JEFFERSON CITY - House Insurance Committee Chairman Dennis Ziegenhorn says he was impressed by his first meeting with Gov. Mel Carnahan's choice for director of the Missouri Department of Insurance.

Last week Carnahan announced the appointment of 41-year-old Jay Angoff to serve as director. Angoff has been serving as special assistant for health insurance policy for New Jersey Gov. Jim Florio. Before that he was deputy commissioner of the New Jersey Department of Insurance.

Ziegenhorn said Angoff is regarded by the governor as a consumer advocate. Before taking his positions in New Jersey, he was counsel to the National Insurance Consumer Organization.

Angoff had a confirmation hearing before a Senate committee this week and some members were concerned about his background as a consumer advocate and the fact he is from New Jersey.

Senators expressed concern that Angoff would be too pro-consumer and said the problems of Missouri are much different from those of New Jersey in the insurance industry.

Ziegenhorn said he realized they were concerned, and some of those points were discussed in a luncheon he attended earlier this week with leaders of the House and Senate.

"They are a little concerned that he is consumer-oriented, but that is something I think is very refreshing," said Ziegenhorn.

The representative said he was more concerned that Angoff is from New Jersey, and wonders why someone from Missouri was not named by Carnahan.

"I'm going to give the guy a chance. I have a preference personally to finding somebody in Missouri that would have definitely have known the problems of this state," said Ziegenhorn. "But on the other hand, they could have been in the mainstream like most of us who know what the problems are but just don't know the right solutions.

"Maybe he will have some new ideas for us that no one here has thought of."

In his discussion with the director-designate, Ziegenhorn said he focused his comments on the need to bring workers' compensation costs under control and how the inability to do that was costing Missouri jobs and tax revenue.

"I'm a little bit impressed with this guy," said the Sikeston Democrat. "New Jersey has not had more than single-digit increases in workers' comp. He listened to me quite well when I said this was the No. 1 problem in Missouri."

"We have lost employers in Missouri and some employers have decided not to come to Missouri because of our rates. It is a problem that has got to be addressed," said Ziegenhorn.

Workers' comp rates in Missouri and many other states are set by the National Commission on Compensation Insurance. In New Jersey the state had its own in-house system to determine rates. Ziegenhorn said he prefers that approach or simply letting the market determine rates.

Another growing problem in Missouri insurance, which will keep his committee busy this year, Ziegenhorn said, is health insurance fraud schemes aimed at groups.

"People are often gullible to offers of lower premiums and more benefits. It's an easy scam to come in and it is a growing concern of my committee and the Department of Insurance right now," said Ziegenhorn. "We will have legislation soon to deal with the situation."