H. B. 2388
(By Delegates Rick Thompson, Staton,
Hrutkay, Caputo and Perdue)
[Introduced February 16, 2005; referred to the
Committee on Banking and Insurance then Government
Organization.]
A BILL to amend and reenact º33-2-16, º33-2-17 and º33-2-18 of the
Code of West Virginia, 1931, as amended, all relating to
insurance generally; and making the office of consumer
advocacy independent of the Insurance Commissioner.
Be it enacted by the Legislature of West Virginia:
That º33-2-16, º33-2-17 and º33-2-18 of the Code of West
Virginia, 1931, as amended, 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.
There is hereby created within the agency of the Insurance
Commissioner the office of Consumer Advocacy. The position of
Director of the office of Consumer Advocacy shall be is a full-time position. and The director shall be appointed by the commissioner
Governor, by and with the advice and consent of the Senate for a
term of four years to coincide with the term of the Governor 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,
completely separate and apart from all other divisions and offices
of the Insurance Commission, equipment and supplies for the office.
The director shall may promulgate rules pursuant to article
three, chapter twenty-nine-a of this code in order to effect the
purposes of this section, 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
provider or insurance rates;
(5) Exercise all the same rights and powers regarding issuance of subpoenas, 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, or a court;
(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 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.
§33-2-18. Funding.
The office of Consumer Advocacy shall be funded in an amount
to be appropriated by the Legislature from special revenue funds
completely separate and apart from all other divisions and offices
of the Insurance Commission.
(a) Initial funding for the office of the Consumer Advocate shall be provided by the Insurance Commissioner from funds
appropriated for the office of the Consumer Advocate by the
Legislature.
(b) The current Director of Consumer Advocacy or other
appointee of the Commissioner shall continue in the position until
the Governor appoints a new director under the provisions of
section sixteen of this article. Following the initial fiscal year
budget appropriation, the Director of the office of Consumer
Advocacy shall be responsible for submitting subsequent requests
for appropriations separate from that submitted on behalf of the
Insurance Commission.
The director may employ persons and incur expenses as may be
necessary in the discharge of his or her duties and shall fix the
compensation of employees.
NOTE: The purpose of this bill is to make the office of
Consumer Advocacy independent of the Insurance Commissioner.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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