Ms. Bakke, a Republican from Lebanon, N.J., said her top three priorities would be trying to make the marketplace more competitive, reducing insurance fraud and eliminating the estimated 600,000 uninsured motorists in the state.

Ms. Bakke has been executive director of the New Jersey Property Liability Insurance Guaranty Fund Association since 1989.

A veteran attorney, Ms. Bakke previously served Deputy insurance commissioner of insurance litigation practices.

As a member of the New Jersey State Bar Association she has served as chairwoman of the Alternative Dispute Resolution Committee and the Judicial Administration Committee.

Mr. McGreevy, who will take the oath of office Tuesday, said in a statement, "Holly Bakke's record and her credibility in the insurance field runs deep, and she has the drive, energy, experience and commitment to developing the most effective ways to run this department."

He forecast Ms. Bakke "will be an outstanding leader as we work to make sure that New Jersey's good drivers are protected and that we're cracking down on bad drivers. She will also make sure consumers' voices are heard when insurance companies ask for higher rates."

Mr. McGreevy said he has charged her with improving access to quality, affordable health insurance, maintaining a vibrant banking industry that serves the needs of consumers throughout the state, as well as providing the capital for business to grow.

Ms. Bakke, in her $133,330 post, will be in charge of a department with more than 500 workers.