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

                                  2085

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2015
                               ___________

Introduced by M. of A. CAHILL -- read once and referred to the Committee
  on Insurance

AN  ACT to amend the insurance law and the executive law, in relation to
  public auto insurance claims

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

  Section  1. Subsections (a), (b) and (c) of section 5106 of the insur-
ance law, subsection (b) as amended by chapter 452 of the laws of  2005,
are amended to read as follows:
  (a)  Payments of first party benefits and additional first party bene-
fits shall be made as the loss is incurred.  Such benefits  are  overdue
if  not paid within thirty days after the claimant supplies proof of the
fact and amount of loss sustained. If proof is not supplied  as  to  the
entire  claim,  the amount which is supported by proof is overdue if not
paid within thirty days  after  such  proof  is  supplied.  All  overdue
payments  shall bear interest at the rate of two percent per month. If a
valid claim or portion was overdue, the claimant shall also be  entitled
to  recover  [his  attorney's]  A  reasonable ATTORNEY fee, for services
necessarily performed in connection with securing payment of the overdue
claim, subject to limitations promulgated by the superintendent in regu-
lations.
  (b) EVERY CLAIMANT SHALL HAVE THE OPTION OF DESIGNATING THE  NAME  AND
ADDRESS  TO  WHICH THE INSURER WILL BE REQUIRED TO SEND DUPLICATE COPIES
OF ALL REQUESTS FOR INFORMATION AND EXAMINATIONS.
  (C)(1) Every insurer shall provide  a  claimant  with  the  option  of
submitting  any  dispute  involving the insurer's liability to pay first
party benefits, or additional first party benefits, the  amount  thereof
or  any  other matter which may arise pursuant to subsection (a) of this
section to arbitration pursuant to simplified procedures to  be  promul-
gated  or  approved  by  the  superintendent. Such simplified procedures
shall:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06396-01-5
              

A. 2085                             2

  (I) PERMIT A CLAIMANT TO GROUP DISPUTES ARISING FROM THE  SAME  OCCUR-
RENCE WITH A SINGLE INSURER BASED ON COMMON QUESTIONS OF LAW AND FACT;
  (II)  PERMIT EITHER THE CLAIMANT OR THE INSURER, AT THEIR OWN EXPENSE,
TO RECORD OR TRANSCRIBE  ALL  PROCEEDINGS  RELATED  TO  THE  ARBITRATION
DEMAND;
  (III)  include an expedited eligibility hearing option, when required,
to designate the insurer for first party benefits pursuant to subsection
(d) of this section. The expedited eligibility hearing option shall be a
forum  for  eligibility  disputes  only,  and  shall  not  include   the
submission  of  any  particular  bill, payment or claim for any specific
benefit for adjudication, nor shall it consider  any  other  defense  to
payment.    [(c)] THE EXPEDITED ELIGIBILITY HEARING OPTION SHALL ALSO BE
AVAILABLE TO  PROMPTLY  ADJUDICATE  ALL  DISPUTES  RELATED  TO  DOCUMENT
REQUESTS  AND  EXAMINATIONS  UNDER  OATH  OF  A  CLAIMANT HEALTH SERVICE
PROVIDER REGARDING THE PROVIDER'S INELIGIBILITY FOR REIMBURSEMENT DUE TO
THE ALLEGED FAILURE TO MEET ANY  APPLICABLE  NEW  YORK  STATE  OR  LOCAL
LICENSING  REQUIREMENT NECESSARY TO PERFORM SUCH SERVICE IN NEW YORK, OR
MEET ANY APPLICABLE LICENSING  REQUIREMENT  NECESSARY  TO  PERFORM  SUCH
SERVICE  IN  ANY OTHER STATE WHERE SUCH SERVICE IS PERFORMED. THE TIMELY
FILING OF THE REQUEST FOR EXPEDITED ELIGIBILITY HEARING SHALL  TOLL  THE
TIME TO COMPLY UNTIL THE TIME SET FORTH IN THE ARBITRATOR'S DECISION.
  (2)  THE  COMMENCEMENT  OF  A  COURT PROCEEDING OR THE SUBMISSION OF A
DISPUTE TO ARBITRATION SHALL NOT PRECLUDE A CLAIMANT  FROM  ELECTING  TO
SUBMIT  OTHER DISPUTES ARISING FROM THE SAME OCCURRENCE TO THE ALTERNATE
FORUM. ARBITRATORS ARE REQUIRED TO FOLLOW AND APPLY SUBSTANTIVE LAW.  An
award by an arbitrator shall be binding except where vacated or modified
by  a  master  arbitrator in accordance with simplified procedures to be
promulgated or approved by the superintendent. The grounds for  vacating
or  modifying  an arbitrator's award by a master arbitrator shall not be
limited to those grounds for review set forth in article seventy-five of
the civil practice law and rules AND SHALL INCLUDE  FACTUAL,  LEGAL  AND
PROCEDURAL  ERRORS.  The  award  of a master arbitrator shall be binding
except for the grounds for review set forth in article  seventy-five  of
the  civil  practice law and rules[, and provided further that where the
amount of such master arbitrator's award is  five  thousand  dollars  or
greater,  exclusive  of interest and attorney's fees, the insurer or the
claimant may institute a court  action  to  adjudicate  the  dispute  de
novo].
  (3)  WITH RESPECT TO AN ACTION FOR SERIOUS PERSONAL INJURY PERMISSIBLE
UNDER SECTION FIVE THOUSAND ONE HUNDRED FOUR OF THIS ARTICLE, THE  AWARD
OR DECISION OF AN ARBITRATOR OR MASTER ARBITRATOR RENDERED PURSUANT TO A
NO-FAULT  PROCEEDING  SHALL  NOT CONSTITUTE A COLLATERAL ESTOPPEL OF THE
ISSUES ARBITRATED, BUT SUCH AN AWARD OR DECISION MAY  BE  ADMISSIBLE  AS
RELEVANT EVIDENCE BY A PARTY TO AN ACTION.
  S  2.  Section  5102  of  the insurance law is amended by adding a new
subsection (n) to read as follows:
  (N) "PROVIDER OF HEALTH SERVICES" FOR PURPOSES OF THIS ARTICLE,  MEANS
AN  INDIVIDUAL  OR  ENTITY  WHO  OR  THAT RENDERS OR HAS RENDERED HEALTH
SERVICES, OR WHO PROVIDES FOR REMUNERATION AN OPINION TO AN  INSURER  OR
AN ENTITY CONTRACTED BY AN INSURER REGARDING EITHER (I) WHETHER A HEALTH
SERVICE  WAS  MEDICALLY  NECESSARY, OR (II) BASED UPON AN EXAMINATION OF
THE CLAIMANT, THE NEED FOR ANY HEALTH SERVICE.
  S 3. Section 5109 of the insurance law, as added by chapter 423 of the
laws of 2005, is amended to read as follows:
  S 5109. Unauthorized providers of health services. (a) The superinten-
dent, in consultation with the commissioner of health  and  the  commis-

