S T A T E   O F   N E W   Y O R K
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                                  4444

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 23, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11361-01-9

              

S. 4444                             2

  (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.
  (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.