What's happening
This bill creates an Office of Insurance Consumer Advocate to represent and protect consumer interests in insurance matters in New York.
Why it matters
Gives consumers a formal voice. By establishing an Office of Insurance Consumer Advocate, the bill ensures that New Yorkers have an official body representing their interests during insurance rate-setting and regulatory actions, potentially leading to fairer outcomes for policyholders.
Influences insurance policy and legislation. The office is empowered to recommend new insurance-related laws that could benefit consumers, providing a direct channel for consumer-centric policy development in Albany.
Enhances transparency and oversight. The advocate’s access to nonprivileged department records and ability to participate fully in hearings (examining witnesses, presenting evidence) increases transparency and may improve oversight of insurance company practices.
Industry-funded, not taxpayer-funded. The office’s operations will be funded by assessments on insurance companies, meaning its costs are borne by the industry rather than taxpayers, which could address concerns about government spending while still supporting consumer protection.
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Who cares
Headline styles
Create Insurance Consumer Office
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Create Insurance Consumer Office
In Assembly Committee · Insurance · Sponsor Kevin Cahill
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3614
2017-2018 Regular Sessions
IN SENATE
January 25, 2017
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 department of financial services and describing its powers and duties
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The insurance law is amended by adding a new section 210-a to read as follows:
§ 210-a. 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 secretary of state and two of whom shall be appointed by the superintendent. Members of the office shall receive no compensation for their service as members, but shall be allowed their actual and necessary expenses incurred in the performance of their duties.
(b) The office, together with the department of state, 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, treated 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 gathered by the department including nonprivileged material which is rele-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01672-01-7
S. 3614 2
vant to the subject matter involved in such proceedings before the department.
(5) Recommend insurance-related legislation to the legislature in consultation with the department of state that in its judgment would positively affect the interests of consumers.
The office shall not preempt the appearance of other consumer advocates 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 domiciled in this state in the same manner as such insurers are assessed pursuant to section three hundred thirty-three of this chapter. Such assessment shall be for the purpose of defraying the costs of creating, administering and operating the office.
§ 2. This act shall take effect on the sixtieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to establishing the office of insurance consumer advocate within the department of financial services and describing its powers and duties
Summary
The insurance law is amended by adding a new section 210-a 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 rate-making 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.
Legislative history
2015-16: S.2795/A.7991 - Referred to Insurance 2013-14: S.3239 - Referred to Insurance 2012: S.6210 - Referred to Insurance 2011: S.2220(Kruger) - Referred to Insurance
Fiscal implications
Not known at this time.
Effective date
This act shall take effect 60 days after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.