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2002 FINAL STATELEGISLATIVE PROGRAM CONTROVERSIAL ISSUE ISSUE: PEOPLE'S COUNSEL FOR INSURANCE SUMMARY: The Office of the People's Counsel was established in 1922 as a representative of the interests of residential consumers of gas, electric, telephone, sewer and water services, and noncommercial users of regulated transportation industries. The primary duty of the People's Counsel is to appear before the Public Service Commission, courts, and federal and state agencies to protect the interests of residential and noncommercial utility users. The People's Counsel must be an attorney licensed to practice law in Maryland. The Governor has the right to appoint the People's Counsel with the advice and consent of the Senate. In recent years, legislation has been introduced to expand the duties of the People's Counsel (or to establish a public advocate within the Insurance Division of the Department of Licensing and Regulation) to include insurance matters. Under these bills the new responsibilities would enable the People's Counsel to protect insurance policyholder interests by appearing before the Insurance Division or the courts on issues relating to insurance rates, services and procedures. The concept of a public advocate on insurance issues has been fought vigorously by the insurance industry which claims that self-regulation is adequate. The MSBA decided to support the People's Counsel on Insurance late in the 1989 session, arguing that the industry had failed to provide adequate safeguards for consumer interests and that the threat of litigation would help lower insurance rates. No legislation dealing with the People's Counsel for Insurance has been introduced since 1989. MSBA 2002 POSITION: Monitor legislation dealing with an Office of People's Counsel on Insurance. SAMPLE LEGISLATION:
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