NEW YORK (Bloomberg) — New York Governor-Elect Eliot Spitzer has nominated Eric Dinallo as superintendent of insurance, reuniting with a former deputy whose probes of Wall Street research helped Spitzer gain prominence as attorney general.Dinallo, 43, will replace Howard Mills, who was appointed in 2004 by Republican Governor George Pataki.

Spitzer, a Democrat, began investigating collusion in the insurance industry in 2004. He wrested more than $3 billion in fines and restitution from companies including American International Group Inc., the largest insurer, and Marsh & McLennan Cos., the number one broker.

"It would be fair to anticipate that he will follow many of the priorities Spitzer set as attorney general," said Jacob Frenkel, a former enforcement lawyer at the US Securities and Exchange Commission now at Shulman Rogers Gandal Pordy & Ecker in Rockville, Maryland. Dinallo was one of a slate of administrative appointments.

Spitzer examined abuses of power in the investment banking, mutual-fund and insurance industries during his eight-year tenure as attorney general. Dinallo, chief of Spitzer's investment protection bureau from 1999 to 2003, oversaw a two-year investigation of potential conflicts of interest in investor research published by analysts at investment banks. At least a dozen banks have paid more than $1.4 billion to settle with Spitzer and other regulators.

Dinallo left Spitzer's office in 2003 to become head of regulatory matters for Morgan Stanley, the second-largest securities firm by market value, and was hired as general counsel for insurance broker Willis Group Holdings Ltd. in March.

"There is near-universal agreement that the regulation of the insurance industry needs reform and Eric is well-suited given his time with Willis," said Joe Plumeri, chief executive officer of the London-based broker, in a statement.

Spitzer's probe of the insurance industry has spanned sales and accounting practices. Brokers including Marsh and Willis were sued for accepting commissions Spitzer said were tantamount to kickbacks from insurers. The brokers steered business to insurers that paid the hidden fees, driving up policyholder premiums, he said. They settled without admitting or denying wrongdoing.

The superintendent oversees an office of more than 900 employees, making sure insurers that operate in New York comply with the law. The post must be confirmed by the state senate, said Andy Mais, spokesman for the department.

Mills, 42, said in an interview he's weighing job offers in the private sector. He worked on most of Spitzer's cases, Mais said.