Mr. Mills, a former New York State Assemblyman nominated to fill the vacancy left by Gregory Serio, made it clear repeatedly he is not "looking to hurt the industry" despite a wave of industry investigations, which have led to 10 guilty pleas by insurance executives in New York involving fraud, price-fixing and hidden contingency fee payoffs to steer business.

Investigations by the New York attorney general and Securities and Exchange Commission have also looked at the use of finite reinsurance arrangements as devices to provide a false picture of corporate finances.

The acting insurance superintendent said he expects to go through the confirmation process in a couple of weeks.

He told the group that more nuanced and balanced discussions about controversial issues such as contingent fees paid by insurers to brokers are needed.

"The contingent commission issue has been painted with a very broad brush, but there are fine strokes here, and fine strokes need to be talked about. It's not acceptable to just come out and say that all contingent commissions should be illegal," Mr. Mills told his audience of industry executives gathered at the American International Group Inc. building.

"I pledge that I and the department will take a very thoughtful approach to the contingent commission issue," Mr. Mills said.

Mr. Mills added: "My position is that state legislatures need to look at some of these questions. But you won't see overreactive regulations being promulgated by our department. You will see thoughtful regulations that are appropriately tough when they need to be tough, but they won't be overreactions because that's not good for the consumer and not good for the industry."

Also commenting on the latest topic in regulatory investigations?finite reinsurance?Mr. Mills said he sees "great ramifications going into accounting principles and other matters." But, he added, "I also hope to be a reasonable voice, one that recognizes that we cannot throw out the baby with the bath water. We are not looking to hurt the industry."

Mr. Mills, a Republican who formerly served as the New York Assembly deputy minority leader and sat on the Ways and Means, Insurance and Housing Committees, also said one of the biggest issues he is tackling is the state's troubled Workers' Compensation Security Fund, which is almost out of money.

The fund pays claims to some 7,500 claimants?injured workers who need medical treatment or are permanently disabled and dependent on monthly checks from the fund to support themselves.

"We have a situation where our workers' comp will run out of the ability to pay claims by the end of March," he told executives. One of the solutions the insurance department is looking at, he said, is raising the 1 percent assessment fee to 2 percent.

"The 1 percent assessment fee brings in about $20 million a year and we paid out $83 million last year alone. The 1 percent assessment fee is just not enough," Mr. Mills said. He said possible moves being examined are the transfer of cash from another insurance fund and working with the legislature on developing a payback mechanism for that fund.