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sioner  of  education,  shall  by  regulation,  promulgate standards and
procedures for investigating and suspending  or  removing  the  authori-
zation for providers of health services to demand or request payment for
health  services  [as  specified  in  paragraph one of subsection (a) of
section five thousand one hundred two of] UNDER this article upon  find-
ings  reached  after  investigation pursuant to this section. Such regu-
lations shall ensure the same or greater due process provisions, includ-
ing notice and opportunity to be heard,  as  those  afforded  physicians
investigated  under  article  two  of  the workers' compensation law and
shall include provision for notice to all providers of  health  services
of the provisions of this section and regulations promulgated thereunder
at  least  ninety  days  in  advance of the effective date of such regu-
lations. AS USED IN THIS  SECTION,  "HEALTH  SERVICES"  MEANS  SERVICES,
SUPPLIES,  THERAPIES,  OR  OTHER TREATMENTS AS SPECIFIED IN SUBPARAGRAPH
(I), (II), OR (IV) OF PARAGRAPH ONE OF SUBSECTION (A)  OF  SECTION  FIVE
THOUSAND  ONE  HUNDRED  TWO OF THIS ARTICLE OR AN OPINION RENDERED TO AN
INSURER OR AN ENTITY CONTRACTED  BY  AN  INSURER  REGARDING  EITHER  (I)
WHETHER SUCH SERVICES, SUPPLIES, THERAPIES, OR TREATMENTS WERE MEDICALLY
NECESSARY,  OR  (II) BASED UPON AN EXAMINATION OF THE CLAIMANT, THE NEED
FOR ANY SUCH SERVICE, SUPPLY, THERAPY, OR TREATMENT.
  (b) [The commissioner of health  and  the  commissioner  of  education
shall  provide  a  list of the names of all providers of health services
who the commissioner of health and the commissioner of  education  shall
deem,  after  reasonable  investigation,  not  authorized  to  demand or
request any payment for medical services in connection  with  any  claim
under  this article because such provider of health services] THE SUPER-
INTENDENT, IN CONSULTATION WITH  THE  COMMISSIONER  OF  HEALTH  AND  THE
COMMISSIONER  OF  EDUCATION,  MAY PROHIBIT A PROVIDER OF HEALTH SERVICES
FROM DEMANDING OR REQUESTING PAYMENT FOR HEALTH SERVICES RENDERED  UNDER
THIS  ARTICLE,  FOR  A  PERIOD  SPECIFIED  BY THE SUPERINTENDENT, IF THE
SUPERINTENDENT DETERMINES THAT THE PROVIDER OF HEALTH SERVICES:
  (1) has ADMITTED TO OR been FOUND  guilty  of  professional  or  other
misconduct  or incompetency in connection with [medical] HEALTH services
rendered under this article; or
  (2) has exceeded the limits of his or her professional  competence  in
rendering  medical  care under this article, AS DETERMINED BY THE APPRO-
PRIATE SUPERVISING OR LICENSING AGENCY, or has knowingly  made  a  false
statement  or representation as to a material fact in any medical report
made, OR DOCUMENT SUBMITTED, in connection with  any  claim  under  this
article; or
  (3)  solicited,  or  has  employed  another to solicit for [himself or
herself] THE PROVIDER OF HEALTH SERVICES or  for  another,  professional
treatment,  examination  or care of an injured person in connection with
any claim under this article; or
  (4) has refused to appear before, or to answer upon  request  of,  the
commissioner of health, the superintendent, or any duly authorized offi-
cer  of the state, any legal question, or to produce any relevant infor-
mation concerning [his or her] THE conduct OF  THE  PROVIDER  OF  HEALTH
SERVICES in connection with [rendering medical services] HEALTH SERVICES
RENDERED under this article; [or]
  (5) has engaged in [patterns] A PATTERN of billing for HEALTH services
which were not provided;
  (6)  KNOWINGLY  UTILIZED  UNLICENSED PERSONS TO RENDER HEALTH SERVICES
UNDER THIS ARTICLE, WHEN ONLY A PERSON LICENSED IN THIS STATE MAY RENDER
THE HEALTH SERVICES;

