October 28, 2009 - Insurance Journal: Sheffield to Tout Regulatory Role in Georgia Insurance Commissioner Race

Attorney Maria Sheffield has become the latest candidate to enter the Republican primary to be the next insurance commissioner in Georgia. She is one of several candidates hoping to succeed current Insurance Commissioner John Oxendine, who is running for governor.

Sheffield is currently an attorney with Burr, Forman, LLP, where she handles regulatory and corporate insurance law and insurance coverage disputes. Before private practice, she spent six years with the Georgia Department of Insurance working in several units including compliance and licensing.

Sheffield has worked for the Georgia State Republican Party and on the presidential campaigns of Phil Gramm's and George Bush.
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But rather than stressing politics, Sheffield hopes to distinguish herself as the candidate with insurance regulatory experience as well as private sector experience as an attorney representing the insurance industry in regulatory matters.

"For me, it wasn't a matter of running for public office because I was interested in being a politician," she told Insurance Journal in an interview. "I saw an opportunity here to run for an office where it truly was my area of expertise. I felt that I can really make a difference in an office where from day one, I understand the issues that the industry is facing and how those issues impact the citizens and the consumers in the state of Georgia."

At this early stage in the campaign, Sheffield is still working out positions on specific issues. She expects the key issues will change during the course of the campaign, especially if Washington acts on insurance-related issues. "I'm watching all the issues that are occurring in D.C., and we'll make some decisions regarding my platform as we move along, and I talk with more citizens and find out what the general concerns are out there in the public," she said.

However, she is firm on several issues: she is an advocate for state regulation of insurance, not federal; she promises an aggressive fight against insurance fraud; she vows to work to keep the state's insurance costs down; and she wants to encourage growth of captives in the state.

"I certainly understand why there is a push for certain areas of the industry to be regulated at the federal level. But I'm clearly a proponent of the state-based regulation of insurance," she said.

"I have to shake my head every time I hear someone at the federal level say, 'Well, AIG is a perfect example of why we need the federal regulation of insurance.' That makes no sense to me. That's not even a logical argument to me. I think at the federal level, there's a lot of housekeeping that needs to be done before they involve themselves in regulating an industry that seems by all accounts to be faring pretty well under a state-based system of regulation."

One of her areas of expertise is captives, which she has worked on in private law practice. Georgia has had a captive law since the 1980s, but the state has never been an active domicile like Vermont, South Carolina or Hawaii. Growing this sector would be one area of focus for Sheffield.

"I know that there are major corporations that have headquarters here in Georgia that have not only one, but sometimes two and three captive insurance companies that are domiciled somewhere else, because although we have a captive law, we do not have a law that allows them the flexibility that they need to domicile their captives here in Georgia," she said.

She would like to see changes in the state's captive law so that these corporations based in the state can also base their captives in Georgia and she'd like to see someone within the state insurance department with captive experience to help run the program.

"Vermont says that the industry has created 1,400 jobs in the state of Vermont. I think we have all the infrastructure here. I think we just need to embrace the concept. I certainly would make a push to do that," she said.

She may not be as experienced a politician as some of her opponents but she thinks the current system of electing the state's insurance commissioner, who also serves as state fire marshal, is good policy. "I like the idea that the commissioner's office is elected in Georgia," she said when asked if she would prefer the position be an appointed one. "I think the citizens have more of a voice in a system like the one we have in Georgia where we have so many constitutional officers elected at the statewide level."

The job inevitably leads to tensions between the needs of insurance companies for higher rates and the pocketbooks of voters. Sheffield says she can protect consumers without becoming adversarial towards the industry.

"I think a good insurance commissioner, whether elected or appointed, will be able to balance the industry, be able to balance the concerns within the industry, make sure that the industry is responsive and responsible to the citizens of the state, but at the same time recognize that the industry has to make a profit. It is not a non-profit industry," she said.

