Fire Linda Ruthardt

If the acting governor wants the people's trust, he must clean house at the Division of Insurance

Is Paul Cellucci, the current favorite to win the governor's race, worthy of the people's trust?

Some look for the answer in his deeply felt stories of growing up in Hudson; others seek it in his mountain of personal debt. Some think they see an answer in his steady gaze; others see it in the political advice Cellucci takes from some of the state's top lobbyists.

But the question is really not as difficult as it seems. Apply instead the acid test for working politicians: what does he do when he knows an issue is important -- but is convinced that nobody is watching?

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More on Ruthardt in this week's Talking Politics.

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Political reporter Michael Crowley writes this week on just such a case ("Ruthardt of Darkness," News, page 14) and finds that, so far, Cellucci is badly failing the test.

For the most part, the Massachusetts Division of Insurance labors in obscurity. Yet its work is enormously important. It sets and enforces rules for a multibillion-dollar industry that affects the bank account of anyone who drives a car or visits a doctor. The insurers make up a powerful lobby with enough clout on Beacon Hill to smother consumer interests. For that reason, and because many legislators find the issues involved baffling, the state needs a talented and independent-minded commissioner.

Yet it is clear that Linda Ruthardt, the current commissioner, is not up to the job. Already, there is a long list of sorry strikes against her. Some highlights:

As the Phoenix revealed in 1996, Ruthardt's division allowed the Worcester-based State Mutual Life Assurance Company to bilk policyholders out of some $105 million. In that case, it was clear that Ruthardt was more interested in helping State Mutual get the deal through than in fighting for the consumer.

Ruthardt has shown a reprehensible aversion to making public records available. This not only violates the law, it leaves the public wondering what she has to hide. In one case, Attorney General Scott Harshbarger accused her department of supplying his office with "inaccurate information," saying he was "seriously concerned" about the "ethical issues" the division's behavior raised. The then-chairman of the Senate Insurance Committee, Dianne Wilkerson, subsequently urged Harshbarger to conduct his "own investigation with an eye toward prosecution."

The division's mishandling of the infamous Emlico affair has been stunning. When the politically connected insurance company asked for permission to move to Bermuda, Ruthardt quickly assented, despite serious questions about the legality of the relocation, and despite clear indications that the company was just looking for a better place to declare bankruptcy. Safely offshore, Emlico did just that.

Ruthardt also said that at the time that she felt pressure from above to act on Emlico's behalf. (She now says there was no pressure.)

Ruthardt was rebuked this month by the Supreme Judicial Court for her decision, and the US Attorney General's office is investigating.

Even within the industry, executives are reportedly exasperated with Ruthardt's erratic personal and professional style. Yet Ruthardt refuses contrition. She gives no explanation for her actions.

Ruthardt represents a deeper problem. Bill Weld's charm and appealing libertarian streak masked a dark side of his administration -- a marked receptivity to peddled influence. In this regard, Cellucci may prove to be Weldian without the Weld sizzle. His administration is setting new standards for revolving-door politics. Financial records released this month show that several former key Weld aides are among the state's top lobbyists -- and some of them continue to be top Cellucci advisers.

Those problems run deep. But one task before Cellucci is clear. To maintain the public trust, fire Linda Ruthardt.

What can you do?

Call Paul Cellucci at 727-9173.

What do you think? Send an e-mail to letters[a]phx.com.