A. 2085                             4

  (7) KNOWINGLY UTILIZED LICENSED  PERSONS  TO  RENDER  HEALTH  SERVICES
BEYOND THE AUTHORIZED SCOPE OF THE PERSON'S LICENSE;
  (8)  DIRECTLY OR INDIRECTLY UNLAWFULLY CEDED OWNERSHIP OR CONTROL OF A
BUSINESS ENTITY AUTHORIZED TO PROVIDE PROFESSIONAL  HEALTH  SERVICES  IN
THIS  STATE,  INCLUDING A PROFESSIONAL SERVICE CORPORATION, PROFESSIONAL
LIMITED LIABILITY COMPANY, OR REGISTERED LIMITED LIABILITY  PARTNERSHIP,
TO  A PERSON NOT LICENSED TO RENDER THE HEALTH SERVICES WHICH THE ENTITY
IS LEGALLY AUTHORIZED TO PROVIDE, EXCEPT WHERE THE  UNLICENSED  PERSON'S
OWNERSHIP OR CONTROL IS OTHERWISE PERMITTED BY LAW;
  (9)  HAS  ENGAGED  IN  A PATTERN OF RECOMMENDING AGAINST REIMBURSEMENT
WHEN SUCH RECOMMENDATION IS NOT SUPPORTED BY CLEARLY ESTABLISHED  STAND-
ARDS IN THE PROFESSIONAL COMMUNITY;
  (10) HAS SUBMITTED AN EXAMINATION REPORT THAT CONTAINS MATERIAL FACTU-
AL MISREPRESENTATIONS OR PROFESSIONAL CONCLUSIONS THAT ARE NOT SUPPORTED
BY CLEARLY ESTABLISHED STANDARDS IN THE PROFESSIONAL COMMUNITY;
  (11)   CONSISTENTLY  DELIVERED  UNNECESSARY  HEALTH  SERVICES  WITHOUT
REASONABLE MEDICAL JUSTIFICATION AS DETERMINED BY THE SUPERINTENDENT  IN
CONSULTATION  WITH  THE  DEPARTMENT  OF  HEALTH  AND THE STATE EDUCATION
DEPARTMENT TAKING INTO CONSIDERATION THE OVERALL HEALTH OF  THE  PATIENT
AND ISSUES OF PALLIATIVE CARE; OR
  (12) HAS VIOLATED ANY PROVISION OF THIS ARTICLE OR REGULATIONS PROMUL-
GATED THEREUNDER.
  (c)  Providers  of  health  services  shall  refrain from subsequently
treating for remuneration, as a  private  patient,  any  person  seeking
medical  treatment  under this article if such provider pursuant to this
section has been prohibited from demanding or requesting any payment for
[medical] HEALTH services under this article.  An  injured  claimant  so
treated  or  examined  may raise this as a defense in any action by such
provider for payment for treatment  rendered  at  any  time  after  such
provider  has  been  prohibited from demanding or requesting payment for
[medical] HEALTH services in connection with any claim under this  arti-
cle.  PROVIDERS OF HEALTH SERVICES WHO HAVE BEEN PROHIBITED FROM DEMAND-
ING  OR  REQUESTING  ANY  PAYMENT FOR HEALTH SERVICES UNDER THIS ARTICLE
SHALL ALSO REFRAIN FROM SUBSEQUENTLY PROVIDING FOR REMUNERATION AN OPIN-
ION TO AN INSURER OR AN ENTITY CONTRACTED BY AN INSURER REGARDING EITHER
(I) WHETHER A HEALTH SERVICE WAS MEDICALLY NECESSARY, OR (II) BASED UPON
AN EXAMINATION OF THE CLAIMANT, THE NEED FOR ANY HEALTH SERVICE.
  (d) The [commissioner of health and  the  commissioner  of  education]
SUPERINTENDENT shall maintain and regularly update a database containing
a  list  of providers of health services prohibited by this section from
demanding or requesting any payment for health services [connected to  a
claim]  RENDERED  under  this  article  and  shall make such information
available to the public by means of a website and by a toll free number.
  (e) Nothing in this section shall be  construed  as  limiting  in  any
respect the powers and duties of the commissioner of health, commission-
er  of  education  or  the  superintendent  to  investigate instances of
misconduct by a [health care] provider [and, after a  hearing  and  upon
written  notice  to  the provider, to temporarily prohibit a provider of
health services under such investigation from  demanding  or  requesting
any  payment  for  medical  services under this article for up to ninety
days from the date of such notice] OF HEALTH SERVICES AND TAKE APPROPRI-
ATE ACTION PURSUANT TO ANY  OTHER  PROVISION  OF  LAW.  A  DETERMINATION
PURSUANT TO SUBSECTION (B) OF THIS SECTION SHALL NOT BE BINDING UPON THE
COMMISSIONER  OF  HEALTH  OR COMMISSIONER OF EDUCATION IN A PROFESSIONAL
DISCIPLINE PROCEEDING RELATING TO THE SAME CONDUCT BUT MAY  BE  ADMITTED
AS EVIDENCE.

