Florida Senate - 2016 SB 958 By Senator Benacquisto 30-00641B-16 2016958__ 1 A bill to be entitled 2 An act relating to operations of the Citizens Property 3 Insurance Corporation; amending s. 627.351, F.S.; 4 authorizing the use of specified information by 5 certain entities in analyzing risks or developing 6 rating plans; prohibiting the use of such information 7 for the direct solicitation of policyholders; 8 providing an effective date. 9 10 Be It Enacted by the Legislature of the State of Florida: 11 12 Section 1. Paragraph (x) of subsection (6) of section 13 627.351, Florida Statutes, is amended to read: 14 627.351 Insurance risk apportionment plans.— 15 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 16 (x)1. The following records of the corporation are 17 confidential and exempt from the provisions of s. 119.07(1) and 18 s. 24(a), Art. I of the State Constitution: 19 a. Underwriting files, except that a policyholder or an 20 applicant shall have access to his or her own underwriting 21 files. Confidential and exempt underwriting file records may 22 also be released to other governmental agencies upon written 23 request and demonstration of need; such records held by the 24 receiving agency remain confidential and exempt as provided 25 herein. 26 b. Claims files, until termination of all litigation and 27 settlement of all claims arising out of the same incident, 28 although portions of the claims files may remain exempt, as 29 otherwise provided by law. Confidential and exempt claims file 30 records may be released to other governmental agencies upon 31 written request and demonstration of need; such records held by 32 the receiving agency remain confidential and exempt as provided 33 herein. 34 c. Records obtained or generated by an internal auditor 35 pursuant to a routine audit, until the audit is completed, or if 36 the audit is conducted as part of an investigation, until the 37 investigation is closed or ceases to be active. An investigation 38 is considered “active” while the investigation is being 39 conducted with a reasonable, good faith belief that it could 40 lead to the filing of administrative, civil, or criminal 41 proceedings. 42 d. Matters reasonably encompassed in privileged attorney 43 client communications. 44 e. Proprietary information licensed to the corporation 45 under contract and the contract provides for the confidentiality 46 of such proprietary information. 47 f. All information relating to the medical condition or 48 medical status of a corporation employee which is not relevant 49 to the employee’s capacity to perform his or her duties, except 50 as otherwise provided in this paragraph. Information that is 51 exempt shall include, but is not limited to, information 52 relating to workers’ compensation, insurance benefits, and 53 retirement or disability benefits. 54 g. Upon an employee’s entrance into the employee assistance 55 program, a program to assist any employee who has a behavioral 56 or medical disorder, substance abuse problem, or emotional 57 difficulty which affects the employee’s job performance, all 58 records relative to that participation shall be confidential and 59 exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I 60 of the State Constitution, except as otherwise provided in s. 61 112.0455(11). 62 h. Information relating to negotiations for financing, 63 reinsurance, depopulation, or contractual services, until the 64 conclusion of the negotiations. 65 i. Minutes of closed meetings regarding underwriting files, 66 and minutes of closed meetings regarding an open claims file 67 until termination of all litigation and settlement of all claims 68 with regard to that claim, except that information otherwise 69 confidential or exempt by law shall be redacted. 70 2. If an authorized insurer is considering underwriting a 71 risk insured by the corporation, relevant underwriting files and 72 confidential claims files may be released to the insurer 73 provided the insurer agrees in writing, notarized and under 74 oath, to maintain the confidentiality of such files. If a file 75 is transferred to an insurer, that file is no longer a public 76 record because it is not held by an agency subject to the 77 provisions of the public records law. Underwriting files and 78 confidential claims files may also be released to staff and the 79 board of governors of the market assistance plan established 80 pursuant to s. 627.3515, who must retain the confidentiality of 81 such files, except such files may be released to authorized 82 insurers that are considering assuming the risks to which the 83 files apply, provided the insurer agrees in writing, notarized 84 and under oath, to maintain the confidentiality of such files. 85 Finally, the corporation or the board or staff of the market 86 assistance plan may make the following information obtained from 87 underwriting files and confidential claims files available to 88 licensed general lines insurance agents: name, address, and 89 telephone number of the residential property owner or insured; 90 location of the risk; rating information; loss history; and 91 policy type. The receiving licensed general lines insurance 92 agent must retain the confidentiality of the information 93 received and may use the information only for the purposes of 94 developing a take-out plan to be submitted to the office for 95 approval or otherwise analyzing the underwriting of a risk or 96 risks insured by the corporation on behalf of the private 97 insurance market. The licensed general lines agent and an 98 insurer receiving information under this subparagraph may not 99 use the information for the direct solicitation of 100 policyholders. An authorized insurer, a reinsurer that may 101 provide reinsurance under s. 624.610, a licensed reinsurance 102 broker, a licensed rating organization, or a modeling company 103 may receive the information available to a licensed general 104 lines agent for the sole purpose of analyzing risks for 105 underwriting or developing rating plans in the private insurance 106 market and must retain the confidentiality of the information 107 received. Such entities may not use the information for the 108 direct solicitation of policyholders. 109 3. A policyholder who has filed suit against the 110 corporation has the right to discover the contents of his or her 111 own claims file to the same extent that discovery of such 112 contents would be available from a private insurer in litigation 113 as provided by the Florida Rules of Civil Procedure, the Florida 114 Evidence Code, and other applicable law. Pursuant to subpoena, a 115 third party has the right to discover the contents of an 116 insured’s or applicant’s underwriting or claims file to the same 117 extent that discovery of such contents would be available from a 118 private insurer by subpoena as provided by the Florida Rules of 119 Civil Procedure, the Florida Evidence Code, and other applicable 120 law, and subject to any confidentiality protections requested by 121 the corporation and agreed to by the seeking party or ordered by 122 the court. The corporation may release confidential underwriting 123 and claims file contents and information as it deems necessary 124 and appropriate to underwrite or service insurance policies and 125 claims, subject to any confidentiality protections deemed 126 necessary and appropriate by the corporation. 127 4. Portions of meetings of the corporation are exempt from 128 the provisions of s. 286.011 and s. 24(b), Art. I of the State 129 Constitution wherein confidential underwriting files or 130 confidential open claims files are discussed. All portions of 131 corporation meetings which are closed to the public shall be 132 recorded by a court reporter. The court reporter shall record 133 the times of commencement and termination of the meeting, all 134 discussion and proceedings, the names of all persons present at 135 any time, and the names of all persons speaking. No portion of 136 any closed meeting shall be off the record. Subject to the 137 provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s 138 notes of any closed meeting shall be retained by the corporation 139 for a minimum of 5 years. A copy of the transcript, less any 140 exempt matters, of any closed meeting wherein claims are 141 discussed shall become public as to individual claims after 142 settlement of the claim. 143 Section 2. This act shall take effect July 1, 2016.