Insurance Department

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INSURANCE DEPARTMENT

                          Adjusted      Executive    Legislative                       
                           Approp.        Request        Approp.
                           2000-01        2001-02        2001-02      Change


STATE OPERATIONS
  Special Rev.-Other   108,432,200    117,288,000    120,433,000   3,145,000 
  Total for 
  STATE OPERATIONS:    108,432,200    117,288,000    120,433,000   3,145,000

Agency Mission

The mission of the Insurance Department is to regulate the insurance industry to ensure that the interests of consumers, companies and producers are considered and balanced.

Year-to-Year Change

The Executive requests appropriations totaling $117,288,000 for State Fiscal Year (SFY) 2001-02, an increase of $8,855,800 or 8.17 percent from SFY 2000-01 levels.

Legislative Changes

Reduce funding for relocation of Insurance Department. $(200,000) ST/SRO

The Assembly reduces funding for the relocation of the Insurance Department from Agency 1 to One Commerce Plaza.

Legislative Proposals

The Assembly plan rejects the Executive's proposal to eliminate 20 vacant positions and directs the Insurance Department to fill these vacancies in the Consumer Services, Frauds and Licensing Bureaus to expedite complaint responses, investigate no-fault fraud and decrease delays in license processing.

The Assembly proposes funding of $500,000 for the Managed Care Consumer Assistance Program to provide consumer assistance, counseling and advocacy through community-based agencies for Medicaid, Medicare and commercial managed care enrollees. Funding for this program will be sub-allocated to the Department of Law.

The Assembly recommends $500,000 for services and expenses to support the creation of the Independent Office of Public Consumer Advocate in the Executive Department to represent and advocate for the interests of non-business automobile and health insurance consumers with respect to rates, rules, regulations and practices of insurance companies.

The Assembly provides $500,000 for services and expenses of a special Automobile Insurance Fraud Prosecutor to be appointed by the Governor and Attorney General. Funding for this program will be sub-allocated to the Department of Law.

The Assembly also proposes $500,000 to fund an independent Health Insurance Quality and Affordability Commission to review factors impacting health insurance premiums and to improve the quality of health care in New York.

The Assembly plan directs the Insurance Department to report on the use of all outside consultants.

The Assembly plan directs the Insurance Department to report on any expenditures relating to the National Association of Insurance Commissioners.

The Assembly concurs with the Executive's recommendation to sub-allocate $5,500,000 to the Department of State and Department of Health for services and expenses to develop and promulgate fire safety standards for cigarettes.

The Assembly rejects the Executive's Article VII proposal to authorize the State to use owner-controlled or "wrap-up" insurance on certain single and multiple public construction projects.

POSITION RESTORATION.
HEALTH QUALITY & AFFORDIBILITY COMMISSION.
INDEPENDENT OFFICE OF INSURANCE CONSUMER ADVOCATE.
MANAGED CARE CONSUMER ASSISTANCE PROGRAM.
SPECIAL POSECUTOR - AUTO INSURANCE FRAUD. $1,345,000
$500,000
$500,000
$500,000
$500,000 ST/SRO
ST/SRO
ST/SRO
ST/SRO
ST/SRO