commissioner of Insurance. I looked around quite a bit in the MCA and could find no actual auditing duties described by law. However, the Auditor has extensive insurance regulatory duties as described in Title 33.

33-1-311 describes the general powers and duties of the commissioner. One of those powers is to "administer the department to ensure that the interests of insurance consumers are protected." 33-1-402 tells us that "for the purpose of ascertaining compliance with this code, the commissioner may, as often as the commissioner considers advisable, examine the accounts, records, documents, and transactions pertaining to or affecting its insurance affairs or proposed insurance affairs of: (1) an insurance producer, surplus lines insurance producer, general insurance producer, or adjuster..."

Nothing about being a watchdog. And really, does any government agency prevent crime, or does it simply respond when a crime is committed? That's what I see in the law, that lawbreakers get prosecuted. I doubt that any person has benefited by a government watchdog. I doubt any crime has been prevented by agents of the commissioner hanging out on street corners.

So there it is. The law empowers the commissioner to pry into the the practices and procedures of insurance agents. Is that a "watchcdog," or is it more like a "commissar?" I'll leave it to you to decide that.