Insurance Superintendent Serna Ends Conflict of Interest Arising from Con Alma Fundraising

At the request of Commissioner Jason Marks, at its February 17, 2005 Public Work Session, the PRC considered the conflict of interest posed by fundraising activities at the Con Alma Foundation, whose President is Eric Serna. Mr. Serna is the State Superintendent of Insurance, an office within the PRC. At this work session, Mr. Serna announced to the Commission that he was recommending to the Board of Con Alma that the Foundation discontinue accepting financial contributions from the insurance industry. He also advised that he had polled the Con Alma Board, and that he anticipated his recommendation would be adopted at the Board’s next meeting.

Commissioner Marks was joined by Commission Chair Ben R. Lujan and Commissioner David King in expressing satisfaction with this resolution to the conflict issue. Commissioner E. Shirley Baca believed that the conflicts of interest could best be addressed by Mr. Serna entirely discontinuing his involvement in Con Alma.

Per Commissioner Marks:

“Con Alma raising money from the insurance industry, not just the health insurance industry, but title and life companies and others, created a real conflict of interest. Today’s resolution to this conflict demonstrates that the PRC can and will exercise oversight over its Insurance Division in a constructive manner that serves the public interest.”

The Albuquerque Journal agrees. In an editorial for Sunday, February 20, 2005, headlined “PRC Shines Light on Serna’s Blind Spot,” the Journal wrote: “. . . the PRC properly exercised its oversight of the insurance industry. Sometimes, the system works.”