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FOR IMMEDIATE RELEASE |
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CONTACT:
Victoria L. Stanish |
State Rep. John
Yudichak |
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Yudichak introduces legislation to help protect consumers
HARRISBURG, April 24 – State Rep. John Yudichak, D-Luzerne, has introduced legislation that would establish an Office of Consumer Advocate for Insurance in Pennsylvania to help protect the rights of consumers in insurance-related matters.
The bill (H.B. 1121) would establish the office as an independent organization within the Office of Attorney General. The Office of Consumer Advocate for Insurance would have the authority to represent consumers’ interests on any insurance matter before the state Department of Insurance or any other state agency or court. The advocate also would be responsible for identifying and tracking trends in the insurance industry, recommending consumer protections, responding to consumer complaints and educating state residents about insurance issues and practices.
“Insurance customers need a voice on matters that affect them, and this agency would represent consumers’ interests,” Yudichak said.
The office would be similar to the one that exists within the Public Utility Commission, which has been regarded as effective in representing state residents’ concerns in matters involving public utilities in Pennsylvania.
“Whenever a utility company petitions for a rate increase in the state, residents who would be affected by that change have representation from the PUC’s consumer advocate. Insurance customers should also be able to have an agency that will fight on their behalf,” Yudichak said.
Pennsylvania has created an Office of Consumer Advocate within the Insurance Department, but unlike the PUC consumer advocate, the Insurance Department’s consumer advocate does not have the authority or the budget to challenge or litigate insurance company rate increases on behalf of consumers.
“The proposed Office of Consumer Advocate for Insurance would have the independence, authority, staff and funding needed to represent consumers’ best interests,” Yudichak said.
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