Without being specific, Sheffield says that while she will have her own ideas, she can build on some of what Oxendine has done. "[S]ome of the things that Oxendine has done in office I did support, and I think he's done a good job with, and people in the state are proud of. He certainly has some initiatives that I would be interested in continuing as well," she said.

http://www.insurancejournal.com/news/southeast/2009/10/28/104860.htm

08/19/09 - AM Best: "Ex-Insurance Department Staffer Enters Race for Georgia Commissioner"

F. Maria Sheffield, a lawyer and former Georgia Department of Insurance staffer, is the latest candidate to open a campaign for state insurance commissioner. The incumbent, John Oxendine, is running   . . .

http://www3.ambest.com/frames/frameserver.asp?site=news&tab=1&altsrc=18&refnum=130130

Captive Review: Georgia attorney sets out captive expansion plans

 Maria Sheffield, an attorney with Georgia law firm Burr, Forman, has expressed the hope that the captive jurisdiction can “compete on a level with Vermont or South Carolina” following reform of its captive law.

Sheffield, who recently announced her candidacy for the role of Insurance Commissioner following incumbent John Oxendine’s decision to run for governor, has expressed her desire to develop Georgia as a captive domicile.

“We have had a captive law in Georgia that goes back to the 1980s but we’ve never really embraced it - we’ve not updated the law or kept it current with what other states are doing with their captive insurance programmes,” said Sheffield.

The Georgia Republican primaries are not until July 2010, but Sheffield has set out her stall for the role of Commissioner on the basis that she will be able to create new jobs in the insurance sector.

“Jobs in the insurance industry generally pay about $20,000 more on average than many other corporate jobs,” said Sheffield. “I would like to work with the Atlanta Metro and Georgia chambers of commerce to promote the industry.”

Sheffield, who worked at Georgia Department of Insurance (DoI) for six years before going into private practice, argues that Georgia has the necessary infrastructure for alternative risk to make the most of its captive market.

As an attorney her practice has involved working with captive insurance companies, risk retention groups, purchasing groups and self-insurance groups and she also claims to have been actively involved in captive associations across the country.

However, Sheffield will face an uphill struggle to expand captive regulatory provisions if she secures the commissioner’s job, with insurance division resources stretched in most states.

“I want to tap someone who is an expert in dealing with captives and bring them in - a Bill White," she said. “Of course, with the state currently facing a $4bn deficit, immediately hiring someone for this position might be difficult.”

Sheffield said she would also like to have staff “traveling and promoting Georgia” but admits that budgetary constraints would also apply for marketing activities.

“A number people at the Georgia DoI have lost their jobs and, as I understand it, we have fewer people working there today than we did 16 years ago,” she said.

With a number of major corporate headquarters in the state, many of whom have captives in other jurisdictions, the former DoI employee says the potential for new captive formations is palpable.

But Georgia will need to thoroughly overhaul its captive legislation to compete with the nearby domiciles of Kentucky and South Carolina.

With 18 captives it is ahead in sheer captive numbers of newcomers like Louisiana and Missouri and undeveloped captive states like Alabama, Arkansas and Tennessee.

However, Georgia’s law only currently allows for pure, association and industrial insured captives. At the very least it will need to add some form of sponsored or cell captive structure to attract small and medium-sized businesses as well as large corporates and possibly special purpose vehicles to attract capital market business.

“Initially I think it’s going to be difficult because if we immediately change the law when there’s a new insurance commissioner I don’t think we’re going to get an immediate rush of people trying to get captive licenses in Georgia” admits Sheffield.

“It’s going to take years for people to appreciate that we’re trying to develop the industry here.”

http://www.captivereview.com/news/265202/georgia-attorney-sets-out-captive-expansion-plans.thtml

8/14/2009 - National Underwriter: Sheffield Plans To Run For Ga. Commissioner 

BURLINGTON, VT.—Maria Sheffield plans to throw her hat into the ring to be elected Georgia’s next insurance commissioner, looking to succeed her former boss, John Oxendine, who is running for governor next year, the National Underwriter has learned.