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  S  4.  Paragraph  1  of subsection (a) of section 308 of the insurance
law, as amended by chapter 499 of the laws of 2009, is amended  to  read
as follows:
  (1)  The  superintendent  may  also  address to any health maintenance
organization, life settlement provider, life settlement intermediary  or
its  officers,  ANY  PROVIDER OF HEALTH SERVICES WHO DEMANDS OR REQUESTS
PAYMENT FOR HEALTH SERVICES RENDERED UNDER  ARTICLE  FIFTY-ONE  OF  THIS
CHAPTER,  or  any  authorized  insurer  or rate service organization, or
officers thereof, any inquiry in relation to its transactions or  condi-
tion  or  any matter connected therewith. Every corporation or person so
addressed shall reply in writing to such inquiry promptly and  truthful-
ly,  and  such  reply  shall  be,  if  required  by  the superintendent,
subscribed by such individual, or by  such  officer  or  officers  of  a
corporation, as the superintendent shall designate, and affirmed by them
as true under the penalties of perjury.
  S  5.  Section  337  of the insurance law, as amended by section 64 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  S 337. Annual consumer guide on automobile insurance. (a)  The  super-
intendent  shall  issue  and  update,  as necessary, a consumer guide on
private passenger automobile insurance that shall contain  comprehensive
information  written  in  plain  language  in a clear and understandable
format, including the following:
  (1) an annual ranking of automobile insurers: (A) including an  analy-
sis  of  private  passenger  insurers  in  the  state which provides, in
detail, a ranking of such insurers from best  to  worst  based  on  each
insurer's  record  of  consumer complaints during the preceding calendar
year, using criteria available to the department, adjusted for volume of
insurance written; and (B) taking into consideration  the  corresponding
total  of  claims  improperly  denied  in  whole  or  in  part, consumer
complaints found to be valid in whole or in part, and any  other  perti-
nent  data which would permit the department to objectively determine an
insurer's performance; and (C)  the  superintendent  may  note,  to  the
extent  relevant, actions taken by the department against an insurer for
violating any law or regulation;
  (2) AN ANNUAL RANKING OF VOLUNTARY CLAIM PAYMENT RATES  OF  AUTOMOBILE
INSURERS,  INCLUDING:  (A)  AN ANALYSIS OF PRIVATE PASSENGER INSURERS IN
THE STATE WHICH PROVIDES, IN DETAIL, A RANKING  OF  SUCH  INSURERS  FROM
BEST  TO WORST BASED ON EACH INSURER'S RECORD OF VOLUNTARY CLAIM PAYMENT
RATES FOR EACH PAYMENT  REQUEST  DURING  THE  PRECEDING  CALENDAR  YEAR,
ADJUSTED  FOR  VOLUME  OF  INSURANCE WRITTEN; AND (B) A REPORTING TO THE
PUBLIC OF THE CORRESPONDING TOTAL  NUMBER  OF  CLAIMS  PAID,  THE  TOTAL
NUMBER  OF CLAIMS DENIED IN WHOLE, AND THE TOTAL NUMBER OF CLAIMS DENIED
IN PART, AND ANY OTHER PERTINENT DATA WHICH WOULD PERMIT THE  PUBLIC  TO
OBJECTIVELY DETERMINE AN INSURER'S PERFORMANCE;
  (3)  AN  ANNUAL RANKING OF PAPER PEER REVIEW AND INSURER MEDICAL EXAM-
INATION PROFESSIONALS USED TO EVALUATE CLAIMS MADE TO AUTOMOBILE  INSUR-
ERS  INCLUDING:  AN  ANALYSIS OF THE NUMBER OF TIMES THAT THE PAPER PEER
REVIEWER AND INSURER MEDICAL EXAMINATION PROFESSIONAL  RECOMMENDED  FULL
CLAIM  PAYMENT,  PARTIAL  CLAIM  DENIAL, AND FULL CLAIM DENIAL OF CLAIMS
SUBMITTED AND REQUESTS FOR PAYMENT SUBMITTED TO THE PAPER PEER  REVIEWER
AND INSURER MEDICAL EXAMINATION PROFESSIONAL DURING THE PRECEDING CALEN-
DAR YEAR;
  (4)  a  list  of makes and models of automobiles that generally do not
meet underwriting guidelines of automobile  insurers  or  in  regard  to
which  consumers  can  expect  to  pay higher premiums as a result of an
automobile's style, model type or other distinguishing features,  except

