S6210-2011 Actions

• Jan 13, 2012: REFERRED TO INSURANCE

S6210-2011 Memo

BILL NUMBER:S6210

TITLE OF BILL:
An act
to amend the insurance law, in relation to establishing the office
of insurance consumer advocate within the insurance department and
describing its powers and duties

SUMMARY:
The insurance law is amended by adding a new section 210-b to create
the Office of Insurance Consumer Advocate. The duties of such will
include, but not be limited to the review of rate applications,
participation in public hearings, and the review and recommendation
of legislation related to improving the insurance process for
consumers.

JUSTIFICATION:
On April 7, 1986 a report of the Governor's Advisory commission on
Liability Insurance, "INSURING OUR FUTURE" -commonly known as the
Jones Commission Report- embraced the idea of creating an Office of
Insurance Consumer Advocate. The report stated that, "Although the
Insurance Department generally attends to the interests of insurance
consumers, there is no New York State appointee who is exclusively
charged with that task of representing consumer interests with
respect to insurance matters." The report continues by stressing that
the ratemaking process cannot be completely fair unless "a named
individual is designated to represent this interest (consumer) and is
given full access to the information necessary to intervene on an
informed timely basis."

This recommendation is similar to the Texas law which established the
Division of Consumer protection within the State Board of Insurance
to represent the interest of insurance consumers statewide. with this
report in mind, with the Texas model as an example, and with the
large rate hikes that have been awarded to health insurance carriers,
now is the time to ensure that consumers' point of view is adequately
represented. These increases have a detrimental effect on all
policyholders, but especially those with fixed incomes. Such
increases could force many senior citizens to cancel coverage. Such
issues must be fully analyzed before a rate increase is granted.
customers cannot continue to sustain these drastic increases.

FISCAL IMPLICATIONS:
Not known at this time.

EFFECTIVE DATE:
This act shall take effect 60 days after it shall have become law.

S6210-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         6210
 I N  SENATE
 January 13, 2012
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
 printed to be committed to the Committee on Insurance
 

AN ACT to amend the insurance  law,  in  relation  to  establishing  the
 office  of insurance consumer advocate within the insurance department
 and describing its powers and duties
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1. The insurance law is amended by adding a new section 210-b
 to read as follows:

 

S 210-B. OFFICE OF INSURANCE CONSUMER ADVOCATE. (A)  THERE  IS  HEREBY
 CREATED WITHIN THE DEPARTMENT THE OFFICE OF INSURANCE CONSUMER ADVOCATE,
 HEREAFTER  REFERRED  TO IN THIS SECTION AS THE OFFICE. SUCH OFFICE SHALL
 CONSIST OF FIVE MEMBERS, THREE OF WHOM SHALL BE APPOINTED BY THE  EXECU
 TIVE  DIRECTOR OF THE CONSUMER PROTECTION BOARD AND TWO OF WHOM SHALL BE
 APPOINTED BY THE SUPERINTENDENT. MEMBERS OF THE OFFICE SHALL RECEIVE  NO
 COMPENSATION  FOR  THEIR SERVICES AS MEMBERS, BUT SHALL BE ALLOWED THEIR
 ACTUAL AND NECESSARY EXPENSES  INCURRED  IN  THE  PERFORMANCE  OF  THEIR
 DUTIES.
 (B) THE OFFICE, TOGETHER WITH THE CONSUMER PROTECTION BOARD, SHALL:

 (1)  ASSESS  THE  IMPACT  OF  INSURANCE REGULATORY ACTIONS ON NEW YORK
 CONSUMERS. SUCH ASSESSMENT SHALL INCLUDE THE REVIEW OF APPLICATIONS  FOR
 SUBSCRIBER  RATE  CHANGES  FILED  BY HEALTH INSURANCE PROVIDERS LICENSED
 PURSUANT TO ARTICLE FORTY-THREE OF THIS CHAPTER AND  ARTICLE  FORTY-FOUR
 OF THE PUBLIC HEALTH LAW.
 (2) APPEAR AT PUBLIC HEARINGS AS A REPRESENTATIVE OF CONSUMERS, TREAT
 ED  AS A CLASS, WITH RESPECT TO RATE-SETTING MATTERS THAT ARE BEFORE THE
 SUPERINTENDENT THAT AFFECT THE CONSUMING PUBLIC.
 (3) POSSESS ALL RIGHTS AND POWERS OF ANY PARTY AT  INTEREST  APPEARING
 BEFORE  THE  DEPARTMENT WITH REGARD TO EXAMINATION AND CROSS-EXAMINATION
 OF WITNESSES AND PRESENTATION OF EVIDENCE.
 (4) HAVE ACCESS AS ANY PARTY, OTHER THAN STAFF, TO ALL  RECORDS  GATH
 ERED  BY  THE DEPARTMENT INCLUDING NONPRIVILEGED MATERIAL WHICH IS RELE
 VANT TO THE SUBJECT MATTER  INVOLVED  IN  SUCH  PROCEEDINGS  BEFORE  THE
 DEPARTMENT.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD06404-01-1
 
       S. 6210                             2
 (5)  RECOMMEND  INSURANCE-RELATED  LEGISLATION  TO  THE LEGISLATURE IN
 CONSULTATION WITH THE CONSUMER PROTECTION BOARD  THAT  IN  ITS  JUDGMENT
 WOULD POSITIVELY AFFECT THE INTERESTS OF CONSUMERS.
 THE  OFFICE  SHALL  NOT PREEMPT THE APPEARANCE OF OTHER CONSUMER ADVO
 CATES AT ANY OFFICIAL PROCEEDINGS.
 (C) THE OFFICE SHALL BE FUNDED BY  AN  ASSESSMENT  UPON  ALL  DOMESTIC
 INSURERS AND ALL LICENSED UNITED STATES BRANCHES OF ALIEN INSURERS DOMI
 CILED  IN  THIS  STATE  IN THE SAME MANNER AS SUCH INSURERS ARE ASSESSED
 PURSUANT TO SECTION THREE  HUNDRED  THIRTY-TWO  OF  THIS  CHAPTER.  SUCH
 ASSESSMENT  SHALL BE FOR THE PURPOSE OF DEFRAYING THE COSTS OF CREATING,
 ADMINISTERING AND OPERATING THE OFFICE.
 

S 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.

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