trending Market Intelligence /marketintelligence/en/news-insights/trending/WahHfT8a-WWkY5GAHu29nQ2 content esgSubNav
In This List

NC regulator asks Blue Cross CEO to resign, alleges arrest cover-up

Blog

The Big Picture 2022 Insurance Industry Outlook

Podcast

Next in Tech | Episode 37: Insurance impacts on technology and vice versa

Case Study

A Prestigious Global Business School Gains a Competitive Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage


NC regulator asks Blue Cross CEO to resign, alleges arrest cover-up

North Carolina Insurance Commissioner Mike Causey urged that Blue Cross and Blue Shield of North Carolina CEO Patrick Conway resign after the insurer allegedly covered up the top executive's arrest in June on suspicion of drunk driving and child neglect.

Previously, the insurance commissioner urged Blue Cross and Blue Shield of North Carolina to appoint an interim CEO subsequent to the incident, in which Conway was arrested following a traffic accident.

Causey's new recommendation comes after his examination of the arrest police report, as well as news reports, that revealed Conway was driving in an "erratic" pattern, compromising the safety of his daughters, who were in the car, and other drivers at the scene. The board of Blue Cross and Blue Shield of North Carolina allegedly misrepresented the actual arrest to the North Carolina Department of Insurance by saying the arrest was routine and without incident.

The news reports on Sept. 24, however, showed that the arrest was anything but routine, according to Causey. "Conway showed a complete lack of professionalism, respect and composure for the law enforcement officer and the legal process," he said.

The insurance commissioner also said there has been a significant breakdown in corporate governance at the company. He claims that the insurer's board failed in protecting their policyholders as they were not open and honest with the regulators and the people of North Carolina.

The insurer's pending merger with Cambia Health Solutions Inc. was put on hold after reports about Conway's arrest, The Wall Street Journal recently reported.

Blue Cross and Blue Shield of North Carolina did not immediately respond to S&P Global Market Intelligence's request for comment outside of U.S. business hours.