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November 22, 2009

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Regulators plan Lake Tahoe schmooze cruise with insurers

Wednesday, Sept. 9, 2009 | 2 a.m.

Barbara Buckley

Barbara Buckley

— The state on Friday will host an “industry day” at a Lake Tahoe casino, granting insurance companies an “all access pass” to the state employees who regulate them.

The first-time event — which includes a cruise on Lake Tahoe for the public employees and insurance company executives the night before — is raising eyebrows among some state lawmakers, who say it fuels the perception that the state is too cozy with the industries it’s supposed to monitor.

Assembly Speaker Barbara Buckley, D-Las Vegas, called the event, put on by the Nevada Insurance Division, “unbelievable.”

“Under any circumstance I’d have a hard time understanding why the state of Nevada is hosting a fancy cruise on Lake Tahoe for the insurance industry,” Buckley said.

She wondered aloud whether consumers seeking state assistance in fighting with their health insurance companies would have the same access to regulators.

State employees “are supposed to be a neutral regulator of the insurance industry,” she said. “This certainly gives an appearance of impropriety.”

The flier promoting the event — it looks like a backstage concert pass, with the words “All Access” written in tall letters — invites attendees to join Insurance Commissioner Scott Kipper and other division staff for round-table discussions, workshops to inform state staff “how to better meet your needs” and tips on expediting filings (which Buckley said usually means rate increases).

Kipper, who took over as Nevada insurance commissioner in January, defended the event.

“This is part of being a business-friendly environment,” he said. “This is right in line with the governor’s initiatives where we are advertising ourselves as being business-friendly.”

The event at Harveys Lake Tahoe Casino and Resort is free to attendees. It is being paid for by insurance industry associations, Kipper said.

Participants, including state workers, will pay their own way for the cruise on the paddle wheel MS Dixie, Kipper said.

“It’s strictly a social event,” Kipper said of the cruise.

Kipper said response to the event has been “phenomenal,” with 142 representatives of insurance companies, lawyers and third-party administrators signed up to attend.

Dan Burns, spokesman for Gov. Jim Gibbons, also dismissed criticism of the event.

“The governor wants an open and transparent relationship between government regulators and industries they regulate,” he said. “The governor wants Nevada to be well known as a place that is not repressive toward businesses.”

Insurance industry lobbyist Jim Wadhams said, “I think this commissioner is making an effort to keep his agency open, so people who use his services know how to do so.”

Others, however, wondered whether everyone would get the same level of access.

Bobbette Bond, executive director of Nevada Health Care Policy Group, which represents 320,000 workers, including members of the Culinary Union, said: “We would hope all interested parties would have the same access to the commissioner and the division.”

The Insurance Division is responsible for licensing and regulating the insurance industry, including auto and health care, and protecting consumers. When companies raise their rates, the division is to ensure they are complying with state law. Also, when Nevadans believe their health insurance companies have unfairly denied claims, they can bring their cases to the division.

Kipper said seven full-time staff members — about a tenth of his staff — are assigned to looking into consumer insurance complaints. “We have a great staff that really takes consumer protection to heart,” he said.

Still, he acknowledged that the perception that state regulators are too cozy with the industry is hard to shake.

Buckley said events such as this fuel that perception.

“This is not an event for consumers or citizens of Nevada to learn about insurance options in this time of economic crisis,” she said. “This is for the insurance industry only, with an evening cruise around the lake, where insurance industry executives can have cocktails with staff. To me, this is unbelievable.”

Discussion: 20 comments so far…

  1. http://www.google.com/imgres?imgurl=http...

    What a joker, our Governor. He loves cruises!
    This is my favorite cruise photo of Governor
    Gibbons.

  2. http://msnbcmedia4.msn.com/j/msnbc/Compo...

    SORRY. Let's try that again.

  3. Is the State p aying for this with the $100,000,000 the Feds are giving for the unemployment claims?

  4. The "state" is hosting this? So that means the taxpayers, right. I think these people can "meet" each other during their normal business hours and then eat and drink on their own dime.

  5. WTF?

    Oh, I see now. It's a fundraiser for Goober.