Ms. Sheffield told NU during the Vermont Captive Insurance Association’s annual conference here that because this is a serious commitment, she has taken her time in the decision-making process. She wanted to determine for sure that Commissioner Oxendine would be running for governor in 2010, and she wanted to “size up” potential opponents for the primary election next year.

“Given the state of the economy and the direct impact it has on the insurance industry, as well as the raging debate at the federal level regarding the regulation of insurance—whether that should be state-based or federal-based—I thought at this point in time it’s crucial that we have an insurance commissioner in office who actually understands the issues and has experience in the office,” said Ms. Sheffield, now an attorney with Burr & Forman LLC in Atlanta.

Ms. Sheffield—who, like Mr. Oxendine, is a Republican—noted that she worked with the Georgia Department of Insurance for six years. At first, she was still working on obtaining her law degree and served in the administrative procedures division, handling legislative work for the insurance department and the fire marshal—a position appointed by the insurance commissioner.

After obtaining her law degree—which she added to a master's degree in public administration and a master's in business administration—she requested a move to the regulatory services division, responsible for general licensure and compliance issues.

To her knowledge, she said, this was the first time an attorney had served in the regulatory division, because traditionally attorneys serve in enforcement.

While the enforcement division “clearly plays a valuable role in the department,” functioning “after someone’s done something they shouldn’t have done,” she said she wanted the experience of helping insurers before they were in trouble.

“My experience with companies is that you’re always going to have a small segment of the industry that is doing something they shouldn’t do,” she said, while adding that “97 percent are trying to do the right thing.”

Ms. Sheffield said regulators need to do what they can to “make sure we assist the industry in being compliant. If we’re available to them in advance—before they’ve done something wrong—that can make a big difference.”

She added that “we can’t think of the industry as an enemy of the state. The industry provides a very valuable service to the citizens of the state of Georgia and it also generates a lot of revenue for the state.”

As an attorney, Ms. Sheffield noted that she has had experience with the captive insurance industry, which she is interested in promoting in Georgia.

“Georgia’s been a domicile since the 1980s, but it’s never been an active domicile,” she said, noting that a number of self-insurance funds decided to convert after the captive law was passed. She pointed out that Georgia is one of the only states to allow a captive to directly write workers’ compensation if the insureds are located in the state.

While most of the captives in Georgia are for workers’ comp coverage, there now are four or five medical liability captives and a few that provide liability coverage for the taxi cab industry, she noted.

However, to attract a wider range of captives, she said she would like to see Georgia adopt regulations similar to those in Vermont and South Carolina.

“As you know, many of the states have a captive law and some of them have embraced that industry,” she said. “Clearly the captive industry can be a revenue generator. We’ve seen what has happened here in Vermont.”

In Vermont the captive insurance industry is supported by the governor and legislature and is hailed for the number of “clean” jobs and income it has brought to the state—about 1,400 to date, she noted.

She said Georgia already has a strong industry base and a network of captive service providers in place—actuaries, attorneys and third-party administrators, reinsurers and intermediaries.

The captive industry, she noted, is not a competitor to the traditional insurance marketplace. Major corporations, such as Coca-Cola and Home Depot, have captives, and since “they’re going to put them somewhere, why not at least have a law on the books that allows these corporations—that are either headquartered in Georgia or have major operations in Georgia—the option to have a captive close to where they’re domiciled?”

As commissioner, she said, her goal would be to see the necessary changes made in legislation, and to have someone in the department with a background in captives to help run the program.

http://www.property-casualty.com/News/2009/8/Pages/NU-Exclusive-Sheffield-Plans-To-Run-For-Ga-Commissioner.aspx

8/14/2009  Life and Health: Sheffield To Run For Ga. Commissioner 

Maria Sheffield plans to throw her hat into the ring to run for the post of Georgia’s insurance commissioner.

Sheffield is looking to succeed her former boss, John Oxendine, who is running for governor next year, the National Underwriter has learned.

