Senate Bill No. 488
(By Senator Helmick)
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[Introduced February 15, 2000; referred to the
Committee on Banking and Insurance; and then to the Committee on
Finance.]
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A BILL to repeal section eighteen, article two, chapter
thirty-three of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; and to amend and reenact
sections sixteen and seventeen of said article, all relating
to the office of consumer advocacy within the agency of the
insurance commissioner; eliminating funding for the office
of consumer advocacy from special revenue funds appropriated
by the Legislature; and providing funding for the office
through the insurance commissioner's general account.
Be it enacted by the Legislature of West Virginia:
That section eighteen, article two, chapter thirty-three of
the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; and that sections sixteen and seventeen
of said article be amended and reenacted, all to read as follows:
ARTICLE 2. INSURANCE COMMISSIONER.
§33-2-16. Office of consumer advocacy established; appointed by
insurance commissioner; director of consumer
advocacy; promulgation of rules and regulations.
There is hereby created within the agency of the insurance
commissioner the office of consumer advocacy. The director of
the office of consumer advocacy shall be a full-time position and
shall be appointed by the commissioner for a term of four years
and may be discharged only for failure to carry out the duties of
the office or for other good and sufficient cause.
The insurance commissioner shall provide office space,
equipment and supplies for the office. All compensation for
salaries and expenses of the office of consumer advocacy shall be
paid monthly out of the state treasury by requisition upon the
auditor, properly certified by the commissioner.
The director shall promulgate rules pursuant to article
three, chapter twenty-nine-a of this code in order to effect the
purposes of this section, and section seventeen and section
eighteen of this article.
On or before the first day of each regular session of the Legislature, the director shall file with the governor, the clerk
of the Senate and the clerk of the House of Delegates a report
detailing the actions taken by the division in the preceding
calendar year.
§33-2-17. Authority of office of consumer advocacy; retroactive
effect of authority prohibited.
(a) In addition to the authority established under the rules
promulgated by the director, the office of consumer advocacy is
authorized to:
(1) Institute, intervene in, or otherwise participate in, as
an advocate for the public interest and the interests of
insurance consumers, proceedings in state and federal courts,
before administrative agencies, or before the health care cost
review authority, concerning applications or proceedings before
the health care cost review authority or the review of any act,
failure to act, or order of the health care cost review
authority;
(2) At the request of one or more policyholders, or whenever
the public interest is served, to advocate the interests of those
policyholders in proceedings arising out of any filing made with
the insurance commissioner by any insurance company or relating
to any complaint alleging an unfair or deceptive act or practice in the business of insurance;
(3) Institute, intervene in, or otherwise participate in, as
an advocate for the public interest and the interests of
insurance consumers, proceedings in state and federal courts,
before administrative agencies, or before the insurance
commissioner, concerning applications or proceedings before the
commissioner or the review of any act, failure to act, or order
of the insurance commissioner;
(4) Review and compile information, data and studies of the
reasonable and customary rate schedules of health care providers
and health insurers, for the purposes of reviewing, establishing,
investigating, or supporting any policy regarding health care
insurance rates;
(5) Exercise all the same rights and powers regarding
examination and cross-examination of witnesses, presentation of
evidence, rights of appeal and other matters as any party in
interest appearing before the insurance commissioner or the
health care cost review authority;
(6) Hire consultants, experts, lawyers, actuaries,
economists, statisticians, accountants, clerks, stenographers,
support staff, assistants, and other personnel necessary to carry out the provisions of this section and sections section sixteen
and eighteen of this article; which personnel shall be paid from
special revenue funds appropriated for the use of the office
(7) Contract for the services of technically qualified
persons in the area of insurance matters to assist in the
preparation and presentation of matters before the courts, the
insurance commissioner, administrative agencies, or the health
care cost review authority, which persons shall be paid from
special revenue funds appropriated for the use of the office;
(8) Make recommendations to the Legislature concerning
legislation to assist the office in the performance of its
duties;
(9) Communicate and exchange data and information with other
federal or state agencies, divisions, departments, or officers,
and with other interested parties including, but not limited to,
health care providers, insurance companies, consumers or other
interested parties; and
(10) Perform other duties to effect the purposes of the
office.
(b) The provisions of this section do not apply to any
filing made by an insurance company, or act or order performed or issued by the commissioner, or complaint filed by a policyholder
with the commissioner prior to the thirtieth day of June, one
thousand nine hundred ninety-one. All proceedings and orders in
connection with these prior matters shall be governed by the law
in effect at the time of the filing, or performance or issuance
of the act or order.
(c) The scope of authority granted under this section and
section sixteen of this article is restricted to matters related
to health care costs and health insurance policies, subscriber
contracts issued by organizations under article twenty-four of
this chapter, health care corporations under article twenty-five
of this chapter, health maintenance organizations under article
twenty-five-a of this chapter, contracts supplemental to health
insurance policies, and other matters related to health insurance
issues identified by rules of the commissioner promulgated under
section one of this article and chapter twenty-nine-a of this
code.
NOTE: The purpose of this bill is to provide funding for the
office of consumer advocacy through the insurance commissioner's
general account.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language
that would be added.