Former Regulator to Earn $250 an Hour Helping to Oversee Troubled Insurance Firm

Michigan's insurance regulator who presided over the demise of Confederation Life Insurance Co.'s U.S. operations will be paid upwards of $250 an hour to help oversee the troubled firm's remains in his new private-sector role as a special deputy rehabilitator. The controversial regulator, David Dykhouse, will be paid $150 an hour for the first 100 hours of work, $200 an hour for the second 100 hours, and $250 an hour thereafter, according to a recent court order. This is a significant increase from his previous role as Michigan's commissioner of insurance, which paid $75,000 a year, equivalent to about $36 an hour.

Key Takeaways:

• Former regulator David Dykhouse will be paid $250 an hour for his work as a special deputy rehabilitator for Confederation Life Insurance Co.'s U.S. arm.
• Dykhouse's hourly rate will increase from $150 to $250 as he works more hours, with a 100-hour distinction between the two rates.
• Dykhouse's previous role as Michigan's commissioner of insurance paid $75,000 per year, equivalent to about $36 an hour.
• Democratic floor leader Pat Gagliardi has called for an investigation into Dykhouse's handling of the case, alleging that he "willfully neglected to act" on clear signals that Confederation was in trouble.
• Acting commissioner of insurance Patrick McQueen has defended the deal, stating that Dykhouse is a necessary asset to help him "get up to speed" and that the graduated rate gives him an "incentive" to terminate the arrangement sooner rather than later.

Statistics:

• $250: the hourly rate Dykhouse will be paid for his work as a special deputy rehabilitator.
• $200: the hourly rate Dykhouse will be paid for the second 100 hours of work.
• $150: the hourly rate Dykhouse will be paid for the first 100 hours of work.
• $75,000: the annual salary Dykhouse earned as Michigan's commissioner of insurance.
• $36: the equivalent hourly rate for Dykhouse's previous role as commissioner of insurance.
• 100 hours: the distinction between Dykhouse's two hourly rates.

Sources:

• A recent order by a Michigan circuit court [missing citation]
• The state governor's office [missing citation]
• National Underwriter, a U.S. insurance newspaper [missing citation]
• A statement from Acting Commissioner of Insurance Patrick McQueen [missing citation]