H. B. 4828
(By Delegate Miley)
[Introduced February 24, 2006; referred to the
Committee on Government Organization.]
A BILL to amend and reenact §33-2-16, §33-2-17 and §33-2-18 of the
Code of West Virginia, 1931, as amended, all relating to the
Office of Consumer Advocacy.
Be it enacted by the Legislature of West Virginia:
That §33-2-16, §33-2-17 and §33-2-18 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; Director of
Consumer Advocacy; promulgation of rules.
(a) 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 is a full-time
position. The director shall be an attorney licensed in the State
of West Virginia. The director shall be appointed by the Governor,
with consent of the Senate for a term of four years to
roughly
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:
Provided, That the current Director of the
Office of Consumer Advocacy or other appointee of the commissioner
shall continue in the position until the Governor appoints a new
director.
(b) The Insurance Commissioner shall provide office space,
equipment and supplies for the office
completely separate and apart
from that of the other departments of the Insurance Commission.
(c) The director may promulgate rules pursuant to article
three, chapter twenty-nine-a of this code in order to effect the
purposes of this section and sections seventeen and eighteen of
this article.
(d) 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. Office of Consumer Advocacy.
(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 Authority,
concerning applications or proceedings before the Health Care
Authority or the review of any act, failure to act or order of the
Health Care 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) At the request of one or more third-party claimant who
does not have legal representation at a hearing on his or her
claim, or whenever the public interest is served, to advocate the
interests of those third-party claimants in proceedings arising out
of any filing made with the Insurance Commissioner by any insurance
company or relating to any third-party complaint alleging an unfair
claims settlement practice;
(4) 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;
(5) 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;
(6) 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 Authority
or a court of competent jurisdiction;
(7) 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;
(8) 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 Authority,
which persons shall be paid from special revenue funds appropriated
for the use of the office;
(9) Make recommendations to the Legislature concerning
legislation to assist the office in the performance of its duties;
(10) 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
(11) 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) Nothing in this section may be construed to authorize the
director to participate in the review and consideration of any rate
filing made pursuant to this chapter.
§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
separate from any other division of the Insurance Commission.
(a) The initial funding for the Office of the Consumer
Advocacy for the fiscal year July first, two thousand six, through
June thirtieth, two thousand seven, shall be in the amount
appropriated to the Insurance Commissioner for the Office of
Consumer Advocacy by the two thousand six Legislature.
(b) The current Director of Consumer Advocacy or such other
appointee of the commissioner shall continue until the inauguration
of a Governor in January, two thousand nine, at which time the
Governor will appoint, with the consent of the Senate, a Director of Consumer Advocacy as shall each Governor thereafter. The new
director of the Office of Consumer Advocacy will submit his or her
own request for appropriation for the next fiscal year separate
from that submitted on behalf of the rest of the Insurance
Commission.
The new Director of the Office of Consumer Advocacy shall, in
his or her sole discretion, make the selection of the hirees and
contractees referred to in subdivisions (6) and (7) of subsection
(a), section seventeen of this article.
NOTE: The purpose of this bill is to make the Office of
Consumer Advocacy independent of the Insurance Commission.
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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