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June 3, 2012

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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.”

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