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that  specific  insurers  shall  not  be identified for purposes of such
list;
  [(3)] (5) an explanation of all types of automobile insurance required
by  law  and  available  as  optional coverage, including policyholders'
rights under these types of coverage and when making claims;
  [(4)] (6) an explanation of and information on the  automobile  insur-
ance  plan  established pursuant to article fifty-three of this chapter,
including how motorists in such plan should  proceed  in  attempting  to
obtain insurance in the voluntary market;
  [(5)] (7) recommendations as to how best to shop for and compare pric-
es, service and quality of automobile insurance coverage;
  [(6)] (8) an explanation of prohibited discriminatory practices apply-
ing to insurance companies, agents and brokers; and
  [(7)]  (9)  a  department  toll  free  consumer hot-line through which
consumers may initiate  complaints,  and  request  general  information,
about automobile insurance.
  (b)  The  requirements set forth in subsection (a) of this section may
be satisfied by separate or supplemental publications and updates.
  (c) The superintendent shall post the  consumer  guide  on  automobile
insurance on the department's website.
  S 6. The executive law is amended by adding a new article 44-A to read
as follows:
                              ARTICLE 44-A
            OFFICE OF PUBLIC AUTO INSURANCE CONSUMER ADVOCATE
SECTION 945. OFFICE OF PUBLIC AUTO INSURANCE CONSUMER ADVOCATE.
        946. PUBLIC AUTO INSURANCE CONSUMER ADVOCATE.
        947. POWERS AND DUTIES.
  S  945.  OFFICE  OF  PUBLIC AUTO INSURANCE CONSUMER ADVOCATE. THERE IS
HEREBY CREATED IN THE EXECUTIVE  DEPARTMENT  AN  INDEPENDENT  OFFICE  OF
PUBLIC  AUTO  INSURANCE  CONSUMER  ADVOCATE  (HEREINAFTER REFERRED TO AS
"OFFICE") TO REPRESENT THE INTERESTS OF NON-COMMERCIAL AUTOMOBILE INSUR-
ANCE CONSUMERS IN THE STATE.
  S 946. PUBLIC AUTO INSURANCE CONSUMER ADVOCATE. 1. THE GOVERNOR  SHALL
APPOINT  A PUBLIC AUTO INSURANCE CONSUMER ADVOCATE (HEREINAFTER REFERRED
TO AS "ADVOCATE") WHO SHALL SERVE  AS  THE  EXECUTIVE  DIRECTOR  OF  THE
OFFICE  OF  PUBLIC AUTO INSURANCE CONSUMER ADVOCATE AND SHALL RECEIVE AN
ANNUAL SALARY TO BE FIXED BY THE GOVERNOR WITHIN  THE  AMOUNT  AVAILABLE
THEREFOR BY APPROPRIATION.
  2.  (A)  TO BE ELIGIBLE TO SERVE AS ADVOCATE, A PERSON MUST BE A RESI-
DENT OF THE STATE. THE ADVOCATE SHALL BE A PERSON WHO HAS DEMONSTRATED A
STRONG COMMITMENT TO AND INVOLVEMENT IN EFFORTS TO SAFEGUARD THE  RIGHTS
OF  THE  PUBLIC AND WHO POSSESSES THE KNOWLEDGE AND EXPERIENCE NECESSARY
TO PRACTICE EFFECTIVELY IN INSURANCE PROCEEDINGS.
  (B) A PERSON SHALL NOT BE ELIGIBLE FOR APPOINTMENT AS ADVOCATE IF SUCH
PERSON OR THE PERSON'S SPOUSE:
  (I) IS EMPLOYED BY OR PARTICIPATES IN THE  MANAGEMENT  OF  A  BUSINESS
ENTITY  OR  OTHER  ORGANIZATION REGULATED BY THE DEPARTMENT OF FINANCIAL
SERVICES OR RECEIVING FUNDS FROM THE DEPARTMENT;
  (II) OWNS OR CONTROLS, DIRECTLY OR INDIRECTLY, MORE THAN  TEN  PERCENT
INTEREST  IN  A  BUSINESS  ENTITY OR OTHER ORGANIZATION REGULATED BY THE
DEPARTMENT OF FINANCIAL SERVICES OR RECEIVING FUNDS FROM THE  DEPARTMENT
OF FINANCIAL SERVICES OR THE OFFICE; OR
  (III)  USES  OR  RECEIVES  A  SUBSTANTIAL  AMOUNT  OF  TANGIBLE GOODS,
SERVICES OR FUNDS FROM THE  DEPARTMENT  OF  FINANCIAL  SERVICES  OR  THE
OFFICE,  OTHER  THAN COMPENSATION OR REIMBURSEMENT AUTHORIZED BY LAW FOR

