Florida Senate - 2016 SB 1416
By Senator Simmons
10-00982B-16 20161416__
1 A bill to be entitled
2 An act relating to public records; amending s.
3 624.4212, F.S.; providing an exemption from public
4 records requirements for certain reports and documents
5 submitted to the Office of Insurance Regulation
6 related to an own-risk and solvency assessment by an
7 insurer or insurance group; providing an exemption
8 from public records requirements for a corporate
9 governance annual disclosure and supporting documents
10 submitted to the office; revising the actuarial board
11 to which the office may disclose certain information;
12 providing for and revising future legislative review
13 and repeal; providing a statement of public necessity;
14 providing a contingent effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Present subsections (3), (4), and (5) of section
19 624.4212, Florida Statutes, are redesignated as subsections (4),
20 (5), and (6), respectively, and amended, and a new subsection
21 (3) is added to that section, to read:
22 624.4212 Confidentiality of proprietary business and other
23 information.—
24 (3) The following information held by the office is
25 confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
26 of the State Constitution:
27 (a) An ORSA summary report, a substantially similar ORSA
28 report, and supporting documents submitted pursuant to s.
29 628.8015.
30 (b) A corporate governance annual disclosure and supporting
31 documents submitted pursuant to s. 628.8015.
32 (4)(3) Information received from the NAIC, a or another
33 governmental entity in this or another state, the Federal
34 Government, or a government of another nation which is
35 confidential or exempt if held by that entity and which is held
36 by the office for use in the office’s performance of its duties
37 relating to insurer valuation and solvency is confidential and
38 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
39 Constitution.
40 (5)(4) The office may disclose information made
41 confidential and exempt under this section:
42 (a) If the insurer to which it pertains gives prior written
43 consent;
44 (b) Pursuant to a court order;
45 (c) To the Actuarial Board for Counseling and Discipline
46 American Academy of Actuaries upon a request stating that the
47 information is for the purpose of professional disciplinary
48 proceedings and specifying procedures satisfactory to the office
49 for preserving the confidentiality of the information;
50 (d) To other states, federal and international agencies,
51 the National Association of Insurance Commissioners and its
52 affiliates and subsidiaries, and state, federal, and
53 international law enforcement authorities, including members of
54 a supervisory college described in s. 628.805 if the recipient
55 agrees in writing to maintain the confidential and exempt status
56 of the document, material, or other information and has
57 certified in writing its legal authority to maintain such
58 confidentiality; or
59 (e) For the purpose of aggregating information on an
60 industrywide basis and disclosing the information to the public
61 only if the specific identities of the insurers, or persons or
62 affiliated persons, are not revealed.
63 (6)(5) This section is subject to the Open Government
64 Sunset Review Act in accordance with s. 119.15 and is repealed
65 on October 2, 2021 2019, unless reviewed and saved from repeal
66 through reenactment by the Legislature.
67 Section 2. (1) The Legislature finds that it is a public
68 necessity that the own-risk and solvency assessment (ORSA)
69 summary report, a substantially similar ORSA report, and
70 supporting documents submitted to and held by the Office of
71 Insurance Regulation pursuant to s. 628.8015, Florida Statutes,
72 be exempt from public records requirements. In conducting this
73 required internal assessment, an insurer or insurance group
74 identifies and evaluates the material and relevant risks to the
75 insurer or insurance group and the adequacy of capital resources
76 to support these risks. The ORSA summary report, substantially
77 similar ORSA report, and supporting documents contain highly
78 sensitive and strategic financial information about an insurer
79 or insurer group. Having a comprehensive and unbiased assessment
80 will provide the office with an effective early warning
81 mechanism for preventing insolvencies and protecting
82 policyholders and promote a stable insurance market. Divulging
83 the ORSA summary report, substantially similar ORSA summary
84 report, and supporting documents will injure the insurer or
85 insurance group by providing competitors with detailed insight
86 into their financial position, risk management strategies,
87 business plans, pricing and marketing strategies, management
88 systems, and operational protocols.
89 (2) The Legislature finds that it is a public necessity
90 that the corporate governance annual disclosure and supporting
91 documents submitted to and held by the office be exempt from
92 public records requirements. The corporate governance annual
93 disclosure describes an insurer’s governance structure and the
94 internal practices and procedures used in conducting the
95 business affairs of the company, making strategic operational
96 decisions affecting its competitive position, and managing its
97 financial condition. Broad disclosure will give state regulators
98 a thorough understanding of the corporate governance structure
99 and internal policies and practices used by insurers and promote
100 market integrity. Effective governance mechanisms will enable
101 insurers to take any necessary corrective actions and achieve
102 strategic goals.
103 Section 3. This act shall take effect on the same date that
104 SB ____ or similar legislation takes effect, if such legislation
105 is adopted in the same legislative session or an extension
106 thereof and becomes a law.