  6. The governor and his party have no shame. Their bought-and-paid-for minds cannot even fathom why this is wildly inappropriate. The right wingers froth about the sanctity of "competition" and then pull stunts like this? It is obvious that "business friendly" does not mean fair competition, it means "assist big business in exploiting the consumer".

    This is a great example of why, when dealing with life and death issues like health care, the "free market" is a saying only.

    The "invisible hand" does indeed exist and this is what it looks like. A public option is the only moral choice.

  7. Business friendly? Really? This comes off as a conflict of interest if ever I saw one. NV regulators in all Departments need to do their jobs whether it appears to be "repressive" or not; the law is the law. No wonder NV is one of the most consumer UNfriendly states. Businesses think it's OK to get around regulation because there is so little enforcement.

  8. are there any torpedo dive-bombers for rent at the Tahoe airport? I though incest was illegal?

  9. What? No comment from the Nevada Policy Research Institute drones who usually haunt this space to defend the Guv? Have they finally lost faith--or are they too busy planning that dinner party for Karl Rove over at Sheldon's Venetian?

  10. The insurance industry associations are paying for the event. How is this different than a lobbyist taking . . . say Ms. Buckley to dinner?

  11. "The insurance industry associations are paying for the event. How is this different than a lobbyist taking . . . say Ms. Buckley to dinner?"

    Two wrongs cannot and do not make a right. Is that the best defense you can come up with? Don't defend the issue just attack another politician?

  12. Didn't realize that was an attack, and why in the world would I defend this?

    It's a simple question, and by your response you believe that it's wrong.

    I believe that attracting and retaining new business's to Nevada will help solve some of our fiscal shortcomings by generating new or replacement jobs. If our government is above board in it's dealings with businesses and the taxpayer's are not footing the bill what's wrong with it?

  13. Johnny-boy Enswign: "mommy daddy, can I go on the boat? please?

  14. Because this is an example of regulators and the regulated getting overly friendly.
    As a citizen would you or I be allowed to wander around and listen in on the conversations that evening? No so that means it is not above board.

    Throwing a party / cruise like this is the same as giving a large gift from the insurance industry to our officials charged with watching over them.

    This is one of those issues: special interests and lobbyists, government transparency that I thought both sides could agree on...

    Seriously, this isn't about commerce or generating jobs, this is about back room deals and inappropriate influence.

  15. "This is part of being a business-friendly environment," he said. "This is right in line with the governor's initiatives where we are advertising ourselves as being business-friendly."

    Okay, ecm - I guess this is the way the state will be 'attracting and retaining new business's to Nevada" - wine and dine them (what no hookers?)

  16. And we wonder why regulators don't respond to complaints about insurers.

  17. ThisOneGuy - I see your point, but I'm thinking the back room deals and inappropriate influence isn't going to stop just because we don't like it. Trying to get the voters to hold the elected officials accountable is like trying to teach a two year old to say please.

    It's normal to have a face-to-face relationship in your business dealings, so I'm having difficulty not applying that to this situation. I think the department should also look at how it can service the consumers better.

    Det. Munch -It's legal in some counties! Seriously, workshops and round-tables was my focus. The cruise would be a bonus to see that beautiful lake.

  18. Business as usual.
    SNAFU.

  19. Face to face meetings in BUSINESS is normal sure. The regulators and the insurance industry are not (or at least SHOULD not be) doing business together. The relationship is different.

    And I agree we are probably not going to stop back room deals any time soon, but flagrant shameless displays like this should really be illegal.

  20. The Nevada Insurance Division serves to protect citizens, but at the same time also has to work with insurance professionals. There is nothing inappropriate about their holding a meeting with businesses they regulate to increase communication and cooperation for all involved.
    The state is not footing the bill for any of the event.
    The cruise is on a public boat, and anyone who wishes to go is paying for their own ticket.
    I live in Tahoe and make my living from tourist and convention business. I'm pleased that the conference will be held here.
    Corporations and government entities should be encouraged to hold meetings in Nevada. The money attendees spend on hotels, meals, and recreational activities while attending conferences is vital to residents employment. These events have a trickle down effect to everyone, in a state where the economy is entirely dependant on tourism.

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