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THE DEPARTMENT OF FINANCIAL SERVICES OR OFFICE MEMBERSHIP, ATTENDANCE OR
EXPENSES.
  3. THE ADVOCATE SHALL SERVE FOR A TERM OF TWO YEARS.
  4. IT SHALL BE A GROUND FOR REMOVAL FROM OFFICE IF THE ADVOCATE:
  (A)  DOES  NOT  HAVE  AT  THE  TIME  OF APPOINTMENT THE QUALIFICATIONS
REQUIRED BY THIS SECTION;
  (B) DOES NOT MAINTAIN DURING SERVICE AS  ADVOCATE  THE  QUALIFICATIONS
REQUIRED BY THIS SECTION;
  (C) VIOLATES A PROHIBITION ESTABLISHED BY THIS SECTION; OR
  (D)  CANNOT  DISCHARGE THE ADVOCATE'S DUTIES FOR A SUBSTANTIAL PART OF
THE TERM FOR WHICH THE ADVOCATE IS APPOINTED BECAUSE OF ILLNESS OR DISA-
BILITY.
  5. THE VALIDITY OF AN ACTION OF THE OFFICE SHALL NOT  BE  AFFECTED  BY
THE  FACT  THAT  IT  IS  TAKEN WHEN A GROUND FOR REMOVAL OF THE ADVOCATE
EXISTS.
  6. (A) A PERSON SHALL NOT SERVE AS THE ADVOCATE OR ACT AS THE  GENERAL
COUNSEL FOR THE OFFICE OF ADVOCATE IF THE PERSON IS REQUIRED TO REGISTER
AS A LOBBYIST PURSUANT TO ARTICLE ONE-A OF THE LEGISLATIVE LAW.
  (B)  A  PERSON  SERVING AS THE ADVOCATE SHALL NOT, FOR A PERIOD OF TWO
YEARS AFTER THE DATE THE PERSON CEASES TO BE AN ADVOCATE, REPRESENT  ANY
PERSON  IN  A PROCEEDING BEFORE THE SUPERINTENDENT OF FINANCIAL SERVICES
OR THE DEPARTMENT OF FINANCIAL  SERVICES  OR  RECEIVE  COMPENSATION  FOR
SERVICES  RENDERED  ON  BEHALF OF ANY PERSON REGARDING A CASE BEFORE THE
DEPARTMENT OF FINANCIAL SERVICES.
  (C) A PERSON SHALL NOT SERVE AS THE ADVOCATE OR BE AN EMPLOYEE OF  THE
OFFICE  IF  THE  PERSON  IS AN OFFICER, EMPLOYEE OR PAID CONSULTANT OF A
TRADE ASSOCIATION IN THE FIELD OF INSURANCE.
  (D) A PERSON WHO IS THE SPOUSE OF AN OFFICER, MANAGER OR PAID CONSULT-
ANT OF A TRADE ASSOCIATION IN THE FIELD OF INSURANCE SHALL NOT SERVE  AS
THE ADVOCATE AND MAY NOT BE AN OFFICE EMPLOYEE.
  (E) FOR THE PURPOSES OF THIS SECTION, A TRADE ASSOCIATION IS A NONPRO-
FIT,  COOPERATIVE  AND  VOLUNTARILY  JOINED  ASSOCIATION  OF BUSINESS OR
PROFESSIONAL COMPETITORS DESIGNED TO ASSIST ITS MEMBERS AND ITS INDUSTRY
OR PROFESSION IN DEALING WITH MUTUAL BUSINESS OR  PROFESSIONAL  PROBLEMS
AND IN PROMOTING THEIR COMMON INTEREST.
  S  947.  POWERS  AND DUTIES. 1. THE ADVOCATE, AS EXECUTIVE DIRECTOR OF
THE OFFICE, SHALL BE CHARGED WITH THE RESPONSIBILITY  OF  ADMINISTERING,
ENFORCING  AND  CARRYING  OUT  THE PROVISIONS OF THIS ARTICLE, INCLUDING
PREPARATION OF A BUDGET FOR THE OFFICE, EMPLOYING ALL NECESSARY  PROFES-
SIONAL,  TECHNICAL  AND  OTHER EMPLOYEES TO CARRY OUT PROVISIONS OF THIS
ARTICLE, APPROVAL OF EXPENDITURES FOR PROFESSIONAL SERVICES, TRAVEL, PER
DIEM AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED  IN  ADMINISTERING
THE  OFFICE.  THE COMPENSATION OF EMPLOYEES OF THE OFFICE SHALL BE FIXED
BY THE ADVOCATE WITHIN THE APPROPRIATION PROVIDED THEREFOR.
  2. BY MARCH FIRST OF EACH YEAR, THE OFFICE SHALL FILE WITH THE  GOVER-
NOR,  TEMPORARY  PRESIDENT  OF  THE SENATE AND SPEAKER OF THE ASSEMBLY A
COMPLETE AND DETAILED WRITTEN REPORT ACCOUNTING FOR ALL  FUNDS  RECEIVED
AND DISBURSED BY THE OFFICE DURING THE PRECEDING FISCAL YEAR.
  3.  ALL MONEY PAID TO THE OFFICE UNDER THIS ARTICLE SHALL BE DEPOSITED
IN THE STATE TREASURY.
  4. THE OFFICE MAY ASSESS THE IMPACT OF INSURER PRACTICES AND  PROPOSED
AND  IN-FORCE  INSURANCE  RATES,  RULES AND REGULATIONS ON NONCOMMERCIAL
AUTOMOBILE INSURANCE CONSUMERS IN THE STATE; IN ITS OWN  NAME,  ADVOCATE
ON  BEHALF  OF  POSITIONS  THAT  ARE  MOST ADVANTAGEOUS TO A SUBSTANTIAL
NUMBER OF INSURANCE CONSUMERS AS DETERMINED BY THE ADVOCATE; AND DO  ALL
THINGS  NECESSARY  AND  PROPER  FOR  THESE  PURPOSES, INCLUDING ENGAGING

