NU Online News Service, Nov. 2, 3:46 p.m. EDT

WASHINGTON–Connecticut Insurance Commissioner Thomas Sullivan resigned under pressure Monday from state and federal regulators and consumer groups.

The primary trigger was the decision to approve a 47 percent health care insurance rate increase by Anthem Blue Cross and Blue Shield of Connecticut on certain new health insurance policies starting in the fourth quarter of 2010.

That prompted criticism of Mr. Sullivan from consumers groups, State Attorney General Richard Blumenthal and the federal Department of Health and Human Services.

Auto body shops also called for his resignation, alleging in an Oct. 31 letter that he has failed to investigate insurer misconduct in settling collision repair claims in the state.

In the strongest criticism, Jay Angoff, director of the HHS Office of Consumer Information and Insurance Oversight, demanded in an Oct. 18 letter that the Connecticut Insurance Department hold a hearing on the Anthem increase to "test and validate the assumptions underlying the increase and make all data filed by Anthem public."

In the letter, Mr. Angoff charged, "At a time when American families are struggling to meet their most basic needs, these rate hikes could lead a number of residents of your state to lose their health coverage."

Mr. Sullivan had defended the rate hike–the largest in state history–by contending that the new federal health care law imposed expensive new mandates on insurers.

Insurance Department spokesperson Debra Korta confirmed that the commissioner submitted a letter of resignation to Gov. Jodi Rell Monday. She said he will start a new job Nov. 15 at PricewaterhouseCoopers in Hartford.

It is unclear when or if a successor will be named. Gov. Rell's term as governor expires Jan. 5, and the next governor will get to name a new commissioner.

Regarding the property issue, auto body shops represented by the Auto Body Association of Connecticut sent a letter to Gov. Rell late last week charging, "Commissioner Sullivan has gone out of his way to insulate insurers from meaningful oversight and legal enforcement."

The letter added, "Commissioner Sullivan is protecting insurers at the direct expense of small business owners and consumer safety and welfare," the letter said.

Mr. Sullivan was also a strong defender of retained asset accounts when they came under fire several months ago from veterans' groups, the Department of Defense, the Veterans Administration and several House committees.

In his letter of resignation to Gov. Rell, as released by the Insurance Department, Mr. Sullivan did not disclose why he intended to resign before Gov. Rell's term expired.