A bill filed by New York Sen. Joseph P. Addabbo Jr. (D-District 15) would amend the state’s insurance law to create an independent Consumer Advocate Office and an auto insurance rate and complaint database.

The database would be maintained by the Department of Financial Services superintendent from which any resident who requests rate information will within five business days receive:

• • Names, addresses, telephone numbers, and, if appropriate, website addresses of the five companies having the lowest premiums for the requested package of coverage that would write insurance for such person;
  • The total cost for the package of coverage from each such of those insurers;
  • The most recent complaint ranking of each of those insurers;
  • The names, addresses, telephone numbers, and, if appropriate, website addresses of the five companies with the best complaint rankings that would write insurance for such person;
  • The total cost for the package of coverage from each of those insurers.

Until the database is established, the department would provide people who make inquiries with its “Annual Ranking of Automobile Insurance Complaints and Consumers Guide to Auto Insurance.”

For consumers to receive the information, they would need to provide certain information including geographical territory; age, sex, marital status, and other information regarding the class of drivers; make, model, and year of the vehicles, et cetera.

If any disclosure documents aren’t provided as required by the bill, the applicant can return the policy within 30 days of receipt for a pro-rata refund of premiums paid.

The bill would also create an independent Office of Public Insurance Consumer Advocate “to represent the interests of nonbusiness automobile and health insurance consumers.”

The governor would appoint a public insurance consumer advocate for the state who would also serve as the Office of Public Insurance Consumer Advocate’s executive director.

The bill would prohibit the advocate or their spouse from being:

• • Employed by or participating in the management of a business, entity, or other organization regulated by or receiving funds from the Department of Financial Services;
  • Owner or in control of more than 10% interest in a business entity or other organization regulated by or receiving funds from the Department of Financial Services or the Office of Public Insurance Consumer Advocate;
  • Someone who uses or receives a substantial amount of tangible goods, services, or funds from the Department of Financial Services or the Office of Public Insurance Consumer Advocate aside from compensation or reimbursement authorized by law for department or office membership, attendance, or expenses;
  • An officer, employee, or paid consultant of an insurance trade association. This would also apply to potential employees of the Office of Public Insurance Consumer Advocate and their spouses.
  • A lobbyist. This would also apply to the office’s general counsel.

According to the bill, the office would “assess the impact of insurer practices and proposed and in-force insurance rates, rules, and regulations on nonbusiness automobile and health insurance consumers in the state… advocate on behalf of positions that are most advantageous to a substantial number of insurance consumers as determined by the advocate; and do all things necessary and proper for these purposes, including engaging attorneys and experts in actuarial science, economics, accounting, finance, or any other discipline which may be appropriate.”

The bill would also amend the state’s insurance law to require insurers to include the statistical data they rely on when determining nonbusiness auto insurance policy rate filings.

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