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ATTORNEYS, AND EXPERTS IN ACTUARIAL SCIENCE, ECONOMICS,  ACCOUNTING,  OR
ANY OTHER DISCIPLINE WHICH MAY BE APPROPRIATE.
  5. THE ADVOCATE:
  (A)  MAY  DISSEMINATE MATERIALS AND INFORMATION TO CONSUMERS REGARDING
CONSUMERS RIGHTS, THE DEPARTMENT OF FINANCIAL SERVICES' ROLE IN REGULAT-
ING INSURANCE, RELEVANT LAWS, RULES, AND REGULATIONS, AND  WHAT  AVENUES
ARE AVAILABLE FOR CONSUMERS TO PURSUE THEIR RIGHTS;
  (B) MAY COORDINATE WITH OTHER GROUPS, AGENCIES, OR ADVOCATES IN STUDY-
ING CURRENT MARKET TRENDS OR OTHER RELEVANT ISSUES;
  (C)  MAY  HOLD REGULAR FORUMS TO EDUCATE CONSUMERS ABOUT MOTOR VEHICLE
INSURANCE RELATED MATTERS AND THE REGULATORY PROCESS,  OPPORTUNITIES  TO
LOWER PREMIUM COSTS, AND OTHER MATTERS AFFECTING CONSUMERS;
  (D) MAY RECOMMEND LEGISLATION TO THE LEGISLATURE THAT, IN THE JUDGMENT
OF  THE ADVOCATE, WOULD AFFECT POSITIVELY THE INTERESTS OF NONCOMMERCIAL
MOTOR VEHICLE INSURANCE CONSUMERS;
  (E) MAY TESTIFY ON BEHALF OF CONSUMERS AT PUBLIC HEARINGS CONDUCTED BY
THE DEPARTMENT OF FINANCIAL SERVICES OR OTHER ENTITIES;
  (F) MAY REPRESENT THE INTERESTS OF CONSUMERS OF THE STATE  BEFORE  THE
DEPARTMENT OF FINANCIAL SERVICES;
  (G)  MAY  ADVISE CONSUMERS IN PURSUING THEIR RIGHTS UNDER ANY RELEVANT
LAW, RULE, OR REGULATION;
  (H) MAY ASSIST CONSUMERS IN FILING A COMPLAINT WITH THE DEPARTMENT  OF
FINANCIAL SERVICES OR OTHER ENTITIES;
  (I)  MAY INITIATE OR INTERVENE AS, OR OTHERWISE APPEAR IN ANY JUDICIAL
PROCEEDING INVOLVING OR ARISING OUT OF ANY ACTION TAKEN BY  AN  ADMINIS-
TRATIVE AGENCY IN A PROCEEDING IN WHICH THE ADVOCATE PREVIOUSLY APPEARED
UNDER THE AUTHORITY GRANTED BY THIS ARTICLE;
  (J)  MAY  APPEAR  OR  INTERVENE BEFORE THE SUPERINTENDENT OF FINANCIAL
SERVICES OR DEPARTMENT OF FINANCIAL SERVICES AS A PARTY OR OTHERWISE  ON
BEHALF  OF  INSURANCE  CONSUMERS AS A CLASS IN MATTERS INVOLVING INSURER
PRACTICES AND PROPOSED AND IN-FORCE RATES, RULES AND REGULATIONS AFFECT-
ING NONCOMMERCIAL AUTOMOBILE INSURANCE;
  (K) IS ENTITLED TO ACCESS ANY RECORDS OF THE DEPARTMENT  OF  FINANCIAL
SERVICES  THAT  ARE  AVAILABLE  TO  ANY PARTY IN A PROCEEDING BEFORE THE
SUPERINTENDENT OF FINANCIAL SERVICES OR DEPARTMENT OF FINANCIAL SERVICES
UNDER THE AUTHORITY GRANTED BY THIS ARTICLE;
  (L) IS ENTITLED TO OBTAIN DISCOVERY OF ANY NON-PRIVILEGED MATTER  THAT
IS RELEVANT TO THE SUBJECT MATTER INVOLVED IN A PROCEEDING OR SUBMISSION
BEFORE  THE SUPERINTENDENT OF FINANCIAL SERVICES OR DEPARTMENT OF FINAN-
CIAL SERVICES WHERE THE ADVOCATE IS A PARTY TO THAT ACTION,  AS  AUTHOR-
IZED BY THIS ARTICLE; AND
  (M)  MAY  APPEAR  OR  INTERVENE  AS  A PARTY OR OTHERWISE ON BEHALF OF
NONCOMMERCIAL MOTOR VEHICLE  INSURANCE  CONSUMERS  AS  A  CLASS  IN  ALL
PROCEEDINGS  AND ACTIONS RELATED TO MOTOR VEHICLE INSURANCE IN WHICH THE
ADVOCATE DETERMINES THAT SUCH CONSUMERS NEED REPRESENTATION, EXCEPT THAT
THE ADVOCATE SHALL NOT INTERVENE IN ANY ENFORCEMENT  OR  PARENS  PATRIAE
PROCEEDING BROUGHT BY THE ATTORNEY GENERAL; AND
  (N)  MAY  CONDUCT ANY INQUIRY, HEARING, INVESTIGATION, SURVEY OR STUDY
WHICH  THE  ADVOCATE  DEEMS  NECESSARY  TO  EFFECTIVELY  CARRY  OUT  THE
PROVISIONS OF THIS ARTICLE.
  6.  (A)  THE  OFFICE  SHALL  PREPARE  INFORMATION  OF  PUBLIC INTEREST
DESCRIBING THE FUNCTIONS OF THE OFFICE. THE OFFICE SHALL MAKE THE INFOR-
MATION AVAILABLE TO THE PUBLIC, LAWMAKERS AND  APPROPRIATE  STATE  AGEN-
CIES.

