Hobbs’ Insurance Agency Head Nominee Blocked by Senate Panel

The Senate Committee on Director Nominations voted along party lines on April 10, rejecting Governor Katie Hobbs’ nominee for the Department of Insurance and Financial Institutions. The nominee, Barbara Richardson, initially presented her case on March 27.

During her first appearance, Republican lawmakers probed her involvement with groups addressing climate and race issues in the insurance sector. Senate Chair Jake Hoffman, R-Queen Creek, requested Richardson to prepare detailed answers to their concerns, but he later stated that his reservations remained unresolved. Republican senators John Kavanagh and TJ Shope supported the rejection.

Hoffman acknowledged Richardson’s willingness to engage with the committee but ultimately could not support her due to what he described as a troubling pattern of administrative overreach and ineffective communication with stakeholders. Public testimony against Richardson focused on her previous roles with the National Association of Insurance Commissioners, where critics labeled her as a “DEI activist.” Many testifying against her had links to the Republican Party.

Richardson had served on the Climate and Resiliency Task Force and the Special Committee on Race and Insurance. However, she informed legislators during the hearing that she had severed ties with those committees in response to scrutiny.

Hoffman clarified that his primary objections to Richardson stemmed from claims that the insurance department has become less accessible under her leadership, as well as her use of the Systems for Electronic Rates and Forms Filing (SERFF). He accused her of manipulating the platform to bypass proper processes for policy changes. In response, Richardson denied any wrongdoing, asserting that her usage of SERFF was limited to clarifications of existing policies, and pledged to shift her communication strategies moving forward.

Notably, she also asserted that no DEI initiatives had been implemented during her time at the department. Following the vote, Hobbs’ spokesperson, Christian Slater, accused Hoffman of engaging in a partisan attack, labeling the rejection as a failure to fulfill public duty.

Richardson refrained from commenting on the situation after the hearing. Democratic Senators Flavio Bravo and Analise Ortiz attempted to defend her, describing the proceedings as politically motivated and an attempt to undermine her professional qualifications.

Richardson’s experience spans various roles in insurance departments across multiple states before her 2023 appointment in Arizona. The rejection of her nomination marks a significant moment in the ongoing dialogue surrounding the confirmation of gubernatorial nominees, with future nominee sessions now scheduled for August 2024. Richardson’s case highlights the partisan divides that can complicate the confirmation processes in state government.