H. B. 2377
(By Delegates Rick Thompson and Hrutkay)
[Introduced February 16, 2005; referred to the
Committee on Banking and Insurance then Government
Organization.]
A BILL to repeal §33-2-18 of the Code of West Virginia, 1931, as
amended; and to amend and reenact §33-2-17 of said code,
relating generally to the office of Consumer Advocacy;
deleting language dealing with funding; striking language
limiting the authority of the office of Consumer Advocacy to
health related matters; and authorizing the office of Consumer
Advocacy to coordinate the consumer service functions within
the office of the Insurance Commissioner.
Be it enacted by the Legislature of West Virginia:
That §33-2-18 of the Code of West Virginia, 1931, as amended,
be repealed; and that
§33-2-17
of said code be amended and
reenacted to read as follows:
ARTICLE 2. INSURANCE COMMISSIONER.
§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 permit the Consumer
Advocate to act as the manager of consumer activities in the
Insurance Commission, to remove the limitation on the Consumer
Advocate to treat only health care issues; and to remove the
separate funding of the office.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.