A. 2085                             9

  (B)  THE  OFFICE  SHALL  PREPARE  AND  MAINTAIN  A  WRITTEN  PLAN THAT
DESCRIBES HOW EACH PERSON WHO DOES NOT SPEAK  ENGLISH  CAN  BE  PROVIDED
REASONABLE ACCESS TO THE OFFICE'S PROGRAMS.
  (C) THE OFFICE SHALL PREPARE AND DISTRIBUTE PUBLIC EDUCATION MATERIALS
FOR CONSUMERS, LEGISLATORS AND REGULATORS.
  (D) THE OFFICE MAY PARTICIPATE IN TRADE ASSOCIATIONS.
  7. THE OFFICE SHALL BE SUBJECT TO ARTICLES SIX AND SIX-A OF THE PUBLIC
OFFICERS LAW; PROVIDED, HOWEVER, THAT DOCUMENTS, RECORDS, FILES, REPORTS
OR  OTHER  INFORMATION CONCERNING CONFIDENTIAL MATTERS OF THE OFFICE, AS
DEFINED AND DESCRIBED IN REGULATIONS  PROMULGATED  BY  THE  OFFICE,  ARE
SPECIFICALLY  EXEMPTED  FROM DISCLOSURE PURSUANT TO SECTION EIGHTY-SEVEN
OF THE PUBLIC OFFICERS LAW.
  S 7. This act shall take effect immediately.