Mr. Blumenthal has been second only to his New York counterpart, Eliot Spitzer, in conducting a high profile investigation of insurance broker compensation issues.

"Tougher rules are necessary, but not enough," Mr. Blumenthal said. "We need better enforcement. An elected commissioner accountable directly to the people can fight abuses that raise insurance costs for everyone."

But American Insurance Association vice president Paul Moran disagreed.

"Regulators can provide the best protection for consumers, and enforcement in the marketplace, if they have expertise in insurance matters, rather than the ability to win an election," Mr. Moran said.

Regulators' responsibilities in the area of solvency also do not lend themselves to making the commissioner an elective position.

Under Mr. Blumenthal's proposal, insurance agents would be required to disclose in writing whether they are acting on behalf of the insurer. Brokers and agents would also be required to disclose the details of all quotes from insurers, and the reasons for the broker's recommendations.

In addition, a consumer would have the option to be a broker's sole source of compensation for any business on behalf of that consumer.

Earlier this month Mr. Blumenthal filed suit against the Bermuda-based ACE Ltd. alleging the company paid kickbacks to secure a state workers' compensation contract. Last month he sued Marsh & McLennan and a unit of ACE for illegal commissions in regard to an $80 million state contract.