Because this is a serious commitment, Sheffield has taken her time in making the decision to run, she told NU during the Vermont Captive Insurance Association’s annual conference here. She wanted to be for sure that Commissioner Oxendine would in fact be running for governor in 2010, and she also wanted to size up potential opponents for the primary election next year, she says

“Given the state of the economy and the direct impact it has on the insurance industry, as well as the raging debate at the federal level regarding the regulation of insurance—whether that should be state-based or federal-based—I thought at this point in time it’s crucial that we have an insurance commissioner in office who actually understands the issues and has experience in the office,” says Sheffield, now an attorney with Burr & Forman L.L.C., Atlanta.

June 25, 2009 - Daily Report: Doing it all

Sheffield—who, like Oxendine, is a Republican—worked in the Georgia Department of Insurance for 6 years.
   
Running, biking, swimming, triathlons, tennis, scuba diving, skiing, golf, yoga—name a sport, and there's a good chance that MARIA SHEFFIELD has given it a shot. “There's nothing lost by trying something new,” says Sheffield, an associate with Burr & Forman specializing in insurance regulation. “If it doesn't work out, it was still a lot of fun.”

Sheffield's latest passion is Latin dancing, which she says is as challenging physically as it is fun. But she admits her favorite pastime in her array of sporting endeavors is scuba diving, which she began doing about five years ago. Since then, she estimates she's completed 75 dives, in places ranging from tropical paradises in the Bahamas and Hawaii to rock quarries in the South to a hot springs crater in Utah, in which she dove after a day of skiing with her husband.

“It is the most relaxing thing I have ever found to do,” Sheffield says of diving. “When you get underwater, it is you and the sound of your own breath. The water washing over you sort of melts your cares away.”

But should the situation go from relaxing to urgent, Sheffield's ready for that, too: She's certified as a rescue diver. Rescue divers, who are specially trained to rescue divers in distress or those who are unresponsive, must complete advanced courses in open water diving, as well as training in CPR and first aid classes. Sheffield also has completed other specialty diver courses and has her eye on the Master Scuba Diver level, the highest non-professional level in the Professional Association of Diving Instructors system, this summer.

Here, she discusses with the Daily Report her passion for diving—and physical activity in general.

You have a very active lifestyle. What appeals to you about doing all these sports?

It's all a form of relaxation, but it's challenging. It's an opportunity to focus on something other than work. When you're involved in these activities, it's all about you. So much of it is a mental game with yourself. I just find spending that time with myself is enjoyable.

You signed up for your first triathlon in college. What was the motivation?

Swimming, biking, jogging—I do all of those things separately, but what a challenge to do them in one event! With the demands of law school, it would be easy not to follow a regimen when it comes to exercise. When I signed up for a triathlon, it gave me something to work toward.

What do you enjoy most about diving?

Some people say, “I don't know if I could do it, it seems scary.” But I tell them that the ocean covers 71 percent of the earth, and diving opens up a whole new world. There are different creatures and shapes and textures and colors—things we don't see every day. To me it's just fascinating.

What are the challenges involved in rescue diving?

You have to be first aid and CPR certified, and you're trained for emergencies in the water, specifically for diving scenarios. [Training] conditions you to deal with all of those scenarios that might occur. It's physically intensive. Dive equipment is very heavy. You're physically pulling people out of the water. But at the same time it's important. I hope I never have to use these skills, but it feels good to have the ability to help others. And I figured, I'm already diving, so why not just get certified?

What do you do on the days when it's hard to squeeze in a workout?

I'm fortunate I have a little gym in the basement. If nothing else, I go and get on the stair climber for 20 minutes. I also have a bike down there and free weights, which is nice. As lawyers, when there are days when you're so busy it's difficult to get away, it's a good option.

What sort of physical benefits have you seen from your fitness regimen?

I'm definitely a lot stronger as far as my ability to lift things. I've never been thin, and I haven't really lost a lot of weight, but I have so much more energy. I really think it just helps me mentally, too. It makes you happier. There's something to be said for those exercise endorphins.