S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   413

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sens. BRESLIN, DIAZ, DUANE, HUNTLEY, C. JOHNSON, KRUGER,
  MONTGOMERY,  PERKINS,  SCHNEIDERMAN,  SMITH,   STACHOWSKI,   STAVISKY,
  STEWART-COUSINS -- read twice and ordered printed, and when printed to
  be committed to the Committee on Consumer Protection

AN ACT establishing the consumer advocate insurance commission

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. Consumers in New  York  state  need  to
have  an  institutional advocate to act on their behalf. It is important
for the New York state legislature to create a consumer advocate  insur-
ance  commission  to  ensure  accurate  resources  are  available to all
consumers.  The consumer advocate insurance commission shall consist  of
individuals  who  have  had  experience and can provide expertise in the
insurance industry, including individuals from the  private  sector  who
are interested in a public focus.
  The  consumer  advocate  insurance commission will promote markets and
where competition is not present, the commission will exercise its regu-
latory authority judiciously to  ensure  equitable  rates  and  superior
service.
  Insurance companies, health maintenance organizations and their repre-
sentatives  deluge  consumers  and  the media with broad generalizations
about insurance that are often designed to promote rate  increases.  The
ideas  float  in  a sea of numbers that can drown out opposing views and
ultimately negatively impact consumers, unless consumers learn to under-
stand insurance data for themselves.
  S 2. Consumer advocate insurance commission. 1. There is hereby estab-
lished the consumer advocate insurance commission  hereinafter  "commis-
sion".  The commission shall consist of five members, to be appointed by
the governor, by and with the advice and  consent  of  the  senate.  The
governor  shall  designate one of the members of the commission as chair

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD03606-01-9

S. 413                              2

to serve in such capacity at the pleasure of the governor or  until  the
member's  term of office expires and a successor is appointed, whichever
occurs first. The term of office of a member shall be five years, but in
the  first  instance such members shall be appointed to hold office, one
for one year, one for two years, one for three years, one for four years
and one for five years, the term to be fixed by the governor  in  making
the  original  appointment.  Upon  resignation of a member, or a vacancy
occurring in any other manner, it shall be filled by appointment for the
unexpired term. Three members shall constitute a quorum for  the  trans-
action  of  business. Members of the commission shall receive no compen-
sation for their services, but shall be reimbursed for actual and neces-
sary expenses incurred in the performance of their duties.
  2. The commission shall use  insurance  data  submitted  by  insurance
companies  and  health maintenance organizations to support sound policy
decisions that protect the consumer. The  commission  shall  consist  of
trained  professionals  who should be able to quickly identify and rebut
the misuse of insurance industry data by representatives of  the  insur-
ance  industry  that  is  often  used as a tool during negotiations over
rates and proposed legislation. The commission shall post complete annu-
al statements in regards to rate and legislative changes  on  their  web
site free of charge.
  3. The commission shall provide the following services:
  a. determine whether insurance rates charged are reasonable;
  b.  identify false claims of insurance companies, insurance regulators
and health maintenance organizations;
  c. analyze the impact of insurance law changes and regulations;
  d. review individual insurer and industry-wide profitability by compa-
ny and health maintenance organization and by type of insurance coverage
in relation to claims for higher rates or less regulation;
  e. analyze insurance availability and redlining to assist insurers  in
documenting  their  efforts to increase insurance availability in under-
served areas; and
  f. track services in insurance markets.
  4. The commission shall hold  public  hearings  quarterly  to  provide
information  on any changes that may affect insurance rate increases and
on any new legislation that may prove  detrimental  to  consumers.  Such
public  hearings  will  allow  increased public participation which will
result in improved credibility in the regulation and  accountability  of
the insurance industry.
  5.   The commission shall publish a handbook that will be available to
all consumers. The handbook shall provide an introduction to  the  topic
of  insurance  data  and  rate  making,  and shall include a glossary of
insurance data terms. The handbook shall  also  provide  information  on
insurance sales and markets and should serve as a tool kit for consumers
by discussing the sources, use and misuses of insurance data.
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law.