Ms. Benjamin, an attorney who practiced estate law, is due to take her new position Jan. 6, concluding two terms in the State House of Representatives.

She replaces J. Lee Covington, who resigned earlier in the month to pursue other interests. Mr. Covington was paid $111,196 in the position. A spokesman for the governor said salary for the new commissioner has not been set yet.

Prevented by term limits from seeking a third term, Ms. Benjamin made an unsuccessful run in November for the U.S. House of Representatives--a position that was previously held by Democrat Jim Traficant, who is currently in prison on a fraud conviction.

Ms. Benjamin was defeated by Democratic state Sen. Timothy Ryan in a contest that saw Mr. Traficant run from his jail cell as an independent.

The governor, in announcing Ms. Benjamin for the job, said in a statement that she "brings extraordinary ability and integrity to this vital position, as well as a wealth of knowledge and experience in state government. She will provide strong leadership to maintain the public's confidence in the important oversight work of this agency. I am delighted she has agreed to serve in my Administration."

As a legislator she recently put through a business-supported amendment to tort reform legislation that permits plaintiff fault to be considered in certain product liability lawsuits.

Ms. Benjamin announced she would work to make the insurance department and "the industry responsive to the needs of all Ohioans."

She told the Akron Beacon Journal that "most importantly, I come to this department as a consumer."

Ms. Benjamin was also quoted as voicing a concern about the availability of healthcare and life insurance, as well as the state's soaring rates for medical malpractice insurance.