Establishes the consumer advocate insurance commission

Section 2. Provides the conditions of the Consumer Advocate Insurance Commission such that, the Commission shall consist of five members, to be appointed by the Governor, with the advice and consent of the Senate and Assembly. One member will be designated as the Chair at the pleasure of the Governor.

Section 3. Provides for staggered terms for five years for the members which will be determined by the Governor. This section also mandates that members of the Commission will receive no compensation for their services, but will reimburse members for actual and necessary expenses incurred in the performance of their duties. Requires the Commission to utilize insurance data submitted by insurance companies and health maintenance companies to protect the consumer and to post complete annual statements in regard to rate changes on their web site free of charge This section also mandates that the Commission provides the following services: determine whether insurance rates charged are reasonable; identity false claims of insurance companies and insurance regulators; analyze the impact of insurance law changes and regulations; review individual insurers and industry wide profitability by company and by type of insurance coverage in relation to claims for higher rates or less regulation; analyze insurance availability and redlining; track services in insurance markets. This bill will also stipulate that public hearings be held quarterly to provide information on any changes that may affect insurance rate increases and any new legislation that may provide detrimental to consumers. Lastly, this provides that the Commission publish a handbook that will be available to all consumers which provide information on the following insurance data and rate making, glossary of insurance data terms, information on insurance sales and service.

Justification

Insurance companies, health maintenance organizations and their lobbyists deluge consumers and the media with broad generalizations about insurance that is 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. It is clear that 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 Insurance Commission. The Consumer Advocate Insurance Commission will use insurance data submitted by insurance companies to support sound policy proposals that will protect the consumer. This Commission of trained professionals will be able to quickly identify and rebut the misuse of insurance industry data by industry lobbyists, a powerful tool during negotiations over rates (and legislation). The establishment of the Consumer Advocate Insurance Commission will ensure accurate resources are available to all consumers. This will be competed through posting complete annual statements in regards to rate and legislative changes on their web site free of charge, providing such services but not limited to determining whether insurance rates charged are reasonable, and analyzing the impact of insurance law changes and regulations. The Commission will also hold quarterly public hearings to provide information on any changes that may affect insurance rate increases and on any new legislation that may prove detrimental to consumers.

Legislative history

2007/2008 - S.6073 Remained in the Senate Committee on Consumer Protection

Fiscal implications

To be determined.

Effective date

This act shall take effect on the one hundred twentieth day after it has become a law.