Florida Senate - 2016                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1416
       
       
       
       
       
       
                                Ì894704/Î894704                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/09/2016           .                                
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       The Committee on Governmental Oversight and Accountability
       (Hays) recommended the following:
       
    1         Senate Amendment 
    2  
    3         Delete lines 74 - 104
    4  and insert:
    5  be confidential and exempt from s. 119.07(1), Florida Statutes,
    6  and s. 24(a), Article I of the State Constitution. In conducting
    7  this required internal assessment, an insurer or insurance group
    8  identifies and evaluates the material and relevant risks to the
    9  insurer or insurance group and the adequacy of capital resources
   10  to support these risks. The ORSA summary report, substantially
   11  similar ORSA report, and supporting documents contain highly
   12  sensitive and strategic financial information about an insurer
   13  or insurer group. Having a comprehensive and unbiased assessment
   14  will provide the office with an effective early warning
   15  mechanism for preventing insolvencies and protecting
   16  policyholders and promote a stable insurance market. Divulging
   17  the ORSA summary report, substantially similar ORSA summary
   18  report, and supporting documents will injure the insurer or
   19  insurance group by providing competitors with detailed insight
   20  into their financial position, risk management strategies,
   21  business plans, pricing and marketing strategies, management
   22  systems, and operational protocols.
   23         (2) The Legislature finds that it is a public necessity
   24  that the corporate governance annual disclosure and supporting
   25  documents submitted to and held by the office be confidential
   26  and exempt from s. 119.07(1), Florida Statutes, and s. 24(a),
   27  Article I of the State Constitution. The corporate governance
   28  annual disclosure describes an insurer’s governance structure
   29  and the internal practices and procedures used in conducting the
   30  business affairs of the company, making strategic operational
   31  decisions affecting its competitive position, and managing its
   32  financial condition. Release of the corporate governance annual
   33  disclosure and supporting documents will injure the insurer or
   34  insurance group in the marketplace by providing competitors with
   35  the insurer’s or the insurance group’s confidential business
   36  information. Broad disclosure will give state regulators a
   37  thorough understanding of the corporate governance structure and
   38  internal policies and practices used by insurers and promote
   39  market integrity. Effective governance mechanisms will enable
   40  insurers to take any necessary corrective actions and achieve
   41  strategic goals while allowing the office to perform its
   42  regulatory duties effectively and efficiently.